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EXHIBIT 10.6
SEVERANCE PROTECTION AGREEMENT
THIS AGREEMENT made as of the first day of June 2000, by and between
PawnMart, Inc. (the "Company") and _______________(the "Executive").
WHEREAS, the Board of Directors and the Executive desire to enter into
this Agreement to provide certain benefits to the Executive upon the termination
of employment of the Executive under certain conditions;
WHEREAS, the Board of Directors of the Company (the "Board recognizes
that the possibility of a Change in Control (as hereinafter defined) exists and
that the threat or the occurrence of a Change in Control can result in
significant distraction of the Company's key management personnel because of the
uncertainties inherent in such a situation;
WHEREAS, the Board has determined that it is essential and in the best
interest of the Company and its stockholders for the Company to retain the
services of the Executive in the event of a threat or occurrence of a Change in
Control and to ensure the Executive's continued dedication and efforts in such
event without undue concern for the Executive's personal financial and
employment security; and
WHEREAS, in order to induce the Executive to remain in the employ of
the Company, particularly in the event of a threat or the occurrence of a Change
in Control, the Company desires to enter into this Agreement with the Executive
to provide the Executive with certain benefits in the event the Executive's
employment is terminated under certain conditions, including as a result of, or
in connection with, a Change in Control, and to provide the Executive with the
Gross-Up Payment (as hereinafter defined).
NOW, THEREFORE, in consideration of the respective agreements of the
parties contained herein, it is agreed as follows:
1. Term of Agreement. This Agreement shall commence as of June 1, 2000
and shall continue in effect through May 31, 2002 (the "Term"); provided,
however, that on June 1, 2002, and on each June 1 thereafter, the Term shall
automatically be extended for one (1) year unless either the Executive or the
Company shall have given written notice to the other at least ninety (90) days
prior thereto that the Term shall not be so extended; provided, further,
however, that following the occurrence of a Change in Control, the Term shall
not expire prior to the expiration of twenty-four (24) months after such
occurrence.
2. Termination of Employment in Connection with a Change in Control.
If,
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during the Term, the Executive's employment with the Company shall be terminated
within twenty-four (24) months following a Change in Control, the Executive
shall be entitled to the following compensation and benefits:
(a) If the Executive's employment with the Company shall be terminated
(1) by the Company for Cause or Disability, (2) by reason of the Executive's
death, or (3) by the Executive other than for Good Reason, the Company shall pay
to the Executive his or her Accrued Compensation. In addition to the foregoing,
if the Executive's employment is terminated by the Company for Disability or by
reason of the Executive's death, the Company shall pay to the Executive or his
or her beneficiaries a Pro Rata Bonus. The Executive's entitlement to any other
compensation or benefits shall be determined in accordance with the Company's
employee benefits plans and other applicable programs and practices then in
effect.
(b) If the Executive's employment with the Company shall be terminated
for any reason other than as specified in Section 2(a), the Executive shall be
entitled to the following:
(1) the Company shall pay the Executive all Accrued Compensation
and a Pro Rata Bonus;
(2) the Company shall pay the Executive as severance pay and in
lieu of any further compensation for periods subsequent to the Termination Date
an amount determined by multiplying one-half times the sum of (i) the
Executive's Base Amount and (ii) the Executive's Bonus Amount; and
(3) after the Termination Date and until the earlier of: six
months or the death of the Executive or the date upon which the Executive
becomes eligible for Medicare coverage (irrespective of whether the Executive
actually obtains such coverage), the Company shall continue to provide to the
Executive medical and dental coverage as provided to the Executive on the
Termination Date. The medical and dental coverage may be modified by the Company
at any time subsequent to the Termination Date as long as such modifications are
pursuant to, and to the same extent as, any modifications to the Company's
medical and dental insurance coverage provided to the Executive Officers in
office on the date of such modifications and such modifications do not result in
a substantial reduction of medical and dental benefits.
(c) If (x) the Executive's employment is terminated by the Company
without Cause, or (y) the Executive terminates employment for Good Reason (1)
within six (6) months prior to a Change in Control, or (2) prior to the date of
a Change in Control but the
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Executive reasonably demonstrates that such (x) termination or event or
condition (A) was at the request of a third party who has indicated an intention
or taken steps reasonably calculated to effect a Change in Control (a "Third
Party") and who effectuates a Change in Control or (13) otherwise arose in
connection with, or in anticipation of a Change in Control which has been
threatened or proposed and which actually occurs, such termination shall be
deemed to have occurred after a Change in Control, provided a Change in Control
shall actually have occurred.
(d) (I) Gross-Up Payment. In the event it shall be determined that any
payment or distribution of any type to or for the benefit of the Executive, by
the Company, any Affiliate, any Person who acquires ownership or effective
control of the Company or ownership of a substantial portion of the Company's
assets (within the meaning of Section 2800 of the Internal Revenue Code of 1986,
as amended (the "Code"), and the regulations there under) or any affiliate of
such Person, whether paid or payable or distributed or distributable pursuant to
any of the terms of this Agreement or otherwise (the "Total Payments"), is or
will be subject to the excise tax imposed by Section 4999 of the Code or any
interest or penalties with respect to such excise tax (such excise tax, together
with any such interest and penalties, are collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with respect
to such taxes), including any income tax, employment tax or Excise Tax, imposed
upon the Gross Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Total Payments.
(2) Determination By Accountant. All mathematical determinations,
and all determinations as to whether any of the Total Payments are "parachute
payments" (within the meaning of Section 2800 of the Code), that are required to
be made under this Section 2(d), including determinations as to whether a
Gross-Up Payment is required, the amount of such Gross-Up Payment and amounts
relevant to the last sentence of this Section 2(d)(2), shall be made by an
independent accounting firm selected by the Executive from among the six (6)
largest accounting firms in the United States (the "Accounting Firm"), which
shall provide its determination (the "Determination"), together with detailed
supporting calculations regarding the amount of any Gross-Up Payment and any
other relevant matter, both to the Company and the Executive by no later than
ten (10) days following the Termination Date, if applicable, or such earlier
time as is requested by the Company or the Executive (if the Executive
reasonably believes that any of the Total Payments may be subject to the Excise
Tax). If the Accounting Firm determines that no Excise Tax is payable by the
Executive, it shall furnish the Executive and the Company with a written
statement that such Accounting Firm has concluded that no Excise Tax is payable
(including the reason therefore) and that the Executive has substantial
authority not to report any Excise Tax on his or her
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federal income tax return. If a Gross-Up Payment is determined to be payable, it
shall be paid to the Executive within twenty (20) days after the Determination
(and all accompanying calculations and other material supporting the
Determination) is delivered to the Company by the Accounting Firm. Any
determination by the Accounting Firm shall be binding upon the Company and the
Executive, absent manifest error. As a result of uncertainty in the application
of Section 4999 of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments not made by the
Company should have been made ("Underpayment"), or that Gross-Up Payments will
have been made by the Company which should not have been made ("Overpayments").
In either such event, the Accounting Firm shall determine the amount of the
Underpayment or Overpayment that has occurred. In the case of an Underpayment,
the amount of such Underpayment shall be promptly paid by the Company to or for
the benefit of the Executive. In the case of an Overpayment, the Executive
shall, at the direction and expense of the Company, take such steps as is
reasonably necessary (including the filing of returns and claims for refund),
Now reasonable instructions from, and procedures established by, the Company,
and otherwise reasonably cooperate with the Company to correct such Overpayment,
provided however, that (i) the Executive shall not in any event be obligated to
return to the Company an amount greater than the net after-tax portion of the
Overpayment that he or she has retained or has recovered as a refund from the
applicable taxing authorities and (ii) this provision shall be interpreted in a
manner consistent with the intent of Section 2(d)(l), which is to make the
Executive whole, on an after-tax basis, from the application of the Excise Tax,
it being understood that the correction of an Overpayment may result in the
Executive repaying to the Company an amount which is less than the Overpayment.
(e) The amounts provided for in Sections 2(a) and 2(b)(l) and (2),
shall be paid in a single lump sum cash payment within thirty (30) days after
the Executive's Termination Date (or earlier, if required by applicable law).
(f) The Executive shall not be required to mitigate the amount of
any payment provided for in this Agreement by seeking other employment or
otherwise and no such payment shall be offset or reduced by the amount of any
compensation or benefits provided to the Executive in any subsequent employment.
(g) The payments and benefits provided for in this Section 2 shall
be in lieu of any other severance pay to which the Executive may be entitled
under any Company severance plan or any other plan, agreement or arrangement of
the Company.
3. Notice of Termination. Any intended termination of the Executive's
employment by the Company shall be communicated by a Notice of Termination from
the Company to the Executive, and any intended termination of the Executive's
employment by
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the Executive for Good Reason shall be communicated by a Notice of Termination
from the Executive to the Company.
4. Non-Solicitation. The Executive agrees that if his employment with
the Company terminates, he will not, without the prior written consent of the
Company, for a period of twelve (12) months thereafter, alone or with or for
others, in whatever, capacity, directly or indirectly, solicit or attempt to
solicit clients or customers of the Company, or solicit or attempt to solicit
employees of the Company to leave the Company's employ.
5. Fees and Expenses. The Company shall pay all legal fees and related
expenses (including the costs of experts, evidence and counsel) incurred by the
Executive as they become due as a result of (a) the termination of the
Executive's employment by the Company or by the Executive for Good Reason
(including all such fees and expenses, if any, incurred in contesting, defending
or disputing the basis for any such termination of employment), (b) the
Executive's hearing before the Board as contemplated in Section 16.5 of this
Agreement or (c) the Executive seeking to obtain or enforce any right or benefit
provided by this Agreement or by any other plan or arrangement maintained by the
Company under which the Executive is or may be entitled to receive benefits.
6. Notice. For the purposes of this Agreement, notices and all other
communications provided for in the Agreement (including any Notice of
Termination) shall be in writing, shall be signed by the Executive if to the
Company or by a duly authorized officer of the Company if to the Executive, and
shall be deemed to have been duly given when personally delivered or sent by
certified mail, return receipt requested, postage prepaid, addressed to the
respective addresses last given by each party to the other, provided that all
notices to the Company shall be directed to the attention of the Board with a
copy to the Secretary of the Company. All notices and communication shall be
deemed to have been received on the date of delivery thereof or on the third
business day after the mailing thereof, except that notice of change of address
shall be effective only upon receipt.
7. Nature of Rights. The Executive shall have the status of a mere
unsecured creditor of the Company with respect to his or her right to receive
any payment under this Agreement. This Agreement shall constitute a mere promise
by the Company to make payments in the future of the benefits provided for
herein. It is the intention of the parties hereto that the arrangements
reflected in this Agreement shall be treated as unfunded for tax purposes and,
if it should be determined that Title I of ERISA is applicable to this
Agreement, for purposes of Title I of ERISA. Except as provided in Section 2(g),
nothing in this Agreement shall prevent or limit the Executive's continuing or
future participation in any benefit, bonus, incentive or other plan or program
provided by the Company and for which the Executive may qualify, nor shall
anything herein limit or reduce such rights as the
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Executive may have under any other agreements with the Company. Amounts which
are vested benefits or which the Executive is otherwise entitled to receive
under any plan or program of the Company shall be payable in accordance with
such plan or program, except as explicitly modified by this Agreement.
8. Settlement of Claims. The Company's obligation to make the payments
provided for m fills Agreement and otherwise to perform its obligations
hereunder shall not be affected by any circumstances, including, without
limitation, any set-off, counterclaim, defense, recoupment, or other right which
the Company may have against the Executive or others.
9. Miscellaneous. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by the Executive and the Company. No waiver by any party
hereto at any time of any breach by any other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same or at any prior or subsequent time. No agreement or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof
have been made by any party which are not expressly set forth in this Agreement.
10. Survival. The provisions in Section 4 of this Agreement shall
survive the expiration of this Agreement.
11. Successors: Binding Agreement.
(a) This Agreement shall be binding upon and shall inure to the
benefit of the Company and its Successors and Assigns. The Company shall require
its Successors and Assigns to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession or assignment had taken place.
b) Neither this Agreement nor any right or interest hereunder
shall be assignable or transferable by the Executive, his or her beneficiaries
or legal representatives, except by will or by the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by
the Executive's legal personal representative.
12. Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Texas without giving
effect to the conflict of laws principles thereof. Any action brought by any
party to this Agreement shall
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be brought and maintained in a court of competent jurisdiction in Tarrant County
in the State of Texas.
13. Severability. The provisions of this Agreement shall be deemed
severable and the invalidity or unenforceability of any provision shall not
affect the validity or enforceability of the other provisions hereof.
14. Entire Agreement. This Agreement constitutes the entire agreement
between the parties hereto, and supersedes all prior agreements, understandings
and arrangements, oral or written, between the parties hereto, with respect to
the subject matter hereof.
15. Release. The Executive agrees that payment hereunder is conditioned
upon the execution of a release ("General Release") in the form attached hereto.
16. Definitions.
16.1. Accrued Compensation. For purposes of this Agreement,
"Accrued Compensation" shall mean all amounts of compensation for services
rendered to the Company that have been earned or accrued through the Termination
Date but that have not been paid as of the Termination Date including (a) base
salary, (b) reimbursement for reasonable and necessary business expenses
incurred by the Executive on behalf of the Company during the period ending on
the Termination Date, (c) vacation pay and (d) bonuses and incentive
compensation; provided, however, that Accrued Compensation shall not include any
amounts described in clause (a) or clause (d) that have been deferred pursuant
to any salary reduction or deferred compensation elections made by the
Executive.
16.2. Affiliate. For purposes of this Agreement, "Affiliate" means
any entity, directly or indirectly, controlled by, controlling or under common
control with the Company or any corporation or other entity acquiring, directly
or indirectly, all or substantially all the assets and business of the Company,
whether by operation of law or otherwise.
16.3. Base Amount. For purposes of this Agreement, "Base Amount"
shall mean the Executive's base salary in effect on June 1, 2000, or, if
greater, (b) in effect at any time thereafter.
16.4. Bonus Amount. For purposes of this Agreement, "Bonus Amount"
shall mean the greater of (a) the target annual bonus payable to the Executive
in respect of the fiscal year during which the Termination Date occurs or b,)
the highest annual bonus paid or payable in respect of any of the three full
fiscal years ended prior to the Termination Date or,
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if greater, the three (3) full fiscal years ended prior to the Change in
Control.
16.5. Cause. For purposes of this Agreement, a termination of
employment is for "Cause" if the Executive has been convicted of a felony or the
termination is evidenced by a resolution adopted in good faith by two-thirds of
the Board that the Executive:
(a) intentionally and continually failed substantially to perform
his or her reasonably assigned duties with the Company (other than a failure
resulting from the Executive's incapacity due to physical or mental illness or
from the assignment to the Executive of duties that would constitute Good
Reason) which failure continued for a period of at least thirty (30) days after
a written notice of demand for substantial performance, signed by a duly
authorized officer of the Company, has been delivered to the Executive
specifying the manner in which the Executive has failed substantially to
perform, or
b) intentionally engaged in conduct which is demonstrably and
materially injurious to the Company; provided, however, that no termination of
the Executive's employment shall be for Cause as set forth in this Section
16.5(b) until (1) there shall have been delivered to the Executive a copy of a
written notice, signed by a duly authorized officer of the Company, setting
forth that the Executive was guilty of the conduct set forth in this Section
16.5(b) and specifying the particulars thereof in detail, and (2) the Executive
shall have been provided an opportunity to be heard in person by the Board (with
the assistance of the Executive's counsel if the Executive so desires).
No act, nor failure to act, on the Executive's part, shall be
considered "intentional" unless the Executive has acted, or failed to act, with
a lack of good faith and with a lack of reasonable belief that the Executive's
action or failure to act was in the best interest of the Company.
Notwithstanding anything contained in this Agreement to the contrary, no failure
to perform by the Executive after a Notice of Termination is given to the
Company by the Executive shall constitute Cause for purposes of this Agreement.
16.6. Change in Control. A "Change in Control" shall mean the
occurrence during the term of the Agreement of:
(a) An acquisition (other than directly from the Company) of any
common stock of the Company ("Common Stock") or other voting securities of the
Company entitled to vote generally for the election of directors (the "Voting
Securities") by any "Person' (as the term person is used for purposes of Section
13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act")), immediately after which such Person has "Beneficial Ownership" (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent
(20%) or more of the then outstanding shares of Common Stock or the
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combined voting power of the Company's then outstanding Voting Securities;
provided, however, in determining whether a Change in Control has occurred,
Voting Securities which are acquired in a Non-Control Acquisition (as
hereinafter defined) shall not constitute an acquisition which would cause a
Change in Control. A "Non-Control Acquisition" shall mean an acquisition by (i)
a Company employee benefit plan (or a trust forming a part thereof) maintained
by (A) the Company or (B) any corporation or other Person of which a majority of
its voting power or its voting equity securities or equity interest is owned,
directly or indirectly, by the Company (a "Subsidiary"), (ii) the Company or its
Subsidiaries, or (iii) any Person in connection with a Non-Control Transaction
(as hereinafter defined);
(b) The individuals who, as of the date hereof; are members of the
Board (the "Incumbent Board"), cease for any reason to constitute at least
seventy percent (70%) of the members of the Board, provided, however, that if
the election, or nomination for election by the Company's shareholders, of any
new director was approved by a vote of at least two-thirds of the Incumbent
Board, such new director shall, for purposes of this Agreement, be considered as
a member of the Incumbent Board; provided further however, that no individual
shall be considered a member of the Incumbent Board if such individual initially
assumed office as a result of either an actual or threatened "Election Contest"
(as described in Rule 14a-l I promulgated under the Exchange Act) or other
actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board (a "Proxy Contest") including by reason of any
agreement intended to avoid or settle any Election Contest or Proxy Contest; or
(c) The consummation of
(1) A merger, consolidation or reorganization with or into the
Company or in which securities of the Company are issued, unless such merger,
consolidation or reorganization is a "Non-Control Transaction." A "Non-Control
Transaction" shall mean a merger, consolidation or reorganization with or into
the Company or in which securities of the Company are issued where:
(A) the shareholders of the Company, immediately before such
merger, consolidation or reorganization, own directly or indirectly immediately
following such merger, consolidation or reorganization, at least sixty percent
(60%) of the combined voting power of the outstanding voting securities of the
corporation resulting from such merger or consolidation or reorganization (the
"Surviving Corporation") in substantially the same proportion as their ownership
of the Voting Securities immediately before such merger, consolidation or
reorganization,
(13) the individuals who were members of the Incumbent Board
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immediately prior to the execution of the agreement providing for such merger,
consolidation or reorganization constitute at least seventy percent (70%) of the
members of the board of directors of the Surviving Company; or Corporation, or a
corporation beneficially directly or indirectly owning a majority of the Voting
Securities of the Surviving Corporation, and
(C) no Person other than (i) the Company, (ii) any
Subsidiary, (iii) any employee benefit plan (or any trust forming a part
thereof) that, immediately prior to such merger, consolidation or
reorganization, was maintained by the Company, the Surviving Corporation, or any
Subsidiary, or (iv) any Person who, immediately prior to such merger,
consolidation or reorganization had Beneficial Ownership of twenty percent (20%)
or more of the then outstanding Voting Securities or common stock of the
Company, has Beneficial Ownership of twenty percent (20%) or more of the
combined voting power of the Surviving Corporation's then outstanding voting
securities or its common stock.
(2) A complete liquidation or dissolution of the Company; or
(3) The sale or other disposition of all or substantially all
of the assets of the Company to any Person (other than a transfer to a
Subsidiary).
Notwithstanding the foregoing, a Change in Control shall not
be deemed to occur solely because any Person (the "Subject Person") acquired
Beneficial Ownership of more than the permitted amount of the then outstanding
common stock or Voting Securities as a result of the acquisition of Common Stock
or Voting Securities by the Company which, by reducing the number of shares of
Common Stock or Voting Securities then outstanding, increases the proportional
number of shares Beneficially Owned by the Subject Person, provided that if a
Change in Control would occur (but for the operation of this sentence) as a
result of the acquisition of shares of Common Stock or Voting Securities by the
Company, and after such share acquisition by the Company, the Subject Person
becomes the Beneficial Owner of any additional shares of Common Stock or Voting
Securities which increases the percentage of the then outstanding shares of
Common Stock or Voting Securities Beneficially Owned by the Subject Person, then
a Change in Control shall occur.
16.7. Company. For purposes of this Agreement, all references to
the Company shall include its Successors and Assigns.
16.8. Disability. For purposes of this Agreement, "Disability"
shall mean a physical or mental infirmity which impairs the Executive's ability
to substantially perform his or her duties with the Company for six (6)
consecutive months, and within the time
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period set forth in a Notice of Termination given to the Executive (which time
period shall not be less than thirty (30) days), the Executive shall not have
returned to full-time performance of his or her duties.
16.9. Good Reason. For purposes of this Agreement, "Good Reason"
shall mean the occurrence of any of the following events or conditions,
provided, however, that a termination for Good Reason shall only be effective if
the Executive provides the Company with at least thirty (30) days' written
Notice of Termination describing the circumstances giving rise to his possible
termination for Good Reason and the Company fails to cure such circumstances
within those thirty (30) days:
(1) a change in the Executive's status, title, position or
responsibilities (including reporting responsibilities) which represents an
adverse change from his or her status, title, position or responsibilities as in
effect immediately prior thereto; the assignment to the Executive of any duties
or responsibilities which are inconsistent with his status, title, position or
responsibilities; or any removal of the Executive from or failure to reappoint
or reelect him or her to any of such offices or positions, except in connection
with the termination of his employment for Disability, Cause, as a result of his
or her death or by the Executive other than for Good Reason;
(2) a reduction in the Executive's annual base salary below
the Base Amount;
(3) the failure by the Company to pay to the Executive any
portion of the Executive's current compensation or to pay to the Executive any
portion of an installment of deferred compensation under any deferred
compensation program of the Company in which the Executive participated, within
seven (7) days of the date such compensation is due;
(4) the failure by the Company (A) to continue in effect
(without reduction in benefit level, and/or reward opportunities) any material
compensation or employee benefit plan in which the Executive was participating
on September 1, 1998, including, but not limited to, any of the plans listed in
Appendix A hereto, unless a substitute or replacement plan has been implemented
which provides substantially identical compensation or benefits to the
Executive; provided, however, that if such material compensation or employee
benefit plans are increased at any time after September 1, 1998, then the
failure to continue those greater material compensation or employee benefit
plans will constitute Good Reason; or (B) to provide the Executive with
compensation and benefits, which in the aggregate, are at least equal (in terms
of benefit levels and/or reward opportunities) to those provided for under each
other compensation or employee benefit plan, program and practice in which the
Executive was participating on September 1, 1998; provided, however, that if the
aggregate compensation and benefits provided for under each other compensation
or
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employee benefit plan, program and practice in which the Executive participates
at any time after September 1, 1998 are increased after September 1, 1998, then
the failure to provide the Executive with such aggregate greater compensation
and benefits shall constitute Good Reason;
(5) the failure of the Company to obtain from its Successors
or Assigns the express assumption and agreement required under Section E 2
hereof; or
(6) any purported termination of the Executive's employment by
the Company which is not effected pursuant to a Notice of Termination satisfying
the terms set forth in the definition of Notice of Termination (and, if
applicable, the terms set forth in the definition of Cause).
16.10. Notice of Termination. For purposes of this Agreement,
"Notice of Termination" shall mean a written notice of termination of the
Executive's employment, signed by the Executive if to the Company or by a duly
authorized officer of the Company if to the Executive, which indicates the
specific termination provision in this Agreement, if any, relied upon and which
sets forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive's employment under the provision so
indicated.
16.11. Pro Rata Bonus. For purposes of this Agreement, "Pro Rata
Bonus" shall mean an amount equal to the Bonus Amount multiplied by a fraction
the numerator of which is the number of days in such fiscal year through the
Termination Date and the denominator of which is 365.
16.12. Successors and Assigns. For purposes of this Agreement,
"Successors and Assigns" shall mean, with respect to the Company, a corporation
or other entity acquiring all or substantially all the assets and business of
the Company, as the case may be (including this Agreement), whether by operation
of law or otherwise.
16.13. Termination Date. For purposes of this Agreement,
"Termination Date" shall mean (a) in the case of the Executive's death, his or
her date of death, (1,) if the Executive's employment is terminated for
Disability, thirty (30) days after Notice of Termination is given (provided that
the Executive shall not have returned to the performance of his or her duties on
a fill-time basis during such thirty (30) day period) and (c) if the Executive's
employment is terminated for any other reason, the date specified in the Notice
of Termination (which, in the case of a termination for Cause shall not be less
than thirty (30) days, and in the case of a termination for Good Reason shall
not be more than sixty (60) days, from the date such Notice of Termination is
given); provided, however, that if within
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thirty (30) days after any Notice of Termination is given the party receiving
such Notice of Termination in good faith notifies the other party that a dispute
exists concerning the basis for the termination, the Termination Date shall be
the date on which the dispute is finally determined, either by mutual written
agreement of the parties, or by the final judgment, order or decree of a court
of competent jurisdiction (the time for appeal therefore having expired and no
appeal having been taken). Notwithstanding the pendency of any such dispute, the
Company shall continue to pay the Executive his or her Base Amount and continue
the Executive as a participant in all compensation, incentive, bonus, pension,
profit sharing, medical, hospitalization, dental, life insurance and disability
benefit plans in which he or she was participating when the notice giving rise
to the dispute was given, until the dispute is finally resolved in accordance
with this Section whether or not the dispute is resolved in favor of the
Company, and the Executive shall not be obligated to repay to the Company any
amounts paid or benefits provided pursuant to this sentence.
IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by its duly authorized officers and the Executive has executed this
Agreement as of the day and year first above written.
PawnMart, Inc.
By:_______________________________
Name: Xxxxxx X. Xxxxxxxx
Title: Chairman and Chief Executive Officer
By:_______________________________
