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EXHIBIT 10.15
CHANGE OF CONTROL AGREEMENT
This Change of Control Agreement ("Agreement") between Stewart
Enterprises, Inc., a Louisiana corporation (the "Company"), and ______________
(the "Employee") is effective as of November 1, 2004 (the "Change of Control
Agreement Date").
ARTICLE I
DEFINITIONS
1.1 EMPLOYMENT AGREEMENT. After a Change of Control (defined below),
this Agreement supersedes the Employment Agreement effective as of November 1,
2004 between Employee and the Company (the "Employment Agreement") except to the
extent that certain provisions of the Employment Agreement are expressly
incorporated by reference herein. After a Change of Control, the definitions in
this Agreement supersede definitions in the Employment Agreement, but
capitalized terms used herein that are not defined in this Agreement have the
meanings given to them in the Employment Agreement.
1.2 DEFINITION OF "COMPANY." As used in this Agreement, "Company" shall
mean the Company as defined above and any successor to or assignee of (whether
direct or indirect, by purchase, merger, consolidation or otherwise) all or
substantially all of the assets or business of the Company.
1.3 CHANGE OF CONTROL DEFINED. "Change of Control" shall mean:
(a) the acquisition by any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
Act) of more than 30% of the outstanding shares of the Company's Class A
Common Stock, no par value per share (the "Common Stock"); provided,
however, that for purposes of this subsection (a), the following
acquisitions shall not constitute a Change of Control:
(i) any acquisition of Common Stock directly from the
Company,
(ii) any acquisition of Common Stock by the Company,
(iii) any acquisition of Common Stock by any employee benefit
plan (or related trust) sponsored or maintained by the Company or
any corporation controlled by the Company, or
(iv) any acquisition of Common Stock by any corporation
pursuant to a transaction that complies with clauses (i), (ii) and
(iii) of subsection (c) of this Section 1.3; or
(b) individuals who, as of the Change of Control Agreement Date,
constitute the Board (the "Incumbent Board") cease for any reason to
constitute at least a majority
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of the Board; provided, however, that any individual becoming a director
subsequent to the Change of Control Agreement 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 a member of the Incumbent Board, unless such
individual's 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 Incumbent Board; or
(c) consummation of a reorganization, merger or consolidation, or
sale or other disposition of all of 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 Company's outstanding common
stock and the Company's voting securities entitled to vote generally
in the election of directors immediately prior to such Business
Combination have direct or indirect beneficial ownership,
respectively, of 50% or more of the then outstanding shares of
common stock, and 50% or more 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 (which, for purposes of this paragraph (i) and
paragraphs (ii) and (iii), shall include a corporation which as a
result of such transaction controls the Company or all or
substantially all of the Company's assets either directly or through
one or more subsidiaries), and
(ii) except to the extent that such ownership existed prior
to the Business Combination, 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 then outstanding shares of common
stock of the corporation resulting from such Business Combination or
20% or more of the combined voting power of the then outstanding
voting securities of such corporation, and
(iii) at least 50% 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.
1.4 AFFILIATE. "Affiliate" or "affiliated companies" shall mean any
company controlled by, controlling, or under common control with, the Company.
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1.5 CAUSE. "Cause" shall mean:
(a) the willful and continued failure of the Employee to perform
substantially the Employee's duties with the Company or its affiliates
(other than any such failure resulting from incapacity due to physical or
mental illness), after a written demand for substantial performance is
delivered to the Employee by the Board of the Company which specifically
identifies the manner in which the Board believes that the Employee has
not substantially performed the Employee's duties, or
(b) the willful engaging by the Employee in illegal conduct or
gross misconduct which is materially and demonstrably injurious to the
Company or its affiliates.
For purposes of this provision, 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 or its
affiliates. Any act, or failure to act, based upon authority given pursuant to a
resolution duly adopted by the Board or upon the instructions of a senior
officer of the Company or based upon the advice of counsel for the Company or
its affiliates 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 or its
affiliates. The cessation of employment of the Employee shall not be deemed to
be 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 at a meeting of the Board
called and held for such purpose (after reasonable notice is provided to the
Employee and the Employee is given an opportunity, together with counsel, to be
heard before the Board), finding that, in the good faith opinion of the Board,
the Employee is guilty of the conduct described in subparagraph (a) or (b)
above, and specifying the particulars thereof in detail.
1.6 GOOD REASON. "Good Reason" shall mean:
(a) Any failure of the Company or its affiliates to provide the
Employee with the position, authority, duties and responsibilities 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 Change of Control. Employee's position,
authority, duties and responsibilities after a Change of Control shall not
be considered commensurate in all material respects with Employee's
position, authority, duties and responsibilities prior to a Change of
Control unless after the Change of Control Employee holds (i) an
equivalent position in the Company or, (ii) if the Company is controlled
or will after the transaction be controlled by another company (directly
or indirectly), an equivalent position in the ultimate parent company.
(b) The assignment to the Employee of any duties inconsistent in
any material respect with Employee's position (including status, offices,
titles and reporting requirements), authority, duties or responsibilities
as contemplated by Section 2.1(b) of this Agreement, or any other action
that results in a diminution in such position,
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authority, duties or responsibilities, excluding for this purpose an
isolated, insubstantial and inadvertent action not taken in bad faith that
is remedied within 10 days after receipt of written notice thereof from
the Employee to the Company;
(c) Any failure by the Company or its affiliates to comply with
any of the provisions of this Agreement, other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith that is
remedied within 10 days after receipt of written notice thereof from the
Employee to the Company;
(d) The Company or its affiliates requiring the Employee to be
based at any office or location other than as provided in Section
2.1(b)(ii) hereof or requiring the Employee to travel on business to a
substantially greater extent than required immediately prior to the Change
of Control;
(e) Any purported termination of the Employee's employment
otherwise than as expressly permitted by this Agreement; or
(f) Any failure by the Company to comply with and satisfy Sections
3.1(c) and (d) of this Agreement.
For purposes of this Section 1.6, any good faith determination of "Good Reason"
made by the Employee shall be conclusive. Anything in this Agreement to the
contrary notwithstanding, a termination by the Employee for any reason during
the 30-day period immediately following the first anniversary of the Change of
Control shall be deemed to be a termination for Good Reason.
ARTICLE II
CHANGE OF CONTROL BENEFIT
2.1 EMPLOYMENT TERM AND CAPACITY AFTER CHANGE OF CONTROL.
(a) If a Change of Control occurs on or before October 31, 2006,
then the Employee's employment term (the "Employment Term") shall continue
through the later of (i) the second anniversary of the Change of Control
or (ii) October 31, 2006, subject to any earlier termination of Employee's
status as an employee pursuant to this Agreement.
(b) After a Change of Control and during the Employment Term, (i)
the Employee'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 Change of Control and (ii) the Employee's
service shall be performed at the location where the Employee was employed
immediately preceding the Change of Control or any office or location less
than 35 miles from such location. Employee's position, authority, duties
and responsibilities after a Change of Control shall not be considered
commensurate in all material respects with Employee's position, authority,
duties and responsibilities prior to a Change of Control
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unless after the Change of Control Employee holds (x) an equivalent
position in the Company or, (y) if the Company is controlled or will after
the transaction be controlled by another company (directly or indirectly),
an equivalent position in the ultimate parent company. Employee shall
devote himself to his employment responsibilities with the Company (or, if
applicable, the ultimate parent entity) as provided in Article I Section 3
of the Employment Agreement.
2.2 COMPENSATION AND BENEFITS. During the Employment Term, Employee
shall be entitled to the following compensation and benefits:
(a) Salary. A salary ("Base Salary") at the highest rate provided
for under the Employment Agreement at any time during the 120-day period
immediately preceding the Change of Control, payable to the Employee at
such intervals no less frequent than the most frequent intervals in effect
at any time during the 120-day period immediately preceding the Change of
Control or, if more favorable to the Employee, the intervals in effect at
any time after the Change of Control for other peer employees of the
Company and its affiliated companies.
(b) Bonus. An annual incentive bonus (the "Bonus") equal to the
maximum annual amount that the Employee was eligible to receive at any
time during the 120-day period immediately preceding the Change of
Control. The Bonus shall be paid in cash (1) no later than thirty (30)
days following the close of the fiscal year in which it is earned, or (2)
if the Employee so elects, between January 1 and January 15 of the
succeeding calendar year.
(c) Fringe Benefits. The Employee shall be entitled to fringe
benefits (including, but not limited to, automobile allowance,
reimbursement for membership dues, and air travel) in accordance with the
most favorable agreements, plans, practices, programs and policies of the
Company and its affiliated companies in effect for the Employee at any
time during the 120-day period immediately preceding the Change of Control
or, if more favorable to the Employee, as in effect generally at any time
thereafter with respect to other peer employees of the Company and its
affili






