EXHIBIT 10.38
FORM OF CHANGE OF CONTROL EMPLOYMENT AGREEMENT
THIS
AGREEMENT , made as of the _____ day of ______________, 200_,
by [Belden CDT Inc.], a Delaware corporation (the
“Company”), and __________________________
(“Executive”).
R
E C I T A L S
The Executive is an officer of the
Company and is employed by [Belden Technologies, Inc.]
(“[Belden Technologies]”), a wholly-owned subsidiary of
the Company, in a key executive capacity. The Executive’s
services are valuable to the Company. The Executive possesses
intimate knowledge of the business and affairs of the Company and
has acquired certain confidential information with respect to the
Company.
The Company desires to insure that it
will continue to have the benefit of the Executive’s services
and to protect its confidential information and goodwill. The
Company recognizes that circumstances may arise in which a change
in control of the Company occurs, through acquisition or otherwise,
causing uncertainty about the Executive’s future employment
with the Company without regard to the Executive’s competence
or past contributions. Such uncertainty may result in the loss of
valuable services of the Executive to the detriment of the Company
and its stockholders.
The Company and the Executive desire
that any proposal for a change in control or acquisition of the
Company will be considered by the Executive objectively and with
reference only to the best interests of the Company and its
stockholders. The Executive will be in a better position to
consider the Company’s best interests if the Executive is
afforded reasonable security, as provided in this Agreement,
against altered conditions of employment which could result from
any such change in control or acquisition.
NOW, the Company and the
Executive (collectively the “Parties” or individually a
“Party”), agree as follows:
1. Certain
Definitions.
1.1
Act . The term “Act” means the Securities
Exchange Act of 1934, as amended.
1.2
Affiliate and Associate . The terms “Affiliate”
and “Associate” shall have the meanings given them in
Rule 12b-2 of the Act.
1.3
Beneficial Owner . A Person shall be deemed to be the
“Beneficial Owner” of any securities:
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(i) that
such Person or any other Person’s Affiliates or Associates
has the right to acquire (whether such right is exercisable
immediately or only after the passage of time) pursuant to any
agreement, arrangement or understanding, or upon the exercise of
conversion rights, exchange rights, rights, warrants or options, or
otherwise; provided, however , that a Person shall not be
deemed the Beneficial Owner of, or to beneficially own,
(A) securities
tendered pursuant to a tender or exchange offer made by or on
behalf of such Person or any of such Person’s Affiliates or
Associates until such tendered securities are accepted for
purchase, or
(B) securities
issuable upon exercise of Rights issued pursuant to the terms of
the Rights Agreement between the Company and First Chicago Trust
Company of New York (the “Rights Agreement”), dated at
July 6, 1995, as amended from time to time (or any successor
to such Rights Agreement), at any time before the issuance of such
securities;
(ii) that
such Person or any of such Person’s Affiliates or Associates,
directly or indirectly, has the right to vote or dispose of or has
“beneficial ownership” of (as determined pursuant to
Rule 13d-3 of the Act), including pursuant to any agreement,
arrangement or understanding; provided, however , that a
Person shall not be deemed the Beneficial Owner of, or to
beneficially own, any security under this subparagraph (ii) as
a result of an agreement, arrangement or understanding to vote such
security if the agreement, arrangement or understanding:
(A) arises
solely from a revocable proxy or consent given to such Person in
response to a public proxy or consent solicitation made pursuant
to, and in accordance with, the applicable rules and regulations
under the Act and
(B) is
not also then reportable on a Schedule 13D under the Act (or
any comparable or successor report); or
(iii) that
are beneficially owned, directly or indirectly, by any other Person
with which such Person or any of such Person’s Affiliates or
Associates has any agreement, arrangement or understanding for the
purpose of acquiring, holding, voting (except pursuant to a
revocable proxy as described in Subsection 1.3 (ii) above) or
disposing of any voting securities of the Company; provided,
however, that nothing in this paragraph (iii) shall cause a
Person engaged in the business as an underwriter of securities to
be deemed the “Beneficial Owner” of, or to
“beneficially own,” any securities acquired through
such Person’s participation in good faith in a firm
commitment underwriting until the expiration of forty days
(40) after the date of such acquisition.
1.4
Cause . “Cause” for termination by the Company
of the Executive’s employment with the Company, [Belden
Technologies] or any of their Affiliates after a Change of Control
of the Company shall, for purposes of this Agreement, be limited
to:
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(i) the
engaging by the Executive in intentional conduct taken in bad faith
which has caused demonstrable and serious financial injury to the
Company, as evidenced by a determination in a binding and final
judgment, order or decree of a court or administrative agency of
competent jurisdiction, in effect after exhaustion or lapse of all
rights of appeal, in an action, suit or proceeding, whether civil,
criminal, administrative or investigative;
(ii) conviction
of a felony (as evidenced by a binding and final judgment, order or
decree of a court of competent jurisdiction, in effect after
exhaustion of all rights of appeal) which substantially impairs the
Executive’s ability to perform his duties or
responsibilities; and
(iii) continuing
willful and unreasonable refusal by the Executive to perform the
Executive’s duties or responsibilities (unless significantly
changed without the Executive’s consent).
1.5
Change in Control of the Company . A “Change in
Control of the Company” shall be deemed to have occurred
if:
(i) any
Person (other than any employee benefit plan of the Company or any
subsidiary of the Company, any entity holding securities of the
Company for or pursuant to the terms of any such plan or any
trustee, administrator or fiduciary of such a plan) is or becomes
the Beneficial Owner of securities of the Company representing at
least 30% of the combined voting power of the Company’s then
outstanding securities (other than acquisitions directly from the
Company);
(ii) a
Section 11(a)(ii) Event shall have occurred under the Rights
Agreement (or a similar event shall have occurred under any
successor to such Rights Agreement) at any time any Rights are
issued and outstanding thereunder;
(iii) one-third
or more of the members of the Board are not Continuing Directors;
or
(iv) there
shall be consummated any merger of the Company in which the Company
is not the continuing or surviving corporation or pursuant to which
shares of the Company’s Common Stock would be converted into
cash, securities or other property, other than a merger of the
Company in which the holders of the Company’s Common Stock
immediately prior to the merger have the same proportionate
ownership of common stock of the surviving corporation immediately
after the merger.
Without
limiting the generality of the foregoing, the consummation of the
transactions contemplated by Merger Agreement shall constitute a
Change of Control under this Agreement (the “Belden-CDT
Merger”).
1.6
Code . The term “Code” means the Internal
Revenue Code of 1986, as amended.
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1.7
Continuing Director . The term “Continuing
Director” means (i) any member of the Board of Directors
of the Company (the “Board”) who was a member of such
Board on August 15, 1996, (ii) any successor of a
Continuing Director who is recommended to succeed a Continuing
Director by a majority of the Continuing Directors then on the
Board, and (iii) any appointee who is recommended by a
majority of the Continuing Directors then on the Board.
1.8
Covered Termination . The term “Covered
Termination” means any termination of the Executive’s
employment where the Termination Date is any date prior to the end
of the Employment Period.
1.9
Employment Period . The term “Employment Period”
means a period beginning on the date of a Change in Control of the
Company (as defined in Section 1.5 above), and ending at
11:59 p.m. St. Louis Time on the earlier of the third
anniversary of such date or the Executive’s Normal Retirement
Date.
1.10
Good Reason . The Executive shall have a “Good
Reason” for termination of employment after a Change in
Control of the Company in the event of:
(i) any
breach of this Agreement by the Company, including specifically any
breach by the Company of its agreements contained in
Sections 4 (Duties), 5 (Compensation) or 6 (Annual
Compensation Adjustments) hereof;
(ii) the
removal of the Executive from, or any failure to reelect or
reappoint the Executive to, any of the positions held with the
Company, [Belden Technologies] or any of their affiliates on the
date of the Change in Control of the Company or any other positions
with the Company, [Belden Technologies] or any of their affiliates,
to which the Executive shall thereafter be elected, appointed or
assigned, except when such removal or failure to reelect or
reappoint relates to the termination by the Company of the
Executive’s employment for Cause or by reason of disability
pursuant to Section 12;
(iii) a
good faith determination by the Executive that there has been a
significant adverse change, without the Executive’s written
consent, in the Executive’s working conditions or status with
the Company, [Belden Technologies] or any of their affiliates from
such working conditions or status in effect immediately prior to
the Change in Control of the Company, including but not limited
to;
(A) a
significant change in the nature or scope of the Executive’s
authority, powers, functions, duties or responsibilities, or
(B) a
significant reduction in the level of support services, staff,
secretarial and other assistance, office space and accoutrements;
or
(iv) failure
by the Company to obtain the Agreement referred to in
Section 17.1 (Successors) below; or
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(v) any
voluntary termination of employment by the Executive where the
Notice of Termination is delivered within 30 days of the first
anniversary of a Change of Control; provided, however, that this
clause (v) may not be invoked for any Change of Control of the
Company that results solely from the Belden-CDT Merger.
1.11
Normal Retirement Date . The term “Normal Retirement
Date” means the date Executive attains the age of 70.
1.12
Person . The term “Person” shall mean any
individual, firm, partnership, corporation or other entity,
including any successor (by merger or otherwise) of such entity, or
a group of any of the foregoing acting in concert.
1.13
Termination Date . For purposes of this Agreement, except as
otherwise provided in Section 10.2 (Death) and
Section 17.1 (Successors), the term “Termination
Date” means:
(i) if
the Executive’s employment is terminated by the
Executive’s death, the date of death;
(ii) if
the Executive’s employment is terminated by reason of
voluntary early retirement, as agreed in writing by the Company and
the Executive, the date of such early retirement which is set forth
in such written agreement;
(iii) if
the Executive’s employment is terminated for purposes of this
Agreement by reason of disability pursuant to Section 12, the
earlier of thirty days after the Notice of Termination is given or
one day prior to the end of the Employment Period;
(iv) if
the Executive’s employment is terminated by the Executive
voluntarily (other than for Good Reason), the date the Notice of
Termination is given; and
(v) if
the Executive’s employment is terminated by the Company
(whether or not for Cause), or by the Executive for Good Reason,
the earlier of thirty days after the Notice of Termination is given
or one day prior to the end of the Employment Period.
Notwithstanding the foregoing;
(A) If
termination is for Cause pursuant to Section 1.4(iii) of this
Agreement and if the Executive has cured the conduct constituting
such Cause as described by the Company in its Notice of Termination
within such thirty day or shorter period, then the
Executive’s employment under this Agreement shall continue as
if the Company had not delivered its Notice of Termination.
(B) If
the Company shall give a Notice of Termination for Cause or by
reason of disability and the Executive in good faith notifies the
Company that a dispute exists
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concerning the termination within the applicable period following
receipt of notice, then the Executive may elect to continue his
employment (or, if the Executive ceased performing his duties under
this Agreement at the request of the Company at the time of
delivery of Notice of Termination, resume and continue employment)
during such dispute and the Termination Date shall be determined
under this paragraph. If the Executive so elects and it is
thereafter determined that Cause or disability (as the case may be
) did exist, the Termination Date shall be the earliest of
(1) the date on which the dispute is finally determined,
either (x) by mutual written agreement of the parties or
(y) in accordance with Section 22 (Governing Law;
Resolution of Disputes), (2) the date of the Executive’s
death, or (3) one day prior to the end of the Employment
Period. If the Executive so elects and it is subsequently
determined that Cause or disability (as the case may be ) did not
exist, then the employment of the Executive under this Agreement
shall continue after such determination as if the Company had not
delivered its Notice of Termination and there shall be no
Termination Date arising out of such Notice. In either case, this
Agreement continues, until the Termination Date, if any, as if the
Company had not delivered the Notice of Termination except that, if
it is finally determined that the Company properly terminated the
Executive for the reason asserted in the Notice of Termination, the
Executive shall in no case be entitled to a Termination Payment (as
defined below) arising out of events occurring after the Company
delivered its Notice of Termination.
(C) If
the Executive shall in good faith give a Notice of Termination for
Good Reason and the Company notifies the Executive that a dispute
exists concerning the termination within the applicable period
following receipt of notice, then the Executive may elect to
continue his employment during such dispute and the Termination
Date shall be determined under this paragraph. If the Executive so
elects and it is subsequently determined that Good Reason did
exist, the Termination Date shall be the earliest of (1) the
date on which the dispute is finally determined, either (x) by
mutual written agreement of the parties or (y) in accordance
with Section 22 (Governing Law; Resolution of Disputes),
(2) the date of the Executive’s death or (3) one
day prior to the end of the Employment Period. If the Executive so
elects and it is subsequently determined that Good Reason did not
exist, then the employment of the Executive under this Agreement
shall continue after such determination as if the Executive had not
delivered the Notice of Termination asserting Good Reason and there
shall be no Termination Date arising out of such Notice. In either
case, this Agreement continues, until the Termination Date, if any,
as if the Company had not delivered the Notice of Termination
except that, if it is finally determined that Good Reason did
exist, the Executive shall in no case be denied the benefits
described in Sections 8 and 9 (including a Termination
Payment) based on events occurring after the Executive delivered
his Notice of Termination.
(D) If
an opinion is required to be delivered pursuant to Section 9.3
hereof and such opinion shall not have been delivered, the
Termination Date shall be the earlier of the date on which such
opinion is delivered or one day prior to the end of the Employment
Period.
(E) Except
as provided in Paragraphs (B) and (C) above, if the party
receiving the Notice of Termination notifies the other Party that a
dispute exists concerning the termination within the appropriate
period following receipt of notice and it is finally determined
that
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the
reason asserted in such Notice of Termination did not exist, then
(1) if such Notice was delivered by the Executive, the
Executive will be deemed to have voluntarily terminated his
employment and the Termination Date shall be the earlier of the
date thirty days after the Notice of Termination is given or one
day prior to the end of the Employment Period and (2) if
delivered by the Company, the Company will be deemed to have
terminated the Executive other than by reason of death, disability
or Cause.
2. Termination Prior to
Change in Control . The Company and the Executive shall each
retain the right to terminate the employment of the Executive at
any time prior to a Change in Control of the Company. If the
Executive’s employment is terminated prior to a Change in
Control of the Company, this Agreement shall be terminated and all
rights and obligations of the parties under it shall cease.
3. Employment Period .
If a Change in Control of the Company occurs when the Executive is
employed by [Belden Technologies], [Belden Technologies] will
continue subsequently to employ the Executive during the Employment
Period, and the Executive will remain in the employ of [Belden
Technologies], in accordance with and subject to the provisions of
this Agreement.
4. Duties . During the
Employment Period, the Executive shall, in the same capacities and
positions held by the Executive at the time of the Change in
Control of the Company or in such other capacities and positions as
may be agreed to by the Company and the Executive in writing,
devote the Executive’s best efforts and all of the
Executive’s business time, attention and skill to the
business and affairs of the Company, as such business and affairs
now exist and as they may subsequently be conducted. The services
that are to be performed by the Executive under this Agreement are
to be rendered in the same metropolitan area in which the Executive
was employed at the time of such Change in Control of the Company,
or in such other place or places as shall be agreed upon in writing
by the Executive and the Company from time to time. Without the
Executive’s consent, the Executive shall not be required to
be absent from such metropolitan area more than 45 days in any
fiscal year of the Company.
5. Compensation . During
the Employment Period, the Executive shall be compensated as
follows:
5.1 The
Executive shall receive, at reasonable intervals (but not less
often than monthly) and in accordance with such standard policies
as may be in effect immediately prior to the Change in Control of
the Company, an annual base salary in cash equivalent of not less
than the Executive’s annual base salary as in effect
immediately prior to the Change in Control of the Company (which
base salary shall, unless otherwise agreed in writing by the
Executive, include the current receipt by the Executive of any
amounts that, prior to the Change in Control of the Company, the
Executive had elected to defer, whether such compensation is
deferred under Section 401(k) of the Code or otherwise), subject to
adjustment as provided below.
5.2 The
Executive shall receive fringe benefits at least equal in value to
those provided for the Executive immediately prior to the Change in
Control of the Company, and shall be
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reimbursed, at such intervals and in accordance with such standard
policies as may be in effect immediately prior to the Change in
Control of the Company, for any monies advanced in connection with
the Executive’s employment for reasonable and necessary
expenses incurred by the Executive on behalf of the Company,
[Belden Technologies] or their affiliates, including travel
expenses.
5.3 The
Executive shall be included, to the extent eligible thereunder
(which eligibility shall not be conditioned on the
Executive’s salary grade or on any other requirement that
excludes persons of comparable status to the Executive unless such
exclusion was in effect for such plan or an equivalent plan
immediately prior to the Change in Control of the Company), in any
plan providing benefits for the Company’s salaried employees
in general of the Company, [Belden Technologies] or their
Affiliates, including but not limited to the Management Incentive
Plan, the Long-Term Incentive Plan, group life insurance,
hospitalization, medical, dental, savings, profit sharing and stock
bonus plans. However, in no event shall the aggregate level of
benefits under such plans in which the Executive is included
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