Exhibit 10.2
FISHER
COMMUNICATIONS, INC.
FORM OF
CHANGE OF CONTROL
AGREEMENT
This Change of Control Agreement
(this "
Agreement ”), is entered into by and between
Fisher Communications, Inc., a Washington corporation (as
supplemented by Section 13 hereof, the “ Company
”), and
(the “
Executive ”) as of
, 2009.
The Board of Directors of the Company
(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 of the
Executive, notwithstanding the possibility, threat or occurrence of
a Change of Control (as defined in Section 1 hereof) of the
Company. The Board believes it is imperative to diminish the
inevitable distraction of the Executive arising from the personal
uncertainties and risks created by a pending or threatened Change
of Control, to encourage the 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 the
Executive with reasonable compensation and benefit arrangements
upon a Change of Control.
In order to accomplish these
objectives, the Board has caused the Company to enter into this
Agreement.
1.1 “ Change of
Control ” shall have the definition set forth in
Appendix A hereto, which is hereby incorporated by
reference.
1.2 “ Change of Control
Date ” shall mean the date on which a Change of
Control occurs.
1.3 “ Employment
Period ” shall mean the period commencing on each
Change of Control Date and ending eighteen (18) months after
each such date.
The initial term of this Agreement
(“ Initial Term ”) shall be for a period
of two (2) years from the date of this Agreement as first
appearing above; provided, however, that this Agreement shall
automatically renew for successive additional two (2) year
periods (“ Renewal Terms ”) unless notice
of nonrenewal is given by either party to the other at least ninety
(90) days prior to the end of the Initial Term or any Renewal
Term; and provided, further, that if a Change of Control occurs
during the Term, the Term shall automatically extend for the
duration of the Employment Period. The “ Term
” of this Agreement shall be the Initial Term plus all
Renewal Terms and, if applicable, the duration of the Employment
Period. At the end of the Term, this Agreement shall terminate
without further action by either the Company or the Executive.
During the Employment Period, the
Company hereby agrees to continue the Executive in its employ or in
the employ of its affiliated companies, and the Executive hereby
agrees to remain in the employ of the Company or its affiliated
companies, in accordance with the terms and provisions of this
Agreement; provided, however, that either the Company or the
Executive may terminate the employment relationship subject to the
terms of this Agreement.
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3.2
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Authority, Duties and
Responsibilities
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During the Employment Period, the
Executive’s 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 ninety (90) day period immediately preceding the
Change of Control Date.
During the Employment Period, the
Executive’s services shall be performed at the office where
Executive was performing services as of the Change of Control Date
or at any office located no more than fifty (50) miles from
such office.
The Executive and the Company
acknowledge that, except as may otherwise be provided under any
other written agreement between the Executive and the Company, the
employment of the Executive by the Company or its affiliated
companies is “at will” and may be terminated by either
the Executive or the Company or its affiliated companies at any
time with or without cause. Moreover, if prior to the Change of
Control Date, the Executive’s employment with the Company or
its affiliated companies terminates for any reason, then the
Executive shall have no further rights under this Agreement;
provided, however, that the Company may not avoid liability for any
termination payments that would have been required during the
Employment Period pursuant to Section 8 hereof by terminating
the Executive prior to the Employment Period where such termination
is carried out in anticipation of a Change of Control and the
principal motivating purpose is to avoid liability for such
termination payments.
During the Employment Period, and
excluding any periods of vacation and sick leave to which the
Executive is entitled, the Executive will devote all of the
Executive’s professional productive time, ability, attention
and effort to the business and affairs of the Company and the
discharge of the responsibilities assigned to the Executive
hereunder, and will use the Executive’s reasonable best
efforts to perform faithfully and efficiently such
responsibilities. It shall not be a violation of this Agreement for
the Executive to (a) serve on corporate, civic or charitable
boards or committees, (b) deliver lectures, fulfill speaking
engagements or teach at educational institutions, (c) manage
personal investments, or (d) engage in activities permitted by
the policies of the Company or as specifically permitted by the
Company, so long as such activities do not significantly interfere
with the performance of the Executive’s responsibilities in
accordance with this Agreement. It is expressly understood and
agreed that to the extent any such activities have been conducted
by the Executive prior to the Employment Period, the continued
conduct of such activities (or the conduct of activities similar in
nature and scope thereto) during the Employment Period shall not
thereafter be deemed to interfere with the performance of the
Executive’s responsibilities to the Company.
As long as the Executive remains
employed by the Company during the Employment Period, the Company
agrees to pay or cause to be paid to the Executive, and the
Executive agrees to accept in exchange for the services rendered
hereunder by the Executive, the following compensation:
The Executive shall receive an annual
base salary (the “ Annual Base Salary ”),
at least equal to the Executive’s annual base salary
immediately prior to the Change of Control Date. The Annual Base
Salary shall be paid in substantially equal installments and at the
same intervals as the salaries of other executives of the Company
are paid. The Board, the Compensation Committee of the Board or the
Chief Executive Officer shall review the Annual Base Salary at
least annually and shall determine in good faith and consistent
with any generally applicable Company policy any increases for
future years.
In addition to the Annual Base
Salary, the Executive shall be entitled to participate in the
annual cash bonus plan of the Company to the same extent as
similarly situated executives, with a target bonus at least equal
to Executive’s target bonus immediately prior to the Change
of Control Date.
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6.1
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Incentive, Retirement and Welfare Benefit
Plans; Vacation
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As long as the Executive remains
employed by the Company during the Employment Period, the Executive
shall be entitled to participate, subject to and in accordance with
applicable eligibility requirements, in such fringe benefit
programs as shall be generally made available to other executives
of the Company and its affiliated companies from time to time
during the Employment Period by action of the Board (or any person
or committee appointed by the Board to determine fringe benefit
programs and other emoluments), including, without limitation, paid
vacations; any stock purchase, equity compensation, savings or
retirement plan, practice, policy or program; and all welfare
benefit plans, practices, policies or programs (including, without
limitation, medical, prescription, dental, disability, salary
continuance, employee life, group life, accidental death and travel
accident insurance plans or programs).
As long as the Executive remains
employed by the Company during the Employment Period, the Executive
shall be entitled to receive prompt reimbursement for all
reasonable employment expenses incurred by the Executive in
accordance with the policies, practices and procedures of the
Company and its affiliated companies in effect for the executives
of the Company and its affiliated companies during the Employment
Period. Without limitation on the foregoing, reimbursement shall be
made no later than the end of the fourth month of the year
following the year in which the expense was incurred.
During the Employment Period,
employment of the Executive may be terminated as follows, but, in
any case, the nondisclosure provisions set forth in Section 10
hereof shall survive the termination of this Agreement and the
termination of the Executive’s employment with the
Company:
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7.1
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Termination by the Company or the
Executive
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At any time during the Employment
Period, the Company may terminate the employment of the Executive
with or without Cause (as defined below), and the Executive may
terminate the Executive’s employment for Good Reason (as
defined below) or for any reason, upon giving a Notice of
Termination (as defined below).
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7.2
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Automatic Termination
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This Agreement and the
Executive’s employment during the Employment Period shall
terminate automatically upon the death or Total Disability of the
Executive. The term “ Total Disability ”
as used herein shall mean the Executive’s inability (with
such accommodation as may be required by law and which places no
undue burden on the Company), as determined by a physician selected
by the Company and acceptable to the Executive, to perform the
duties set forth in Section 3.2 hereof for a period or periods
aggregating twelve (12) weeks in any three hundred sixty-five
(365) day period as a result of physical or mental illness,
loss of legal capacity or any other cause beyond the
Executive’s control, unless the Executive is granted a leave
of absence by the Board. The Executive and the Company hereby
acknowledge that the duties specified in Section 3.2 hereof
are essential to the Executive’s position and that the
Executive’s ability to perform those duties is the essence of
this Agreement.
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7.3
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Notice of Termination
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Any termination by the Company or by
the Executive during the Employment Period shall be communicated by
a Notice of Termination to the other party given in accordance with
Section 12 hereof. The term “ Notice of
Termination ” shall mean a written notice that
(a) indicates the specific termination provision in this
Agreement relied upon and (b) to the extent applicable, sets
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. The failure by the Executive or
the Company to set forth in the Notice of Termination any fact or
circumstance that contributes to a showing of Good Reason or Cause
shall not waive any right of the Executive or the Company hereunder
or preclude the Executive or the Company from asserting such fact
or circumstance in enforcing the Executive’s or the
Company’s rights hereunder.
During the Employment Period, “
Date of Termination ” means (a) if the
Executive’s employment is terminated by reason of death, the
last day of the calendar month in which the Executive’s death
occurs, (b) if the Executive’s employment is terminated
by reason of Total Disability, immediately upon a
determination by the Company of the Executive’s Total
Disability, and (c) in all other cases, ten (10) business
days after the date of personal delivery or mailing of the Notice
of Termination. The Executive’s employment and performance of
services will continue during such ten (10) day period;
provided, however, that the Company may, upon notice to the
Executive and without reducing the Executive’s compensation
during such period, excuse the Executive from any or all of the
Executive’s duties during such period. Notwithstanding
anything contained in this Agreement to the contrary, the date on
which a “separation from service,” within the meaning
of Section 409A(a)(2)(A)(i) of the Internal Revenue Code of
1986, as amended (“ Separation from Service
”), occurs shall be the “Date of Termination” or
termination of employment for purposes of determining the timing of
payments under this Agreement to the extent necessary to have such
payments and benefits under this Agreement be exempt from the
requirements of Section 409A of the Internal Revenue Code of
1986, as amended (“ Code Section 409A
”), or comply with the requirements of Code
Section 409A, as applicable.
In the event of termination of the
Executive’s employment during the Employment Period, all
compensation and benefits set forth in this Agreement shall
terminate except as specifically provided in this
Section 8.
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8.1
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Termination by the Company Other Than for
Cause or by the Executive for Good Reason
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If during the Employment Period the
Company terminates the Executive’s employment other than for
Cause or the Executive terminates the Executive’s employment
for Good Reason, the Executive shall be entitled to:
(a) receive payment of the
following accrued obligations (the “ Accrued
Obligations ”):
(i) the Annual Base Salary
through the Date of Termination to the extent not theretofore
paid;
(ii) any compensation
previously deferred by the Executive (together with accrued
interest or earnings thereon, if any); and
(iii) any accrued vacation pay
that would be payable under the Company’s standard policy to
the extent not theretofore paid; and
(b) an amount as severance pay
equal to the sum of (x) one (1) times the Annual Base
Salary for the fiscal year in which the Date of Termination occurs
and (y) Executive’s target bonus under the
Company’s annual cash bonus plan for the fiscal year in which
the Date of Termination occurs.
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8.2
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Termination for Cause or Other Than for
Good Reason
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If during the Employment Period the
Executive’s employment shall be terminated by the Company for
Cause or by the Executive for other than Good Reason, this
Agreement shall terminate without further obligation on the part of
the Company to the Executive, other than the Company’s
obligation to pay the Executive the Accrued Obligations.
In the event the Executive’s
employment is not terminated prior to expiration of the Term, this
Agreement shall terminate upon the expiration of the Term without
further obligation on the part of the Company to the Executive.
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8.4
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Termination Because of Death or Total
Disability
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If during the Employment Period the
Executive’s employment is terminated by reason of the
Executive’s death or Total Disability, this Agreement shall
terminate automatically without further obligation on the part of
the Company to the Executive or the Executive’s legal
representatives under this Agreement, other than the
Company’s obligation to pay the Executive the Accrued
Obligations (which shall be paid to the Executive’s estate or
beneficiary, as applicable in the case of the Executive’s
death).
All payments of Accrued Obligations,
or any portion thereof payable pursuant to this Section 8,
other than deferred compensation pursuant to
Section 8.1(a)(ii) hereof, shall be made to the Executive
within ten (10) working days of the Date of Termination.
Deferred compensation pursuant to Section 8.1(a)(ii) hereof
shall be payable pursuant to the terms of the applicable deferred
compensation program. Subject to Section 21, any severance
payments payable to the Executive pursuant to Sections 8.1(b)
hereof shall be made to the Executive in a lump sum within
ten (10) days after the release referred to in
Section 8.9 hereof becomes effective, but in no event earlier
than the Date of Termination. Notwithstanding the preceding
provisions of this Section 8, if any payment or benefit
pursuant to this Agreement constitutes a “deferral of
compensation” subject to Code Section 409A (after taking
into account, to the maximum extent possible, any applicable
exemptions) (a “ 409A Payment ”), then
the provisions of Section 21 hereof shall apply. In addition,
Section 8.9 hereof must be satisfied to receive payments and
benefits under this Section 8.
For purposes of this Agreement,
“ Cause ” means cause given by the
Executive to the Company and shall include, without limitation, the
occurrence of one (1) or more of the following events:
(a) a clear refusal to carry out
any material lawful duties of the Executive or any directions of
the Board or the member of senior management of the Company to
which the Executive reports, all reasonably consistent with the
duties described in Section 3.2 hereof;
(b) persistent failure to carry
out any lawful duties of the Executive described in Section 3.2
hereof or any directions of the Board or the member of senior
management to which the Executive reports reasonably consistent
with the duties herein set forth to be performed by the Executive;
provided, however, that the Executive has been given reasonable
notice and opportunity to correct any such failure;
(c) violation by the Executive
of a state or federal criminal law involving the commission of a
crime against the Company or any other criminal act involving m