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Quotes & Info
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| SCMR > SEC Filings for SCMR > Form 8-K on 23-Dec-2008 | All Recent SEC Filings |
23-Dec-2008
Change in Directors or Principal Officers, Financial Statements and Exhibit
(e)
On December 18, 2008, the Registrant entered into amended standard forms of a Change of Control Agreement (the "Revised Form Agreement") with the following named executive officers: Daniel E.Smith, President and Chief Executive Officer, Paul F. Brauneis, Vice President, Finance and Administration, Kevin J. Oye, Vice President, Systems and Technology, John B. Scully, Vice President, Worldwide Sales and Support, John E. Dowling, Vice President, Operations, and Alan R. Cormier, General Counsel and Secretary, (each an "Executive" and collectively the "Executives").
The amendments to the standard form of Change in Control Agreement were primarily made to implement certain procedural and other changes and changes required to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"). Under the Revised Form Agreement, each stock option or restricted stock grant held by an Executive which is scheduled to vest within twelve months after the effectiveness of a change of control of the Registrant (as defined in the Form Agreement) will instead vest immediately prior to the change of control.
In the event of a termination of an Executive's employment within twenty-four
months following a change of control, either by the Registrant without cause or
by the Executive due to a constructive termination, the following will
occur: (1) all of the Executive's stock options and restricted stock will
immediately vest, (2) the Executive will be entitled to continued paid coverage
under the Registrant's group health plans for eighteen months after such
termination, (3) the Executive will receive a pro rata portion of his
performance bonus for the year in which the termination occurs, (4) the
Executive will receive an amount equal to eighteen months of his base salary,
(5) the Executive will receive an amount equal to 150% of his annual performance
bonus for the year in which the termination occurs and (6) the Executive will be
entitled to outplacement services at the Registrant's expense for a period of
twelve months. If the Executive is subject to any excise tax on amounts
characterized as excess parachute payments due to the benefits provided under
the Revised Form Agreement, the Executive is entitled to reimbursement of up to
$1,000,000 for any excess parachute excise taxes. Except as expressly set forth
in the Revised Form Agreement, the Executive is not entitled to any other
compensation, benefits or other payments from the Registrant as a result of
termination of employment due to a change of control of the Registrant.
No severance benefits will be paid to the Executive under the Revised Form Agreement until the Executive executes a customary release of claims in a form reasonably satisfactory to the Registrant. Furthermore, under the Revised Form Agreement, the Executive agrees to abide by the Registrant's confidentiality and proprietary rights agreements and, for a period of one year after such termination, not to solicit the Registrant's employees or customers.
The Registrant and the Executives intend that under the Revised Form Agreement, the benefits provided to the Executives under the Revised Form Agreement will not result in taxation of the Executives under Section 409A of the Code and the regulations and guidance promulgated thereunder and that the Revised Form Agreement be construed in accordance with such intention.
The description of the Revised Form Agreement is qualified in its entirety by reference to the full text of the Revised Form Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
(d) Exhibits
Exhibit Number Description 10.1 Revised Standard Form Change of Control Agreement |
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