Opções de estoque da cláusula de mudança de controle

ithaca VC.
vc e pensamentos iniciais de ithaca & # 8230 ;.
Aceleração da Velocidade da Mudança de Controle.
Eu sou um grande fã da aceleração da aquisição de opções de mudança de controle, particularmente para a equipe executiva. Provavelmente não estou na maioria dos VCs neste tópico. Antecedentes rápidos:
1. Normalmente, as opções de empregado são adquiridas ao longo de 4 anos, com 25% de aquisição após o ano 1 e, em seguida, o saldo pro rata (mensal ou trimestral) nos demais 3 anos.
2. Quando um VC classifica uma transação de investimento, normalmente trata todas as opções como & # 8220; pendentes & # 8221; para fins de determinação do número de ações em circulação (para dividir na avaliação pré-monetária para determinar o preço de uma ação).
3. Muitas vezes com um executivo, ele negociará por uma mudança de controle de aceleração de aquisição, o que significa que, em uma venda da empresa, sua aquisição se acelera para que ele possa exercer todas as suas opções (se estiverem no dinheiro) imediatamente antes da evento de venda e # 8220; pontuação & # 8221; um retorno maior no evento de venda (os acionistas são pagos em um evento de venda e, se você possui mais ações, você ganha mais $$).
4. Normalmente, o plano de opção de compra de ações da empresa providenciará que, se as opções NÃO forem assumidas pela empresa adquirente, elas aceleram e terminam se não forem exercidas imediatamente antes do evento de venda. Isso permite que o adquirente NÃO fique sobrecarregado com as opções dos empregados da empresa vendedora. Note-se que, se o adquirente optar por assumir as opções (e os termos da suposição dependem das placas para concordar e muito flexíveis), então eles não se aceleram. Isso permite ao adquirente dobrar os novos funcionários para a sua empresa em termos de opções que se alinham bem com a base de empregados existente.
5. O público não é igual a uma mudança de controle. Nenhuma aceleração em público.
Então, pessoalmente, eu gosto de acelerar a aquisição de uma mudança de controle para a equipe executiva. Por último, chequei, nós os VCs adoramos quando uma empresa de portfólio é vendida por um lucro ordenado. E nós, os VC, sabemos que uma venda não é possível sem a equipe de gerenciamento fazer um esforço incrível. E sabemos que as opções serão inúteis, a menos que nossas preferências de liquidação sejam canceladas. Então, vamos recompensar a equipe por um trabalho bem feito & # 8211; Acelere as opções e deixe-as participar de forma mais ampla. Afinal, tratamos essas opções como pendentes quando originalmente cobramos o nosso investimento & # 8230; & # 8230 ;.
Além disso, eu gosto simples. A aceleração de disparo simples é simples, com o gatilho sendo a mudança de controle em si. O duplo gatilho é complicado de implementar. Com a aceleração de gatilho duplo, os 2 gatilhos necessários são (i) a mudança de controle e (ii) o executivo sendo acionado sem causa ou deixando por uma boa razão dentro de um período de tempo definido (geralmente 1 ano) após a mudança de controle. Nunca vi disposições de gatilho duplo implementadas facilmente pela seguinte razão & # 8211; se o segundo gatilho for disparado e as opções do executivo na empresa adquirida acelerarem, o que o executivo obtém? Normalmente, a empresa adquirida desapareceu e seus acionistas foram pagos na aquisição. De onde seria o financiamento para compensar o executivo pelo valor de suas opções exercidas? Não dos antigos acionistas já pagos. Este é um problema desafiante e aquele que eu não gostaria de criar.
Finalmente, eu também vi muitas situações em que as opções de um executivo aceleraram 50% (ou algum outro%) em uma mudança de controle, o que significa que 50% das opções não adotadas se acelerariam. Isso é bom e fácil de implementar. Isto é particularmente útil se você não quiser receber uma receita inesperada em um executivo que não tenha estado com a empresa por um período de tempo substancial antes da mudança de controle. Por exemplo, as provisões de aquisição podem fornecer uma aceleração de 50% se o executivo estiver com a empresa por menos de 2 anos, 75% de aceleração entre 2 e 3 anos e 100% se for maior que 3. Essa aceleração progressiva ainda é simples de implemento.
Conclusão: eu gosto de aceleração para os executivos e gostaria de mantê-lo simples e compreensível.
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3 pensamentos sobre & ldquo; Mudança de controle Vesting Acceleration & rdquo;
Você poderia me dar exemplos de empresas que aceitaram a opção de aquisição acelerada?
Sunayana, eu não posso dar exemplos específicos devido à confidencialidade, mas é muito comum ter aceleração, particularmente para executivos seniores.
Sunayana, eu não posso dar exemplos específicos devido à confidencialidade, mas é muito comum ter aceleração, particularmente para executivos seniores.

Colgate-Palmolive Company (CL)
CL & raquo; Tópicos & raquo; SEÇÃO 12. MUDANÇA NAS DISPOSIÇÕES DE CONTROLE.
SEÇÃO 12. MUDANÇA NAS DISPOSIÇÕES DE CONTROLE.
(a) Impacto do evento. Não obstante qualquer outra disposição deste Plano em contrário, salvo disposição em contrário em qualquer Documento de Prêmio aplicável ou resolução do Comitê que designe o Prêmio, no caso de uma Mudança de Controle: (i) todos os Prêmios de Ações Restritas concedidas em conformidade com um O programa de prêmio baseado em desempenho da Companhia (incluindo, sem limitação, Prêmios com base em desempenho qualificado) que ainda não tenham sido adquiridos, deve ser considerado ganhado em total e não digno e, exceto na extensão expressamente prevista em qualquer acordo de diferimento de acordo com a Seção 11 (a) ou qualquer outro plano, programa ou acordo aplicável ao Participante, (A) se tal Prêmio não constituir uma remuneração diferida n. ° 148; não-qualificada; # 148; de acordo com a Seção 409A do Código, será resolvido dentro de cinco dias após a Mudança no Controle e (B) se tal Prêmio constitui uma "compensação diferida" não qualificada "# 148; de acordo com a Seção 409A do Código, será resolvido de acordo com os termos do Documento de Prêmio aplicável, a menos que a Mudança de Controle constitua um evento descrito na Seção 409A (a) (2) (A) (v) do Código, em que caso o Prêmio seja resolvido dentro de cinco dias após a Mudança no Controle; (ii) deve caducar qualquer Período de Restrição aplicável aos Prêmios de Ações Legendadas concedidas de acordo com um programa de prêmio baseado em desempenho da Companhia (incluindo, sem limitação, Prêmios Baseados em Desempenho Qualificado); e (iii) todos os outros Prêmios de Ações Restritas e Ações Legendadas detidas por um Participante que experimente uma Rescisão Qualificada de Emprego dentro de dois anos após uma Mudança de Controle imediatamente serão adquiridos, e o Período de Restrição aplicável a tais Prêmios caducará, conforme aplicável , no momento da cessação de emprego qualificada e, no que diz respeito a tais ações restritas, (A) se tal Prêmio não constituir uma remuneração diferida n. ° 148; não-qualificada; de acordo com a Seção 409A do Código, será resolvido no prazo de cinco dias após essa Rescisão Qualificada de Emprego e (B) se tal Prêmio constituir uma remuneração diferida n. ° 148; nos termos da Seção 409A do Código, serão resolvidos de acordo com os termos do Documento de Prêmio aplicável.
(b) Definição de mudança no controle. Para fins do Plano, um & # 147; Mudança no Controle & # 148; significa a ocorrência de um ou mais dos seguintes eventos:
(i) Uma aquisição por qualquer indivíduo, entidade ou grupo (na acepção da Seção 13 (d) (3) ou 14 (d) (2) da Lei de Câmbio) (a & # 147; Pessoa & # 148;) de a propriedade efetiva (na acepção da Regra 13d-3 promulgada nos termos da Lei de Câmbio) de 20% ou mais de (A) as ações em circulação da Companhia (a) e a Obra Comum Outstanding Company & # 148 ;) ou (B) o poder de voto combinado dos títulos com direito a voto em dívida da Companhia com direito a votar em geral na eleição de conselheiros (a) e a Companhia de Valores Mobiliários de Valores Mobiliários # 148;); excluindo, no entanto, o seguinte: (1) qualquer aquisição diretamente da Companhia, exceto uma aquisição em virtude do exercício de um privilégio de conversão, a menos que a garantia que foi convertida foi adquirida diretamente da Companhia, (2) qualquer recompra por a Companhia, (3) qualquer aquisição por qualquer plano de benefícios de empregado (ou fideicomisso relacionado) patrocinado ou mantido pela Companhia ou qualquer entidade controlada pela Companhia, ou (4) qualquer aquisição de acordo com uma transação que cumpra as cláusulas (A) (B) e (C) da subseção (iii) desta seção 12 (b); ou.
(ii) Uma alteração na composição do Conselho de forma que os indivíduos que, a partir da Data Efetiva do Plano, constituam o Conselho (esse Conselho será doravante denominado "cessante") por qualquer motivo, constituir pelo menos uma maioria do Conselho de Administração; desde que, para fins desta Seção 12 (b), qualquer pessoa que se torne membro do Conselho subsequente à Data de Entrada em Vigor do Plano, cuja eleição ou indicação para eleição pelos acionistas da Companhia, foi aprovado por um voto de pelo menos a maioria dos indivíduos que são membros do Conselho e que também eram membros do Conselho Titular (ou considerado como tal de acordo com esta condição) deve ser considerado como sendo tal indivíduo como membro de o Conselho incumbente; desde que, além disso, que tal indivíduo cuja assunção inicial de escritório ocorra como resultado de um concurso eleitoral real ou ameaçado (como esses termos são usados ​​na Regra 14a-11 do Regulamento 14A promulgado nos termos da Lei de Câmbio) ou outros reais ou ameaçados A solicitação de procurações ou consentimentos por parte de uma Pessoa que não seja o Conselho de Administração não seja considerada como membro do Conselho Titular; ou.
(iii) A consumação de uma reorganização, fusão ou consolidação ou venda ou outra disposição de todos ou substancialmente todos os ativos da Companhia (a & # 147; Transação Corporativa & # 148;); excluindo, no entanto, tal Transação Corporativa nos termos da qual (A) a totalidade ou substancialmente todos os indivíduos e entidades que são os proprietários efetivos, respectivamente, dos Valores Mobiliários de Valores Mobiliários e de Valores Mobiliários em circulação imediatamente anteriores a essa Transação Corporativa serão benéficos possuir, direta ou indiretamente, mais de 60%, respectivamente, das ações em circulação de ações ordinárias e do poder de voto combinado dos títulos com direito a voto em dívida com direito a voto em geral na eleição de diretores, conforme o caso, de a corporação resultante dessa Transação Corporativa (incluindo, sem limitação, uma empresa que, como resultado de tal transação, possui a Companhia ou a totalidade ou substancialmente todos os ativos da Companhia, diretamente ou por meio de uma ou mais subsidiárias) substancialmente na mesmas proporções que a sua propriedade, imediatamente antes dessa Transação Corporativa, das ações ordinárias da Companhia destacada e Outstan se for caso disso, (B) nenhuma Pessoa (que não seja a Companhia, qualquer plano de benefícios para empregados (ou fideicomisso relacionado) da Companhia ou de tal corporação resultante dessa Transação Corporativa) será titular, direta ou indiretamente , 20% ou mais de, respectivamente, as ações em circulação de ações ordinárias da corporação resultantes dessa Transação Corporativa ou o poder de voto combinado dos valores eleitorais em circulação de tal empresa com direito a voto em geral na eleição dos conselheiros, exceto na medida em que essa propriedade deriva da propriedade de um interesse de 20% ou mais no estoque comum da Companhia Destaque e / ou Segurança de Voto da Empresa Externa que existia antes da Transação Corporativa, e (C) os indivíduos que eram membros do Conselho incumbente constituirão pelo menos um maioria dos membros do conselho de administração da corporação resultante dessa Transação Corporativa; ou.
(iv) A aprovação pelos acionistas de uma liquidação completa ou dissolução da Companhia.
SEÇÃO 12. MUDANÇA NAS DISPOSIÇÕES DE CONTROLE.
(a) Impacto do evento. Não obstante qualquer outra disposição deste Plano em contrário, exceto quando previsto em qualquer Carta de Prêmio aplicável ou resolução do Comitê que designa o Prêmio, no caso de uma Mudança de Controle: (i) todos os Prêmios de Ações Restritas concedidas de acordo com um O programa de prêmio baseado em desempenho da Companhia (incluindo, sem limitação, Prêmios com base em desempenho qualificado) que ainda não tenham sido adquiridos, deve ser considerado ganhado em total e não digno e, exceto na extensão expressamente prevista em qualquer acordo de diferimento de acordo com a Seção 11 (a) ou qualquer outro plano, programa ou acordo aplicável ao Participante e, sujeito à Mudança em Controle que atinja os requisitos da Seção 409A (a) (2) (A) (v) do Código, será pago de acordo com Seção 8; e (ii) todas as Restrições aplicáveis ​​aos Prêmios de Ações Legendadas concedidas de acordo com um programa de prêmio baseado em desempenho da Companhia (incluindo, sem limitação, Prêmios Baseados em Desempenho Qualificado) caducam; e (iii) todos os outros Prêmios de Ações Restritas e Ações Legendadas detidas por um Participante que experimente uma Rescisão Qualificada de Emprego dentro de dois anos após uma Mudança de Controle, assim serão devidos, e tais restrições caducarão, conforme aplicável, no momento de tal Terminação Qualificada do Emprego.
(b) Definição de mudança no controle. Para fins do Plano, um & # 147; Mudança no Controle & # 148; significa o acontecimento de qualquer um dos seguintes eventos:
(i) Uma aquisição por qualquer indivíduo, entidade ou grupo (na acepção da Seção 13 (d) (3) ou 14 (d) (2) da Lei de Câmbio) (a & # 147; Pessoa & # 148;) de a propriedade efetiva (na acepção da Regra 13d-3 promulgada nos termos da Lei de Câmbio) de 20% ou mais de (A) as ações em circulação da Companhia (a) e a Obra Comum Outstanding Company & # 148 ;) ou (B) o poder de voto combinado dos títulos com direito a voto em dívida da Companhia com direito a votar em geral na eleição de conselheiros (a) e a Companhia de Valores Mobiliários de Valores Mobiliários # 148;); excluindo, no entanto, o seguinte: (1) qualquer aquisição diretamente da Companhia, exceto uma aquisição em virtude do exercício de um privilégio de conversão, a menos que a garantia que foi convertida foi adquirida diretamente da Companhia, (2) qualquer recompra por a Companhia, (3) qualquer aquisição por qualquer plano de benefícios de empregado (ou fideicomisso relacionado) patrocinado ou mantido pela Companhia ou qualquer entidade controlada pela Companhia, ou (4) qualquer aquisição de acordo com uma transação que cumpra as cláusulas (A) (B) e (C) da subseção (iii) desta seção 12 (b); ou.
(ii) Uma alteração na composição do Conselho de forma que os indivíduos que, a partir da Data Efetiva do Plano, constituam o Conselho (esse Conselho será doravante denominado "cessante") por qualquer motivo, constituir pelo menos uma maioria do Conselho de Administração; desde que, para os fins desta Seção 12 (b), qualquer pessoa que se torne membro do Conselho subsequente à Data de Entrada em Vigor do Plano, cuja eleição ou indicação para eleição pelos acionistas da Companhia, foi aprovado por um voto de pelo menos a maioria dos indivíduos que são membros do Conselho e que também eram membros do Conselho Titular (ou considerado como tal de acordo com esta condição) deve ser considerado como sendo tal indivíduo como membro de o Conselho incumbente; desde que, além disso, que tal indivíduo cuja assunção inicial de escritório ocorra como resultado de um concurso eleitoral real ou ameaçado (como esses termos são usados ​​na Regra 14a-11 do Regulamento 14A promulgado nos termos da Lei de Câmbio) ou outros reais ou ameaçados A solicitação de procurações ou consentimentos por parte de uma Pessoa que não seja o Conselho de Administração não seja considerada como membro do Conselho Titular; ou.
(iii) A consumação de uma reorganização, fusão ou consolidação ou venda ou outra disposição de todos ou substancialmente todos os ativos da Companhia (& # 147; Transação Corporativa & # 148;); excluindo, no entanto, tal Transação Corporativa nos termos da qual (A) a totalidade ou substancialmente todos os indivíduos e entidades que são os proprietários efetivos, respectivamente, dos Valores Mobiliários de Valores Mobiliários e de Valores Mobiliários em circulação imediatamente anteriores a essa Transação Corporativa serão benéficos possuir, direta ou indiretamente, mais de 60%, respectivamente, das ações em circulação de ações ordinárias e do poder de voto combinado dos títulos com direito a voto em dívida com direito a voto em geral na eleição de diretores, conforme o caso, de a corporação resultante dessa Transação Corporativa (incluindo, sem limitação, uma empresa que, como resultado de tal transação, possui a Companhia ou a totalidade ou substancialmente todos os ativos da Companhia, diretamente ou por meio de uma ou mais subsidiárias) substancialmente na mesmas proporções que a sua propriedade, imediatamente antes dessa Transação Corporativa, das ações ordinárias da Companhia destacada e Outstan se for caso disso, (B) nenhuma Pessoa (que não seja a Companhia, qualquer plano de benefícios para empregados (ou fideicomisso relacionado) da Companhia ou de tal corporação resultante dessa Transação Corporativa) será titular, direta ou indiretamente , 20% ou mais de, respectivamente, as ações em circulação de ações ordinárias da corporação resultantes dessa Transação Corporativa ou o poder de voto combinado dos valores eleitorais em circulação de tal empresa com direito a voto em geral na eleição dos conselheiros, exceto na medida em que essa propriedade deriva da propriedade de um interesse de 20% ou mais no estoque comum da Companhia Destaque e / ou Segurança de Voto da Empresa Externa que existia antes da Transação Corporativa, e (C) os indivíduos que eram membros do Conselho incumbente constituirão pelo menos um maioria dos membros do conselho de administração da corporação resultante dessa Transação Corporativa; ou.
(iv) a aprovação pelos acionistas de uma liquidação ou dissolução completa da Companhia.
SEÇÃO 6. Disposições de mudança de controle.
(a) Impacto do evento. Não obstante qualquer outra disposição do Plano em contrário, no caso de uma Mudança de Controle, qualquer Opções de Ações em circulação a partir da data em que essa Mudança de Controle esteja determinada a ter ocorrido e não então exercitável e adquirida deverá tornar-se totalmente exercível e investida a extensão total da concessão original.
(b) Definição de Mudança de Controle. Para fins do Plano, um & ldquo; Change of Control & rdquo; significa o acontecimento de qualquer um dos seguintes eventos:
Valores Mobiliários de ações ordinários ou em circulação que existissem antes da Transação Corporativa e (C) os indivíduos que eram membros do Conselho incumbente constituirão pelo menos a maioria dos membros do conselho de administração da corporação resultante dessa Transação Corporativa; ou.

Opções de estoque da cláusula de mudança de controle
ACORDO EXECUTIVO DE EMPREGO.
ESTE ACORDO DE EMPREGO EXECUTIVO (este & # 147; Acordo & # 148;), datado de 21 de agosto de 2012 (a & # 147; Data Efetiva & # 148;) é feito e entrado pela Symantec Corporation, uma corporação da Delaware ( The & # 147; Company & # 148;), e Steve Bennett (o & # 147; Executive & # 148;)).
CONSIDERANDO que o Executivo é atualmente empregado como Presidente e Diretor Presidente da Companhia e espera-se que contribua de forma importante para a rentabilidade, crescimento e solidez financeira a curto e longo prazos da Companhia;
CONSIDERANDO que, a Companhia determinou que deveriam ser tomadas providências apropriadas para encorajar a atenção e dedicação contínuas do Executivo aos seus deveres designados sem distração; e.
CONSIDERANDO que, em consideração do emprego do Executivo na Companhia, a Companhia deseja fornecer ao Executivo certas compensações e benefícios conforme estabelecido neste Contrato, a fim de melhorar o impacto financeiro e profissional no Executivo no caso de o O emprego do executivo com a Companhia é rescindido por uma razão relacionada ou não relacionada a uma Mudança de Controle (conforme definido abaixo) da Companhia.
AGORA, CONSIDERANDO, em consideração do exposto e dos convênios e acordos mútuos a seguir estabelecidos e que pretendem estar legalmente vinculados, a Companhia e o Executivo concordam com o seguinte:
1. Determinados Termos Definidos. Além dos termos definidos em outro lugar, os seguintes termos têm os seguintes significados quando utilizados neste Contrato com letras maiúsculas iniciais:
(a) & # 147; Salário Base Anual & # 148; significa a taxa de salário base anual do executivo, excluindo bônus, comissões e outros salários de incentivo, como vigente imediatamente antes da data de rescisão do executivo. A partir da data efetiva, o salário base anual do executivo é de US $ 1.000.000.
(b) & # 147; Board & # 148; significa o Conselho de Administração da Companhia.
(i) um delito intencional (excluindo qualquer delito relacionado a um veículo a motor) que cause perdas substanciais, danos ou prejuízos à propriedade ou reputação da Companhia ou de suas subsidiárias;
(ii) qualquer crime grave ou ato intencional, material de fraude ou desonestidade contra a Companhia;
(iii) a comissão de um crime que resulte em prejuízo não imaterial para o negócio da Empresa ou para a reputação da Companhia ou Executivo;
(iv) negligência habitual dos deveres razoáveis ​​do executivo (por uma razão além de doença ou incapacidade) que não seja curada dentro de dez (10) dias após notificação por escrito da Diretoria ao Executivo;
(v) o desrespeito das políticas escritas e materiais da Companhia ou de suas subsidiárias que causam prejuízos, danos ou danos à propriedade ou reputação da Companhia ou de suas subsidiárias que não sejam curados no prazo de dez (10) dias após a notificação por escrito. pelo Conselho para o Executivo; ou.
(vi) qualquer violação substancial da obrigação contínua do Executivo de não divulgar informações confidenciais e não atribuir a propriedade intelectual desenvolvida durante o emprego que, se for capaz de ser curada, não é curada no prazo de dez (10) dias após a notificação por escrito do mesmo. pela Diretoria ao Executivo.
(d) & # 147; Alteração no controle & # 148; significa:
(i) qualquer pessoa ou entidade que se torne o beneficiário efetivo, direta ou indiretamente, de valores mobiliários da Companhia representando quarenta (40%) por cento do total de votos de todos os seus títulos eleitorais em circulação;
(ii) uma fusão ou consolidação da Companhia em que seus títulos eleitorais imediatamente antes da incorporação ou consolidação não representam, ou não são convertidos em valores mobiliários que representam, a maioria do poder de voto de todos os títulos eleitorais da entidade sobrevivente imediatamente após a fusão ou consolidação;
(iii) venda de substancialmente todos os ativos da Companhia ou liquidação ou dissolução da Companhia; ou.
(iv) indivíduos que, a partir da data da assinatura deste Contrato, constituem o Conselho de Administração (o & # 147; Conselho em exercício; # 148;) cessar por qualquer motivo para constituir pelo menos a maioria desse Conselho; desde que qualquer pessoa que se torne diretor da Companhia após a assinatura deste Contrato, cuja eleição ou indicação para eleição pelos acionistas da Companhia, seja aprovada pelo voto de pelo menos a maioria dos diretores em funções deve ser considerado membro do Conselho Titular.
(e) & # 147; COBRA & # 148; significa o Consolidado Omnibus Budget Reconciliation Act de 1986, conforme alterado.
(f) & # 147; Disability & # 148; significa que (i) o Executivo foi incapacitado por lesões corporais, doenças ou doenças, de modo a evitar que se dedique ao desempenho dos deveres do Executivo (desde que, no entanto, a Companhia reconheça suas obrigações de fornecer acomodação razoável na medida exigida pela lei aplicável); (ii) essa incapacidade total deve ter continuado por um período de seis (6) meses consecutivos; e (iii) essa incapacidade, na opinião de um médico qualificado, será permanente e contínua durante o restante da vida do Executivo.
(g) & # 147; Good Reason Termination & # 148; significa:
(i) uma diminuição material na compensação de base do executivo ou no bônus-alvo abaixo do valor a partir da data deste Contrato ou aumentado ao longo de seu emprego com a Companhia, excluindo uma ou mais reduções (total não mais do que 20% no agregado) geralmente aplicável a todos os executivos seniores desde que, no entanto, essa exclusão não se aplique se a diminuição material na compensação básica do Executivo ocorrer dentro de (A) 60 dias antes da consumação de uma Mudança no Controle em que tal Mudança de Controle estava em consideração no momento da Data de Rescisão do Executivo ou (B) doze (12) meses após a data em que ocorre tal Mudança no Controle;
(ii) uma diminuição material na autoridade, deveres ou responsabilidades do Executivo;
(iii) um requisito de que o Executivo reporte a um funcionário ou funcionário corporativo da Companhia em vez de informar diretamente ao Conselho (ou se a Companhia possuir uma empresa-mãe, um requisito que o Executivo informe a qualquer indivíduo ou entidade que não seja o conselho da empresa matriz final da Companhia);
(iv) uma diminuição material no orçamento sobre o qual o Executivo mantém autoridade;
(v) uma alteração material na localização geográfica em que o Executivo deve executar serviços; ou.
(vi) qualquer ação ou inatividade que constitua uma violação material pela Companhia deste Contrato;
desde que, no entanto, para que o Executivo possa encerrar seu emprego com a Companhia em razão da Boa Moção, ele deve notificar a ocorrência do evento que constitui a Good Reason e seu desejo de encerrar seu emprego com a Companhia por conta dessas dentro de noventa (90) dias após a existência inicial da condição que constitui Good Reason, e a Companhia deve ter um período de trinta (30) dias após o recebimento desse aviso para curar a condição. Se a Companhia não curar o evento constituindo Good Reason dentro desse período de trinta (30) dias, a Data de Rescisão do Executivo será o dia imediatamente após o término desse período de trinta (30) dias, a menos que a Companhia preveja uma data de rescisão anterior.
(h) & # 147; Target Bonus & # 148; significa o pagamento do destino (ou seja, a 100% de cada uma das métricas aplicáveis ​​vigentes de tempos em tempos) de acordo com o Plano de Incentivo Anual Executivo da Companhia no vigente para o Executivo na Data de Rescisão. A partir da Data Efetiva, a porcentagem de bônus alvo do Executivo no Plano de Incentivo Anual Executivo é de 150% do salário base anual.
(i) & # 147; Data de Término & # 148; significa o último dia de emprego do executivo na Companhia.
(j) & # 147; Termination of Employment & # 148; significa a rescisão da relação de trabalho ativo do executivo com a Companhia.
2. Término não relacionado a uma mudança no controle.
(a) Término involuntário não relacionado a uma mudança de controle. No caso de: (i) rescisão involuntária do emprego do Executivo pela Companhia por qualquer motivo que não seja Causa, morte ou deficiência, ou (ii) demissão do Executivo para o Bom Razão e se a Seção 3 não se aplica, o Executivo terá direito aos benefícios previstos na subsecção (b) desta Seção 2.
(b) Compensação após a cessação não relacionada a uma mudança no controle. Sujeito às disposições da Seção 5 deste documento, no caso de ocorrer uma rescisão descrita na subseção (a) desta Seção 2, a Companhia deverá fornecer ao Executivo o seguinte, desde que o Executivo execute e não revogue o Release (conforme definido na Seção 5):
(i) 1,5 vezes a soma de Salário Base Anual e Bônus de Destino, pago em um único pagamento em dinheiro de montante fixo no sexagésimo (60º) dia seguinte à Data de Rescisão do Executivo. (Para os propósitos desta subseção (i), o salário base anual significará o maior entre os seguintes: salário base anual do executivo imediatamente antes da data de término do (A) executivo, ou (B) qualquer redução de Saldo base do executivo descrito na primeira cláusula da subsecção (i) na definição de Good Reason. Para os fins desta subseção (i), o bônus de destino significará o maior entre os seguintes: o bônus-alvo do executivo imediatamente antes da Data de Rescisão do (A) Executivo, ou (B) qualquer redução do bônus-alvo do Executivo, descrito na primeira cláusula da subseção (i) na definição de Bom Razão.)
(ii) Por um período até dezoito (18) meses após a Data de Rescisão do Executivo, Executivo e, quando aplicável, o cônjuge executivo e os dependentes elegíveis, continuarão a ser elegíveis para receber cobertura médica sob a Companhia & Planos médicos de acordo com os termos dos documentos do plano aplicáveis; desde que, para receber essa cobertura contínua a essas taxas, o Executivo será obrigado a pagar os prêmios aplicáveis ​​ao provedor do plano, e a Companhia reembolsará o Executivo, dentro de 60.
dias após a data em que o pagamento do prémio mensal for devido, um montante igual ao pagamento mensal COBRA mensal, menos retenções de imposto aplicáveis. Não obstante o que precede, se o Executivo obtiver emprego a tempo inteiro durante este período de dezoito (18) meses que lhe confere direito a ele e seu cônjuge e dependentes elegíveis a uma cobertura médica abrangente, o Executivo deve notificar a Companhia e nenhum outro reembolso será pago pela Companhia ao Executivo de acordo com esta subsecção. Além disso, se o Executivo não pagar o prêmio COBRA mensal aplicável por um determinado mês a qualquer momento durante o período de dezoito (18) meses e a cobertura for perdida, nenhum outro reembolso será pago pela Companhia ao Executivo de acordo com esta subseção. Não obstante o disposto acima, se a Companhia determinar, a seu exclusivo critério, que não pode fornecer os benefícios anteriores da COBRA sem potencialmente violar a lei aplicável (incluindo, sem limitação, a Seção 2716 da Lei do Serviço de Saúde Pública), a Companhia deverá, em vez disso, fornecer ao Executivo um pagamento fixo tributável em um valor igual ao prémio COBRA mensal (ou então) que o Executivo seria obrigado a pagar para continuar a cobertura de saúde de seu grupo em vigor na Data de Rescisão (qual montante deve basear-se no prêmio da primeiro mês de cobertura COBRA).
(iii) No que diz respeito a quaisquer opções de compra de ações da Companhia em circulação detidas pelo Executivo na Data de Rescisão que não sejam adquiridas e exercíveis a partir dessa data, a Companhia deverá acelerar a aquisição da parcela das opções de compra de ações do executivo, se houver, que teria adquirido e se tornaria exercível no prazo de dezoito (18) meses após a Data de Rescisão do Executivo, tais opções (assim como quaisquer opções de compra em circulação anteriormente adquiridas e exercíveis) permanecerão exercíveis, não obstante anything in any other agreement governing such options, until the earlier of (A) a period of one year after the Executive’s Termination Date, or (B) the original term of the option. Except as provided in this Section 2(b)(iii) and in Section 3(b)(iii) below, any portion of Executive’s outstanding stock options that are not vested and exercisable as of Executive’s Termination Date shall terminate.
(iv) With respect to any restricted stock units representing shares of Company common stock (“Restricted Stock Units”) held by the Executive that are unvested at the time of his Termination Date, the number of unvested Restricted Stock Units that would have vested within the eighteen (18) month period after the Executive’s Termination Date shall vest, and settle not later than sixty (60) days following the Termination Date. Except as provided in this Section 2(b)(iv) and in Section 3(b)(iv) below, any Restricted Stock Units that are not vested as of Executive’s Termination Date shall terminate.
(v) Any amounts that have been accrued for the account of the Executive under the Company’s Long Term Incentive Plan (“LTIP”) that have not been released to the Executive as of the Termination Date shall be released to the executive, as applicable, in accordance with the terms of any applicable LTIP then in effect under the circumstances described therein as an involuntary termination other than for cause.
(vi) With respect to any Performance-based Restricted Stock Units (“PRUs”) held by the Executive that have not been released to the Executive pursuant to the terms of the applicable Performance Based Restricted Share Unit Award Agreement (the “PRU Agreement”) as of the Termination Date shall be treated in accordance with the terms of the applicable PRU Agreement as an involuntary termination other than for cause.
(vii) With respect to any Performance Contingent Stock Units (“PCSUs”) held by the Executive that have not been released to the Executive pursuant to the terms of the applicable Performance Contingent Stock Unit Agreement (the “PCSU Agreement”) as of the Termination Date shall be treated in accordance with the terms of the applicable PCSU Agreement as an involuntary termination other than for cause.
(viii) Executive shall receive any amounts earned, accrued or owing but not yet paid to Executive as of his Termination Date, payable in a lump sum, and any benefits accrued or earned in accordance with the terms of any applicable benefit plans and programs of the Company.
3. Termination Related to a Change in Control .
(a) Involuntary Termination Relating to a Change in Control . In the event Executive’s employment is terminated on account of (i) an involuntary termination by the Company for any reason other than Cause, death or Disability, or (ii) the Executive voluntarily terminates employment with the Company on account of a resignation for Good Reason, in either case that occurs (x) at the same time as, or within the twelve (12) month period following, the consummation of a Change in Control or (y) within the sixty (60) day period prior to the date of a Change in Control where the Change in Control was under consideration at the time of Executive’s Termination Date, then Executive shall be entitled to the benefits provided in subsection (b) of this Section 3.
(b) Compensation Upon Involuntary Termination Relating to a Change in Control . Subject to the provisions of Section 5 hereof, in the event a termination described in subsection (a) of this Section 3 occurs, the Company shall provide that the following be paid to the Executive after his Termination Date, provided that Executive executes and does not revoke the Release:
(i) 2.0 times the sum of Annual Base Salary and Target Bonus, paid in a single lump sum cash payment on the sixtieth (60th) day following Executive’s Termination Date. Notwithstanding the foregoing, to the extent Executive is entitled to receive the severance benefit payable pursuant to Section 2(b)(i) as a result of a qualifying termination prior to a Change in Control and then becomes entitled to receive the severance benefit payable pursuant to this Section 3 as a result of the Change in Control that was considered at the time of Executive’s Termination Date becoming consummated within sixty (60) days following Executive’s Termination Date, Executive shall not receive the.
severance benefit payable pursuant to Section 2(b)(i) of this Agreement, but instead shall receive the severance benefit payable pursuant to this Section 3(b)(i) on the sixtieth (60th) day following Executive’s Termination Date. (For purposes of this subsection (i), Annual Base Salary will mean the largest among the following: Executive’s annual base salary immediately prior to (A) Executive’s Termination Date, (B) any reduction of Executive’s base salary described in the first clause of subsection (i) in the definition of Good Reason, or (C) immediately prior to the Change in Control. For purposes of this subsection (i), Target Bonus will mean the largest among the following: Executive’s target bonus (A) immediately prior to Executive’s Termination Date, (B) immediately prior to any reduction of Executive’s target bonus described in the first clause of subsection (i) in the definition of Good Reason, (C) immediately prior to the Change in Control, or (d) for the fiscal year preceding the year in which the Change in Control.)
(ii) For a period of up to twenty-four (24) months following Executive’s Termination Date, Executive and where applicable, Executive’s spouse and eligible dependents, will continue to be eligible to receive medical coverage under the Company’s medical plans in accordance with the terms of the applicable plan documents; provided, that in order to receive such continued coverage at such rates, Executive will be required to pay the applicable premiums to the plan provider, and the Company will reimburse the Executive, within sixty (60) days following the date such monthly premium payment is due, an amount equal to the monthly COBRA (or, as applicable, other) premium payment, less applicable tax withholdings. Notwithstanding the foregoing, if Executive obtains full-time employment during this twenty-four (24) month period that entitles him and his spouse and eligible dependents to comprehensive medical coverage, Executive must notify the Company and no further reimbursements will be paid by the Company to the Executive pursuant to this subsection. In addition, if Executive does not pay the applicable monthly COBRA (or other) premium for a particular month at any time during the twenty-four (24) month period and coverage is lost as a result, no further reimbursements will be paid by the Company to the Executive pursuant to this subsection. Notwithstanding the foregoing, to the extent Executive is entitled to receive the severance benefit provided pursuant to Section 2(b)(ii) of the Agreement as a result of a qualifying termination prior to a Change in Control, if Executive becomes entitled to receive the severance benefits payable pursuant to this Section 3 as a result of the Change in Control that was considered at the time of Executive’s Termination Date becoming consummated within sixty (60) days following Executive’s Termination Date, Executive shall be entitled to receive the severance benefit provided pursuant to this clause (ii) and not the benefit provided pursuant to Section 2(b)(ii). Notwithstanding the above, if the Company determines in its sole discretion that it cannot provide the foregoing COBRA benefits without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide to Executive a taxable lump-sum payment in an amount equal to the monthly (or then remaining) COBRA premium that Executive would be required to pay to continue his group health coverage in effect on the Termination Date (which amount shall be based on the premium for the first month of COBRA coverage).
(iii) With respect to any outstanding Company stock options held by the Executive as of his Termination Date, the Company shall fully accelerate the vesting and exercisability of such stock options, so that all such stock options shall be fully vested and exercisable as of Executive’s Termination Date, such options (as well as any outstanding stock options that previously became vested and exercisable) to remain exercisable, notwithstanding anything in any other agreement governing such options, until the earlier of (A) a period of one year after the Executive’s Termination Date, or (B) the original term of the option. Notwithstanding the foregoing, to the extent Executive is entitled to receive the vesting and exercisability acceleration provided pursuant to Section 2(b)(iii) of the Agreement as a result of a qualifying termination prior to a Change in Control, if Executive becomes entitled to receive the severance benefits payable pursuant to this Section 3 as a result of the Change in Control that was considered at the time of Executive’s Termination Date becoming consummated within sixty (60) days following Executive’s Termination Date, any outstanding stock options that did not become vested and exercisable pursuant to Section 2(b)(iii) shall become vested and exercisable as of the date of the Change in Control; provided, however, if a Change in Control does not occur within sixty (60) days following Executive’s Termination Date, any stock options held by Executive that are not vested and exercisable shall terminate as of the sixtieth (60th) day following Executive’s Termination Date or the end of the term, if earlier.
(iv) With respect to any Restricted Stock Units held by the Executive that are unvested at the time of his Termination Date, all such unvested Restricted Stock Units shall vest and settle not later than sixty (60) days following the Termination Date. Notwithstanding the foregoing, to the extent Executive is entitled to receive the vesting acceleration provided pursuant to Section 2(b)(iv) of the Agreement as a result of a qualifying termination prior to a Change in Control, if Executive becomes entitled to receive the severance benefits payable pursuant to this Section 3 as a result of the Change in Control that was considered at the time of Executive’s Termination Date becoming consummated within sixty (60) days following Executive’s Termination Date, any outstanding Restricted Stock Units that did not become vested pursuant to Section 2(b)(iv) shall become vested as of the date of the Change in Control; provided, however, if a Change in Control does not occur within sixty (60) days following Executive’s Termination Date, any Restricted Stock Units held by Executive that are not vested shall terminate as of the sixtieth (60th) day following Executive’s Termination Date.
(v) Any amounts that have been accrued for the account of the Executive under the LTIP that have not been released to the Executive as of the Termination Date shall be released to the executive, as applicable, in accordance with the terms of any applicable LTIP then in effect under the circumstances described therein as a “Change of Control of the Company” (as.
defined therein).With respect to any PRUs held by the Executive that have not been released to the Executive pursuant to the terms of the applicable PRU Agreement as of the Termination Date shall be treated in accordance with the terms of the applicable PRU Agreement as a “Change of Control of the Company” (as defined therein).
(vi) With respect to any PCSUs held by the Executive that have not been released to the Executive pursuant to the terms of the applicable PCSU Agreement as of the Termination Date shall be treated in accordance with the terms of the applicable PCSU Agreement as a “Change of Control of the Company” (as defined therein).
(vii) Executive shall receive any amounts earned, accrued or owing but not yet paid to Executive as of his Termination Date, payable in a lump sum, and any benefits accrued or earned in accordance with the terms of any applicable benefit plans and programs of the Company.
(c) Consequence of a Change in Control . Notwithstanding the terms of the Symantec 2004 Executive Incentive Plan (the “2004 Plan”), if, as of the date of a Change in Control, Executive holds stock options issued under the 2004 Plan that are not vested and exercisable, such stock options shall become fully vested and exercisable as of the date of the Change in Control if the acquirer does not agree to assume or substitute for equivalent stock options such outstanding stock options.
4. Termination of Employment on Account of Disability, Death, Cause or Voluntarily Without Good Reason .
(a) Termination on Account of Disability . Notwithstanding anything in this Agreement to the contrary, if Executive’s employment terminates on account of Disability, Executive shall be entitled to receive disability benefits under any disability program maintained by the Company that covers Executive, and Executive shall not receive benefits pursuant to Sections 2 and 3 hereof, except that, subject to the provisions of Section 5 hereof, the Executive shall be entitled to the following benefits provided that Executive executes and does not revoke the Release:
(i) For a period of up to eighteen (18) months following Executive’s Termination Date, Executive and where applicable, Executive’s spouse and eligible dependents, will continue to be eligible to receive medical coverage under the Company’s medical plans in accordance with the terms of the applicable plan documents; provided, that in order to receive such continued coverage at such rates, Executive will be required to pay the applicable premiums to the plan provider, and the Company will reimburse the Executive, within 60 days following the date such monthly premium payment is due, an amount equal to the monthly COBRA premium payment, less applicable tax withholdings. Notwithstanding the foregoing, if Executive obtains full-time employment during this eighteen (18) month period that entitles him and his spouse and eligible dependents to comprehensive medical coverage, Executive.
must notify the Company and no further reimbursements will be paid by the Company to the Executive pursuant to this subsection. In addition, if Executive does not pay the applicable monthly COBRA premium for a particular month at any time during the eighteen (18) month period and coverage is lost as a result, no further reimbursements will be paid by the Company to the Executive pursuant to this subsection. Notwithstanding the above, if the Company determines in its sole discretion that it cannot provide the foregoing COBRA benefits without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide to Executive a taxable lump-sum payment in an amount equal to the monthly (or then remaining) COBRA premium that Executive would be required to pay to continue his group health coverage in effect on the Termination Date (which amount shall be based on the premium for the first month of COBRA coverage).
(ii) With respect to any outstanding Company stock options held by the Executive as of his Termination Date that are not vested and exercisable as of such date, the Company shall fully accelerate the vesting and exercisability of such stock options, so that all such stock options shall be fully vested and exercisable as of the Executive’s Termination Date, such options (as well as any outstanding stock options that previously became vested and exercisable) to remain exercisable, notwithstanding anything in any other agreement governing such options, until the earlier of (A) a period of one year after the Executive’s Termination Date, or (B) the original term of the option.
(iii) With respect to any Restricted Stock Units held by the Executive that are unvested at the time of his Termination Date, all such unvested Restricted Stock Units shall vest and settle not later than sixty (60) days following his Termination Date.
(iv) Any amounts that have been accrued for the account of the Executive under the LTIP that have not been released to the Executive as of the Termination Date shall be released to the executive, as applicable, in accordance with the terms of any applicable LTIP then in effect under the circumstances described therein as a termination by reason of total and permanent disability.
(v) With respect to any PRUs held by the Executive that have not been released to the Executive pursuant to the terms of the applicable PRU Agreement as of the Termination Date shall be treated in accordance with the terms of the applicable PRU Agreement as a termination of employment by reason of total and permanent disability.
(vi) With respect to any PCSUs held by the Executive that have not been released to the Executive pursuant to the terms of the applicable PCSU Agreement as of the Termination Date shall be treated in accordance with the terms of the applicable PCSU Agreement as a termination of employment by reason of total and permanent disability.
(b) Termination on Account of Death . Notwithstanding anything in this Agreement to the contrary, if Executive’s employment terminates on account of death, Executive shall be entitled to receive death benefits under any death benefit program maintained by the Company that covers Executive, and Executive not receive benefits pursuant to Sections 2 and 3 hereof, except that, subject to the provisions of Section 5 hereof, the Executive shall be entitled to the following benefits provided that Executive’s estate executes and does not revoke the Release:
(i) With respect to any outstanding Company stock options held by the Executive as of his death that are not vested and exercisable as of such date, the Company shall fully accelerate the vesting and exercisability of such stock options, so that all such stock options shall be fully vested and exercisable as of the Executive’s death, such options (as well as any outstanding stock options that previously became vested and exercisable) to remain exercisable, notwithstanding anything in any other agreement governing such options, until the earlier of (A) a period of one year after the Executive’s death or (B) the original term of the option.
(ii) With respect to any Restricted Stock Units held by the Executive that are unvested at the time of his death, all such unvested Restricted Stock Units shall vest and settle not later than sixty (60) days following his death.
(iii) Any amounts that have been accrued for the account of the Executive under the LTIP that have not been released to the Executive as of his death shall be released to the executive, as applicable, in accordance with the terms of any applicable LTIP then in effect under the circumstances described therein as a termination by reason of death.
(iv) With respect to any PRUs held by the Executive that have not been released to the Executive pursuant to the terms of the applicable PRU Agreement as of his death shall be treated in accordance with the terms of the applicable PRU Agreement as a termination of employment by reason of death.
(v) With respect to any PCSUs held by the Executive that have not been released to the Executive pursuant to the terms of the applicable PCSU Agreement as of his death shall be treated in accordance with the terms of the applicable PCSU Agreement as a termination of employment by reason of death.
(c) Termination on Account of Cause . Notwithstanding anything in this Agreement to the contrary, if Executive’s employment terminates by the Company on account of Cause, Executive shall not receive benefits pursuant to Sections 2 and 3 hereof.
(d) Termination on Account of Voluntary Resignation Without Good Reason . Notwithstanding anything in this Agreement to the contrary, if Executive’s.
employment terminates on account of a resignation by Executive for no reason or any reason other than on account of Good Reason, Executive shall not receive benefits pursuant to Sections 2 and 3 hereof.
5. Release . Notwithstanding the foregoing, no payments or other benefits under this Agreement shall be made unless Executive executes, and does not revoke, the Company’s standard written release , substantially in the form as attached hereto as Annex A, (the “Release”), of any and all claims against the Company and all related parties with respect to all matters arising out of Executive’s employment by the Company (other than entitlements under the terms of this Agreement or under any other plans or programs of the Company in which Executive participated and under which Executive has accrued or become entitled to a benefit) or a termination thereof, with such release being effective not later than sixty (60) days following Executive’s Termination Date.
6. No Mitigation Obligation . Executive shall not be required to mitigate the amount of any payment or benefit provided for in this Agreement by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for herein be reduced by any compensation earned by other employment or otherwise.
7. Employment Rights . Nothing expressed or implied in this Agreement will create any right or duty on the part of the Company or the Executive to have the Executive remain in the employment of the Company or any subsidiary prior to or following any Change in Control.
8. PRU Agreement . Notwithstanding the provisions of the PRU Agreement, Executive’s Conditional PRU Award for the Performance Period beginning in fiscal year 2012 and ending at the end of fiscal year 2014 shall be not less than 80,000 PRUs (capitalized terms used in this Section 8 but not defined herein shall have the meanings ascribed to them in the PRU Agreement).
(a) Withholding of Taxes . The Company may withhold from any amounts payable under this Agreement all federal, state, city or other taxes as the Company is required to withhold pursuant to any applicable law, regulation or ruling.
(b) Parachute Excise Tax. In the event that any amounts payable under this Agreement or otherwise to Executive would (i) constitute “parachute payments” within the meaning of section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), or any comparable successor provisions and (ii) but for this Subsection (b) would be subject to the excise tax imposed by section 4999 of the Code or any comparable successor provisions (the “Excise Tax”), then such amounts payable to Executive hereunder shall be either:
(i) Provided to Executive in full; ou.
(ii) Provided to Executive to the maximum extent that would result in no portion of such benefits being subject to the Excise Tax;
whichever of the foregoing amounts, when taking into account applicable federal, state, local and foreign income and employment taxes, the Excise Tax and any other applicable taxes, results in the receipt by Executive, on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under the Excise Tax. Unless the Company and Executive otherwise agree in writing, any determination required under this Subsection (b) shall be made in writing in good faith by a nationally recognized accounting firm (the “Accountants”). In the event of a reduction in benefits hereunder, the reduction of the total payments shall apply as follows, unless otherwise agreed in writing and such agreement is in compliance with section 409A of the Code: (i) any cash severance payments subject to Section 409A of the Code due under this Agreement shall be reduced, with the last such payment due first forfeited and reduced, and sequentially thereafter working from the next last payment, (ii) any cash severance payments not subject to Section 409A of the Code due under this Agreement shall be reduced, with the last such payment due first forfeited and reduced, and sequentially thereafter working from the next last payment; (iii) any acceleration of vesting of any equity subject to Section 409A of the Code shall remain as originally scheduled to vest, with the tranche that would vest last (without any such acceleration) first remaining as originally scheduled to vest; and (iv) any acceleration of vesting of any equity not subject to Section 409A of the Code shall remain as originally scheduled to vest, with the tranche that would vest last (without any such acceleration) first remaining as originally scheduled to vest. For purposes of making the calculations required by this Subsection (b), the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good-faith interpretations concerning the application of the Code and other applicable legal authority. The Company and Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Subsection (b). The Company shall bear all costs that the Accountants may reasonably incur in connection with any calculations contemplated by this Subsection (b).
If, notwithstanding any reduction described in this Subsection (b), the Internal Revenue Service (“IRS”) determines that Executive is liable for the Excise Tax as a result of the receipt of amounts payable under this Agreement or otherwise as described above, then Executive shall be obligated to pay back to the Company, within thirty (30) days after a final IRS determination or, in the event that Executive challenges the final IRS determination, a final judicial determination, a portion of such amounts equal to the Repayment Amount. The “Repayment Amount” with respect to the payment of benefits shall be the smallest such amount, if any, that is required to be paid to the Company so that Executive’s net after-tax proceeds with respect to any payment of benefits (after taking into account the payment of the Excise Tax and all other applicable taxes imposed on such payment) are maximized. The Repayment Amount with respect to the payment of benefits shall be zero if a Repayment Amount of more than zero would not result in Executive’s net after-tax proceeds with respect to the payment of such benefits being maximized. If the Excise Tax is not eliminated pursuant to this paragraph, Executive shall pay the Excise Tax.
Notwithstanding any other provision of this Subsection (b), if (i) there is a reduction in the payment of benefits as described in this Subsection (b), (ii) the IRS later determines that Executive is liable for the Excise Tax, the payment of which would result in the maximization of Executive’s net after-tax proceeds (calculated as if Executive’s benefits had not previously been reduced), and (iii) Executive pays the Excise Tax, then the Company shall pay to Executive those benefits which were reduced pursuant to this Subsection (b) as soon as administratively possible after Executive pays the Excise Tax, so that Executive’s net after-tax proceeds with respect to the payment of benefits are maximized.
10. Term of Agreement . This Agreement shall continue in full force and effect until the third anniversary of the Effective Date (the “Initial Term”), and shall automatically renew for additional one (1) year renewal periods (a “Renewal Term”) if Executive is employed by the Company on the last day of the Initial Term and on each Renewal Term; provided, however, that within the sixty (60) to ninety (90) day period prior to the expiration of the Initial Term or any Renewal Term, at its discretion, the Board may propose for consideration by Executive, such amendments to the Agreement as it deems appropriate. If Executive’s employment with the Company terminates during the Initial Term or a Renewal Term, this Agreement shall remain in effect until all of the obligations of the parties hereunder are satisfied or have expired.
11. Successors and Binding Agreement .
(a) The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the business or assets of the Company, by agreement in form and substance reasonably satisfactory to the Executive, expressly to assume and agree to perform this Agreement in the same manner and to the same extent the Company would be required to perform if no such succession had taken place. This Agreement will be binding upon and inure to the benefit of the Company and any successor to the Company, including without limitation any persons acquiring directly or indirectly all or substantially all of the business or assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise (and such successor will thereafter be deemed the “Company” for the purposes of this Agreement), but will not otherwise be assignable, transferable or delegable by the Company.
(b) This Agreement will inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees and legatees. This Agreement will supersede the provisions of any employment, severance or other agreement between the Executive and the Company that relate to any matter that is also the subject of this Agreement, and such provisions in such other agreements will be null and void.
(c) This Agreement is personal in nature and neither of the parties hereto will, without the consent of the other, assign, transfer or delegate this Agreement or any rights or obligations hereunder except as expressly provided in Sections 10(a) and 10(b). Without limiting the generality or effect of the foregoing, the Executive’s right to receive payments hereunder will not be assignable, transferable or delegable, whether by pledge, creation of a security interest, or otherwise, other than by a transfer by the Executive’s will or by the laws of descent and distribution and, in the event of any attempted assignment or transfer contrary to this Section 10(c), the Company will have no liability to pay any amount so attempted to be assigned, transferred or delegated.
12. Notices . For all purposes of this Agreement, all communications, including without limitation notices, consents, requests or approvals, required or permitted to be given hereunder will be in writing and will be deemed to have been duly given when hand delivered or dispatched by electronic facsimile transmission (with receipt thereof orally confirmed), or five (5) business days after having been mailed by United States registered or certified mail, return receipt requested, postage prepaid, or three business days after having been sent by a nationally recognized overnight courier service such as FedEx or UPS, addressed to the Company (to the attention of the Secretary of the Company) at its principal executive office and to the Executive at his principal residence, or to such other address as any party may have furnished to the other in writing and in accordance herewith, except that notices of changes of address will be effective only upon receipt.
13. Section 409A of the Code .
(a) Interpretation . Notwithstanding the other provisions hereof, this Agreement is intended to comply with the requirements of section 409A of the Code, to the extent applicable, and this Agreement shall be interpreted to avoid any penalty sanctions under section 409A of the Code. Accordingly, all provisions herein, or incorporated by reference, shall be construed and interpreted to comply with section 409A of the Code and, if necessary, any such provision shall be deemed amended to comply with section 409A of the Code and regulations thereunder. If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions under section 409A of the Code, then such benefit or payment shall be provided in full at the earliest time thereafter when such sanctions will not be imposed. Any amount payable under this Agreement that constitutes deferred compensation subject to section 409A of the Code shall be paid at the time provided under this Agreement or such other time as permitted under section 409A of the Code. No interest will be payable with respect to any amount paid within a time period permitted by, or delayed because of, section 409A of the Code. All payments to be made upon a termination of employment under this Agreement that are deferred compensation may only be made upon a “separation from service” under section 409A of the Code. For purposes of section 409A of the Code, each payment made under this Agreement shall be treated as a separate payment. In no event may Executive, directly or indirectly, designate the calendar year of payment.
(b) Payment Delay . To the maximum extent permitted under section 409A of the Code, the severance benefits payable under this Agreement are intended to comply with the “short-term deferral exception” under Treas. Reg. §1.409A-1(b)(4), and any remaining amount is intended to comply with the “separation pay exception” under Treas. Reg. §1.409A-1(b)(9)(iii); provided, however, any amount payable to Executive during the six (6) month period following Executive’s Termination Date that does not qualify within either of the foregoing exceptions and constitutes deferred compensation subject to the requirements of section 409A of the Code, then such amount shall hereinafter be referred to as the “Excess Amount.” If at the time of Executive’s separation from service, the Company’s (or any entity required to be aggregated with the Company under section 409A of the Code) stock is publicly-traded on an established securities market or otherwise and Executive is a “specified employee” (as defined in section 409A of the Code and determined in the sole discretion of the Company (or any successor thereto) in accordance with the Company’s (or any successor thereto) “specified employee” determination policy), then the Company shall postpone the commencement of the payment of the portion of the Excess Amount that is payable within the six (6) month period following Executive’s Termination Date with the Company (or any successor thereto) for six (6) months following Executive’s Termination Date with the Company (or any successor thereto). The delayed Excess Amount shall be paid in a lump sum to Executive within ten (10) days following the date that is six (6) months following Executive’s Termination Date with the Company (or any successor thereto). If Executive dies during such six (6) month period and prior to the payment of the portion of the Excess Amount that is required to be delayed on account of section 409A of the Code, such Excess Amount shall be paid to the personal representative of Executive’s estate within sixty (60) days after Executive’s death.
(c) Reimbursements . All reimbursements provided under this Agreement shall be made or provided in accordance with the requirements of section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during Executive’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the taxable year following the year in which the expense is incurred, and (iv) the right to reimbursement is not subject to liquidation or exchange for another benefit. Any tax gross up payments to be made hereunder shall be made not later than the end of Executive’s taxable year next following Executive’s taxable year in which the related taxes are remitted to the taxing authority.
14. Governing Law . The validity, interpretation, construction and performance of this Agreement will be governed by and construed in accordance with the substantive laws of the State of California, without giving effect to the principles of conflict of laws of such State.
15. Validity . If any provision of this Agreement or the application of any provision hereof to any person or circumstances is held invalid, unenforceable or.
otherwise illegal, the remainder of this Agreement and the application of such provision to any other person or circumstances will not be affected, and the provision so held to be invalid, unenforceable or otherwise illegal will be reformed to the extent (and only to the extent) necessary to make it enforceable, valid or legal.
16. Miscellaneous . No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by the Executive and the Company. No waiver by either party hereto at any time of any breach by the other party hereto or compliance with any condition or provision of this Agreement to be performed by such other party will be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, expressed or implied with respect to the subject matter hereof have been made by either party that are not set forth expressly in this Agreement. References to Sections are to references to Sections of this Agreement. Any reference in this Agreement to a provision of a statute, rule or regulation will also include any successor provision thereto.
17. Board Membership . At each annual meeting of the Company’s stockholders prior to the Termination Date, the Company will nominate Executive to serve as a member of the Board. Executive’s service as a member of the Board will be subject to any required stockholder approval. Upon the termination of Executive’s employment for any reason, unless otherwise requested by the Board, Executive agrees to resign from the Board (and all other positions held at the Company and its affiliates), and Executive, at the Board’s request, will execute any documents necessary to reflect his resignation.
18. Indemnification and D&O Insurance . Executive will be provided indemnification to the maximum extent permitted by the Company’s and its subsidiaries’ and affiliates’ Articles of Incorporation or Bylaws, including, if applicable, any directors and officers insurance policies, with such indemnification to be on terms determined by the Board or any of its committees, but on terms no less favorable than provided to any other Company executive officer or director and subject to the terms of any separate written indemnification agreement.
19. Employee Benefits . Executive will be eligible to participate in the Company employee benefit plans, policies and arrangements that are applicable to other executive officers of the Company, as such plans, policies and arrangements may exist from time to time and on terms at least as favorable as provided to any other executive officer of the Company.
20. No Duplication of Benefits . The benefits provided to Executive in this Agreement shall offset substantially similar benefits provided to Executive pursuant to another Company policy, plan or agreement (including without limitation the Symantec Corporation Executive Severance Plan and the Symantec Corporation Executive Retention Plan).
21. Survival . Notwithstanding any provision of this Agreement to the contrary, the parties’ respective rights and obligations under Sections 2 and 3, will survive any termination or expiration of this Agreement or the termination of the Executive’s employment for any reason whatsoever.
22. Counterparts . This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original but all of which together will constitute one and the same agreement.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of the date first above written.
RELEASE OF CLAIMS.
This Release of Claims (“Agreement”) is made by and between Symantec Corporation (“Symantec”) and Steve Bennett.
WHEREAS, you have agreed to enter into a release of claims in favor of Symantec upon certain events specified in the Executive Employment Agreement by and between Symantec and you;
NOW, THEREFORE, in consideration of the mutual promises made herein, Symantec and you agree as follows:
1. Termination Date. This means the last day of your employment with Symantec.
2. Acknowledgement of Payment of Wages. You acknowledge that Symantec has paid you all accrued wages, salary, bonuses, accrued but unused vacation pay and any similar payment due and owing, with the exception of the payments and benefits owed to you under the Executive Employment Agreement and/or under any equity-based compensation awards.
3. Confidential Information. You hereby acknowledge that you are bound by all confidentiality agreements that you entered into with Symantec and/or any and all past and current parent, subsidiary, related, acquired and affiliated companies, predecessors and successors thereto (which agreements are incorporated herein by this reference), that as a result of your employment you have had access to the Confidential Information (as defined in such agreement(s)), that you will hold all such Confidential Information in strictest confidence and that you may not make any use of such Confidential Information on behalf of any third party. You further confirm that within five business days following the Termination Date you will deliver to Symantec all documents and data of any nature containing or pertaining to such Confidential Information and that you will not take with you any such documents or data or any reproduction thereof.
4. Release and Waiver of All Claims. You waive any limitation on this release under California Civil Code Section 1542 which provides that a general release does not extend to claims which a person does not know or suspect to exist in his favor at the time of executing the release which, if known, must have materially affected his/her decision to grant the release. In consideration of the benefits provided in this Agreement, you release Symantec, and any and all past, current and future parent, subsidiary, related and affiliated companies, predecessors and successors thereto, as well as their officers, directors, shareholders, agents, employees, affiliates, representatives, attorneys, insurers, successors and assigns, from any and all claims, liability, damages or causes of action whatsoever, whether known or unknown, which exist or may in the future exist arising from or relating to events, acts or omissions on or before the Effective Date of this Agreement, other than those rights which as a matter of law cannot be waived.
You understand and acknowledge that this release includes, but is not limited to any claim for reinstatement, re-employment, damages, attorney fees, stock options, bonuses or additional compensation in any form, and any claim, including but not limited to those arising under tort, contract and local, state or federal statute, including but not limited to Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Post Civil War Civil Rights Act (42 U. S.C. 1981-88), the Equal Pay Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Vietnam Era Veterans Readjustment Assistance Act, the Fair Labor Standards Act, the Family Medical Leave Act of 1993, the Uniformed Services Employment and Re-employment Rights Act, the Employee Retirement Income Security Act of 1974, and the civil rights, employment, and labor laws of any state and any regulation under such authorities relating to your employment or association with Symantec or the termination of that relationship.
You also acknowledge that you are waiving and releasing any rights you may have under the Age Discrimination in Employment Act (ADEA) and that this waiver and release is knowing and voluntary. You acknowledge that (1) you have been, and hereby are, advised in writing to consult with an attorney prior to executing this Agreement; (2) as consideration for executing this Agreement, you have received additional benefits and compensation of value to which you would otherwise not be entitled, and (3) by signing this Agreement, you will not waive rights or claims under the Act which may arise after the execution of this Agreement; and (4) you have twenty-one (21) calendar days within which to consider this Agreement and in the event you sign the Agreement prior to 21days, you do so voluntarily. Once you have accepted the terms of this Agreement, you will have an additional seven (7) calendar days in which to revoke such acceptance. To revoke, you must send a written statement of revocation to the Vice President of Human Resources. If you revoke within seven (7) days, you will receive no benefits under this Agreement. In the event you do not exercise your right to revoke this Agreement, the Agreement shall become effective on the date immediately following the seven-day (7) waiting period described above.
This release does not waive any rights you may have under any directors and officers insurance or indemnity provision, agreement or policy in effect as of the Termination Date, nor does it affect vested rights you may have under any equity-based compensation plan, retirement plan, 401(k) plan or other benefits plan.
5. No Pending or Future Lawsuits. You represent that you have no lawsuits, claims, or actions pending in your name or on behalf of any other person or entity, against Symantec or any other person or entity referred to herein. You also represent that you do not intend to bring any claims on your own behalf or on behalf of any other person or entity against Symantec or any other person or entity referred to herein.
6. Resignation from Board. You agree that you will offer your resignation from the Board of Directors effective upon your Termination Date. The Board may accept or reject your offer of resignation within its sole and absolute discretion.
7. Non disparagement. You agree that you will not, whether orally or in writing, make any disparaging statements or comments, either as fact or as opinion, about Symantec or its products and services, business, technologies, market position, agents, representatives, directors, officers, shareholders, attorneys, employees, vendors, affiliates, successors or assigns, or any person acting by, through, under or in concert with any of them.

Bijan Sabet.
Stock options: vesting & change of control.
Fred has a post about option pools and their impact on valuation this morning. It’s a great post and will be very helpful to many folks without a doubt. I share the same point of view and it’s one of many reasons I like co-investing with USV.
Vesting is important for retention but more importantly it allows the company to put the equity in the hands of the folks that have put in significant time & value into the company.
We have a vesting schedule with our team at Spark Capital and I’ve had a vesting schedule everywhere I’ve worked previously.
Since startups require a fairly long time to create & build the company most options have a 4 yr vesting schedule (or less especially if the team has been working for some time) with some sort of initial hurdle period - also known as a cliff.
The structure I’ve seen the most is one that requires the employee to work at the company for a year before vesting any options. At the one year anniversary they vest ¼ of their option grant on the spot. After that they vest the balance of their options on a monthly basis.
This is a term that describes what happens to the employee vesting schedule if the company is acquired by another company.
It’s a reasonale compromise. Although the double trigger will impact price and will make the acquistopm a bit more complex. The other issue is that it sets precedent. If you give it to yourself as founders and your senior team this right, than most likely you will have to give it to everyone in the company. You don’t have to of course but it can become complicated when everyone has a different set of terms.
Keep it clean & simples.
I believe startups should adopt a clean and simple stock option plan. The cleanest way to do this is to make sure everyone has the same terms and rights (not everyone will have the same strike price which is expected and fair). And its a plan that you can live with as the company grows and won’t cause complexities in the future.