Hur man förhandlar om ditt anställningsavtal Ett av de största utmaningarna vid förhandlingar om anställningsavtal med ledande befattningshavare är den konkurrerande önskan att intyga villkoren i avtalet. Företagen brukar inte ha skrivna anställningsavtal - vissa vägrar att ens överväga dem. De vill kontrollera det framtida anställningsförhållandet. och ett förhandlat skriftligt avtal kan leda till mindre kontroll. Ur företagens perspektiv, desto färre löften och skyldigheter som gjorts skriftligt, desto bättre. Verkställande direktörer anser att dessa avtal är nödvändiga för att bekräfta deras förväntningar, stavar ut sina rättigheter och skiftar risken för företaget. De har förväntningar om makten, myndigheten och resurserna som de behöver för att göra sina jobb, och de korta och långsiktiga ekonomiska incitamenten de kommer att få. De vill att deras rätt till stamaktier och aktieoptioner stavas ut, utan förutsättningar eller dolda restriktioner. De vill också att bolaget ska dela risken att sysselsättningen inte kan fungera av skäl utanför styrelsens kontroll. De begär garantier för ersättning, överklagande av ledningsbefogenhet i korta och långsiktiga incitamentskompensationsplaner och mer gynnsamma händelseutlösare eller kompensationspaket vid förändring av kontroll eller förändringar i nyckeldefinitioner, bland annat. Företag anser ofta de mindre förändringar som de accepterar runt kanterna av ett förslag till förslag till anställningsavtal som förhandlingar, men sådana ändringar erkänner endast parternas ojämlika förhandlingsstyrka att de inte är förhandlingar i någon verklig mening. Ur företagens perspektiv är det bra, men chefer som vet bättre vill ha mer. För dem är förhandlingar inte verkliga om de inte är materiella och engagerar båda parter i att utvärdera sina sanna intressen, alternativen till ett förhandlat avtal och möjligheterna till koncession och kompromiss. Bolagets utmaning Det finns stora skillnader mellan förhandlingsavtal för anställningsavtal och förhandlingar om kommersiella avtal, med vilka företagen är mer bekanta. Förhandlingsavtal för anställningsavtal är en mer personlig, mindre objektiv process som präglas av subtila och nyanserade rörelser och vändningar. Företag tror ofta att de har överlägsen förhandlingsutnyttjande vid förhandlingar om ett anställningsavtal med en verkställande direktör: de är trots allt de som erbjuder positionen, möjligheten och privilegiet att arbeta för företaget. Företag som tror på detta sätt är dock sårbara på flera nivåer. För det första, medan en konkurrenskraftig förhandlingsstil kan tjäna företaget bra för att förhandla fram ett kommersiellt avtal, kommer det att vara kontraproduktivt när man förhandlar om en anställningsavtal för chefer. När ett företag förhandlar med en verkställande har det redan gjort en betydande investering i tid och energi (och ofta i utländska rekryteringsavgifter) i intervjuer och jämförande kandidater. Vad företaget kanske inte kan inse är emellertid att det utvecklande förtroendet och förtroendet mellan de två parterna är bräckligt och lätt kan äventyras av orealistiska förhandlingspositioner som senare måste återkallas för att få en överenskommelse. För det andra vill cheferna tro att företaget ser ut för dem. Under förhandlingar behöver ett företag som vill ha ett tillförlitligt förhållande hitta sätt att förstärka denna tro. Visserligen, när ett företag utmanar en verkställande ledamot att lämna en annan ställning, måste det visst oroa sig för verkställande som en person och en vinstcentral. För det tredje vill chefer att företagen tar sina förslag på allvar. Om företagets yttersta mål är en trogen, dedikerad verkställande som ska sätta företagets intressen först måste den vara känslig för chefernas behov och reagera eftertänksamt för att hysa förslag. Alla förhandlingar som lämnar verkställande avskyvärda eller tvivlar på företagets uppriktighet och trovärdighet är ett misslyckande att det framtida förhållandet inte kommer att pågå. För det fjärde, företag som frågar sin allmänna rådgivare ensam att förhandla om ett anställningsavtal med en högnivå verkställande ledare skapar onödiga spänningar och potentiella intressekonflikter. En allmän rådgivare vill vara känd som en betrodd rådgivare: ärlig, enkel och trovärdig. Detta kan störa företagens vilja att ta starka positioner och visa endast flexibilitet om det är absolut nödvändigt. En generell rådgivare som kommer att rapportera till verkställande direktören har en särskild nackdel. För att upprätthålla chefernas förtroende kan han eller hon vara ovillig att faktiskt engagera verkställande direktören i verkliga förhandlingar, särskilt om de inte stöds av entydiga standarder, kriterier och tidigare praxis. Företagets utmaning Ett företag som förstår dessa sårbarheter kommer att temperera och anpassa sina strategier och taktik för att eliminera eller neutralisera dem. När förhandlingarna slutsatsen borde företaget ha verkställande tro att det har övervägt sina intressen och gjort sitt bästa för att tillfredsställa dem. Detta betyder inte att man komprometterar eller förvärvar ledarens krav, men det innebär att förhandla i god tro för att nå överens om vad verkställande direktören verkligen behöver. Chefer som har erfarenhet av att förhandla förstår vanligtvis en företags behov av att utöva behärskning i att använda sin fulla hävstångseffekt. De förstår de personliga och immateriella faktorerna i förhandlingarna och hur man använder dem. Detta ger dem hävstångseffekt i förhandlingarna men hindrar dem från att använda den. De vill inte visa brist på förtroende för företaget eller uppfattas som arroganta, självcentrerade, oroliga över sina egna intressen eller svåra att arbeta med. Chefer som förstår förhandlingar inser också att de är en process, inte en händelse, och uppskattar att förändringar i ett företags förslag till anställningsavtal kommer att uppnås först efter en fullständig förståelse för båda parternas behov. De inser att företaget ser lika mycket ut hur verkställande agerar och vad han eller hon säger i förhandlingar som det är i utfallet. En kritisk aspekt av något anställningsavtal är exempelvis företagets förmåga att säga upp det här, vilket definierar maktbalansen i anställningsförhållandet. Verkställande direktören vill ha en pro medarbetare orsakad uppsägningsdefinition och ett fördelaktigt separationspaket vid uppsägning utan orsak eller avgång med god anledning, eftersom det kommer att göra att företaget tänker två gånger om att säga upp avtalet på grund av personalkonflikter, inte att vara en bra passform för företagets kultur eller andra subjektiva skäl. Om det skapas på ett korrekt sätt, skyddar separationspaketet också de ansvariga rätten att erhålla intjänad men oväsentlig ersättning, inklusive uppskjuten ersättning från tidigare års bonusar, löpande årsbonus och till och med garanterade bonusar som annars kräver fortsatt anställning tills ett intjänandedatum. För att förhandla om dessa bestämmelser måste chefer artificiellt formulera förslag som presenterar både deras intressen och deras hävstångseffekt. Samtidigt måste verkställande direktören inte göra företaget oroligt att heshe överreager eller är oroat över att vara skyddad mot en motiverad uppsägning. En framgångsrik förhandling är en där både företaget och verkställande tänker lika bra eller bättre om det andra efter förhandlingarna slutar som de gjorde innan det började. Mer från företagssekreterare: Företaget och verkställande direktören har tidigare ingått ett avtal om ansvarsavtal för verkställande ersättning (avtalet om ersättningsavtal om ersättningsavtal148) som innehåller några av villkoren för Executive146s anställnings - och anställningsförhållande med bolaget. Styrelsens ersättningskommitté (147Committee148) har beslutat att tilldela bolagets stamaktier (147Comment Stock148), med förbehåll för begränsningarna i denna, enligt Company146s 2010 Long Term Compensation Plan ( 147Plan148). Alla termer som används här och inte definieras på annat sätt ska ha samma betydelse som anges i Planen. NU HÄRVÄRDER, för gott och värdefullt övervägande, inklusive de ömsesidiga löften som anges i detta avtal och de fördelar som Bolaget förväntar sig att härledas i samband med de tjänster som därefter ska ges till företaget eller dess dotterbolag av verkställande direktören, bolaget och Verkställande direktören är härmed överens om följande: 1.1 Utdelning av Begränsade Aktier. Bolaget tilldelar härmed till verkställande direktören antalet aktier i den gemensamma aktien som listas ovan under rubriken 147Number of Restricted Shares148 (the 147Restricted Shares148), med förbehåll för begränsningarna i denna och planens bestämmelser. 1.2 Avsättning av de begränsade aktierna. Med förbehåll för villkoren i detta avtal ska de begränsade aktierna bestyrkas enligt följande schema: 1 st årsdag Datum 2 nd årsdag Datum 3 år Årsdag Datum 4 årsdag Datum 5 årsdag Datum a) Uppsägning Av Företag För Orsak, Av Verkställande Annan än för god anledning eller på grund av funktionshinder. Om ledningen för Executive146 avslutas av bolaget enligt avsnitt 3.1 b 2.1 i anställningsavtalets verkställande ersättningsavtal, genom verkställande enligt avsnitt 3.1 e §§ 2.2 eller 2.3 i anställningsavtalet ersättningskompensationsavtal eller på grund av funktionshinder i avtalet om ersättningsavtal om anställningsavtal) i enlighet med punkt 3.1 d 2.5 i anställningsavtalets verkställande ersättningsavtal ska upptagandet av de begränsade aktierna upphöra vid tidpunkten för uppsägningen och eventuella ovestade begränsade aktier ska förverkas av verkställande direktören och återgå till företaget. (b) Uppsägning på grund av Executive146s Död. Om Executive146s anställning upphör på grund av Executive146s död enligt punkt 3.1 (d) 2.4 i anställningsavtalets verkställande ersättningsavtal, ska de begränsade aktierna vid sådan uppsägning växt omedelbart. (c) Uppsägning av bolag utan orsak eller av verkställande direktör för god anledning. Om ledningen för Executive146 avslutas av verkställande direktören enligt avsnitt 3.1 ci anställningsavtalet eller av eller bolaget enligt avsnitt 3.1 a 2.6 i anställningsavtalets verkställande ersättningsavtal, skall eventuella begränsade aktier som är planerade att väsna under perioden genom utgången av den ursprungliga terminen eller den nuvarande förnyelseperioden, i tillämpliga fall, av anställningsavtalet (men under inga omständigheter längre än de tre under den tvåårsperiod som följer efter uppsägningstiden för Executive146s tjänstgöring) ska omedelbart väckas. (d) Förändring av kontroll. I händelse av en förändring av kontroll ska eventuella utestående Begränsade Aktier omfattas av bestämmelserna i Planens 19 §, förutsatt att alla hänvisningar till 147cause148 och 147good reason148 som används i 19 § planen tolkas av tillämpa definitionerna av 147cause148 och 147good reason148 som anges i avtalet om ansvarsavtal om ersättning för anställningsavtal. Eventuella Begränsade Aktier som inte västar ska förverkas av verkställande direktören och återgå till bolaget. Perioden under vilken de Begränsade Aktierna utvinnas hänvisas häri till den begränsade perioden. 1.3 Aktieägarstatus. Före inlösen av de Begränsade Aktierna ska verkställande direktören ha rätt att rösta de Begränsade Aktierna, Rätten att ta emot och behålla alla vanliga kontantutdelningar som betalats eller distribueras med avseende på de Begärda Aktierna, och med undantag av vad som uttryckligen anges annars här rättigheter som innehavare av utestående aktier i Common Stock. Utan hinder av ovanstående har verkställande direktören inte rätt att rösta eller ta emot utdelning med avseende på de Begränsade Aktierna med avseende på rekorddatum som uppträder efter att någon av de Begränsade Aktierna återgår till Bolaget enligt avsnitt 1.2 i denna. Till dess att de Begränsade Aktierna väcker enligt avsnitt 1.2 i detta, ska Bolaget behålla förvaringen av aktiecertifikat som representerar de Begränsade Aktierna. Så snart som möjligt efter det att begränsningarna har löpt ut, ska bolaget utfärda eller släppa ut eller låta utfärda eller släppta certifikat som representerar aktierna, med avdrag för alla aktier som används för att uppfylla skyldigheten att hålla in inkomstskatt och anställningsskatter i samband med innehav av några begränsade aktier. 1.4 Förbud mot överföring. Under den begränsade perioden får de begränsade aktierna inte överföras, tilldelas, pantsättas eller förhyras på något sätt (oavsett om de är lagliga eller ej) av verkställande direktören eller är föremål för utförande, bifogad eller liknande process. Alla överföringar som strider mot detta avsnitt 1.4 är ogiltiga och utan vidare effekt. 2.1 Bestämmelser om plankontrollen. Detta avtal regleras av bestämmelserna i planen, vars villkoren är införlivade häri genom hänvisning. Planen bemyndigar kommittén att utarbeta tolkningar, regler och föreskrifter därunder och föreskriver i allmänhet att bestämningar av sådan kommitté med avseende på planen ska vara bindande för verkställande direktören. En kopia av Planen kommer att skickas till verkställande direktören på rimlig begäran. 2.2 Hänvisningar till anställningsavtalets verkställande ersättningsavtal. Alla hänvisningar till avtalet om ersättning för anställningsavtalet härom ska hänvisa till anställningsavtalets verkställande ersättningsavtal i kraft vid dagen för beviljande av begränsade aktier. Trots att, vid uppsägning av Executive146s anställning, kan verkställande direktören och bolaget inte längre vara part i ett sådant avtal om ersättningsavtal för anställningsavtal eller kan ha ändrat en sådan ersättningsavtal för anställningsavtal ska denna avtal tolkas som om ett sådant anställningsavtal Ersättningskompensationsavtalet var fortfarande på plats (inklusive eventuella krav på uppsägning etc.). Vidare, i den utsträckning som anställningsavtalet har upphört före uppsägning av Executive146s uppsägningstid, ska mätperioden för ytterligare inlösen av Begränsade Aktier enligt avsnitt 1.2 ci denna Avtal vara den treårsperiod som följer efter dagen för Executive146s uppsägning. 2.3 Skatter. Bolaget kan kräva betalning eller kvarhållande av inkomst eller anställningsskatt som den anser vara betalningsbar till följd av beviljandet eller innehavet av de Begränsade Aktierna eller eventuella betalningar därpå eller i samband därmed, och Bolaget får uppskjuta leverans med hänsyn till aktier till dess att arrangemang som är tillfredsställande för bolaget har gjorts med avseende på sådan kvarhållande skyldighet. I enlighet med planen kan Bolaget hålla aktier i Common Stock för att tillgodose sådana innehavsskyldigheter. 2.4 Inga anställningsrättigheter. Tilldelningen av de Begränsade Aktierna enligt detta Avtal ska inte ge Verkställande direktören rätt att fortsätta att vara anställd av Bolaget eller någon dotter. 2.5 Meddelanden. Eventuellt meddelande till bolaget enligt villkoren i detta avtal skall göras skriftligen till bolaget i sin omsorg av sin generalkonsul vid Kohl146s Varuhus, Inc. N56 W17000 Ridgewood Drive, Menomonee Falls, Wisconsin, 53051. Eventuellt meddelande till ges till verkställande direktören kan adresseras till honom på adressen såsom det framgår av lönelistorna hos bolaget eller något dotterbolag därav. Ett sådant meddelande skall anses ha vederbörligen ges om och när den faktiskt mottagits av den part till vilken den adresseras, vilket framgår av ett skriftligt kvitto i den meningen. 2.6 Gällande lag. Detta avtal och alla frågor som uppkommer härunder eller i samband härmed ska bestämmas i enlighet med Wisconsin Wisconsin lagstiftning utan att det påverkar dess lagkonflikter. Av detta har parterna lett till att detta avtal träder i kraft från och med det datum som först skrivits ovan. EXECUTIVE EMPLOYMENT AGREEMENT DETTA EXECUTIVE EMPLOYMENT AGREEMENT (denna 147Agreement148), daterat den 21 augusti 2012 (den 147Effective Date148) görs och skrivs in av och mellan Symantec Corporation, Delaware Corporation (147Company148) och Steve Bennett (147Executive148). I verkligheten är verkställande direktören för närvarande anställd som bolagets verkställande direktör och verkställande direktör och förväntas göra betydande bidrag till bolagets kort - och långsiktiga lönsamhet, tillväxt och finansiella styrka. Däremot har bolaget beslutat att lämpliga arrangemang ska vara tagen för att uppmuntra den verkställande direktörens fortsatta uppmärksamhet och engagemang i sina uppdrag utan distraktion, och i beaktande av att Executive146s anställning med bolaget önskar företaget att ge verkställande direktören vissa kompensationer och förmåner enligt vad som anges i detta avtal för att att förbättra ekonomisk och karriärpåverkan på verkställande direktören i händelse av att Executive146s anställning med bolaget avslutas av en anledning som är relaterad till eller inte relaterad till en förändring av kontrollen (enligt definitionen nedan) av bolaget. NU, Därav, mot bakgrund av ovanstående och de ömsesidiga förbunden och avtalen som anges nedan och avser att vara juridiskt bundna härmed, är bolaget och verkställande direktören överens om följande: 1. Vissa definierade villkor. Utöver de termer som definieras här annorlunda har följande begrepp följande betydelser när de används i detta Avtal med initiala bokstäver: (a) 147Annual Base Salary148 betyder Executive146s årlig grundlön, exklusive bonusar, provisioner och andra incitamentslöner, som i kraft omedelbart före Executive146s Avslutningsdatum. Från och med inlösendagen är Executive146s årlig grundlön 1.000.000. (b) 147Board148 betyder bolagets styrelse. (c) 147Cause148 innebär: (i) en avsiktlig skada (med undantag för skada som hänför sig till ett motorfordon) som orsakar väsentlig förlust, skada eller skada på bolagets eller dess dotterbolags egendom eller rykte, ii) allvarlig brottslighet eller avsiktlig, materiell handling av bedrägeri eller oärlighet mot bolaget (iii) uppdrag av ett brott som leder till annat än immateriell skada på företagets verksamhet eller företagets eller företagets rykte (iv) vanligt försummelse av Executive146s rimliga arbetsuppgifter (av en anledning annan än sjukdom eller oförmåga) som inte botas inom tio (10) dagar efter det att styrelsen har skrivit det till verkställande direktören (v) bortseenden från bolagets eller dess dotterbolags skriftliga, materiella policyer som orsakar annan än immateriell förlust, skada eller skada på bolagets eller dess dotterbolags egendom eller rykte som inte botas inom tio (10) dagar efter skriftligt meddelande från styrelsen till verkställande direktören eller vi) väsentliga brott mot Executive146s pågående skyldighet att inte avslöja konfidentiell information och att inte tilldela immateriell egendom utvecklad under anställning som, om den kan botas, inte botas inom tio (10) dagar efter skriftlig uppsägning från styrelsen till verkställande direktören. (d) 147Händelse i Control148 innebär att (i) varje person eller enhet blir direkt eller indirekt värdepapperen i Bolaget som representerar fyrtio (40) procent av den totala rösträtten för alla dess utestående röstvärden, ii) en sammanslagning eller konsolidering av det bolag där dess röstvärde direkt före fusionen eller konsolideringen inte representerar eller inte omvandlas till värdepapper som representerar en majoritet av rösträtten för alla röstvärden i den överlevande enheten direkt efter fusionen eller konsolidering (iii) försäljning av väsentligen samtliga bolagets tillgångar eller likvidation eller upplösning av bolaget eller (iv) personer som vid tidpunkten för undertecknandet av detta avtal utgör styrelsen (den inbjudna Board148) upphöra av någon anledning att utgöra åtminstone en majoritet av sådant styrelse förutsatt att en person som blir bolagschef efter det att signaturen för denna A valet eller valet av bolagsstämmans val, godkändes genom omröstning av åtminstone en majoritet av styrelseledamöterna, då i ämbetet skall anses vara ledamot av den befintliga styrelsen. (e) 147COBRA148 betyder konsoliderad omnibus budgetavstämningsakt av 1986, med ändringar. (f) 147Disability148 innebär att (i) verkställande direktören har blivit oförmögna av kroppsskada, sjukdom eller sjukdom för att förhindras att delta i utförandet av Executive146-arbetsuppgifterna (dock att bolaget erkänner sina skyldigheter att tillhandahålla rimligt boende i den utsträckning som krävs enligt gällande lag) ii) sådan total oförmåga ska ha fortgått under en period av sex (6) månader i följd och (iii) sådan oförmåga kommer enligt en kvalificerad läkares åsikt vara permanent och kontinuerlig under resten av Executive146s liv. (g) 147God anledning Uppsägning148 innebär: (i) en materiell minskning i Executive146s baskompensation eller målbonus under beloppet från detta avtals datum eller som ökat under hans anställning med Bolaget, med undantag av en eller flera minskningar (sammanlagt högst 20 i summan) generellt tillämplig på alla ledande befattningshavare förutsatt att sådan uteslutning inte gäller om materialminskningen i Executive146s baskompensation sker inom (A) 60 dagar före genomförandet av en förändring i Kontroll där en sådan ändring i kontroll var under behandling vid tidpunkten för Executive146s uppsägningstid eller (B) tolv (12) månader efter det datum då en sådan förändring av kontroll inträffar (ii) en väsentlig minskning i myndighetens, uppdragets eller ansvarets verkställande myndighet (iii) ett krav på att verkställande direktören till en bolagschef eller anställd i bolaget istället för att rapportera direkt till styrelsen (eller om bolaget har ap arent corporation, ett krav på att verkställanderapporten till någon enskild eller annan enhet än styrelsen för bolagets ultimata moderbolag) (iv) en materiell minskning i den budget som verkställande direktören behåller auktoritet för (v) en väsentlig förändring i geografisk plats där verkställande direktören måste utföra tjänster eller (vi) handlingar eller handlingar som utgör ett väsentligt brott mot bolaget enligt detta avtal, men att förvaltaren ska kunna avsluta sin anställning med bolaget på grund av goda Anledning han måste meddela om händelsen som utgör goda skäl och hans önskan om att säga upp sin anställning till bolaget på grund av sådana inom nittio (90) dagar efter det att villkoret utgjorde god anledning och bolaget måste ha en period på trettio (30) dagar efter mottagandet av ett sådant meddelande för att bota tillståndet. Om Bolaget inte botar händelsen som utgör goda skäl inom en period av trettio (30) dagar, ska uppsägningsdatumet för Executive146 vara dagen omedelbart efter utgången av en sådan trettio (30) dag, om inte bolaget föreskriver en tidigare uppsägningsdatum . (h) 147Target Bonus148 betyder målutbetalningen (dvs vid 100 uppnåendet av var och en av de tillämpliga metriska värdena) i enlighet med Company146s verkställande årliga incitamentsplan som gäller för verkställande direktören vid uppsägningsdagen. Från och med det effektiva datumet är Executive146s målbonusprocent enligt Executive Annual Incentive Plan 150 årlig grundlön. (i) 147Terminationsdatum148 betyder den sista dagen av Executive146s anställning med Bolaget. (j) 147Tillställning av sysselsättning148 innebär uppsägning av Executive146s aktiva anställningsförhållande med Bolaget. 2. Uppsägning utan samband med en förändring i kontrollen. (a) Otillbörlig uppsägning utan samband med en förändring av kontrollen. I händelse av: (i) en ofrivillig uppsägning av Executive146s anställning av bolaget av någon annan orsak än orsak, död eller funktionshinder, eller (ii) ledamöterens avgång för goda skäl, och om avsnitt 3 inte är tillämplig, till de förmåner som anges i underavsnitt b i detta avsnitt 2. (b) Ersättning vid uppsägning utan samband med en förändring av kontrollen. Med förbehåll för bestämmelserna i 5 § i detta fall skall, om en uppsägning som beskrivs i stycke ai detta avsnitt 2 uppkommer, bolaget tillhandahålla verkställande direktören följande, förutsatt att verkställande direktören verkar och inte återkallar frisläppandet (enligt definitionen i avsnittet 5): (i) 1,5 gånger summan av årlig grundlöne - och målbonus, betald i en enda kontantbetalning på sittionde (60: e) dagen efter uppsägningstidpunkten för Executive146s. (I detta stycke i) avses årlig grundlön den största bland följande: Executive146s årlig grundlön omedelbart före (A) Executive146s Avslutningsdatum eller (B) någon minskning av Executive146s grundlön som beskrivs i första stycket i punkt i) i definitionen av goda skäl. Vid tillämpning av denna punkt (i) betyder målbonus den största bland följande: Executive146s målbonus omedelbart före (A) Executive146s Avslutningsdatum eller (B) någon minskning av Executive146s målbonus som beskrivs i första stycket i led i definitionen av god anledning.) ii) Under en period på upp till arton (18) månader efter att Executive146s uppsägningsdatum, verkställande och i förekommande fall, Executive146s make och stödberättigande berättigade, fortsätter att vara berättigade till att få sjukvård enligt Company146s medicinska planer i enlighet med villkoren i tillämpliga plandokument som tillhandahålls, att för att få sådan fortsättning Förvaltningsberättigande kommer att vara skyldig att betala gällande premier till planleverantören och Bolaget kommer att ersätta verkställande direktören inom 60 dagar efter det att den månatliga premieutbetalningen betalas, ett belopp som motsvarar den månatliga COBRA premiebetalningen , mindre tillämpliga skatteavdrag. Utan hinder av ovanstående, om verkställande förvärvar heltidsanställning under denna arton (18) månadersperiod som ger honom och hans make och hans eller hennes make och berättigade tillägg till omfattande medicinsk täckning, måste verkställande direktören anmäla företaget och inga ytterligare ersättningar kommer att betalas av bolaget till Verkställande direktör enligt denna punkt. Dessutom, om Executive inte betalar det tillämpliga månatliga COBRA-bidraget för en viss månad när som helst under 18-månadersperioden och förlusten förloras till följd av detta, kommer inga ytterligare ersättningar att betalas av bolaget till verkställande direktören enligt denna underavdelning. Trots ovannämnda om bolaget bestämmer efter eget gottfinnande att den inte kan tillhandahålla ovanstående COBRA-förmåner utan att eventuellt bryta mot gällande lag (inklusive, utan begränsning, 2716 § lagen om folkhälsovård) ska bolaget i stället tillhandahålla verkställande direktören en beskattningsbar engångsbelopp i ett belopp som motsvarar det månatliga (eller återstående) COBRA-premien som verkställande skulle kräva att betala för att fortsätta sin grupphälsoväckning i kraft vid uppsägningstiden (vilket belopp skall baseras på premien för första månaden COBRA-täckning). (iii) Med avseende på eventuella utestående bolagsoptioner som innehas av verkställande direktören från och med sitt uppsägningsdatum, som inte är upptagna och utnyttjbara från och med det datumet, ska bolaget påskynda upptagningen av den del av aktieoptionerna för Executive146 som eventuellt föreligger skulle ha utnyttjats och utnyttjats inom den arton (18) månadersperioden efter utgången av Executive146s uppsägningsdatum, skulle sådana optioner (liksom eventuella utestående optioner som tidigare förvärvats och utnyttjats) kunna fortsättas, trots vad som helst i något annat avtal som reglerar sådana optioner , tills den tidigare av (A) en period på ett år efter avslutningsdagen för Executive146, eller (B) alternativets ursprungliga term. Med undantag av vad som anges i detta avsnitt 2 b iii och i avsnitt 3 b iii nedan, upphör någon del av Executive146s utestående optioner som inte är upptagna och utnyttjbara från Executive146s Avslutningsdatum. (iv) När det gäller aktiebolag som representerar aktier i bolagets stamaktier (147Restricted Stock Units148) som innehas av den verkställande direktören som är ovestad vid tidpunkten för uppsägningstidpunkten, skulle antalet ovestade begränsade andelar som skulle ha varit belägna inom artonten (18) månad efter utgången av Executive146s uppsägningstid, ska lösa och lösa sig senast sextio (60) dagar efter Avslutningsdagen. Med undantag av vad som föreskrivs i detta avsnitt 2 b iv och i avsnitt 3 b iv) nedan, skall eventuella begränsade aktieenheter som inte är upptagna i samband med uppsägningstiden för Executive146 upphöra. (v) Eventuella belopp som har uppkommit till verkställande direktörens konto enligt Company146s långsiktiga incitamentsprogram (147LTIP148) som inte har släppts ut till verkställande direktören vid utgången av uppsägningstiden ska frisläppas till verkställande direktören, i förekommande fall, i enlighet med med villkoren för vilken som helst tillämplig LTIP, då i praktiken under de omständigheter som beskrivs däri som en ofrivillig uppsägning annat än för orsaken. (vi) Med avseende på eventuella Prestationsbaserade Begränsade Aktienheter (147PRUs148) som innehas av verkställande direktören, som inte har släppts till verkställande direktören enligt villkoren i den tillämpliga Prestationsbaserade Avgiftsbestämda Enhetsprisavtalen (147PRU-avtalet148) Avslutningsdatum ska behandlas i enlighet med villkoren i tillämpligt PRU-avtal som en ofrivillig uppsägning annat än för orsaken. (vii) Med avseende på eventuella Prestationsbeståndsobjektenheter (147PCSUs148) som innehas av verkställande direktören, som inte har släppts ut till verkställande direktören enligt villkoren i det tillämpliga avtalet om överenskommelse om prestationskontrakt (147PCSU-avtalet148) från och med uppsägningsdatumet behandlas i enlighet med villkoren i det tillämpliga PCSU-avtalet som en ofrivillig uppsägning annat än för orsaken. (viii) Verkställande direktören ska erhålla intäkter, upplupna eller skyldiga men ännu inte betalade till verkställande direktören från och med uppsägningsdagen, betalas i en schablonbelopp och eventuella förmåner som uppkommit eller förvärvats i enlighet med villkoren i tillämpliga förmånsbestämda planer och program företaget. 3. Avslutning relaterad till en förändring av kontrollen. (a) Otillbörlig uppsägning i samband med en förändring av kontrollen. I händelse av att Executive146s anställning upphör att gälla på grund av (i) en ofrivillig uppsägning av bolaget av någon annan orsak än Orsak, dödsfall eller funktionshinder, eller (ii) verkställande frivilligt avslutar anställning med bolaget på grund av uppsägning av goda skäl , i båda fallen som inträffar (x) samtidigt som, eller inom tolv (12) månadens efterföljande period, slutförandet av en Change in Control eller (y) inom trettio (60) dagarsperioden före datumet för a Change in Control where the Change in Control was under consideration at the time of Executive146s 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 Executive146s 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 Executive146s Termination Date becoming consummated within sixty (60) days following Executive146s 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 Executive146s Termination Date. (For purposes of this subsection (i), Annual Base Salary will mean the largest among the following: Executive146s annual base salary immediately prior to (A) Executive146s Termination Date, (B) any reduction of Executive146s 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: Executive146s target bonus (A) immediately prior to Executive146s Termination Date, (B) immediately prior to any reduction of Executive146s 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 Executive146s Termination Date, Executive and where applicable, Executive146s spouse and eligible dependents, will continue to be eligible to receive medical coverage under the Company146s 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 Executive146s Termination Date becoming consummated within sixty (60) days following Executive146s 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 Executive146s 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 Executive146s 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 Executive146s Termination Date becoming consummated within sixty (60) days following Executive146s 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 Executive146s Termination Date, any stock options held by Executive that are not vested and exercisable shall terminate as of the sixtieth (60th) day following Executive146s Termination Date or t he 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 Executive146s Termination Date becoming consummated within sixty (60) days following Executive146s 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 Executive146s Termination Date, any Restricted Stock Units held by Executive that are not vested shall terminate as of the sixtieth (60th) day following Executive146s 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 147Change of Control of the Company148 (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 147Change of Control of the Company148 (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 147Change of Control of the Company148 (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 1472004 Plan148), 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 Executive146s 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 Executive146s Termination Date, Executive and where applicable, Executive146s spouse and eligible dependents, will continue to be eligible to receive medical coverage under the Company146s 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 Executive146s 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 Executive146s 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 Executive146s 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 Executive146s 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 Executive146s 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 Executive146s 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 Executive146s 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 Executive146s 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 Company146s standard written release , substantially in the form as attached hereto as Annex A, (the 147Release148), of any and all claims against the Company and all related parties with respect to all matters arising out of Executive146s 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 Executive146s 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, Executive146s 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 147parachute payments148 within the meaning of section 280G of the Internal Revenue Code of 1986, as amended (the 147Code148), 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 147Excise Tax148), then such amounts payable to Executive hereunder shall be either: (i) Provided to Executive in full or (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 su ch 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 147Accountants148). 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 (147IRS148) 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 147Repayment Amount148 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 Executive146s 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 Executive146s 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 Executive146s net after-tax proceeds (calculated as if Executive146s 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 Executive146s 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 147Initial Term148), and shall automatically renew for additional one (1) year renewal periods (a 147Renewal Term148) 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 Executive146s 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 147Company148 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 Executive146s 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 Executive146s 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 Executive146s 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 147separation from service148 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 147short-term deferral exception148 under Treas. Reg. 1671.409A-1(b)(4), and any remaining amount is intended to comply with the 147separation pay exception148 under Treas. Reg. 1671.409A-1(b)(9)(iii) provided, however, any amount payable to Executive during the six (6) month period following Executive146s 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 147Excess Amount.148 If at the time of Executive146s separation from service, the Company146s (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 147specified employee148 (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 Company146s (or any successor thereto) 147specified employee148 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 Executive146s Termination Date with the Company (or any successor thereto) for six (6) months following Executive146s 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 Executive146s 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 Executive146s estate within sixty (60) days after Executive146s 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 Executive146s 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 Executive146s taxable year next following Executive146s 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 Company146s stockholders prior to the Termination Date, the Company will nominate Executive to serve as a member of the Board. Executive146s service as a member of the Board will be subject to any required stockholder approval. Upon the termination of Executive146s 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 Board146s request, will execute any documents necessary to reflect his resignation. 18. Indemnification and DampO Insurance . Executive will be provided indemnification to the maximum extent permitted by the Company146s and its subsidiaries146 and affiliates146 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 parties146 respective rights and obligations under Sections 2 and 3, will survive any termination or expiration of this Agreement or the termination of the Executive146s 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 (147Agreement148) is made by and between Symantec Corporation (147Symantec148) 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 andor 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 andor 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 hisher 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 terminat ion 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. 8. Additional TermsTABLE OF CONTENTS Annotated Executive Employment Agreement 823082308230823082308230823082308230823082308230823082308230823082308230823082308230 1 I. Introduction823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230. 1 II. Annotated Executive Employment Agreement823082308230823082308230823082308230823082308230823082308230823082308230. 1 III. Conclusion823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230. 13 Non-Compete Agreements: Recent and Developing Trends, Traps and Strategies . 13 I. Introduction82308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230. 13 II. OLDCOS Goals in Drafting and Implementing Agreements8230823082308230823082308230823082308230 14 III. Non-Compete Agreements Must Be Necessary and Reasonable82308230823082308230823082308230. 14 IV. Reasonableness8230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230 15 V. Consideration82308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230 18 VI. Remedies that Deter Violations8230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230. 22 VII. Preserving the Non-Compete Agreement82308230823082308230823082308230823082308230823082308230823082308230823082308230. 27 VIII. Conclusion823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230. 28 This Annotated Executive Employment Agreement is intended to highlight drafting issues, practices and strategies. Sections in brackets may not appear in many agreements, depending on the parties viewpoints and negotiations. It is a sample, which has been edited and annotated for purposes of this presentation. Actual agreements need to address the specific needs of the parties and their unique factual and legal issues. This EMPLOYMENT AGREEMENT (Agreement) is made and entered into as of the day of , 2010, by and between XYZ Corporation (Company), a Minnesota corporation, and (Executive). A. RECITALS. 1 Executive has the professional and personal skills to serve Company as its Chief Operating Officer. The parties wish to establish an employment relationship, to protect Companys business and other interests, to provide protections to Executive in the event Executives employment is terminated without cause, and to provide the essential terms of Executives employment. Companys current business activities include, among other things, designing, developing, manufacturing, shipping, marketing and selling products andor providing services to . Company and Executive recognize that, in performing hisher anticipated job-related duties and responsibilities, Executive will have extensive access to Companys confidential design, manufacturing, distribution, marketing and sales information and will have opportunities to cultivate valuable business relationships with Companys employees, customers and vendors. B. AGREEMENT. In consideration of the foregoing premises, the mutual covenants and obligations of this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: Employment. Company agrees to employ Executive, and Executive agrees to accept employment with Company, pursuant to the terms and conditions of this Agreement. It is understood that Executive will be subject to the policies and terms (as they may be amended from time to time) by Company, Companys Employee Handbook, Companys Code of Conduct and other policies in effect for salaried employees and officers of Company, except as otherwise specifically provided in this Agreement. 2 Duties .3 The services of Executive shall be exclusive to Company, except as otherwise agreed to in writing by Company. Executive will initially serve in the capacity of Chief Operating Officer. Executive will assume responsibility for the job titles, reporting responsibilities and duties, which are assigned and which may be changed from time to time, by Companys Chief Executive Officer. Executive will perform Executives obligations in a competent and professional manner, consistent with the expectations of Companys Chief Executive Officer. Notwithstanding the above obligations, Executive may serve on outside boards of directors or committees if the outside activities are first disclosed to and approved in writing by Companys (Chief Executive Officer). That approval will not be granted if the outside activities are deemed by the (Chief Executive Officer) to conflict with the provisions of this Agreement, to impair Executives ability to perform Executives duties, or to otherwise conflict with Companys business interests. Term of Employment .4 This Agreement is not intended to establish any minimum or maximum period for Executives continuing employment. Executive and Company will have an at-will employment relationship, which means that either party has the right to terminate the employment relationship5 at any time and for any reason, with or without Cause. The reason for and timing of the termination, as set forth in Paragraph 5, will determine the amount of post-termination payments and benefits, as set forth in paragraph 6. Compensation, Reimbursements and Benefits .6 Company agrees to provide Executive the following compensation, reimbursements and benefits: Signing Bonus. As an inducement to enter into this Agreement, Company will pay Executive a signing bonus in the gross amount of , less standard withholdings, payable within days of . Base Salary .7 Company will pay Executive a monthly base salary (the Base Salary), payable in accordance with Companys standard payroll practices. The initial monthly Base Salary will be in the gross amount of Dollars (). The Base Salary will be subject to annual performance review and possible adjustment by Companys Chief Executive Officer. Incentive Awards .8 Executive may will be eligible to receive discretionary annual bonuses andor long term incentive compensation (Incentive Awards) pursuant to the terms and conditions of Companys Annual Bonus Plan andor Companys Long Term Incentive Plan (jointly, Incentive Plans), subject to the following: (1) Executives eligibility to receive Incentive Awards will be determined by Companys Board of Directors. (2) The Incentive Plans are not necessarily all-inclusive because circumstances which Company has not anticipated may arise. Company reserves the right to make any changes at any time to the Incentive Plans or to terminate the Incentive Plans. (3) Any questions regarding the computation of Incentive Awards under the Incentive Plans will be conclusively determined by Companys Board of Directors, pursuant to the terms and conditions of the Incentive Plans. Discretionary Bonus. Executive may be awarded an annual discretionary bonus (Bonus). The amount of the Bonus and the timing of payment of such Bonus will be determined in the sole discretion of the Companys Chief Executive Officer. Optioner. Executive may be awarded stock options from time to time, pursuant to the terms and conditions of Stock Option Plans, which may be adopted by Companys Board. Expenses .9 Company will reimburse Executive for ordinary, necessary and reasonable business expenses that Executive incurs in connection with the performance of Executives duties including entertainment, telephone, travel and miscellaneous expenses. Executive must obtain proper approval for such expenses pursuant to Companys policies and procedures, and provide Company with documentation for such expenses in a form sufficient to sustain Companys deduction for such expenses under the Internal Revenue Code. Time Off .10 Executive will be entitled to time off with or without pay in accordance with Companys policies in effect at any particular time provided, however, that Executive shall, in any event, be entitled to () days of Paid Time Off (PTO) during each full year of employment. Executive may carry over up to () days annually of PTO. Health, Disability, Life Insurance and Other Employee Benefit Plans .11 Company will provide Executive with health, disability, and life insurance coverage and other employee benefits that are presently existing or which may be established in the future by Company for its full-time salaried employees, subject to the terms and conditions of the applicable benefit plans. Indemnification. Company will defend, indemnify and hold Executive harmless from costs, expenses, damages and other liability incurred by Executive as a result of performing services in good faith to Company, subject to the limitations and other terms and conditions of applicable Minnesota statutes and Companys Articles of Incorporation or Bylaws. Changes in Benefit Plans .12 No references in this Agreement to particular employee benefit plans established or maintained by Company are intended to change the terms and conditions of the plans or to preclude Company from amending or terminating the plans. Withholding Taxes. Company may withhold from any compensation, reimbursements and benefits payable to Executive all federal, state, city and other taxes as required by any law or governmental regulation or ruling, as well as other standard withholdings and deductions. Termination .13 Executives employment may be terminated at any time as follows: Death .14 Executives employment shall automatically terminate upon Executives death. Disability .15 Either party may terminate Executives employment at any time, upon written notice to the other party, if Executive sustains a disability which precludes Executive from performing the essential functions of Executives job, with or without reasonable accommodations, as defined, and if required, by applicable state and federal disability laws. Executive shall be presumed to have such a disability for purpose of this Agreement if Executive qualifies to begin receiving disability income insurance payments under any long term disability income insurance policy that Company maintains for the benefit of Executive. If Executive does not qualify for such payments, Executive shall nevertheless be presumed to have such a disability if Executive is substantially incapable of performing the essential functions of Executives job for a period of more than . With Cause .16 Company may terminate Executives employment at any time, with Cause, upon written notice to Executive. Cause shall mean any one of the following events: (1) Executives breach of any material obligations under this Agreement, or Executives willful andor repeated failure or refusal to perform or observe Executives duties, responsibilities and obligations to Company (2) Any breach of Executives duty of loyalty or fiduciary duties to Company (3) Use of alcohol or other drugs in a manner which affects the performance of Executives duties, responsibilities and obligations to Company (4) Conviction of Executive, or a plea of nolo contendere for a felony or of any crime involving theft, misrepresentation, fraud, or moral turpitude (5) Commission by Executive of any other willful or intentional act which could reasonably be expected to injure the reputation, business or business relationships of Company andor Executive or (6) The existence of any court order or settlement agreement prohibiting Executives continued employment with Company. Without Cause .17 Company may terminate Executives employment at any time, without Cause, upon ( ) days written notice to Executive. Company may, at its sole discretion, opt not to have Executive provide active employment services during some or all of the notice period, and place Executive on a paid leave of absence for some or all of the notice period. Resignation .18 Executive may, upon ( ) days written notice to Company, terminate Executives employment at any time. Upon receiving such notice, Company may, at its sole discretion, opt not to have Executive provide active employment services during some or all of the notice period, and place Executive on a paid leave of absence for some or all of the notice period. If Company exercises this option, it shall not convert the resignation to a termination by Company. Resignation for Good Reason. 19 Executive may terminate Executives employment at any time, with Good Reason, upon written notice to Company. Good Reason shall mean any one of the following events that is not satisfactorily explained to Executive or cured within ( ) days of written notification thereof to Company by Executive: (1) Companys intentional and material breach of Companys obligations under this Agreement (2) Working conditions created by Company, which are in violation of Executives rights under any federal or state law. Among other things, if Company materially alters the terms and conditions of Executives employment, or materially reduces or changes Executives job duties or authority in conflict with this Agreement, it shall be considered a material breach of this Agreement. or (3) . Other Reasons. .20 Payments and Benefits upon Termination .21 Upon the termination of Executives employment, Executive shall only22 be entitled to the following payments and benefits: Death Disability .23 If Executives employment is terminated due to Executives death or disability, regardless of the date of termination, Executive or Executives estate or heirs, as appropriate, shall only be paid (i) Executives Base Salary and accrued, but unpaid, PTO, prorated through the date of termination (ii) any unpaid expense reimbursement (iii) other accrued and vested benefits, if any, under any of Companys Incentive Plans or any of Companys other employee benefit plans (e. g. 401(k) plan), subject to the terms and conditions of those plans and (iv) any benefits payable under any life or disability insurance policy maintained by Company for the benefit of Executive at the time of the termination of employment, subject to the terms and conditions of such policy. For Cause Resignation without Good Reason .24 If Company terminates Executives employment for Cause, or if Executive resigns without Good Reason, regardless of the date of termination, Executive shall only be paid (i) Executives Base Salary and accrued but unpaid PTO, prorated through the date of termination (ii) any unpaid expense reimbursement and (iii) other accrued and vested benefits as of the date of termination, if any, under any of Companys Incentive Plans or any of Companys other employee benefit plans (e. g. 401(k) plan), subject to the terms and conditions of those plans. Without Cause Resignation for Good Reason .25 If Company terminates Executives employment without Cause or Executive resigns for Good Reason, regardless of the date of termination, Executive shall be paid the same payments and benefits as set forth in Subparagraph 6.b. ovan. In addition, if Executive signs (and does not rescind, as allowed by law) a Release of Claims in a form satisfactory to Company which assures, among other things, that Executive will not commence any type of litigation or assert other claims against Company or a copy of which is attached hereto as Exhibit A, and if Executive complies with all of Executives post-termination obligations to Company under this Agreement and Executives Confidentiality, Noncompetition and Nonsolicitation Agreement,26 Company shall pay Executive a post-termination payment in the amount of , as set forth below: (1) If the effective date of termination of employment is during the first full year of Executives employment, an amount equal to () months of Executives Base Salary as of the date of termination (2) If the effective date of termination of employment is during the second full year of Executives employment, an amount equal to () months of Executives Base Salary as of the date of termination or (3) If t he effective date of termination is after the second full year of Executives employment, an amount equal to () months of Executives Base Salary as of the date of termination. The applicable payment shall be made in a lump sum on at the same intervals and amounts as Executives pre-termination Base Salary, beginning with the first payroll date after Executive signs (and does not rescind, as allowed by law) the above referenced Release of Claims, subject to appropriate withholdings and deductions, and subject to Executives compliance with all of Executives post-termination obligations to Company under this Agreement and Executives Confidentiality, Noncompetition and Nonsolicitation Agreement. No Incentive Awards, retirement savings contributions, 401(k) contributions or other employee payments or benefits will be paid to Executive by Company based on the amount of the post-termination payment. , except the following: . d. At Any Time As a Result of a Change of Control .27 If Company terminates Executives employment at any time as a result of a Change of Control, and if Executive does not receive and accept an offer of employment , which has comparable responsibilities and compensation that continues for at least ( ) months with the new controlling entity, Executive shall be paid the same payments and benefits as set forth in Subparagraph 6.b. ovan. In addition, if Executive signs (and does not rescind, as allowed by law) a Release of Claims in a form satisfactory to Company and the new controlling entity which assures, among other things, that Executive will not commence any type of litigation or assert other claims against Company, and if Executive complies with all of Executives post-termination obligations to Company under this Agreement and Executives Confidentiality, Noncompetition and Nonsolicitation Agreement, Company shall pay Executive a post-termination payment equal to months of Executives Base Salary as of the effective date of the termination of employment. This payment shall be made in a lump sum on at the same intervals and amounts as Executives pre-termination Base Salary, beginning with the first payroll date after Executive signs (and does not rescind, as allowed by law) the above-referenced Release of Claims, subject to appropriate withholdings and deductions, and subject to Executives compliance with all of Executives post-termination obligations to Company under this Agreement and Executives Confidentiality, Noncompetition and Nonsolicitation Agreement. The payment under this Change of Control provision will be paid in lieu of, and not in addition to, the post-termination payment referenced in Subparagraph 6.c.(1), (2) or (3) above. No Incentive Awards, retirement savings contributions, 401(k) contributions or other employee payments or benefits will be paid to Executive by Company based on this post-termination payment. , except the following: . If Executive does receive an offer of comparable employment with the new controlling entity, and chooses not to accept that employment, Executives termination of employment shall be considered a resignation, and treated as set forth in Subparagraph 6.b. ovan. For purposes of this provision, Change of Control means a sale or lease of the assets or a controlling interest of the stock of Company to a third party, which may come as a result of a divestiture, an acquisition, a lease arrangement, or a merger. Business Protections .28 Representations by Executive .29 Executive represents to Company that Executive has not signed andor entered into any written or oral noncompetition agreements, confidentiality agreements, or other proprietary information agreements that would prevent Executive from accepting this offer or performing the anticipated duties and services at Company. This Agreement is subject to these representations being correct. No Violations of Others Rights .30 Company does not authorize Executive to utilize any other individual or entitys intellectual or other property, confidential or proprietary information on Companys behalf. Executive will not knowingly do any of the following on Companys behalf: (4) Use any other individual or entitys intellectual or other property, confidential or proprietary information. Specifically, Executive will not bring any other individual or entitys proprietary information, customer lists, records, trade secrets, or any other property or confidential information with Executive when Executive comes to work at Company. All of that information and property should be left with the proper owner(s) (5) Contact or do business with any supplier or other individual or entity who or which has an exclusive contract or any other agreement with any other individual or entity which prevents himherit from doing business with Company or (6) Interfere with, infringe, misappropriate or violate any intellectual property rights of a third party. Protective Covenants .31 Company has many confidential and proprietary business interests and other information relating to its products, services, customers and employees, which it needs to adequately protect. Companys willingness to enter into this Agreement is contingent upon Executive simultaneously signing a separate Confidentiality, Noncompetition and Nonsolicitation Agreement with Company. The business protections in that Confidentiality, Noncompetition and Nonsolicitation Agreement will apply throughout Executives employment, and will continue to apply thereafter even if Executives employment is terminated under Paragraph 5 of this Agreement, regardless of the reason for or timing of the termination. Miscellaneous . Entire Agreement. This Agreement contains the entire agreement of the parties relating to the subject matter hereof and, except as otherwise stated32. supersedes any and all oral or written prior agreements and understandings with respect to such subject matter. The parties have made no agreements, representations, or warranties relating to the subject matter of this Agreement which are not set forth herein. Construction. Each provision of this Agreement shall be interpreted so that it is valid and enforceable under applicable law. If any provision of this Agreement is to any extent invalid or unenforceable under applicable law, that provision will still be effective to the extent it remains valid and enforceable. The remainder of this Agreement also will continue to be valid and enforceable, and the entire Agreement will continue to be valid and enforceable in other jurisdictions. Waivers. No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel to enforce any provisions of this Agreement, except by a statement in writing signed by the party against whom enforcement of the waiver or estoppel is sought. A waiver shall operate only as to the specific term or condition waived. No waiver shall constitute a continuing waiver or a waiver of such term or condition for the future unless specifically stated. No single or partial exercise of any right or remedy under this Agreement shall preclude any party from otherwise or further exercising such rights or remedies, or any other rights or remedies granted by law or any other document. Captions. The headings in this Agreement are for convenience of reference only and do not affect the interpretation of this Agreement. Modification. This Agreement may not be altered, modified or amended except by an instrument in writing signed by each of the parties hereto. Choice of Law Forum Selection .33 The laws of the State of Minnesota shall govern the validity, construction and performance of this Agreement, to the extent not pre-empted by federal law. Any legal proceeding related to this Agreement shall be brought in Minnesota in the Hennepin County District Court or the Minnesota District of the U. S. District Court, and each of the parties hereto hereby consents to the exclusive jurisdiction of the Minnesota state and federal courts for this purpose. The parties acknowledge the existence of sufficient contacts to the State of Minnesota and Hennepin County to confer jurisdiction upon these courts. Notices. All notices and other communications required or permitted under this Agreement shall be in writing and provided to the other party either in person, by fax, or by certified mail. Notices to Company must be provided or sent to its Chief Executive Officer notices to Executive must be provided or sent to Executive in person or at Executives home. Survival. Notwithstanding the termination of Executives employment with Company, the terms of this Agreement which relate to periods, activities, obligations, rights or remedies of the parties upon or subsequent to such termination shall survive such termination and shall govern all rights, disputes, claims or causes of action arising out of or in any way related to this Agreement. Successors and Assigns. This Agreement shall be binding on and inure to the benefit of Companys successors and assigns. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. In conclusion, employers like OLDCO should carefully and systematically implement reasonable policies, practices, and agreements to protect themselves from unfair competition and solicitation of their employees, and to protect their trade secrets and other confidential information. These measures will go a long way toward deterring problems, enhancing the odds of successful damage control, and, as a last resort, damage recovery. If at all possible, the best time for OLDCO to get comprehensive business protections is at the beginning of the employment relationship. 1 Recitals. Recitals are often viewed as mere boilerplate. However, recitals can provide very helpful language, in the event of future disputes. The language in this sample assumes a new employment relationship. If the Agreement is made with an existing employee, and is part of, for example, a new incentive package, the Recitals might include the following: Executive desires to become a Participant in Companys Long Term Incentive Plan. Company desires to have Executive make agreements, which will protect Companys business and other interests during the term of Executives employment and thereafter. Company is willing to make Executive a Participant in Companys Long Term Incentive Plan, in exchange for having Executive enter into this Agreement. Execution of this Agreement is a prerequisite to participation in this plan, and this Agreement is considered part of this plan. Company and Executive desire to clarify their employment relationship, pursuant to the terms and conditions of this Agreement. 2 General Terms and Conditions. It is often unclear which general policies apply to executives. Even high level executives must be aware that they are subject to company rules and requirements (e. g. policies regarding sexual harassment, ethics, legal behavior, etc.), even if they are not summarized in the Agreement unless, of course, the stated intent is to override other general terms. 3 Duties. Although it is helpful to describe the initial title and duties (perhaps with reference to a job description as an exhibit), companies should be careful about this provision. A disenchanted executive may claim breach of contract, claiming the employer changed hisher title andor duties. Generally, this section should not create the possibility of having later good faith changes constitute a breach, or otherwise give a disenchanted andor terminated executive an opportunity to claim that he or she should not be obligated to perform hisher post-termination obligations (no-compete, anti-solicitation, trade secret, etc.) It should be noted, however, that many executive employment agreements clearly do identify that the executive will serve in a particular capacity throughout the term of the agreement unless mutually agreed otherwise. Further, several executive employment agreements carefully set out in the body of the agreement, or in a separate exhibit, the exact, detailed duties that are expected. That type of specificity can create problems because detailed job descriptions are rarely kept current. If circumstances change, a company should have the right to expect its employees to be flexible, without risking a breach of contract claim. A good compromise is to have language that assures that, if the duties or titles are materially reduced, it may give the executive grounds to resign for Good Reason, as discussed below. 4 Term of Employment. There are many options here. For example: No Term at All At-Will Relationship . Some employment agreements do not contain any stated term. They state that the relationship can be terminated by either party at any time, and for any reason 8211 expressly stating an at-will relationship. That may be the only provision, with no guarantees whatsoever. Many at-will agreements, like this sample, allow either party to end the relationship at any time, but set forth post-termination rights. The agreement may change the rights, depending on who decides to terminate the relationship, why andor when. Consider, for example, an agreement that provides the executive with a substantial severance package if the employer terminates the relationship without Cause during the first year, with the size of the separation pay decreasing over time. Such a provision might adequately address an executives initial concerns (e. g. not being willing to leave a prior employer without minimum guarantees), without creating an overly generous separation package. Specific Period of Time (e. g. two years, with no reference to what happens once it expires). Presumably, once this expires, the relationship is either over or converts to an at-will employment relationship. If the employment continues without a new agreement, and if some of the provisions in the agreement continue forward, there is much room for misunderstandings and disagreements. For example, if the compensation and benefits packages continue to be in force (as they were during the term of the agreement), does that mean the post-termination compensation package continues to apply What about other provisions such as non-competes, confidentiality clauses, etc The agreement should be clear on these points. Initial Term with Anticipated Renewals . Employment agreements are often drafted to have an initial term (e. g. one year), with the expressed understanding that the term may continue into the future. If that is the desire of the parties, they should state whether the term automatically renews, absent adequate notice by one party to the other not to renew (commonly referred to as an evergreen agreement) or whether the parties must renegotiate a new agreement at the end of its term, and, absent that, the employment will terminate. Regardless which type of renewal system is used, both parties should anticipate and address the renewal period. Avoid drafting an agreement that either automatically renews itself or automatically expires because one or both parties dropped the ball. 5 Termination of Employment . From the employers perspective, only the employment relationship not the agreement should be terminated. Termination of the agreement could inadvertently terminate post-termination business protections. 6 Compensation, Reimbursements and Benefits. Executives often have unique compensation packages. In addition to base salaries and basic benefits, a compensation package may include intricate bonus plans, incentive compensation plans, separation or severance plans, stock grants, stock warrants, stock options, etc. If unique compensation arrangements are made, be sensitive to the issues that they create. For example, if a stock option is granted, or if stock is given to the executive, it should be clear in the executive agreement and in a separate Stock Purchase Agreement what will happen if the employment relationship ends. From the employers perspective, typically one would want a Stock Purchase Agreement which triggers in the event of termination of employment, regardless of the reason. Similarly, if there are unique promises for employee benefit plans that may be covered by ERISA, care should be taken to prepare proper documentation which reflects the companys ERISA obligations and desires. Critically, be sensitive to tax, SEC and Sarbanes-Oxley issues and obligations created by an executive agreement. 7 Base Salary. Executive agreements typically set the base salary for the first year, with an understanding that the salary will be subject to annual review. Some agreements state that the base salary will never drop below a certain floor during the entire course of the agreement some guarantee minimal percentage increases each year some make no guarantees whatsoever. 8 Bonus and Other Incentive Packages. Executive agreements may indicate that an annual bonus will be considered, at the discretion of the employer, or set up an objective (or combined objectivesubjective) bonus plan, which sets out criteria for achievement (e. g. percentage of sales, etc.). Alternatively, the agreement may simply refer to other bonus or incentive programs which are in existence, and state that the executive is eligible for bonuses or incentives under those programs, subject to their terms and conditions. The company should make it clear that it maintains the right to interpret, alter, or replace the bonusincentive program at its discretion, and specifically should reserve the right to add to, delete from, amend, or even cancel the program if business circumstances warrant. The agreement should not supersede the companys obligations under the bonus or incentive plan, unless that is what the parties intend to have it do (which would rarely be the case). The executive may want to set minimum expectationsobligations, or make it clear that if certain award levels are not reached, the executive has a right to resign for Good Reason, discussed below. A common source of disagreement over bonuses and other incentive packages is whether the bonus is payable if the executive leaves before a particular bonus period (e. g. fiscal year) is over. The agreement should state whether a mid-year departure will entitle the executive to a pro rata share of the annual bonus, the entire bonus, or no bonus at all. This may be written to vary, depending on the timing andor the reason for the departure. In any event, be sure that the executive agreement does not conflict with other employee benefit plans. 9 Business Expenses. Executive agreements often provide specific provisions for car expenses, plane expenses, country club expenses, and other matters 8211 some of which may or may not be deductible by the company under the Internal Revenue Code. The agreement should clearly state the various responsibilities. 10 Time Off. Executives often mix business and pleasure, and generally work while traveling. Depending on a companys policies and practices, that can lead to large and unexpected accruals of paid time off. Address all of this up front, to avoid major disputes later and make sure the companys time off and accrual policies are in compliance with recent legal developments. 11 Benefits. Agreements often summarize specific benefits available to the executive. The company should make it clear that references in the agreement to particular employee benefit plans established or maintained by the company do not change the terms and conditions of the plans or preclude the company from amending or terminating the plans. 12 Changes in Benefits. Companies often change policies or employee benefit plans, at least on a prospective basis. Particularly if the executive agreement identifies specific policies or employee benefit plans (which they often do), it is critical for the company to reserve its right to make changes to those plans. 13 Termination. The agreement should anticipate and address all likely reasons for termination of employment. The parties may have a very different view about post-termination packages and obligations, depending on the reason for and timing of the departure. It is better to have a road map for the different options than to leave items vague or open, and subject to later disputes. 14 Death of Executive. Obviously, the death of the executive terminates the employment relationship. It is necessary to state this, however, because the employer almost certainly will have a different view about post-termination payments in this situation, as compared to others. 15 Disability of Executive. An executives disability, if serious enough, should be a ground for termination. Draft the definition so the agreement does not violate the Americans with Disabilities Act or the Family and Medical Leave Act. Many agreements state that, subject to these laws, the executive will be presumed to have such a disability if he or she is substantially incapable of performing his or her duties for a particular period of time (12 weeks would be the minimum here, due to the FMLA the ADA may dictate a longer period). 16 Termination by Company For Cause. The agreement should make it clear that the company can terminate, at any time, for Cause. The parties should carefully define Cause. Various types of misconduct, illegal activities, intentional breaches of the agreement, etc. will often be included in the definition. Employers are well served if they can get the definition of Cause to include less heinous actions of the executive that would, nevertheless, justify a termination. Executives prefer to have Cause only in misconduct situations. Often, the less serious issues may be subject to a noticeopportunity to cure provision. 17 Termination by Company Without Cause. This is the situation that new executives are most concerned about. What if the employer decides to terminate the employment relationship due to a change in business plans, a down turn in the market, a mere personality dispute, or some other reason why its just not working out Employers who enter into executive agreements definitely want to reserve the right to terminate without Cause they do not want to prove Cause every time they want to part ways with the executive. Typically, this is a situation where fairness and the new executives negotiating demands dictate that post-termination separation packages are warranted. 18 Voluntary Termination by Employee. Employers cannot prevent an executive from voluntarily terminating employment. However, the agreement should state that if the executive voluntarily quits, separation payment obligations will not apply. 19 Resignation for Good Reason . This provision is rare. Employers rarely offer it, and executives often fail to ask for it. Even once it is agreed to in concept, there are often disagreements on the definition. Executives generally want the ability to trigger this provision if the job materially changes after they begin (e. g. material reduction in compensation or title, or forced and unacceptable relocation), or if there is other treatment that may not necessarily rise to the level of a constructive discharge under applicable law, but is nevertheless intolerable to the executive. Employers generally resist some or all of these, preferring to maintain flexibility and discretion. This may be a very good place to address situations where the employer and executive discuss and fully expect a situation to occur (such as a promotion from COO to CEO in one year, after the current CEO retires), but the employer cannot contractually guarantee it basically assuring the executive that if it does not occur, there will be some ability to trigger a termination package. 20 Termination as a Result of Other Reasons. Executive agreements occasionally address the possible termination of employment as a result of other reasons. For example, executive agreements often discuss terminations as a result of divestitures, acquisitions, mergers, or other changes in control. From the companys perspective, this is not necessary because these types of provisions would constitute a termination without Cause. Executives may want to see this type of provision set out separately, however, to set up a later provision for severance pay in the event of this type of separation. The executive may even want to make it a ground for a Good Reason resignation. 21 Post-Termination Compensation Packages . Many executive agreements provide a flat severance payment (e. g. twelve (12) months Base Salary) regardless of the reason for the termination, the timing of the termination, and whether the executive abides by other commitments. This may not be a logical approach from the companys perspective. Employers should not agree to pay separation pay simply because an executives employment is terminated. The reason for the termination is critical. 22 No Additional PayBenefits. There have been many claims by former executives for bonus or other incentive payments, various fringe benefits (e. g. cars, club dues, profit sharing, etc.), and even claims for bonuses based on post-termination severance pay. Not surprisingly, companies usually take the position that no such benefits or payments were anticipated. To avoid such a dispute, executive agreements should clearly state whether additional payments or benefits will result from the payment of a post-termination payment, or whether the gross payment stands alone. 23 Death or Disability of Employee . If the employment relationship terminates as a result of the executives death or disability, this is not the employers choice. Further, executives often have (usually through the employer) life and disability insurance. 24 Termination by Company for Cause Resignation Without Good Reason. If the executive truly did give Cause to terminate, and particularly if it was a serious act of misconduct, employers do not want a contractual commitment to make post-termination payments. Similarly, few employers are happy to make payments to an executive who quits through no fault of the employer. 25 Termination by Company Without Cause Resignation for Good Reason. Here, a good argument can be made for post-termination compensation. Through no serious fault of the executive, the employment relationship is ended. Accordingly, it is not uncommon for employers to agree to provide post-termination pay to executives who are terminated without Cause. This may be part of an overall benefits package or may be contained within the executive agreement. The amount of post-termination compensation might be a flat amount (e. g. one year), a formula (e. g. one month for each year of service), a diminishing amount (e. g. one year if the termination takes place within the first year, six months, if it takes place in the second year, etc.), or some other formula. If the executive is able to negotiate certain rights to resign for Good Reason, the severance sections may be similar, or even identical, to the severance for a termination by the company without Cause. 26 Contingencies. If an employer agrees to pay post-termination compensation, it should make the receipt of such compensation contingent on the executives compliance with all post-termination obligations (noncompete agreements, trade secret and confidentiality agreements, agreements not to hire or solicit employees, cooperation with litigation clauses, etc.) and a signed release of claims. 27 Change of Control. Change of Control provisions are rare. This is a simple change of control provision. Many are far more complex. The language in a Change of Control provision, as a practical matter, can make future business combinations difficult, if not impossible. There needs to be a reasonable balance between protecting executives from the sudden loss of employment and essentially making the business change impossible to achieve. 28 Business Protections. This sample assumes a separate Confidentiality, Noncompetition and Nonsolicitation Agreement. Any or all business protections could be incorporated into the executive agreement, rather than in a separate document. 29 Representations by Executive. If the new executive has restrictions from a former employer, it is critical to discovery that up front, rather than after the fact. In fact, these representations should be confirmed as part of the offer. The Company may choose not to go forward with the arrangement, to negotiate or litigate with the former employer as needed or to change the terms of the new agreement, in order to avoid violations with the existing agreements. 30 No Violation of Others Rights. Again, it is important to clearly assure, up front, that the employer does not want the executive to violate any other entitys legal rights. This language may prevent legal conflicts, or at least support good faith defenses. 31 Protective Covenants. It may be critical to the survival of a company to protect its trade secrets, prevent unfair competition, and prohibit the solicitation of its customers andor employees if a key executive departs. As further discussed in Section II below, a company can do many things to protect itself with respect to these problems. To stand the best possible chance of prevailing in litigation, the company wants to be able to prove that its trade secrets and other confidential information were truly secret that it, from day one, took steps to protect that confidential information and that the executive knew that the information was confidential, etc. Further, the fairness and reasonableness of noncompete agreements, as well as the consideration requirement, should be clear from day one. If the employer does not have a separate noncompete confidentialitytrade secret agreement, those provisions can be included in the executive agreement. Even if the employer does have a separate agreement, it is a good idea to make reference to that agreement in the executive agreement. 32 Merger Clause. The employer should be careful not to inadvertently supersede something that it wants to survive. 33 Arbitration Clause. The parties can opt to have future disputes decided in an arbitration forum in lieu of traditional litigation, and they can specially design the procedures under which arbitration will be conducted. Advantages generally include an expedited ultimate resolution, decreased protracted discovery and court procedures, and avoidance of erratic jury verdicts. However, some may perceive these so-called advantages as disadvantages depending upon the facts of the particular case. First, as to both issues of law and fact, the ultimate decisions are left to the arbitrator with limited grounds for appeal (e. g. award procured by corruption, fraud or other undue means). Thus, the threat of an appeal which faces a judge who erroneously applies the law does not have the same effect on an arbitrator who may couch technical applications of the law in order to split the baby. Also, beware of the fact that the existence of an arbitration clause in an executive agreement, trade secretconfidentiality agreement, noncompete agreement, etc. can effectively prevent the employer from obtaining an injunction with respect to violations. If an arbitration clause is vastly preferred, consider at least using compromise language between the two competing issues. For example, consider making it clear that arbitration is encouraged, but not required consider adding mediation as another voluntary alternative and, in any event, make it clear that the arbitration language does not apply to the various non-competitiontrade secrets provisions, nor does it bar the company from seeking judicial remedies to enforce them. Finally, be aware that Arbitration provisions may or may not cover traditional employment claims, depending on how they are drafted. 34 Freeman v. Duluth Clinic, Inc. 334 N. W.2d 626 (Minn. 1983). 35 Bennett v. Storz Broad. Co. 134 N. W.2d 892 (Minn. 1965) Lemon v. Gressman, 2001 WL 290512 at 1 (Minn. App. Mar. 27, 2001). 44 BDO Seidman v. Hirshberg, 93 NY.2d 382, 394 (N. Y. 1999). 45 See Davies, 298 N. W.2d at 134 Dean Van Horn Consulting Assoc. v. Wold, 395 N. W.2d 405 (Minn. App. 1986) Ikon Office Solutions, Inc. v. Dale, 2001 WL 1269994 (8th Cir. 2001) see also Klick v. Crosstown State Bank of Ham Lake, Inc. 372 N. W.2d 85 (Minn. App. 1985) (observing that courts are not required to modify non-compete agreements that appear unreasonable). 46 Id. see also Sealock v. Petersen, 2008 WL 314146, at 4 (Minn. Ct. App. Feb. 5, 2008) (observing that non-compete agreements entered into in connection with the sale of a business are subject to a more lenient scrutiny than non-competes contained in employment contracts). 47 Metro Networks Comm. v. Zavodnick, 2004 WL 73591 (D. Minn. 2004) (enforcing a one-year restriction on competition in the Twin Cities metropolitan area) Universal Hosp. Serv. Inc. v. Hennessy, 2002 WL 192564, (D. Minn. 2002) (validating an agreement restricting an employee from competing within a 100-mile radius of the employer for one year). 48 See, e. g. , Ikon Office Solutions, Inc. , 170 F. Supp.2d at 895 (reducing time period of noncompetition from five years to three years, because five years was too long, placed undue hardship on the employee, and did not serve any legitimate business needs of the former employer) Dean Van Horn . 395 N. W.2d 405 (modifying a three-year restriction to one year). 49 See, e. g. Webb Publishing Co. v. Fosshage . 426 N. W.2d 445, 448 (Minn. App. 1988) ( citing Dahlberg Brothers, Inc. v. Ford Motor Co., N. W.2d 314, 32122 (Minn. 1965)). 50 Vital Images, Inc. v. Martel, Civil No. 07-4195, 2007 WL 3095378 at 3 (D. Minn. Oct. 19, 2007) (eighteen months) Timm amp Assoc. Inc. v. Broad, Civ. No 05-2370, 2006 WL 3759753, at 4 (D. Minn. Dec. 21, 2006) (two years) Overholt Crop Ins. Serv. Co. Inc. v. Bredeson, 437 N. W.2d 698, 704 (Minn. Ct. App. 1989) (two years). 52 See, e. g., Ring Computer Sys. v. Paradata Computer Networks, 1990 WL 132615 (Minn. App. 1990). 53 See, e. g. . Dynamic Air, Inc. v. Bloch, 502 N. W.2d 796, 800 (Minn. Ct. App. 1993) (observing that a non-compete agreement with no geographical limit will often be held to be unreasonable). But see Medtronic v. Hedemark, No. A08-0987, 2009 WL 511760, at 35 (Minn. Ct. App. Mar. 3, 2009) (upholding a global restriction on competition for a multinational corporation, because the other restrictions in the non-compete were reasonable). 54 Overholt . 437 N. W.2d 698 Satellite Indus. Inc. v. Keeling, 396 N. W.2d 635 (Minn. App. 1986). 55 Cook Sign Co. v. Combs, No A07-1907, 2008 WL 3898267, at 7 (Minn. Ct. App. Aug. 26, 2008) (enforcing a non-compete agreement restricting an employee from competing in three states in which the employer does business and has customers) Salon 2000, Inc. v. Dauwalter, No. A06-1227, 2007 WL 1599223, at 2 (Minn. Ct. App. June 5, 2007) (affirming a non-compete agreement restricting an employee from working as a stylist within a ten-mile radius of the employers business on the ground that customers will seek out the stylist rather than the services of the salon if the stylist is sufficiently close geographically to the salon) Madsen v. Spectro Alloys Corp. No. C7-98-225, 1998 WL 373067, at 2 (Minn. Ct. App. July 7, 1998) (concluding that a restriction from competing in any market in which Spectro does business in the United States was not unreasonably broad). 56 See IDS Life Ins. Co. v. SunAmerica, Inc. 958 F. Supp. 1258, 1273 (N. D. Ill. 1997) revd on other grounds . 136 F.3d 537 (7th Cir. 1998) (applying Minnesota law) Commodities Specialists, Co. v. Brummet, 2002 WL 31898166 (D. Minn. 2002). 57 Natl Recruiters, Inc. v. Cashman, 323 N. W.2d 736, 740 (Minn. 1982) Davies amp Davies Agency, Inc. v. Davies, 298 N. W.2d 127, 133 (Minn. 1980) (concluding that a non-compete agreement was not ancillary to the employment contract where the employee had been made aware of its existence during employment negotiations but was not given a chance to examine it despite requesting to see it) Midwest Sports Mktg. v. Hillerich amp Bradsby of Canada, Ltd. 552 N. W.2d 254, 26566 (Minn. Ct. App. 1996) (refusing to enforce an agreement whose terms were not presented to the employee until after he began work) FSI Intl, Inc. v. Shumway, 2002 WL 334409, (D. Minn. Feb. 26, 2002) (denying motion for preliminary injunction or TRO on the basis that the mid-stream non-compete agreement was not supported by sufficient independent consideration and there was no evidence of a competing product) J. K. Harris amp Co. LLC v. Dye and ABC Co. 2001 WL 1464728, (D. Minn. Nov. 16, 2001) (denying TRO because Court found that covenant not to compete was entered into after employment began and was not supported by adequate consideration). 58 Sanborn Mfg. Co. v. Currie, 500 N. W.2d 161 (Minn. App. 1993) see also TestQuest, Inc. v. La France, 2002 WL 196287 (Minn. App. 2002) (upholding mid-stream agreement allowing the employee to continue working and obtain additional vested stock options, which constituted sufficient consideration). 59 Progressive Tech. Inc. v. Shupe, 2005 WL 832059 (Minn. App. April 12, 2005). 60 See also Tonna Heating Cooling, Inc. v. Waraxa, CX-02-368, 2002 WL 31687601, at 3 (Minn. App. Dec. 3, 2002). Disclaimer The information contained on this web site is not indented to constitute legal advice for any particular situation and should not be construed as such. If you need legal advice, you should speak to one of our attorneys. Sending an e-mail to Oberman Thompson does not create an attorney-client relationship. Contact Us Canadian Pacific Plaza 120 South Sixth Street, Suite 1700 Minneapolis, MN 55402 Phone 612.217.6440 Fax 612.217.6444 copy 2014 Oberman Thompson, LLC
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