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Exhibit 10.5
CHANGE OF CONTROL SEVERANCE AGREEMENT
CHANGE OF CONTROL SEVERANCE AGREEMENT ("AGREEMENT"), dated as of July 28,
2006 (the "EFFECTIVE DATE") by and between AMIS Holdings, Inc., a Delaware
corporation (the "COMPANY"), and ____________ ("EXECUTIVE").
WHEREAS, the Company employs the Executive as its _______________; and
WHEREAS the Company and the Executive wish to enter into an agreement
specifying the benefits the Executive will receive in certain circumstances
relating to a Change of Control;
NOW THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements of the parties set forth in this Agreement, and of
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, agree as
follows:
ARTICLE 1
TERM AND NATURE OF AGREEMENT
Section 1.01 Term. This Agreement shall expire on December 31, 2007 (the
"TERM").
Section 1.02 Employment. Executive and the Company acknowledge that either
party may terminate this employment relationship at any time and for any or no
reason, provided that each party complies with the terms of this Agreement.
ARTICLE 2
Section 2.01 Certain Events. (a) A "QUALIFYING EVENT" means the INVOLUNTARY
TERMINATION OF EXECUTIVE'S EMPLOYMENT other than (x) for Cause, or (y) by reason
of Executive's death or Disability. The Executive shall be entitled to the
following benefits (the "CHANGE OF CONTROL SEVERANCE BENEFITS") upon a
Qualifying Event that occurs at any time within ninety days prior to or two
years after a Change of Control (a "CHANGE OF CONTROL SEVERANCE"):
(a) The Company shall pay Executive as soon as practicable a lump sum, in
cash, equal to Executive's earned but unpaid base salary and other vested but
unpaid cash entitlements for the period through and including the date of
termination of Executive's employment, including unused earned vacation pay and
unreimbursed documented business expenses (collectively "ACCRUED COMPENSATION").
In addition, Executive shall be entitled to any other vested benefits earned by
Executive for the period through and including the date of termination of
Executive's employment under any other employee benefit plans and arrangements
maintained by the Company, in accordance with the terms of such plans and
arrangements, except as modified herein (collectively "ACCRUED BENEFITS");
(b) The Company shall pay Executive a cash payment in an amount equal to
the sum of (i) nine-twelfths (9/12) of the Executive's annual base salary in
effect immediately prior to such
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Qualifying Event, (ii) nine-twelfths (9/12) of the Executive's Target Bonus
Opportunity for the year in which the Qualifying Event occurs, and (iii) an
amount equal to the cost to the Executive to purchase COBRA benefits for the
eighteen month period after the date of the Change of Control Severance.
(c) Fifty percent of all of the Executive's unvested Options shall become
100% vested on the date of such termination.
Section 2.02 Change of Control Project Bonus. In the event of a Change of
Control, provided that the Executive remains in the Company's employ as of the
day prior to Effective Date of the Change of Control, the Company will pay the
Executive a cash payment in an amount equal to three-twelfths (3/12) of the
Executive's annual base salary in effect immediately prior to the Change of
Control. This amount will be paid promptly after the Change of Control.
Section 2.03 Resignation of Corporate Offices; Reasonable Assistance.
Executive will resign Executive's office, if any, as a director, officer or
trustee of the Company, its subsidiaries or affiliates and of any other
corporation or trust of which Executive serves as such at the request of the
Company, effective as of the date of termination of employment. Executive
further agrees that, if requested by the Company or the surviving company
following a Change of Control, Executive will continue his employment with the
Company or the surviving company for a period of up to six months following the
Change of Control in any capacity requested, consistent with Executive's area of
expertise, provided that the Executive receives the same salary and
substantially the same benefits as in effect prior to the Change of Control.
Executive agrees to provide the Company such written resignation(s) and
assistance upon request and that no severance will be paid until after such
resignation(s) or services are provided.
Section 2.04 Payment. The receipt of the Change of Control Severance
Benefits (other than Accrued Compensation and Accrued Benefits and the amount
stated in Section 2.02 above) shall be conditioned on (i) the effectiveness of a
general release of claims by the Executive in a form reasonably acceptable to
the Company, and (ii) the Executive's compliance with all of the conditions and
requirements stated herein. Said sum shall be paid to the Executive as soon as
practicable after the requirements for payment have been satisfied; provided
that the Company may make such payments on a different schedule to comply with
Section 409A of the Code.
ARTICLE 3
ASSIGNMENT
Section 3.01 Assignment by Executive. This Agreement shall inure to the
benefit of and be enforceable by Executive's personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees, and
legatees. If Executive should die or become disabled while any amount is owed
but unpaid to Executive hereunder, all such amounts, unless otherwise provided
herein, shall be paid to Executive's devisee, legatee, legal guardian or other
designee, or if there is no such designee, to Executive's estate. Executive's
rights hereunder shall not otherwise be assignable.
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ARTICLE 4
MISCELLANEOUS
Section 4.01 Notices. Any notice required to be delivered hereunder shall
be in writing and shall be addressed
if to the Company, to:
AMIS Holdings, Inc.
2300 Buckskin Road
Pocatello, Idaho 83201
Fax: 208-234-6841
Attn: Chief Executive Officer
With a copy to:
AMIS Holdings, Inc.
2300 Buckskin Road
Pocatello, Idaho 83201
Fax: 208-234-6935
Attn: Chairman of the Compensation Committee of the Board of Directors
if to Executive, to Executive's last known address as reflected on the
books and records of the Company; or, in each case, to such other address as
such party may hereafter specify for the purpose by written notice to the other
party hereto. Any such notice shall be deemed received on the date of receipt by
the recipient thereof if received prior to 5:00 p.m. in the place of receipt and
such day is a business day in the place of receipt. Otherwise, any such notice
shall be deemed not to have been received until the next succeeding business day
in the place of receipt.
Section 4.02 Dispute Resolution. (a) Each of Executive and the Company
shall have the right and option to elect (in lieu of litigation) to have any
dispute or controversy arising under or in connection with this Agreement
settled by arbitration, conducted before a panel of three arbitrators sitting in
a location in Delaware, in accordance with the rules of the American Arbitration
Association then in effect. Executive's election to arbitrate, as herein
provided, and the decision of the arbitrators in that proceeding, shall be
binding on the Company and Executive. Judgment may be entered on the award of
the arbitrator in any court having jurisdiction.
(b) Each party shall pay its own expenses of such arbitration or litigation
and all common expenses of such arbitration or litigation shall be borne equally
by Executive and the Company. Each party to an arbitration or litigation
hereunder shall be responsible for the payment of its own attorneys' fees.
Section 4.03 Unfunded Agreement. The obligations of the Company under this
Agreement represent an unsecured, unfunded promise to pay benefits to Executive
and/or Executive's beneficiaries, and shall not entitle Executive or such
beneficiaries to a preferential
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claim to any asset of the Company.
Section 4.04 Non-Exclusivity of Benefi






