Exhibit 10.2
EMPLOYMENT AGREEMENT
This Employment
Agreement (this “Agreement”) is effective as of October
, 2007 (the “Effective Date”), and is
entered into by and between XXXXXX , an individual
(“Executive”), and Fleetwood Enterprises, Inc., a
Delaware corporation (the “Company”).
R E C I T A L S
WHEREAS, by
entering into this Agreement, the terms of Executive’s
employment with the Company shall be governed by the terms and
conditions of this Agreement and any prior agreement between
Executive and the Company or any of the Company’s affiliated
entities relating to Executive’s employment with the Company
or any of its affiliated entities shall be superseded by the terms
of this Agreement except to the extent set forth herein.
NOW, THEREFORE, in
consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged by the parties hereto, the parties hereto agree as
follows:
A G R E E M E N
T
1.
Employment. As of the
Effective Date, the Company hereby employs Executive to serve in
the capacity of
[Title ].
The Company’s Board of Directors (the “Board”)
and/or the Company’s Chief Executive Officer (the
“CEO”) may provide other designations of title to
Executive as the Board and/or CEO, in their discretion, may deem
appropriate.
Executive agrees
to perform the duties and functions as assigned by the CEO and/or
by the Board of Directors. Except for legal holidays, vacations and
absences due to temporary illness, Executive shall devote his time,
attention and energies to the business of the Company on a
full-time basis. Executive represents and warrants to the Company
that he is under no restriction, limitation or other prohibition to
perform his duties as described herein.
2.
Employment Compensation And
Benefits .
(a)
Base Salary . Executive’s initial base salary shall be
at the annual rate of XXXXXXXXX (Dollars) ($ XXXXXXX
) (the “Base Salary”), which shall be payable at least
as frequently as monthly and subject to deductions and withholdings
required by applicable law and as customary in respect of the
Company’s salaried employees. The Company, on the basis of
Executive’s performance and the Company’s financial
success and progress, shall review this salary level at least
annually.
(b)
Incentive Compensation . As additional compensation to
provide incentives for Executive to extend efforts which will
assist in increasing the profits of the Company, Executive shall be
eligible to receive incentive compensation based on achieving
individual and organizational performance objectives in accordance
with the terms and conditions of the Company’s management
compensation plan as in effect from time to time.
(c)
Vacation . Executive shall be entitled to annual vacations
in accordance with the Company’s vacation policies in effect
from time to time during the term of this Agreement.
(d)
Expense Reimbursement . The Company shall reimburse
Executive for all reasonable amounts actually expended by Executive
in the course of performing his duties for the Company and in
accordance with any Company-established guidelines as in effect
from time to time where Executive tenders receipts or other
documentation reasonably substantiating the amounts as required by
the Company.
(e)
Other Benefits . Except as otherwise provided in this
Agreement, Executive shall be entitled to receive all of the
rights, benefits and privileges under any retirement, pension,
profit-sharing, group medical insurance, group dental insurance,
group-term life insurance, disability insurance and other employee
benefit plan or program of the Company which may be now in effect
or hereafter adopted, to the extent that Executive is eligible
under and subject to the provisions thereof as in effect from time
to time.
3.
Termination .
(a)
At Will . The Company shall employ Executive at will, and
either Executive or the Company may terminate Executive’s
employment with the Company at any time and for any reason, with or
without cause, with or without notice.
(b)
Qualifying Termination . Executive’s termination shall
be considered a “Qualifying Termination” unless:
(i)
Executive voluntarily terminates his employment with the Company
and its affiliated companies. Executive, however, shall not
be considered to have voluntarily terminated his employment with
the Company and its affiliated companies if his overall targeted
total cash compensation (base salary plus targeted short term
bonus), (TCC), is reduced or adversely modified in any
material respect (unless the reduction or modification
applies generally to similarly situated executives in the Company)
or his position is modified or changed so that he is no longer an
officer of the Company and he elects to terminate his employment
within sixty (60) days following such reduction, modification or
change after having given the Company at least 30 days notice of
the same and a reasonable opportunity to cure during such 30-day
notice period.
(ii)
The termination is on account of Executive’s death or
Disability. “Disability” shall mean a physical or
mental incapacity as a result of which Executive becomes unable to
continue the performance of his responsibilities for the Company
and its affiliated companies and which, at least three (3) months
after its commencement, is determined to be total and permanent by
a physician agreed to by the Company and Executive, or in the event
of Executive’s inability to designate a physician, his legal
representative. In the absence of agreement between the Company and
Executive, each party shall nominate a qualified physician and the
two physicians so nominated shall select a third physician who
shall make the determination as to Disability.
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(iii)
Executive is involuntarily terminated for
“Cause.” For this purpose, “Cause”
shall include but not be limited to:
(a)
Executive’s refusal to comply with a lawful instruction of
the Board or Executive’s immediate supervisor, which refusal
is not remedied by Executive within a reasonable period of time
after his receipt of written notice from the Company identifying
the refusal;
(b)
Executive’s engaging in gross misconduct;
(c)
Executive’s act or acts of personal dishonesty which result
in Executive’s personal enrichment at the expense of the
Company or any of its affiliated companies; or
(d)
Executive’s conviction of any misdemeanor involving an act of
moral turpitude or any felony; or
(e)
Executive’s failure to perform his duties in a satisfactory
manner. Executive must be provided written notice of the
unsatisfactory performance and provided at least ninety (90) days
to improve his performance.
(iv)
Executive ceases to be employed by the Company due to the sale or
acquisition of all of the equity interests in, or substantially all
of the assets of, a subsidiary or division of the Company with
which Executive is affiliated, or in connection with the merger of
such a subsidiary or division, and this Agreement is assumed in
writing or by operation of law by such acquiring or surviving
person or entity or an affiliate thereof.
(c)
Return of Materials . In the event of any termination of
Executive’s employment for any reason whatsoever, Executive
shall promptly deliver to the Company all Company property,
including, but not limited to, documents, data, and other
information pertaining to Confidential Information, as defined
below. Executive shall not take with him any documents or other
information, or any reproduction, summary or excerpt thereof,
containing or pertaining to any Confidential Information.
4.
Change in Control . Concurrently with the execution of
this Agreement, the Company and Executive have also entered into a
Change in Control Agreement of even date herewith (the
“Change in Control Agreement”). The Change in Control
Agreement provides for certain rights and benefits in the event of
a “change in control” of the Company (as defined
therein) or termination of employment in connection with a change
in control.
5.
Severance Payment and Benefits .
If
Executive’s employment is terminated as a result of a
Qualifying Termination as defined in Section 3(b), and if Executive
delivers a fully-executed release and waiver of all claims against
the Company in a form reasonably acceptable to the Company, then,
upon expiration of any applicable revocation period contained in
the release and waiver, the Company shall pay or provide Executive
the following Severance Payment and benefits based on
Executive’s eligibility as described below:
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(i)
As eligible, Executive shall receive the Severance Payment, as
defined below, which shall be payable in equal monthly installments
beginning on the first day of the first full month and continuing
on the first day of each month thereafter during the Severance
Period. The Severance Payment is in lieu of any severance payment
benefits which otherwise may at that time be available under the
Company’s applicable policies, other than the Change in
Control Agreement. In the event that Executive shall be entitled to
receive severance compensation under the Change in Control
Agreement, such severance compensation shall be in lieu of and not
in addition to the benefits provided in this Section 5(a).
As
used herein, “Monthly Severance Payment” shall mean the
monthly installment amount of the Base Salary of Executive at the
time of ExecutiveR
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