Change in Control Severance Agreement

AMENDMENT NO. 1 TO THE CHANGE IN CONTROL SEVERANCE AGREEMENT

EXTENSION OF CHANGE IN CONTROL AGREEMENT

Form of Change of Control Employment Agreement

 

 

 

 

 

 

 

CHANGE IN CONTROL SEVERANCE AGREEMENT WITH ROBERT B. POLLOCK

                                                                    EXHIBIT 10.9

 

                      CHANGE IN CONTROL SEVERANCE AGREEMENT

 

      THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (this "Agreement") is made by

and between Assurant, Inc. (the "Company") and Robert B. Pollock (the

"Executive"), and is effective as of the 1st day of January, 2005.

 

      The Executive's Multiplier (as defined in Section 1(f) below) is 3.

 

      The Board of Directors of the Company (the "Board"), has determined that

it is in the best interests of the Company and its shareholders to assure that

the Company will have the continued dedication of Executive, notwithstanding the

possibility, threat or occurrence of a Change in Control (as defined below) of

the Company. The Board believes it is imperative to diminish the inevitable

distraction of Executive by virtue of the personal uncertainties and risks

created by a pending or threatened Change in Control and to encourage

Executive's full attention and dedication to the Company currently and in the

event of any threatened or pending Change in Control, and to provide Executive

with compensation and benefits arrangements upon a Change in Control which

ensure that the compensation and benefits expectations of Executive will be

satisfied and which are competitive with those of other corporations. Therefore,

in order to accomplish these objectives, the Board has caused the Company to

enter into this Agreement.

 

      IN CONSIDERATION OF THE MUTUAL PROMISES SET FORTH HEREIN, THE PARTIES

AGREE AS FOLLOWS:

 

1.    Certain Definitions. Each of the following terms, when used in this

      Agreement, has the meaning set forth below:

 

      (a)   "Agreement Term" means the period of time beginning on the date of

            this Agreement and ending on December 31, 2005, unless this

            Agreement has been previously terminated as provided in Section

            10(f). The Company may in its complete and sole discretion, at any

            time and from time to time, extend the Agreement Term by giving a

            written notice to the Executive; provided, however, that if an

            agreement has been executed by the Company or any of its affiliates

            that contemplates a transaction that will be a Change in Control

            when consummated, the Agreement Term will be automatically extended

            until the earlier of the date of such consummation or the

            termination of such agreement prior to any such consummation.

 

      (b)   "Change in Control" means any one of the following events:

 

            (i)   individuals who, on the date of this Agreement, constitute the

                  Board of Directors of the Company (the "Incumbent Directors")

                  cease for any reason to constitute at least a majority of such

                  Board, provided that any individual becoming a director after

                  the date of this Agreement and whose election or nomination

                  for election was

<PAGE>

 

                  approved by a vote of at least a majority of the Incumbent

                  Directors then on the Board shall be an Incumbent Director;

                  provided, however, that no individual initially elected or

                  nominated as a director of the Company as a result of an

                  actual or threatened election contest with respect to the

                  election or removal of directors ("Election Contest") or other

                  actual or threatened solicitation of proxies or consents by or

                  on behalf of any Person other than the Board ("Proxy

                  Contest"), including by reason of any agreement intended to

                  avoid or settle any Election Contest or Proxy Contest, shall

                  be deemed an Incumbent Director; or

 

            (ii)  any Person becomes, after the date of this Agreement, a

                  "beneficial owner" (as defined in Rule 13d-3 under the 1934

                  Act) of either (A) 30% or more of the then outstanding shares

                  of common stock of the Company ("Company Common Stock") or (B)

                  securities of the Company representing 30% or more of the

                  combined voting power of the Company's then outstanding

                  securities entitled to vote for the election of directors (the

                  "Company Voting Securities"); provided, however, that for

                  purposes of this subsection 1(b)(ii), the following

                  acquisitions of Company Common Stock or Company Voting

                  Securities shall not constitute a Change in Control: (1) an

                  acquisition directly from the Company; (2) an acquisition by

                  the Company or a Subsidiary of the Company; (3) an acquisition

                  by a Person who is on the date of this Agreement the

                  beneficial owner, directly or indirectly, of 50% or more of

                  the Company Common Stock or the Company Voting Securities; (4)

                  an acquisition by any employee benefit plan (or related trust)

                  sponsored or maintained by the Company or any Subsidiary of

                  the Company; or (5) an acquisition pursuant to a

                  Non-Qualifying Transaction (as defined in subsection 1(b)(iii)

                  below); or

 

            (iii) the consummation of a reorganization, merger, consolidation,

                  statutory share exchange or similar form of corporate

                  transaction involving the Company or a Subsidiary (a

                  "Reorganization"), or the sale or other disposition, directly

                  or indirectly, of all or substantially all of the Company's

                  assets (a "Sale") or the acquisition of assets or stock of

                  another corporation (an "Acquisition"), unless immediately

                  following such Reorganization, Sale or Acquisition: (1) all or

                  substantially all of the individuals and entities who were the

                  beneficial owners, respectively, of the outstanding Company

                  Common Stock and outstanding Company Voting Securities

                  immediately prior to such Reorganization, Sale or Acquisition

                  beneficially own, directly or indirectly, more than 60% of,

                  respectively, the then outstanding shares of common stock and

                  the combined voting power of the then outstanding voting

                  securities entitled to vote generally in the

 

                                     - 2 -

<PAGE>

 

                  election of directors, as the case may be, of the corporation

                  resulting from such Reorganization, Sale or Acquisition

                  (including, without limitation, a corporation that as a result

                  of such transaction owns the Company or all or substantially

                  all of the Company's assets or stock either directly or

                  through one or more subsidiaries, the "Surviving Corporation")

                  in substantially the same proportions as their ownership

                  immediately prior to such Reorganization, Sale or Acquisition

                  of the outstanding Company Common Stock and the outstanding

                  Company Voting Securities, as the case may be; and (2) no

                  Person (other than (A) the Company or any Subsidiary of the

                  Company, (B) the Surviving Corporation or its ultimate parent

                  corporation, or (C) any employee benefit plan (or related

                  trust) sponsored or maintained by any of the foregoing) is the

                  beneficial owner, directly or indirectly, of 30% or more of

                  the total common stock or 30% or more of the total voting

                  power of the outstanding voting securities eligible to elect

                  directors of the Surviving Corporation, and (3) at least a

                  majority of the members of the board of directors of the

                  Surviving Corporation were Incumbent Directors at the time of

                  the Board's approval of the execution of the initial agreement

                  providing for such Reorganization, Sale or Acquisition (any

                  Reorganization, Sale or Acquisition that satisfies all of the

                  criteria specified in (1), (2) and (3) above shall be deemed

                  to be a "Non-Qualifying Transaction"); or

 

            (iv)  approval by the stockholders of the Company of a complete

                  liquidation or dissolution of the Company; or

 

            (v)   Fortis acquires any additional Company Common Stock or Company

                  Voting Securities without approval of the Assurant, Inc. board

                  of directors.

 

            For purposes of determining whether a Change in Control has occurred

            pursuant to Section 1(b)(iii), the assets of the Company shall not

            include any assets that the Company is required to maintain on its

            consolidated GAAP balance sheet that are the subject of reinsurance

            ceded to third parties and result in an approximate offsetting

            liability on such balance sheet.

 

      (c)   "Disability" has the same meaning as provided in the long-term

            disability plan or policy maintained by the Company or if

            applicable, most recently maintained, by the Company or if

            applicable, an affiliate of the Company, for the Executive, whether

            or not the Executive actually receives disability benefits under

            such plan or policy. If no long-term disability plan or policy was

            ever maintained on behalf of the Executive, Disability means

            Permanent and Total Disability as defined in Section 22(e)(3) of the

            Code.

 

                                     - 3 -

<PAGE>

 

            In the event of a dispute, the determination whether the Executive

            is Disabled will be made by the Board and may be supported by the

            advice of a physician competent in the area to which such Disability

            relates.

 

      (d)   "Fortis" means Fortis SA/NV, a public company established as a

            societe anonyme/naamloze vennootschap under the laws of Belgium, and

            Fortis N.V., a public company established as a naamloze vennootschap

            under the laws of The Netherlands, and their affiliates other than

            the Company and its Subsidiaries.

 

      (e)   "GAAP" means U.S. generally accepted accounting principles

            consistently applied.

 

      (f)   "Multiplier" means the number set forth in the second paragraph of

            this Agreement; provided however, that if the Executive has, prior

            to the CIC Date, publicly announced his or her Retirement or

            voluntary termination of employment, the Multiplier will be a

            fraction with the numerator equal to the remaining whole or partial

            months between the Date of Termination of employment and the

            effective date of such announced Retirement or voluntary termination

            of employment, and with the denominator equal to 12, but in no event

            shall such fraction be equal to a number greater than the number set

            forth in the second paragraph of this Agreement.

 

      (g)   "Person" means any individual, entity or group (within the meaning

            of Section 13(d)(3) or 14(d)(2) of the Exchange Act).

 

      (h)   "Retirement" means retirement as defined in the Company's

            then-current tax qualified defined benefit pension plan, or if there

            is no such retirement plan, Retirement means voluntary termination

            of employment after age 55 with ten or more years of service, or

            after age 65 with five or more years of service.

 

      (i)   "Subsidiary" means any corporation, limited liability company,

            partnership or other entity of which a majority of the outstanding

            voting stock or voting power is beneficially owned directly or

            indirectly by the Company.

 

      (j)   "1934 Act" means the Securities Exchange Act of 1934, as amended

            from time to time.

 

      (k)   Each of the following terms is defined in the Section indicated:

 

<TABLE>

<CAPTION>

 Term                                                    Section

 ----                                                    -------

<S>                                                   <C>

 Accounting Firm                                      8(b)

 Accrued Obligations                                  4(a)(i)(A)(3)

</TABLE>

 

                                     - 4 -

<PAGE>

 

<TABLE>

<CAPTION>

 Term                                                    Section

 ----                                                    -------

<S>                                                   <C>

 Base Salary                                          4(a)(i)(A)(1)

 Board                                                3rd Paragraph

 Cause                                                3(b)

 CIC Date                                             2

 Code                                                 3(d)

 Company Common Stock                                 1(b)(ii)

 Company Voting Securities                            1(b)(ii)

 Date of Termination                                  3(e)

 Deferred Compensation                                4(g)

 Disability Effective Date                            3(a)

 Election Contest                                     1(b)(i)

 Employer Affiliate                                   10(i)

 Excise Tax                                           8(a)

 Good Reason                                          3(c)

 Gross-Up Payment                                     8(a)

 Incumbent Directors                                  1(b)(i)

 Non-Qualifying Transaction                           1(b)(iii)

 Notice of Termination                                3(d)

 Other Benefits                                       4(a)(iii)

 Payment                                              8(a)

 Post-CIC Period                                      2

 Proxy Contest                                        1(b)(i)

 Rabbi Trust                                          4(h)

 Release                                              10(h)

 Severance                                            4(a)(i)(B)

 Surviving Corporation                                1(b)(iii)

 Target Bonus                                         4(a)(i)(A)(2)

 Underpayment                                         8(b)

 Welfare Benefits                                     4(a)(ii)

</TABLE>

 

2.    Post-CIC Period. If the Executive is employed by the Company immediately

      prior to the first date during the Agreement Term on which a Change in

      Control occurs (the "CIC Date"), then the Executive's employment during

      the two-year period beginning on the CIC Date and ending on the second

      anniversary of such date (the "Post-CIC Period") shall be subject to all

      the terms and conditions of this Agreement, including, without limitation,

      the termination events described in Section 3 below.

 

3.    Termination of Employment During Post-CIC Period.

 

      (a)   Death, Retirement or Disability. During the Post-CIC Period, the

            Executive's employment shall terminate automatically upon the

            Executive's death or Retirement. If the Company determines in good

            faith that the Disability of the Executive has occurred during the

            Post-CIC Period, the Company may, in its discretion, give the

            Executive a written notice in accordance with Section 10(b) of this

            Agreement of the

 

                                     - 5 -

<PAGE>

 

            Company's intention to terminate the Executive's employment. In such

            event, the Executive's employment with the Company shall terminate

            effective on the 30th day after receipt of such notice by the

            Executive (the "Disability Effective Date").

 

      (b)   Cause. The Company may terminate the Executive's employment during

            the Post-CIC Period with or without Cause. For purposes of this

            Agreement, "Cause" means either of the following circumstances:

 

            (i)   Failure to Perform. The willful and continued failure of the

                  Executive to perform substantially the Executive's reasonably

                  assigned duties with the Company (other than any such failure

                  resulting from incapacity due to physical or mental illness or

                  from the assignment to the Executive of duties that would

                  constitute Good Reason under Section 3(c)), which failure

                  continues for a period of at least 30 days after a written

                  demand for substantial performance is delivered to the

                  Executive by the Board or the Chief Executive Officer of the

                  Company. Such written demand must specifically identify the

                  manner in which the Board or Chief Executive Officer believes

                  that the Executive has not substantially performed the

                  Executive's duties; provided, however, that 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.

 

            (ii)  Engaging in Illegal Conduct or Gross Misconduct. The willful

                  engaging by the Executive in illegal conduct or gross

                  misconduct that is materially and demonstrably injurious to

                  the Company.

 

            For purposes of this Section 3(b), no act or failure to act, on the

            part of the Executive, shall be considered "willful" unless it is

            done, or omitted to be done, by the Executive in bad faith or

            without reasonable belief that the Executive's action or omission

            was in the best interests of the Company. Any act, or failure to

            act, based upon authority given pursuant to a resolution duly

            adopted by the Board or upon the instructions of a senior officer of

            the Company or based upon the advice of counsel for the Company

            shall be conclusively presumed to be done, or omitted to be done, by

            the Executive in good faith and in the best interests of the

            Company. The cessation of employment of the Executive shall not be

            deemed to be for Cause unless and until there shall have been

            delivered to the Executive a copy of a resolution duly adopted by

            the affirmative vote of not less than a majority of the entire

            membership of the Board at a meeting of the Board called and held

            for such purpose (after reasonable notice is provided to the

            Executive and the Executive is given an opportunity, together with

            counsel, to be heard before the Board), finding that, in the good

            faith opinion of the Board, the Executive is guilty of the

 

                                     - 6 -

<PAGE>

 

            conduct described in subparagraph (i) or (ii) above, and specifying

            the particulars thereof in detail.

 

      (c)   Good Reason.

 

            (i)   The Executive's employment may be terminated by the Executive

                  during the Post-CIC Period for Good Reason or for no reason.

                  For purposes of this Agreement, "Good Reason" means any of the

                  following circumstances:

 

                  (1)   Diminution of Position. The assignment to the Executive

                        of any duties materially inconsistent with the

                        Executive's position immediately prior to the CIC Date

                        (including status, offices, titles and reporting

                        requirements), authority, duties or responsibilities, or

                        any other action by the Company which results in a

                        material diminution in such position, authority, duties

                        or responsibilities, excluding for this purpose an

                        isolated, insubstantial and inadvertent action not taken

                        in bad faith and which is remedied by the Company

                        promptly after receipt of notice thereof given by the

                        Executive.

 

                  (2)   Reduction of Compensation. Any material reduction in the

                        aggregate value of the Executive's annual base salary,

                        short-term cash bonus target amount, long-term incentive

                        plan target amount, and Company-provided welfare

                        benefits, all as in effect immediately prior to the CIC

                        Date,   , or any failure by the Company to pay any such

                        amount to the Executive as earned by the Executive. An

                        inadvertent failure by the Company to make any payment

                        of compensation to the Executive that does not occur in

                        bad faith and that is remedied by the Company promptly

                        after the Company receives notice thereof from the

                        Executive, is excluded from the definition of "Good

                        Reason."

 

                  (3)   Employment Location. The Company or an Affiliate

                        requiring the Executive to be based at any location that

                        is more than fifty (50) miles from the location at which

                        the Executive is based immediately prior to the CIC

                        Date.

 

                  (4)   Other Termination. Any purported termination by the

                        Company of the Executive's employment other than as

                        expressly permitted by this Agreement.

 

                                     - 7 -

<PAGE>

 

                  (5)   Breach by the Company. Any material breach by the

                        Company of any provision of this Agreement, including,

                        without limitation, Section 9(c).

 

                  Good Reason shall not include Executive's death or Disability.

                  Executive's continued employment shall not constitute consent

                  to, or a waiver of rights with respect to, any circumstance

                  constituting Good Reason hereunder. For purposes of this

                  Section 3(c), any good faith determination of "Good Reason"

                  made by Executive shall be conclusive.

 

            (ii)  Notwithstanding the foregoing, "Good Reason" shall not exist

                  until after (1) the Executive has given the Company written

                  notice of the applicable event not later than 30 days after

                  the occurrence of such event, specifying in reasonable detail

                  the circumstances of the event and stating the Executive's

                  intent to terminate his or her employment if not remedied, and

                  (2) the Company has not remedied such event within 30 days

                  after receipt of such notice; provided, however, that if the

                  specified event reasonably cannot be remedied within such

                  30-day period, the Company commences reasonable steps within

                  such 30-day period to remedy such event and diligently

                  continues such steps thereafter until a remedy is effected,

                  and the remedy is effected within 60 days after the Company's

                  receipt of the Executive's notice, then such event shall not

                  constitute "Good Reason."

 

            (iii) Notwithstanding the foregoing, "Good Reason" shall not exist

                  if the Executive is offered employment with the Company or an

                  affiliate thereof, or if the Executive is offered employment

                  with the Surviving Corporation, and in either case such offer

                  of employment includes a position, compensation and employment

                  location that are consistent with the requirements of

                  subsections 3(c)(i)(1), (2) and (3).

 

      (d)   Notice of Termination. Any termination by the Company or by the

            Executive must be communicated by Notice of Termination to the other

            party, and must be given in accordance with Section 10(b) of this

            Agreement. For purposes of this Agreement, a "Notice of Termination"

            means a written notice that:

 

            (i)   indicates the specific termination provision in this Agreement

                  relied upon, and

 

            (ii)  to the extent applicable, 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, and

 

                                     - 8 -

<PAGE>

 

            (iii) if the Date of Termination is other than the date of receipt

                  of such notice, specifies the termination date (which date

                  shall be not more than 30 days after the giving of such

                  notice, except as provided in Section 3(c)(ii) above).

 

            If a dispute exists concerning the provisions of this Agreement that

            apply to the Executive's termination of employment, the parties

            shall pursue the resolution of such dispute with reasonable

            diligence. Within five days of such a resolution, any party owing

            any payments pursuant to the provisions of this Agreement shall make

            all such payments together with interest accrued thereon at the rate

            provided in Section 1274(b)(2)(B) of the Internal Revenue Code of

            1986, as amended (the "Code"). If the Executive or the Company fails

            to set forth in a Notice of Termination any additional fact or

            circumstance that contributes to a showing of Good Reason or Cause,

            but otherwise delivers a Notice of Termination in accordance with

            this Agreement, such party will not be precluded from asserting the

            additional fact or circumstance in enforcing such party's rights

            hereunder.

 

      (e)   Date of Termination. "Date of Termination" means whichever of the

            following is applicable:

 

            (i)   If the Company terminates the Executive's employment for

                  Cause, the Date of Termination shall be the date of receipt of

                  the Notice of Termination or any later date specified in such

                  Notice.

 

            (ii)  If the Company terminates the Executive's employment other

                  than for Cause or Disability, the Date of Termination shall be

                  the date on which the Company notifies the Executive of such

                  termination or any later date specified in such notice.

 

            (iii) If the Executive's employment is terminated by reason of death

                  or Disability, the Date of Termination shall be the date of

                  death of the Executive or the Disability Effective Date.

 

            (iv)  If the Executive terminates his or her employment for Good

                  Reason, the Date of Termination shall be in accordance with

                  Section 3(c)(ii) of this Agreement.

 

4.    Obligations of the Company upon Termination.

 

      (a)   Good Reason; Other Than for Cause or Disability. If, during the

            Post-CIC Period, the Company terminates the Executive's employment

            other than for Cause or Disability, or the Executive terminates his

            or her employment

 

                                     - 9 -

<PAGE>

 

            for Good Reason, then in consideration of Executive's services

            rendered prior to such termination all of the following shall take

            place:

 

            (i)   Cash Payments.

 

                  A.    Current Compensation. The Company shall pay to the

                        Executive in a lump sum in cash within 30 days after the

                        Date of Termination the sum of:

 

                        (1)   the Executive's annual base salary as in effect

                              immediately prior to the CIC Date ("Base Salary")

                              through the Date of Termination to the extent not

                              theretofore paid,

 

                        (2)   the product of (x) the Executive's target annual

                              bonus under the Company's short-term incentive

                              bonus plan for the year in which the Date of

                              Termination occurs (the "Target Bonus") and (y) a

                              fraction, the numerator of which is the number of

                              days in the current fiscal year of the Division

                              through the Date of Termination, and the

                              denominator of which is 365, and

 

                        (3)   any accrued vacation pay to the extent not

                              theretofore paid (the sum of the amounts described

                              in clauses (1) and (2) immediately above and this

                              clause (3) shall be hereinafter referred to as the

                              "Accrued Obligations").

 

                  B.    Severance. The Company shall pay to the Executive an

                        amount of cash severance (the "Severance") in a lump sum

                        within 30 days after the Date of Termination equal to

                        the product of the Multiplier times the sum of (1) the

                        Executive's Base Salary and (2) the Executive's Target

                        Bonus.

 

                  (ii)  Welfare Benefits. For 18 months after the Date of

                        Termination, the Company shall continue to provide the

                        same medical, dental, life and/or disability insurance

                        coverages to the Executive and/or the Executive's

                        dependents that the Company or the Surviving

                        Corporation, as the case may be, provides generally

                        during such 18-month period to its employees who hold

                        positions similar to the position held by the Executive

                        immediately prior to the Date of Termination (the

                        "Welfare Benefits"). For those Welfare Benefits to which

                        COBRA applies, the

 

                                     - 10 -

<PAGE>

 

                        Company will only be obligated to provide such Welfare

                        Benefits through the Executive's making the elections

                        permitted under COBRA. In order to receive the Welfare

                        Benefits, the Executive shall pay the same amount

                        therefor that he or she paid for such Welfare Benefits

                        immediately prior to the Termination Date, and the

                        Executive must make these elections and pay all required

                        premiums on a timely basis. If the Executive becomes

                        employed with another employer, including, without

                        limitation, the Surviving Corporation, and

 

                        (A)   the Executive is eligible to receive medical or

                              dental insurance coverages under another employer

                              provided plan, then the medical and dental

                              insurance coverages provided by the Company

                              pursuant to this subsection 4(a)(i) shall be

                              secondary to the medical and dental insurance

                              coverages, respectively, provided under such other

                              plan to the Executive and/or the Executive's

                              dependents during such applicable period of

                              eligibility; and/or

 

                        (B)   the Executive is eligible to receive life or

                              disability insurance coverages under another

                              employer provided plan, then the Company shall

                              have no further obligation to provide the

                              Executive and/or the Executive's dependents with

                              life or disability insurance coverage.

 

                  The Company shall not be required to compensate the Executive

                  for any taxes that the Executive may incur as a result of the

                  provision of Welfare Benefits hereunder. If the Executive has

                  prior to the CIC Date publicly announced his or her Retirement

                  or voluntary termination of employment, the Executive will

                  receive the Welfare Benefits under this subsection 4(a)(ii)

                  only to the effective date of such announced Retirement or

                  voluntary termination of employment.

 

            (iii) Other Benefits Due at Date of Termination. To the extent not

                  then already paid or provided, the Company shall timely pay or

                  provide to the Executive any other amounts or benefits

                  required to be paid or provided through the Date of

                  Termination, or which the Executive is eligible to receive

                  through and after the Date of Termination, under any plan,

                  program, policy or practice of, or contract or agreement with,

                  the Company and its affiliated companies, including such plans

                  that have change in control

 

                                     - 11 -

<PAGE>

 

                  provisions in the plans (such other amounts and benefits shall

                  be hereinafter referred to as the "Other Benefits"); provided,

                  however, that in no event shall the Executive be entitled to

                  any benefits under any severance plan made available to other

                  Company employees, it being the intent of the parties that the

                  benefits to the Executive under this Agreement will be in lieu

                  of any such other severance plan.

 

      (b)   Death. If the Executive's employment is terminated by reason of the

            Executive's death during the Post-CIC Period, this Agreement shall

            terminate without further obligations to the Executive's legal

            representatives, other than for payment of Accrued Obligations and

            Deferred Compensation, and the timely payment or provision of Other

            Benefits. The Company shall pay all Accrued Obligations to the

            Executive's estate or beneficiary, as applicable, in a lump sum in

            cash within 30 days of the Date of Termination, and shall pay all

            Deferred Compensation to the Executive's estate or beneficiary, as

            applicable, in accordance with the terms of the plan under which

            such compensation was deferred.

 

      (c)   Retirement. If the Executive's employment is terminated by reason of

            the Executive's Retirement during the Post-CIC Period, this

            Agreement shall terminate without further obligations to the

            Executive, other than for payment of Accrued Obligations and

            Deferred Compensation, and the timely payment or provision of Other

            Benefits. The Company shall pay all Accrued Obligations to the

            Executive in a lump sum in cash within 30 days of the Date of

            Termination, and shall pay all Deferred Compensation to the

            Executive in accordance with the terms of the plan under which such

            compensation was deferred.

 

      (d)   Disability. If the Executive's employment is terminated by reason of

            the Executive's Disability during the Post-CIC Period, this

            Agreement shall terminate without further obligations to the

            Executive, other than for payment of Accrued Obligations and

            Deferred Compensation, and the timely payment or provision of Other

            Benefits. The Company shall pay all Accrued Obligations to the

            Executive in a lump sum in cash within 30 days of the Date of

            Termination, and shall pay all Deferred Compensation to the

            Executive in accordance with the terms of the plan under which such

            compensation was deferred.

 

      (e)   Cause; Other than for Good Reason. If the Company terminates the

            Executive's employment for Cause during the Post-CIC Period, this

            Agreement shall terminate without further obligations to the

            Executive other than the obligation to pay to the Executive (x) his

            or her Base Salary through the Date of Termination, (y) any Deferred

            Compensation, and (z) Other Benefits, in each case to the extent not

            then already paid. If the

 

                                     - 12 -

<PAGE>

 

            Executive voluntarily terminates employment during the Post-CIC

            Period (excluding a termination for Good Reason), this Agreement

            shall terminate without further obligations to the Executive, other

            than for Accrued Obligations, Deferred Compensation and the timely

            payment or provision of Other Benefits. In either case described in

            this Section 4(e), the Company shall pay all Accrued Obligations to

            the Executive in a lump sum in cash within 30 days of the Date of

            Termination, and shall pay all Deferred Compensation to the

            Executive in accordance with the terms of the plan under which such

            compensation was deferred.

 

      (f)   Outplacement Services. For a period not to exceed the number of

            months equal to one-half of the Multiplier, the Executive shall have

            the right to make full use of the Company's outplacement services to

            its officers upon termination of the Executive's employment, except

            in the event that the Executive's employment is terminated for

            Cause.

 

      (g)   Deferred Compensation. Any compensation previously deferred by the

            Executive ("Deferred Compensation") shall be paid to the Executive

            in accordance with the terms of the plan under which it was

            deferred.

 

      (h)   Funding of Certain Obligations. Not later than the CIC Date,

            regardless of whether the Executive's employment has then terminated

            or any termination of such employment has then been announced, the

            Company shall take all actions necessary or appropriate to establish

            and fund a "rabbi" trust (i.e., a trust based on the model trust

            contained in Revenue Procedure 92-64, and with a trustee selected by

            the Company, but that is independent of the Company) (hereafter the

            "Rabbi Trust") for the purpose of ensuring that the Executive will

            receive the Severance in accordance with the terms of this

            Agreement. The Rabbi Trust shall expressly provide that after the

            CIC Date occurs, the Rabbi Trust may be amended or revoked only with

            the prior written consent of the Executive. Without limiting the

            generality of the foregoing, on or before the CIC Date, the Company

            will deposit in the Rabbi Trust an amount of cash equal to the

            amount of the Severance to which the Executive would be entitled if

            his or her employment terminated on the CIC Date; provided, however,

            that if such amount deposited in the Rabbi Trust together with any

            interest or earnings thereon is determined later to be less than or

            more than the amount of the Severance, if any, that actually becomes

            due to the Executive hereunder, the Executive shall be entitled to

            the amount required by this Agreement and not the amount that is

            held in such trust. In the event that the Executive does not become

            entitled to the Severance, as determined by the trustee of the Rabbi

            Trust, the amount remaining in the Rabbi Trust shall be returned to

            the Company after the expiration of the Post-CIC Period. The Rabbi

            Trust shall be used solely for the purpose of holding deposits of

            funds for the potential Severance obligations to the

 

                                     - 13 -

<PAGE>

 

            Executive hereunder, and other similar obligations to similarly

            situated employees of the Company.

 

5.    Termination in Anticipation of a Change in Control. If (1) a Change in

      Control occurs during the Agreement Term, AND (2) within one year prior to

      the CIC Date the Executive's employment with the Company has been

      terminated either by the Company without Cause or by the Executive for

      Good Reason, then if the Executive can reasonably demonstrate that such

      termination of employment (i) was at the request of or with the express

      prior consent of a third party who has taken steps reasonably calculated

      to effect such Change in Control or (ii) otherwise arose in anticipation

      of such Change in Control, then all of the following shall take place:

 

      (a)   Section 2 of this Agreement shall not apply to the Executive;

            Section 4 of this Agreement shall apply to the Executive as

            described in subsection (b) below; and all other provisions of this

            Agreement shall apply to the Executive in accordance with their

            terms.

 

      (b)   The Company shall pay to the Executive the aggregate of all amounts

            described in Sections 4(a)(i) and 4(a)(iii) in a lump sum in cash

            within 30 days after the CIC Date, using as the Executive's Base

            Salary and Target Bonus his or her annual base salary and target

            short-term incentive bonus, respectively, as in effect immediately

            prior to the Date of Termination. The Company shall pay any Deferred

            Compensation to the Executive in accordance with the terms of the

            plan under which such compensation was deferred.

 

      (c)   The Company shall provide to the Executive the Welfare Benefits as

            and for the time period described in Section 4(a)(ii), except that

            the Company shall reimburse the Executive for the cost of obtaining

            such Welfare Benefits between the Date of Termination and the CIC

            Date by paying to the Executive a lump sum in cash equal to the

            amount that the Executive paid to obtain such Welfare Benefits for

            such period less the amount that the Executive was paying to obtain

            such Welfare Benefits immediately prior to the Date of Termination.

            If the Executive has, prior to the CIC Date, publicly announced his

            or her Retirement or voluntary termination of employment, the

            Executive will receive the Welfare Benefits under this subsection

            5(c) only to the effective date of such announced Retirement or

            voluntary termination of employment.

 

6.    Non-exclusivity of Rights. Nothing in this Agreement shall prevent or

      limit the Executive's continuing or future participation in any plan,

      program, policy or practice provided by the Company or any of its

      affiliated companies and for which the Executive may qualify, nor, except

      as explicitly provided herein, shall anything in this Agreement limit or

      otherwise affect such rights as the Executive may have under any contract

      or agreement with the Company or any of its

 

                                     - 14 -

<PAGE>

 

      affiliated companies. Amounts that are vested benefits or that the

      Executive is otherwise entitled to receive under any plan, policy,

      practice or program of or any contract or agreement with the Company or

      any of its affiliated companies at or subsequent to the Date of

      Termination shall be payable in accordance with such plan, policy,

      practice or program or contract or agreement except as explicitly modified

      by this Agreement.

 

7.    No Company Set-Off; Legal Fees; Interest. Except as provided in Section

      10(h), and except in the event that the Executive's employment is

      terminated for Cause, the Company's obligation to make the payments

      provided for in this Agreement and otherwise to perform its obligations

      hereunder shall not be affected by any set-off, counterclaim, recoupment,

      defense or other claim, right or action that the Company may have against

      the Executive or others. In no event shall the Executive be obligated to

      seek other employment or take any other action by way of mitigation of the

      amounts payable to the Executive under any of the provisions of this

      Agreement. The Company agrees to pay as incurred, to the full extent

      permitted by law, all legal fees and expenses that the Executive may

      reasonably incur in good faith as a result of any contest (regardless of

      the outcome thereof) by the Company, the Executive or others of the

      validity or enforceability of, or liability under, any provision of this

      Agreement or any guarantee of performance thereof (including as a result

      of any contest by the Executive about the amount of any payment pursuant

      to this Agreement), provided such contest occurs after the CIC Date, plus

      in each case interest on any delayed payment at the applicable federal

      rate provided for in Section 7872(f)(2)(A) of the Code.

 

8.    Certain Additional Payments by the Company.

 

      (a)   Anything in this Agreement to the contrary notwithstanding and

            except as set forth below, in the event it shall be determined that

            any payment or distribution by the Company to or for the benefit of

            the Executive (whether paid or payable or distributed or

            distributable pursuant to the terms of this Agreement or otherwise,

            but determined without regard to any additional payments required

            under this Section 8) (a "Payment") would be subject to the excise

            tax imposed by Section 4999 of the Code or any interest or penalties

            are incurred by the Executive with respect to such excise tax (such

            excise tax, together with any such interest and penalties, are

            hereinafter 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, without limitation, any

            income taxes (and any interest and penalties imposed with respect

            thereto) and 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 Payments.

 

                                     - 15 -

<PAGE>

 

      (b)   Subject to the provisions of Section 8(c), all determinations

            required to be made under this Section 8, including whether and when

            a Gross-Up Payment is required and the amount of such Gross-Up

            Payment and the assumptions to be utilized in arriving at such

            determination, shall be made by a certified public accounting firm

            selected by the Executive and reasonably acceptable to the Company

            (the "Accounting Firm") which shall provide detailed supporting

            calculations both to the Company and the Executive within 15

            business days of the receipt of notice from the Executive that there

            has been a Payment, or such earlier time as is reasonably requested

            by the Company. All fees and expenses of the Accounting Firm shall

            be borne solely by the Company. Any Gross-Up Payment, as determined

            pursuant to this Section 8, shall be paid by the Company to the

            Executive within 14 days after the receipt of the Accounting Firm's

            determination. Any determination by the Accounting Firm shall be

            binding upon the Company and the Executive. As a result of the

            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 which will not have been made

            by the Company should have been made ("Underpayment"), consistent

            with the calculations required to be made hereunder. In the event

            that the Company exhausts its remedies pursuant to Section 8(c) and

            the Executive thereafter is required to make a payment of any Excise

            Tax, the Accounting Firm shall determine the amount of the

            Underpayment that has occurred and any such Underpayment shall be

            promptly paid by the Company to or for the benefit of the Executive.

 

      (c)   The Executive shall notify the Company in writing of any claim by

            the Internal Revenue Service that, if successful, would require the

            payment by the Company of a Gross-Up Payment (or an additional

            Gross-Up Payment). Such notification shall be given as soon as

            practicable but no later than ten business days after the Executive

            is informed in writing of such claim and shall apprise the Company

            of the nature of such claim and the date on which such claim is

            requested to be paid. The Executive shall not pay such claim prior

            to the expiration of the 30-day period following the date on which

            it gives such notice to the Company (or such shorter period ending

            on the date that any payment of taxes with respect to such claim is

            due). If the Company notifies the Executive in writing prior to the

            expiration of such period that it desires to contest such claim, the

            Executive shall:

 

            (i)   give the Company any information reasonably requested by the

                  Company relating to such claim,

 

            (ii)  take such action in connection with contesting such claim as

                  the Company shall reasonably request in writing from time to

                  time, including, without limitation, accepting legal

                  representation with

 

                                     - 16 -

<PAGE>

 

                  respect to such claim by an attorney reasonably selected by

                  the Company,

 

            (iii) cooperate with the Company in good faith in order effectively

                  to contest such claim, and

 

            (iv)  permit the Company to participate in any proceedings relating

                  to such claim;

 

            provided, however, that the Company shall bear and pay directly all

            costs and expenses (including additional interest and penalties)

            incurred in connection with such contest and shall indemnify and

            hold the Executive harmless, on an after-tax basis, for any Excise

            Tax or income tax (including interest and penalties with respect

            thereto) imposed as a result of such representation and payment of

            costs and expenses. Without limitation of the foregoing provisions

            of this Section 8(c), the Company shall control all proceedings

            taken in connection with such contest (to the extent applicable to

            the Excise Tax and the Gross-Up Payment) and, at its sole option,

            may pursue or forgo any and all administrative appeals, proceedings,

            hearings and conferences with the taxing authority in respect of

            such claim and may, at its sole option, either direct the Executive

            to pay the tax claimed and sue for a refund or contest the claim in

            any permissible manner, and the Executive agrees to prosecute such

            contest to a determination before any administrative tribunal, in a

            court of initial jurisdiction and in one or more appellate courts,

            as the Company shall determine; provided, however, that if the

            Company directs the Executive to pay such claim and sue for a

            refund, the Company shall advance the amount of such payment to the

            Executive, on an interest-free basis and shall indemnify and hold

            the Executive harmless, on an after-tax basis, from any Excise Tax

            or income tax (including interest or penalties with respect thereto)

            imposed with respect to such advance or with respect to any imputed

            income with respect to such advance; and further provided that any

            extension of the statute of limitations relating to payment of taxes

            for the taxable year of the Executive with respect to which such

            contested amount is claimed to be due is limited solely to such

            contested amount. Furthermore, the Company's control of the contest

            shall be limited to issues with respect to which a Gross-Up Payment

            would be payable hereunder and the Executive shall be entitled to

            settle or contest, as the case may be, any other issue raised by the

            Internal Revenue Service or any other taxing authority.

 

      (d)   If, after the receipt by the Executive of an amount advanced by the

            Company pursuant to Section 8(c), the Executive becomes entitled to

            receive any refund with respect to such claim, the Executive shall

            (subject to the Company's complying with the requirements of Section

            8(c)) promptly pay to the Company the amount of such refund

            (together with

 

                                     - 17 -

<PAGE>

 

            any interest paid or credited thereon after taxes applicable

            thereto). If, after the receipt by the Executive of an amount

            advanced by the Company pursuant to Section 8(c), a determination is

            made that the Executive shall not be entitled to any refund with

            respect to such claim and the Company does not notify the Executive

            in writing of its intent to contest such denial of refund prior to

            the expiration of 30 days after such determination, then such

            advance shall be forgiven and shall not be required to be repaid and

            the amount of such advance shall offset, to the extent thereof, the

            amount of Gross-Up Payment required to be paid.

 

      (e)   Based on events occurring after the Change in Control, it may be

            necessary or appropriate to redetermine the amount of an excess

            parachute payment for a prior taxable year. Any such

            redetermination, including the assumptions to be used, shall be made

            by the Accounting Firm, which shall provide detailed supporting

            calculations both to the Company and the Executive within 15

            business days after the receipt of notice from either party of

            changed circumstances that indicate that a redetermination may be

            necessary. Any redetermination by the Accounting Firm shall be

            binding upon the Company and the Executive. If such redetermination

            results in the availability of a refund from the Internal Revenue

            Service of amounts previously paid, the Executive shall promptly

            prepare and file any necessary tax return amendment or request for

            such refund. Upon receipt of such refund from the Internal Revenue

            Service, the Executive shall promptly pay such refund to the Company

            along with any Gross-Up Payments previously paid by the Company

            which related to the refunded amount, as determined by the

            Accounting Firm. The Company shall pay all fees and expenses of the

            Accounting Firm, and the Company shall reimburse the Executive for

            all reasonable fees and expenses incurred in preparing and filing

            any tax return amendment or request for tax refund necessitated by

            the redetermination.

 

9.    Successors.

 

      (a)   This Agreement is personal to the Executive and arises from his or

            her current title, employment responsibilities and managerial

            reporting relationship. Without the prior written consent of the

            Company, this Agreement shall not be assignable by the Executive

            other than by will or the laws of descent and distribution. This

            Agreement shall inure to the benefit of, be enforceable by and be

            binding upon the Executive's legal representatives.

 

      (b)   This Agreement shall inure to the benefit of, be enforceable by and

            be binding upon the Company and its successors and assigns.

 

      (c)   The Company shall require any successor (whether direct or indirect,

            by purchase, merger, consolidation or otherwise) to all or

            substantially all of

 

                                     - 18 -

<PAGE>

 

            the business and/or assets of the Company to assume expressly 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 had taken place.

 

10.   Miscellaneous.

 

      (a)   Governing Law; Captions; Amendments. This Agreement shall be

            governed by and construed in accordance with the laws of the State

            of New York, without reference to principles of conflict of laws.

            The captions of this Agreement are not part of the provisions hereof

            and shall have no force or effect. This Agreement may not be amended

            or modified other than by a written agreement executed by the

            parties hereto or their respective successors and legal

            representatives.

 

      (b)   Notices. All notices and other communications made pursuant to this

            Agreement must be in writing and must be given by hand delivery, or

            by certified mail, return receipt requested, or by overnight

            courier, or by telecopy with a confirmation copy sent by either

            overnight courier or first-class mail, and addressed as follows:

 

                           If to the Executive:

 

                           Robert B. Pollock

                           _________________

                           _________________

 

                           If to the Company:

 

                           Assurant, Inc.

                           One Chase Manhattan Plaza

                           41st Floor

                           New York, NY 10005

                           Attention: General Counsel

 

            or to such other address as either party shall have furnished to the

            other in writing in accordance with this Section. Notice and

            communications shall be effective when actually received by the

            addressee.

 

      (c)   Severability. The invalidity or unenforceability of any provision of

            this Agreement shall not affect the validity or enforceability of

            any other provision of this Agreement.

 

      (d)   Withholding. The Company may withhold from any amounts payable under

            this Agreement such federal, state, local or foreign taxes as shall

            be required to be withheld pursuant to any applicable law or

            regulation.

 

                                     - 19 -

<PAGE>

 

      (e)   Waiver. The failure of either party to insist upon strict compliance

            with any provision of this Agreement, or the failure of either party

            to assert any right such party may have under this Agreement shall

            not be deemed to be a waiver of such provision or right or any other

            provision or right of this Agreement.

 

      (f)   "At Will" Employment; Termination of Agreement.

 

            (i)   The Executive and the Company acknowledge that, except as may

                  otherwise be provided under any other written agreement

                  between the Executive and the Company and to the extent

                  otherwise permitted under applicable law, the employment of

                  the Executive by the Company is "at will" and the Executive's

                  employment may be terminated by either the Executive or the

                  Company at any time prior to the CIC Date. If the Executive's

                  employment is terminated for any reason before the CIC Date,

                  the Executive shall have no further rights under this

                  Agreement, except as provided in Section 5.

 

            (ii)  Unless the Executive's employment is terminated, this

                  Agreement may not be terminated by the Company during the

                  Agreement Term and before the CIC Date. From and after the CIC

                  Date, this Agreement may not be terminated by the Company.

                  This Agreement shall supersede any other agreement between the

                  parties with respect to the subject matter hereof.

 

      (g)   Nondisclosure. Without obtaining the Company's prior written

            consent, the Executive agrees that he or she will not disclose the

            existence or the terms of this Agreement to any Person, except for

            the Executive's advisors, beneficiaries and other Persons that need

            to know about the Agreement. The Executive agrees that no Person

            associated with the Company falls within such exception that would

            permit disclosure by the Executive.

 

      (h)   Release. As a condition to the Company's obligation to pay the

            Severance pursuant to Section 4(a)(i)(B) above, the Executive must

            execute and deliver to the Company a release in substantially the

            form of EXHIBIT A hereto.

 

      (i)   Employer Affiliate. Notwithstanding any indication in this Agreement

            that the Executive is employed directly by the Company, the parties

            acknowledge and agree that, on the date of this Agreement, the

            Executive is employed directly either by the Company or by an

            affiliate of the Company (the "Employer Affiliate"). The parties

            further agree that the provisions of this Agreement that provide for

            the Company to have rights

 

                                     - 20 -

<PAGE>

 

            or obligations or to take actions with respect to the Executive's

            employment shall be interpreted to mean that either the Company or

            the Employer Affiliate shall have such rights and obligations and

            may take such actions. The Company shall have the discretion to

            determine whether it or the Employer Affiliate shall exercise such

            rights, fulfill such obligations and take such actions, and, if the

            Company determines that an obligation will be fulfilled by the

            Employer Affiliate, the Company agrees to cause the Employer

            Affiliate to fulfill such obligations as if the Employer Affiliate

            were a party to this Agreement.

 

      IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand

and, pursuant to the authorization from its Board of Directors, the Company has

caused this Agreement to be executed in its name on its behalf by its

undersigned officer thereunto, duly authorized, all as of the day and year first

above written.

 

                                    ASSURANT, INC.

 

                                    By:  /s/ J. KERRY CLAYTON

                                        _______________________________________

                                            J. Kerry Clayton

                                            President and CEO

 

                                    EXECUTIVE

 

                                     /s/ ROBERT B. POLLOCK

                                    ___________________________________________

                                    Robert B. Pollock

 

                                     - 21 -

<PAGE>

 

                                    EXHIBIT A

 

                                 Form of Release

 

      This Release (this "Release") is granted effective as of the ______ day of

___________________, ______, by ________________________ (the "Executive") in

favor of Assurant, Inc. (the "Company"). This is the Release referred to in that

certain Change in Control Severance Agreement dated as of ________, 200___ by

and between the Company and the Executive (the "CIC Agreement"). The Executive

gives this Release in consideration of the Company's promises and covenants as

recited in the CIC Agreement, with respect to which this Release is an integral

part.

 

      1.    Release of the Company. The Executive, for [himself] [herself],

[his] [her] successors, assigns, attorneys, and all those entitled to assert

[his] [her] rights, now and forever hereby releases and discharges the Company

and its respective officers, directors, stockholders, trustees, employees,

agents, parent corporations, subsidiaries, affiliates, estates, successors,

assigns and attorneys (the "Released Parties"), from any and all claims,

actions, causes of action, sums of money due, suits, debts, liens, covenants,

contracts, obligations, costs, expenses, damages, judgments, agreements,

promises, demands, claims for attorney's fees and costs, or liabilities

whatsoever, in law or in equity, which the Executive ever had or now has against

the Released Parties, including any claims arising by reason of or in any way

connected with any employment relationship which existed between the Company or

any of its parents, subsidiaries, affiliates, or predecessors, and the

Executive. It is understood and agreed that this Release is intended to cover

all actions, causes of action, claims or demands for any damage, loss or injury,

which may be traced either directly or indirectly to the aforesaid employment

relationship, or the termination of that relationship, that the Executive has,

had or purports to have, from the beginning of time to the date of this Release,

whether known or unknown, that now exists, no matter how remotely they may be

related to the aforesaid employment relationship including but not limited to

claims for employment discrimination under federal or state law, except as

provided in Paragraph 2; claims arising under Title VII of the Civil Rights Act,

42 U.S.C. Section 2000(e), et seq. or the Americans With Disabilities Act, 42

U.S.C. Section 12101 et seq.; claims for statutory or common law wrongful

discharge, including any claims arising under the Fair Labor Standards Act, 29

U.S.C. Section 201 et seq.; claims for attorney's fees, expenses and costs;

claims for defamation; claims for wages or vacation pay; claims for benefits,

including any claims arising under the Employee Retirement Income Security Act,

29 U.S.C. Section 1001, et seq.; and provided, however, that nothing herein

shall release the Company of its obligations to the Executive under the CIC

Agreement or any other contractual obligations between the Company or its

affiliates and the Executive, or any indemnification obligations to Executive

under the Company's bylaws, certificate of incorporation, New York law or

otherwise.

 

      2.    Release of Claims Under Age Discrimination in Employment Act.

Without limiting the generality of the foregoing, the Executive agrees that by

executing this Release, [he] [she] has released and waived any and all claims

[he] [she] has or may

 

<PAGE>

 

have as of the date of this Release for age discrimination under the Age

Discrimination in Employment Act, 29 U.S.C. Section 621, et seq. It is

understood that the Executive is advised to consult with an attorney prior to

executing this Release; that the Executive in fact has consulted a

knowledgeable, competent attorney regarding this Release; that the Executive

may, before executing this Release, consider this Release for a period of

twenty-one (21) calendar days; and that the consideration the Executive receives

for this Release is in addition to amounts to which the Executive was already

entitled. It is further understood that this Release is not effective until

seven (7) calendar days after the execution of this Release and that the

Executive may revoke this Release within seven (7) calendar days from the date

of execution hereof.

 

      The Executive agrees that [he] [she] has carefully read this Release and

is signing it voluntarily. The Executive acknowledges that [he] [she] has had

twenty one (21) days from receipt of this Release to review it prior to signing

or that, if the Executive is signing this Release prior to the expiration of

such 21-day period, the Executive is waiving [his] [her] right to review the

Release for such full 21-day period prior to signing it. The Executive has the

right to revoke this release within seven (7) days following the date of its

execution by [him] [her]. However, if the Executive revokes this Release within

such seven (7) day period, no severance benefit will be payable to the Executive

under the CIC Agreement and the Executive shall return to the Company any such

payment received prior to that date.

 

      THE EXECUTIVE HAS CAREFULLY READ THIS RELEASE AND ACKNOWLEDGES THAT IT

CONSTITUTES A GENERAL RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS AGAINST THE

COMPANY UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT. THE EXECUTIVE

ACKNOWLEDGES THAT [HE] [SHE] HAS HAD A FULL OPPORTUNITY TO CONSULT WITH AN

ATTORNEY OR OTHER ADVISOR OF THE EXECUTIVE'S CHOOSING CONCERNING [HIS] [HER]

EXECUTION OF THIS RELEASE AND THAT [HE] [SHE] IS SIGNING THIS RELEASE

VOLUNTARILY AND WITH THE FULL INTENT OF RELEASING THE COMPANY FROM ALL SUCH

CLAIMS.

 

                                              _________________________________

                                              Executive

 

                                              Date: ___________________________

 

                                     - 23 -

 

 

 

 

</TEXT>

</DOCUMENT>

 

 

Top of the Document

 

Exhibit 10.13

 

AMENDMENT NO. 1 TO

CHANGE IN CONTROL SEVERANCE AGREEMENT

THIS AMENDMENT NO. 1 TO CHANGE IN CONTROL SEVERANCE AGREEMENT (this “Amendment”) is effective January 1, 2006, by and between Assurant, Inc. (the “Company”) and Robert Pollock (the “Executive”).

WHEREAS, the Company and Executive entered into that certain Change in Control Severance Agreement dated as of January 1, 2005 (the “Agreement”); and

WHEREAS, by its terms the Agreement expires on December 31, 2005; and

WHEREAS, the Board of Directors of the Company has authorized the extension of the Agreement through December 31, 2006, subject to certain amendments being agreed to by the parties; and

WHEREAS, the Company and Executive now desire to extend and amend the Agreement as set forth in this Amendment;

NOW, THEREFORE, in consideration of the mutual promises made herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, hereby agree as follows:

1. Agreement Term. The definition of “Agreement Term” in Section 1(a) of the Agreement is hereby amended by changing the date in the first sentence from “December 31, 2005” to “December 31, 2006.”

2. Compliance With Section 409A.

(a) Section 4 of the Agreement is hereby amended by adding the following new subsection 4(a)(i)(C):

 

 

C.

Delayed Payments. To the extent required to comply with Section 409A of the Code, as reasonably determined by the Company’s legal counsel, the payments under this Section 4(a)(i) shall be delayed to the six-month anniversary of the Date of Termination.”

(b) Section 4 of the Agreement is hereby amended by adding the following new paragraph at the end of subsection 4(a)(ii):

To the extent required to comply with Section 409A of the Code, as reasonably determined by the Company’s legal counsel, Executive will pay the entire cost of receiving the Welfare Benefits pursuant to his or her COBRA elections for the first six months after the Date of Termination,


and the Company will reimburse Executive for the Company’s share of such costs, as required by subsection 4(a)(ii)(A), on or as soon as practicable after the six-month anniversary of the Date of Termination.”

3. Certain Additional Payments by the Company.

(a) Section 8(a) of the Agreement is hereby amended by adding the following new paragraph at the end of such Section:

Notwithstanding the foregoing provisions of this Section 8(a), if the Parachute Value (as defined below) of all Payments does not exceed 105% of Executive’s Safe Harbor Amount (as defined below), then the Company shall not pay Executive a Gross-Up Payment, and the Payments due under 4(a)(i) of this Agreement (the “Cash Severance Payments”) shall be reduced so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount; provided, that if even after all Cash Severance Payments due under this Agreement are reduced to zero, the Parachute Value of all Payments would still exceed the Safe Harbor Amount, then no reduction of any Cash Severance Payments shall be made and the Gross-Up Payment shall be made. The reduction of the Cash Severance Payments, if applicable, shall be made in such a manner as to maximize the economic present value of all Payments actually made to Executive, determined by the Accounting Firm for purposes of Section 280G of the Code using the discount rate required by Section 280G(d)(4) of the Code. For purposes of this Section 8, the “Parachute Value” of a Payment means the present value as of the date of the change of control for purposes of Section 280G of the Code of the portion of such Payment that constitutes a “parachute payment” under Section 280G(b)(2) of the Code, as determined by the Accounting Firm for purposes of determining whether and to what extent the Excise Tax will apply to such Payment. For purposes of this Section 8, Executive’s “Safe Harbor Amount” means one dollar less than three times Executive’s “base amount” within the meaning of Section 280G(b)(3) of the Code.”

(b) Section 8(b) of the Agreement is hereby amended by deleting the first sentence thereof and replacing it with the following:

Subject to the provisions of Section 8(c), all determinations required to be made under this Section 8, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be used in arriving at such determination, shall be made by an independent, nationally recognized accounting firm or compensation consulting firm mutually acceptable to the Company and Executive (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the receipt of notice from the Executive that there has been a Payment, or such earlier time as is reasonably requested by the Company.”

 

- 2 -


(c) Section 8(c) of the Agreement is amended by deleting subsection 8(c)(ii) and replacing it with the following:

 

 

(ii)

take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company, and designating such attorney as authorized to act on Executive’s behalf with respect to such examination, if necessary, through a power of attorney,”

4. No Other Amendments. Except as expressly set forth herein, the parties make no other amendment, alteration or modification of the Agreement.

IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year first above written.

 

 

 

 

ASSURANT, INC.

 

 

By:

 

/s/ J. Kerry Clayton

 

 

J. Kerry Clayton

 

 

Chief Executive Officer

 

EXECUTIVE

 

/s/ Robert B. Pollock

Robert B. Pollock

 

- 3 -

 

 

 

 

EXHIBIT 10.12

 

 

 

 

 

 

 

 

One Chase Manhattan Plz

 

 

 

 

New York, NY 10005

 

 

 

 

Phone: 212.859.7000

 

 

 

 

 

 

 

www.assurant.com

 

 

PERSONAL AND CONFIDENTIAL

December 15, 2006

Robert Pollock

Assurant, Inc.

1 Chase Manhattan Plaza

New York, NY 10005

Re: Extension of Change in Control Severance Agreement

Dear Robert,

You are presently covered by a Change in Control Severance Agreement (“CIC Agreement”) with Assurant, Inc. (the “Company”) that may provide certain benefits to you in the event that a Change in Control (as defined in the CIC Agreement) occurs. The CIC Agreement, as amended, was due to expire on December 31, 2006.

As permitted by Section 1(a) of the CIC Agreement, the Compensation Committee of the Board of Directors has authorized the Company to extend the term of the CIC Agreement for two years, through December 31, 2008.

As always, we appreciate your dedication to Assurant. If you have any questions or concerns, please feel free to contact me.

 

 

Sincerely,

 

/s/ John M. Palms

Dr. John M. Palms

Chairman of the Board

In New York state, Assurant, Inc. does business under the name Assurant Group.

 

EX-10.17 7 dex1017.htm FORM OF ASSURANT, INC. CHANGE OF CONTROL EMPLOYMENT AGREEMENT

Exhibit 10.17

ASSURANT, INC.

FORM OF CHANGE OF CONTROL EMPLOYMENT AGREEMENT

THIS CHANGE OF CONTROL EMPLOYMENT AGREEMENT, dated as of the 1st day of January, 2009 (this “Agreement”), by and between Assurant, Inc., a Delaware corporation (the “Company”), and [Executive] (the “Executive”).

WHEREAS, the Board of Directors of the Company (the “Board”), has determined that it is in the best interests of the Company and its stockholders to assure that the Company will have the continued dedication of the Executive, notwithstanding the possibility, threat or occurrence of a Change of Control (as defined herein). The Board believes it is imperative to diminish the inevitable distraction of the Executive by virtue of the personal uncertainties and risks created by a pending or threatened Change of Control and to encourage the Executive’s full attention and dedication to the Company in the event of any threatened or pending Change of Control, and to provide the Executive with compensation and benefits arrangements upon a Change of Control that ensure that the compensation and benefits expectations of the Executive will be satisfied and that provide the Executive with compensation and benefits arrangements that are competitive with those of other corporations. Therefore, in order to accomplish these objectives, the Board has caused the Company to enter into this Agreement.

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

Section 1. Certain Definitions. (a) “Effective Date” means the first date during the Change of Control Period (as defined herein) on which a Change of Control occurs. Notwithstanding anything in this Agreement to the contrary, if the Executive’s employment with the Company is terminated prior to the date on which a Change of Control occurs, and if it is reasonably demonstrated by the Executive that such termination of employment (i) was at the request of a third party that has taken steps reasonably calculated to effect a Change of Control or (ii) otherwise arose in connection with or anticipation of a Change of Control (such a termination of employment, an “Anticipatory Termination”) and if such Change of Control is consummated, then for all purposes of this Agreement, the “Effective Date” means the date immediately prior to the date of such termination of employment.

(b) “Change of Control Period” means the period commencing on the date hereof and ending on the second anniversary of the date hereof; provided, however, that, commencing on the date one year after the date hereof, and on each annual anniversary of such date (such date and each annual anniversary thereof, the “Renewal Date”), unless previously terminated, the Change of Control Period shall be automatically extended so as to terminate two years from such Renewal Date, unless, at least 60 days prior to the Renewal Date, the Company shall give notice to the Executive that the Change of Control Period shall not be so extended.

(c) “Affiliated Company” means any company controlled by, controlling or under common control with the Company.


(d) “Change of Control” means any of the following events:

(1) Any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (A) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (B) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this Section 1(d), the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the Company, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliated Company or (iv) any acquisition pursuant to a transaction that complies with Sections 1(d)(3)(A), 1(d)(3)(B) and 1(d)(3)(C);

(2) Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

(3) Consummation of a reorganization, merger, statutory share exchange or consolidation or similar transaction involving the Company or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or stock of another entity by the Company or any of its subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination, (A) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of the then-outstanding shares of common stock (or, for a non-corporate entity, equivalent securities) and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors (or, for a non-corporate entity, equivalent governing body), as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of, respectively, the then-outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such corporation, except to the extent that such ownership existed prior to the Business Combination, and (C) at least a majority of the members of the board of directors (or, for a non-corporate entity, equivalent governing body) of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or

 

2


(4) Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

Section 2. Employment Period. The Company hereby agrees to continue the Executive in the employ of the Company, subject to the terms and conditions of this Agreement, for the period commencing on the Effective Date and ending on the second anniversary of the Effective Date (the “Employment Period”). The Employment Period shall terminate upon the Executive’s termination of employment for any reason.

Section 3. Terms of Employment. (a) Position and Duties. (1) During the Employment Period, (A) the Executive’s position with the Company (including status, offices, titles and reporting requirements), authority, duties and responsibilities shall be at least commensurate in all respects with the most significant of those held, exercised and assigned at any time during the 120-day period immediately preceding the Effective Date, (B) the Executive’s services for the Company shall be performed at the office where the Executive was employed immediately preceding the Effective Date or at any other location less than 30 miles from such office and (C) the Executive shall not be required to travel on Company business to a substantially greater extent than required during the 120-day period immediately prior to the Effective Date.

(2) During the Employment Period, and excluding any periods of paid time off and sick leave to which the Executive is entitled, the Executive agrees to devote reasonable attention and time during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to the Executive hereunder, to use the Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities. During the Employment Period, it shall not be a violation of this Agreement for the Executive to (A) serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at educational institutions and (C) manage personal investments, so long as such activities do not significantly interfere with the performance of the Executive’s responsibilities as an employee of the Company in accordance with this Agreement. It is expressly understood and agreed that, to the extent that any such activities have been conducted by the Executive prior to the Effective Date, the continued conduct of such activities (or the conduct of activities similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere with the performance of the Executive’s responsibilities to the Company.

(b) Compensation. (1) Base Salary. During the Employment Period, the Executive shall receive an annual base salary (the “Annual Base Salary”) at an annual rate at least equal to 12 times the highest monthly base salary paid or payable, including any base salary that has been earned but deferred, to the Executive by the Company and the Affiliated Companies in respect of the one-year period immediately preceding the month in which the Effective Date occurs. The Annual Base Salary shall be paid at such intervals as the Company pays executive salaries generally. During the Employment Period, the Annual Base Salary shall be reviewed at least annually, beginning no more than 12 months after the last salary increase awarded to the Executive prior to the Effective Date. Any increase in the Annual Base Salary

 

3


shall not serve to limit or reduce any other obligation to the Executive under this Agreement. The Annual Base Salary shall not be reduced after any such increase and the term “Annual Base Salary” shall refer to the Annual Base Salary as so increased.

(2) Annual Bonus. In addition to the Annual Base Salary, the Executive shall be awarded, for each fiscal year ending during the Employment Period, an annual bonus (the “Annual Bonus”) in cash at least equal to the product of Annual Base Salary and the greater of (A) the Executive’s target percentage under the Company’s applicable bonus plan or any comparable percentage under any predecessor or successor Company plan for the year immediately preceding the Effective Date and (B) the Executive’s target percentage, as determined immediately prior to the Effective Date, under the Company’s applicable bonus plan or any comparable percentage under any predecessor or successor Company plan for the year in which the Effective Date occurs (such product, the “Highest Annual Bonus”). Each such Annual Bonus shall be paid no later than two and a half months after the end of the fiscal year for which the Annual Bonus is awarded, unless the Executive shall elect to defer the receipt of such Annual Bonus pursuant to an arrangement that meets the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), excluding arrangements authorized pursuant to Treasury Regulation § 1.409A-1(e).

(3) Long-Term Cash and Equity Incentives, Savings and Retirement Plans. During the Employment Period, the Executive shall be entitled to participate in all long-term cash incentive, equity incentive, savings and retirement plans, practices, policies and programs applicable generally to other peer executives of the Company and the Affiliated Companies, but in no event shall such plans, practices, policies and programs provide the Executive with incentive opportunities (measured with respect to both regular and special incentive opportunities, to the extent, if any, that such distinction is applicable), savings opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate, than the most favorable of those provided by the Company and the Affiliated Companies for the Executive under such plans, practices, policies and programs as in effect at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive, those provided generally at any time after the Effective Date to other peer executives of the Company and the Affiliated Companies.

(4) Welfare Benefit Plans. During the Employment Period, the Executive and/or the Executive’s family, as the case may be, shall be eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company and the Affiliated Companies (including, without limitation, medical, prescription, dental, disability, employee life, group life, accidental death and travel accident insurance plans and programs) to the extent applicable generally to other peer executives of the Company and the Affiliated Companies, but in no event shall such plans, practices, policies and programs provide the Executive with benefits that are less favorable, in the aggregate, than the most favorable of such plans, practices, policies and programs in effect for the Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive, those provided generally at any time after the Effective Date to other peer executives of the Company and the Affiliated Companies.

 

4


(5) Expenses. During the Employment Period, the Executive shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with the most favorable policies, practices and procedures of the Company and the Affiliated Companies in effect for the Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the Company and the Affiliated Companies. In no event shall the reimbursements under this Section 3(b)(5) be made later than the end of the calendar year next following the calendar year in which such expenses were incurred. The amount of such expenses that the Company and/or the Affiliated Companies are obligated to pay in any given calendar year shall not affect the expenses that the Company and/or the Affiliated Companies are obligated to pay in any other calendar year, and the Executive’s right to have the Company and/or the Affiliated Companies pay such expenses may not be liquidated or exchanged for any other benefit.

(6) Paid Time Off. During the Employment Period, the Executive shall be entitled to paid time off in accordance with the most favorable plans, policies, programs and practices of the Company and the Affiliated Companies as in effect for the Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the Company and the Affiliated Companies.

Section 4. Termination of Employment. (a) Death or Disability. The Executive’s employment shall terminate automatically if the Executive dies during the Employment Period. If the Company determines in good faith that the Disability (as defined herein) of the Executive has occurred during the Employment Period (pursuant to the definition of “Disability”), it may give to the Executive written notice in accordance with Section 11(b) of its intention to terminate the Executive’s employment. In such event, the Executive’s employment with the Company shall terminate effective one year after receipt of such notice by the Executive (the “Disability Effective Date”), provided that, within thirty days after such receipt, the Executive shall not have returned to full-time performance of the Executive’s duties. “Disability” means the absence of the Executive from the Executive’s duties with the Company on a full-time basis for 180 consecutive business days as a result of incapacity due to mental or physical illness that is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Executive or the Executive’s legal representative (such agreement as to acceptability not to be unreasonably withheld).

(b) Cause. The Company may terminate the Executive’s employment during the Employment Period with or without Cause. “Cause” means:

(1) the willful and continued failure of the Executive to perform substantially the Executive’s duties (as contemplated by Section 3(a)(1)(A)) with the Company or any Affiliated Company (other than any such failure resulting from incapacity due to physical or mental illness or following the Executive’s delivery of a Notice of Termination for Good Reason), after a written demand for substantial performance is delivered to the Executive by the Board or the Chief Executive Officer of the Company that specifically identifies the manner in which the Board or the Chief Executive Officer of the Company believes that the Executive has not substantially performed the Executive’s duties, or

 

5


(2) the willful engaging by the Executive in illegal conduct or gross misconduct that is materially and demonstrably injurious to the Company.

For purposes of this Section 4(b), no act, or failure to act, on the part of the Executive shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company. Any act, or failure to act, based upon (A) authority given pursuant to a resolution duly adopted by the Board, or if the Company is not the ultimate parent corporation of the Affiliated Companies and is not publicly-traded, the board of directors of the ultimate parent of the Company (the “Applicable Board”), (B) the instructions of the Chief Executive Officer of the Company or a senior officer of the Company or (C) the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company. The cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Applicable Board (excluding the Executive, if the Executive is a member of the Applicable Board) at a meeting of the Applicable Board called and held for such purpose (after reasonable notice is provided to the Executive and the Executive is given an opportunity, together with counsel for the Executive, to be heard before the Applicable Board), finding that, in the good faith opinion of the Applicable Board, the Executive is guilty of the conduct described in Section 4(b)(1) or 4(b)(2), and specifying the particulars thereof in detail.

(c) Good Reason. The Executive’s employment may be terminated during the Employment Period by the Executive for Good Reason or by the Executive voluntarily without Good Reason. “Good Reason” means actions taken by the Company resulting in a material negative change in the employment relationship. For these purposes, a “material negative change in the employment relationship” shall include, without limitation:

(1) the assignment to the Executive of duties materially inconsistent with the Executive’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by Section 3(a), or a material diminution in such position, authority, duties or responsibilities or a material diminution in the budget over which the Executive retains authority;

(2) a material diminution in the authorities, duties or responsibilities of the person to whom the Executive is required to report, including a requirement that the Executive report to an officer or employee instead of reporting directly to the Applicable Board;

(3) (i) a reduction of ten (10) percent or greater of any element of the compensation required to be provided to the Executive in accordance with any of the provisions of Section 3(b)(1) through 3(b)(3); or (ii) a material reduction of the aggregate benefits required to be provided to the Executive under the remaining provisions of Section 3(b) of this Agreement;

 

6


(4) the Company’s requiring the Executive (i) to be based at any office or location other than as provided in Section 3(a)(1)(B) resulting in a material increase in the Executive’s commute to and from the Executive’s primary residence (for this purpose an increase in the Executive’s commute by 30 miles or more shall be deemed material) or (ii) to be based at a location other than the principal executive offices of the Company if the Executive was employed at such location immediately preceding the Effective Date;

(5) any other action or inaction that constitutes a material breach by the Company of this Agreement; or

(6) any failure by the Company to comply with and satisfy Section 10(c).

In order to invoke a termination for Good Reason, the Executive shall provide written notice to the Company of the existence of one or more of the conditions described in clauses (1) through (5) within 90 days following the Executive’s knowledge of the initial existence of such condition or conditions, specifying in reasonable detail the conditions constituting Good Reason, and the Company shall have 30 days following receipt of such written notice (the “Cure Period”) during which it may remedy the condition. In the event that the Company fails to remedy the condition constituting Good Reason during the applicable Cure Period, the Executive’s “separation from service” (within the meaning of Section 409A of the Code) must occur, if at all, within two years following such Cure Period in order for such termination as a result of such condition to constitute a termination for Good Reason. The Executive’s mental or physical incapacity following the occurrence of an event described above in clauses (1) through (5) shall not affect the Executive’s ability to terminate employment for Good Reason and the Executive’s death following delivery of a Notice of Termination for Good Reason shall not affect the Executive’s estate’s entitlement to severance payments benefits provided hereunder upon a termination of employment for Good Reason.

(d) Notice of Termination. Any termination by the Company for Cause, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 11(b). “Notice of Termination” means a written notice that (1) indicates the specific termination provision in this Agreement relied upon, (2) to the extent applicable, 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 and (3) if the Date of Termination (as defined herein) is other than the date of receipt of such notice, specifies the Date of Termination (which Date of Termination shall be not more than 30 days after the giving of such notice). The failure by the Executive or the Company to set forth in the Notice of Termination any fact or circumstance that contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company, respectively, hereunder or preclude the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s or the Company’s respective rights hereunder.

(e) Date of Termination. “Date of Termination” means (1) if the Executive’s employment is terminated by the Company for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of Termination or such later date specified in the Notice of Termination, as the case may be, (2) if the Executive’s employment is terminated by the Company other than for Cause or Disability, the date on which the Company notifies the Executive of such termination, (3) if the Executive resigns without Good Reason, the date on which the Executive notifies the Company of such termination and (4) if the Executive’s employment is terminated by reason of death or Disability, the date of death of the Executive or the Disability Effective Date, as the case may be.

 

7


Section 5. Obligations of the Company upon Termination. (a) By the Executive for Good Reason; By the Company Other Than for Cause, Death or Disability. If, during the Employment Period, the Company terminates the Executive’s employment other than for Cause, Death or Disability or the Executive terminates employment for Good Reason:

(1) the Company shall pay to the Executive, in a lump sum in cash within 60 days after the Date of Termination (subject to the Executive’s execution and nonrevocation, within fifty-two (52) days after the Date of Termination, of the general release attached hereto as Appendix A), the aggregate of the following amounts:

(A) the sum of (i) the Executive’s Annual Base Salary through the Date of Termination to the extent not theretofore paid, (ii) the Executive’s business expenses that are reimbursable pursuant to Section 3(b)(5) but have not been reimbursed by the Company as of the Date of Termination; (iii) the Executive’s Annual Bonus for the fiscal year immediately preceding the fiscal year in which the Date of Termination occurs, if such bonus has been determined but not paid as of the Date of Termination; (iv) any accrued paid time off to the extent not theretofore paid (the sum of the amounts described in subclauses (i), (ii), (iii) and (iv), the “Accrued Obligations”) and (v) an amount equal to the product of (x) the Highest Annual Bonus and (y) 0.5 (the “Pro Rata Bonus”); provided, that notwithstanding the foregoing, if the Executive has made an irrevocable election under any deferred compensation arrangement subject to Section 409A of the Code to defer any portion of the Annual Bonus described in clause (iii) above, then for all purposes of this Section 5 (including, without limitation, Sections 5(b) through 5(d)), such deferral election, and the terms of the applicable arrangement shall apply to the same portion of the amount described in such clause (iii), and such portion shall not be considered as part of the “Accrued Obligations” but shall instead be an “Other Benefit” (as defined below); and

(B) the amount equal to the product of (i) three and (ii) the sum of (x) the Executive’s Annual Base Salary and (y) the Highest Annual Bonus.

(2) for eighteen (18) months after the Executive’s Date of Termination, or such longer period as may be provided by the terms of the appropriate plan, program, practice or policy (the “Benefit Continuation Period”), the Company shall provide health care, life insurance benefits and long-term disability benefits to the Executive and/or the Executive’s family at least equal to, and at the same after-tax cost to the Executive and/or the Executive’s family, as those that would have been provided to them in accordance with the plans, programs, practices and policies providing health care, life insurance benefits and long-term disability benefits and at the benefit level described in Section 3(b)(4) if the Executive’s employment had not been terminated or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the Company and the Affiliated Companies and their families; provided, however, that if the Executive becomes re-employed with another employer and is eligible to

 

8


receive health care under another employer-provided plan, the health care provided hereunder shall be secondary to those provided under such other plan during such applicable period of eligibility. The health care benefits provided during the Benefit Continuation Period hereunder shall be provided concurrently with any health care benefits that may be provided during such period pursuant to Section 4980B of the Code. For purposes of determining eligibility and the Company’s contribution (but not the time of commencement of benefits) of the Executive for retiree welfare benefits pursuant to the retiree welfare benefit plans, the Executive shall be considered to have remained employed until the third anniversary of the Date of Termination, and the Company shall take such actions as are necessary to cause the Executive to be eligible to commence in the applicable retiree welfare benefit plans as of the applicable benefit commencement date;

(3) the Company shall, at its sole expense as incurred, provide the Executive with outplacement services, for a limited period of time not longer than twelve (12) months following the Executive’s Date of Termination, the scope and provider of which shall be selected by the Executive in the Executive’s sole discretion; and

(4) except as otherwise set forth in the last sentence of Section 6, to the extent not theretofore paid or provided, the Company shall timely pay or provide to the Executive any Other Benefits (as defined in Section 6) in accordance with the terms of the underlying plans or agreements.

(b) Death. If the Executive’s employment is terminated by reason of the Executive’s death during the Employment Period, the Company shall provide the Executive’s estate or beneficiaries with the Accrued Obligations (subject to the proviso set forth in Section 5(a)(1)(A) to the extent applicable) and the Pro Rata Bonus and the timely payment or delivery of the Other Benefits (subject to the proviso set forth in Section 5(a)(1)(A) to the extent applicable), and shall have no other severance obligations under this Agreement. The Accrued Obligations and the Pro Rata Bonus shall be paid to the Executive’s estate or beneficiary, as applicable, in a lump sum in cash within 30 days of the Date of Termination. With respect to the provision of the Other Benefits, the term “Other Benefits” as utilized in this Section 5(b) shall include, without limitation, and the Executive’s estate and/or beneficiaries shall be entitled to receive, benefits at least equal to the most favorable benefits provided by the Company and the Affiliated Companies to the estates and beneficiaries of peer executives of the Company and the Affiliated Companies under such plans, programs, practices and policies relating to death benefits, if any, as in effect with respect to other peer executives and their beneficiaries at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive’s estate and/or the Executive’s beneficiaries, as in effect on the date of the Executive’s death with respect to other peer executives of the Company and the Affiliated Companies and their beneficiaries.

(c) Disability. If the Executive’s employment is terminated by reason of the Executive’s Disability during the Employment Period, the Company shall provide the Executive with the Accrued Obligations and Pro Rata Bonus and the timely payment or delivery of the Other Benefits (subject to the proviso set forth in Section 5(a)(1)(A) to the extent applicable) in accordance with the terms of the underlying plans or agreements, and shall have no other severance obligations under this Agreement. The Accrued Obligations (subject to the proviso set

 

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forth in Section 5(a)(1)(A) to the extent applicable) and the Pro Rata Bonus shall be paid to the Executive in a lump sum in cash within 30 days of the Date of Termination. With respect to the provision of the Other Benefits, the term “Other Benefits” as utilized in this Section 5(c) shall include, and the Executive shall be entitled after the Disability Effective Date to receive, disability and other benefits at least equal to the most favorable of those generally provided by the Company and the Affiliated Companies to disabled executives and/or their families in accordance with such plans, programs, practices and policies relating to disability, if any, as in effect generally with respect to other peer executives and their families at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive and/or the Executive’s family, as in effect at any time thereafter generally with respect to other peer executives of the Company and the Affiliated Companies and their families.

(d) Cause; Other Than for Good Reason. If the Executive’s employment is terminated for Cause during the Employment Period, the Company shall provide the Executive with the Executive’s Annual Base Salary through the Date of Termination, and the timely payment or delivery of the Other Benefits (disregarding the proviso set forth in Section 5(a)(1)(A) to the extent applicable), and shall have no other severance obligations under this Agreement. If the Executive voluntarily terminates employment during the Employment Period, excluding a termination for Good Reason, the Company shall provide to the Executive the Accrued Obligations and the Pro Rata Bonus and the timely payment or delivery of the Other Benefits, subject to the proviso set forth in Section 5(a)(1)(A) to the extent applicable, and shall have no other severance obligations under this Agreement. In such case, all the Accrued Obligations and the Pro Rata Bonus shall be paid to the Executive in a lump sum in cash within 30 days of the Date of Termination.

Section 6. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any plan, program, policy or practice provided by the Company or the Affiliated Companies and for which the Executive may qualify, nor, subject to Section 11(f), shall anything herein limit or otherwise affect such rights as the Executive may have under any other contract or agreement with the Company or the Affiliated Companies. Amounts that are vested benefits or that the Executive is otherwise entitled to receive under any plan, policy, practice or program of or any other contract or agreement with the Company or the Affiliated Companies at or subsequent to the Date of Termination (“Other Benefits”) shall be payable in accordance with such plan, policy, practice or program or contract or agreement, except as explicitly modified by this Agreement. Without limiting the generality of the foregoing, the Executive’s resignation under this Agreement with or without Good Reason, shall in no way affect the Executive’s ability to terminate employment by reason of the Executive’s “retirement” under, or to be eligible to receive benefits under, any compensation and benefits plans, programs or arrangements of the Company or any of the Affiliated Companies, including without limitation any retirement or pension plans or arrangements or substitute plans adopted by the Company, any of the Affiliated Companies or any of their respective successors, and any termination which otherwise qualifies as Good Reason shall be treated as such even if it is also a “retirement” for purposes of any such plan. Notwithstanding the foregoing, if the Executive receives payments and benefits pursuant to Section 5(a) of this Agreement, the Executive shall not be entitled to any severance pay or benefits under any severance plan, program or policy of the Company and the Affiliated Companies, unless otherwise specifically provided therein in a specific reference to this Agreement.

 

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Section 7. Full Settlement; Legal Fees. The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense, or other claim, right or action that the Company may have against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, and except as specifically provided in Section 5(a)(2), such amounts shall not be reduced whether or not the Executive obtains other employment. The Company agrees to pay as incurred (within 10 days following the Company’s receipt of an invoice from the Executive), at any time from the Effective Date of this Agreement through the Executive’s remaining lifetime (or, if longer, through the 20th anniversary of the Effective Date) to the full extent permitted by law, all legal fees and expenses that the Executive may reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by the Executive about the amount of any payment pursuant to this Agreement), plus, in each case, interest on any delayed payment at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code (“Interest”) determined as of the date such legal fees and expenses were incurred. In order to comply with Section 409A of the Code, in no event shall the payments by the Company under this Section 7 be made later than the end of the calendar year next following the calendar year in which such fees and expenses were incurred, provided, that the Executive shall have submitted an invoice for such fees and expenses at least 10 days before the end of the calendar year next following the calendar year in which such fees and expenses were incurred. The amount of such legal fees and expenses that the Company is obligated to pay in any given calendar year shall not affect the legal fees and expenses that the Company is obligated to pay in any other calendar year, and the Executive’s right to have the Company pay such legal fees and expenses may not be liquidated or exchanged for any other benefit.

Section 8. Certain Additional Payments by the Company.

(a) Anything in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined that any Payment would be subject to the Excise Tax, then the Executive shall be entitled to receive an additional payment (the “Gross-Up Payment”) in an amount such that, after payment by the Executive of all taxes (and any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, but excluding any income taxes and penalties imposed pursuant to Section 409A of the Code, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing provisions of this Section 8(a), if it shall be determined that the Executive is entitled to the Gross-Up Payment, but that the Parachute Value of all Payments does not exceed 105% of the Safe Harbor Amount, then no Gross-Up Payment shall be made to the Executive and the amounts payable under this Agreement shall be reduced so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount. The reduction of the amounts payable hereunder, if applicable, shall be made by reducing the payments and benefits under the following sections in the following order: (i) Section 5(a)(1)(B), (ii) Section 5(a)(1)(A)(v) and (iii) Section 5(a)(2). For purposes of reducing the Payments to the Safe Harbor Amount, only amounts payable under this Agreement (and no other

 

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Payments) shall be reduced. If the reduction of the amount payable under this Agreement would not result in a reduction of the Parachute Value of all Payments to the Safe Harbor Amount, no amounts payable under the Agreement shall be reduced pursuant to this Section 8(a) and the Executive shall be entitled to the Gross-Up Payment. The Company’s obligation to make Gross-Up Payments under this Section 8 shall not be conditioned upon the Executive’s termination of employment.

(b) Subject to the provisions of Section 8(c), all determinations required to be made under this Section 8, including whether and when a Gross-Up Payment is required, the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by PricewaterhouseCoopers LLP, or such other nationally recognized certified public accounting firm as may be designated by the Executive (the “Accounting Firm”). The Accounting Firm shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the receipt of notice from the Executive that there has been a Payment or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change of Control, the Executive may appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any determination by the Accounting Firm shall be binding upon the Company and the Executive. As a result of the 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 that will not have been made by the Company should have been made (the “Underpayment”), consistent with the calculations required to be made hereunder. In the event the Company exhausts its remedies pursuant to Section 8(c) and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive.

(c) The Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable, but no later than 10 business days after the Executive is informed in writing of such claim. The Executive shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the 30-day period following the date on which the Executive gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Executive in writing prior to the expiration of such period that the Company desires to contest such claim, the Executive shall:

(1) give the Company any information reasonably requested by the Company relating to such claim,

(2) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company,

 

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(3) cooperate with the Company in good faith in order effectively to contest such claim, and

(4) permit the Company to participate in any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest, and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties) imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 8(c), the Company shall control all proceedings taken in connection with such contest, and, at its sole discretion, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the applicable taxing authority in respect of such claim and may, at its sole discretion, either pay the tax claimed to the appropriate taxing authority on behalf of the Executive and direct the Executive to sue for a refund or to contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that, if the Company pays such claim and directs the Executive to sue for a refund, the Company shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties) imposed with respect to such payment or with respect to any imputed income in connection with such payment; and provided, further, that any extension of the statute of limitations relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s control of the contest shall be limited to issues with respect to which the Gross-Up Payment would be payable hereunder, and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.

(d) If, after the receipt by the Executive of a Gross-Up Payment or payment by the Company of an amount on the Executive’s behalf pursuant to Section 8(c), the Executive becomes entitled to receive any refund with respect to the Excise Tax to which such Gross-Up Payment relates or with respect to such claim, the Executive shall (subject to the Company’s complying with the requirements of Section 8(c), if applicable) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after payment by the Company of an amount on the Executive’s behalf pursuant to Section 8(c), a determination is made that the Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of 30 days after such determination, then the amount of such payment shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid.

(e) Any Gross-Up Payment, as determined pursuant to this Section 8, shall be paid by the Company to the Executive within five days of the receipt of the Accounting Firm’s determination; provided that, the Gross-Up Payment shall in all events be paid no later than the end of the Executive’s taxable year next following the Executive’s taxable year in which the Excise Tax (and any income or other related taxes or interest or penalties thereon) on a Payment are

 

13


remitted to the Internal Revenue Service or any other applicable taxing authority or, in the case of amounts relating to a claim described in Section 8(c) that does not result in the remittance of any federal, state, local and foreign income, excise, social security and other taxes, the calendar year in which the claim is finally settled or otherwise resolved. Notwithstanding any other provision of this Section 8, the Company may, in its sole discretion, withhold and pay over to the Internal Revenue Service or any other applicable taxing authority, for the benefit of the Executive, all or any portion of any Gross-Up Payment, and the Executive hereby consents to such withholding.

(f) Definitions. The following terms shall have the following meanings for purposes of this Section 8.

(i) “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax.

(ii) “Parachute Value” of a Payment shall mean the present value as of the date of the change of control for purposes of Section 280G of the Code of the portion of such Payment that constitutes a “parachute payment” under Section 280G(b)(2), as determined by the Accounting Firm for purposes of determining whether and to what extent the Excise Tax will apply to such Payment.

(iii) A “Payment” shall mean any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Executive, whether paid or payable pursuant to this Agreement or otherwise.

(iv) The “Safe Harbor Amount” means 2.99 times the Executive’s “base amount,” within the meaning of Section 280G(b)(3) of the Code.

Section 9. Noncompetition; Nonsolicitation; Confidential Information. (a) The Executive agrees that the Executive shall not, during the Noncompete Period (as defined below), directly or indirectly engage in a Competitive Activity, whether as an individual or as an owner, principal, employee, officer, director, independent contractor, representative, stockholder, financial backer, agent, partner, advisor or lender of any individual, partnership, corporation or other organization that is engaged in a Competitive Activity. For purposes of this Agreement, (i) “Competitive Activity” shall mean any business or other entity engaged in any business in which the Company or its subsidiaries are engaged and (ii) “Noncompete Period” shall mean the period beginning on the date hereof and ending on the earlier of (x) the Effective Date and (y) (1) if the Executive’s employment is terminated by the Company for Cause or by the Executive without Good Reason, the date that is six months following the date of termination of the Executive’s employment or (2) if the Executive’s employment is terminated other than by the Company for Cause or by the Executive without Good Reason, the date of termination of the Executive’s employment. Notwithstanding the foregoing, the Executive may make and retain investments during the Noncompete Period in five percent (5%) or less of the equity of any entity engaged in a Competitive Activity, if such equity is listed on a national securities exchange or regularly traded in an over-the-counter market. The Executive further agrees that he shall not, during the Noncompete Period, directly or indirectly, alone or with others, on his own behalf or on behalf of another, induce or solicit (or aid or assist any person to induce or solicit) any customer of the Company

 

14


or any Affiliated Company, or any person that was a customer of the Company or any Affiliated Company during or within the six-month period prior to the Noncompete Period, for the benefit or account of any person that is actively engaged in a Competitive Activity.

(b) The Executive agrees that the Executive shall not, during the period beginning on the date hereof and ending on the first anniversary of the date of termination of the Executive’s employment for any reason, employ or offer to employ, solicit, actively interfere with the Company’s or any Affiliated Company’s relationship with, or attempt to divert or entice away, any officer or employee of the Company or any Affiliated Company.

(c) The Executive shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the Company or the Affiliated Companies, and their respective businesses, which information, knowledge or data shall have been obtained by the Executive during the Executive’s employment by the Company or the Affiliated Companies and which information, knowledge or data shall not be or become public knowledge (other than by acts by the Executive or representatives of the Executive in violation of this Agreement). After termination of the Executive’s employment with the Company, the Executive shall not, without the prior written consent of the Company or as may otherwise be required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than the Company and those persons designated by the Company. In no event shall an asserted violation of the provisions of this Section 9 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive under this Agreement.

Section 10. Successors. (a) This Agreement is personal to the Executive, and, without the prior written consent of the Company, shall not be assignable by the Executive other than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives.

(b) This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. Except as provided in Section 10(c), without the prior written consent of the Executive this Agreement shall not be assignable by the Company.

(c) The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly 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 had taken place. “Company” means the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid that assumes and agrees to perform this Agreement by operation of law or otherwise.

Section 11. Miscellaneous. (a) This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. Subject to the last sentence of Section 11(h), this Agreement may not be amended or modified other than by a written agreement executed by the parties hereto or their respective successors and legal representatives.

 

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(b) All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

if to the Executive:

At the most recent address on file at the Company.

if to the Company:

Assurant, Inc.

Attention: Chief Legal Officer

One Chase Manhattan Plaza, 41st Floor

New York, New York 10005,

or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee.

(c) The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

(d) The Company may withhold from any amounts payable under this Agreement such United States federal, state or local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.

(e) The Executive’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, including, without limitation, the right of the Executive to terminate employment for Good Reason pursuant to Sections 4(c)(1) through 4(c)(5), shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

(f) The Executive and the Company acknowledge that, except as may otherwise be provided under any other written agreement between the Executive and the Company, the employment of the Executive by the Company is “at will” and, subject to Section 1(a), prior to the Effective Date, the Executive’s employment may be terminated by either the Executive or the Company at any time prior to the Effective Date, in which case the Executive shall have no further rights under this Agreement. From and after the Effective Date, except as specifically provided herein, this Agreement shall supersede any other agreement between the parties with respect to the subject matter hereof in effect immediately prior to the execution of this Agreement.

(g) Notwithstanding any provision in this Agreement to the contrary, in the event of an Anticipatory Termination, any payments that the Company shall be required to pay pursuant to Section 5(a)(1) of this Agreement shall be paid on the date of such Change of Control.

 

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(h) The Agreement is intended to comply with the requirements of Section 409A of the Code or an exception or exclusion therefrom and shall in all respects be administered in accordance with Section 409A of the Code. Severance payments shall be made under the “separation pay” exception under Section 409A of the Code, to the maximum extent possible, and then under the “short-term deferral” exclusion Section 409A of the Code or another applicable exception. Within the time period permitted by the applicable Treasury Regulations, the Company may, in consultation with the Executive, modify the Agreement, in the least restrictive manner necessary and without any diminution in the value of the payments to the Executive, in order to cause the provisions of the Agreement to comply with the requirements of Section 409A of the Code, so as to avoid the imposition of taxes and penalties on the Executive pursuant to Section 409A of the Code.

(i) In the event that payments are to be provided to the Executive under Section 5(a) of this agreement, then within five business days of the Executive’s Date of Termination, the Company shall deliver cash, in an amount equal to the aggregate of the cash amounts payable under Section 5(a) and, to the extent not previously paid (or immediately payable within five business days of the determination in accordance with Section 8(e) of this Agreement), any unpaid portion of the then estimated Gross-Up Payment (as determined by the Accounting Firm), to a “rabbi trust” (the “Trust”) to be established by the Company with a nationally recognized financial institution as trustee (the “Trustee”) to be held by the Trustee pursuant to the terms of the trust agreement entered into between the Company and the Trustee prior to the Effective Date; provided, however, that the Trust shall not be funded if the funding thereof would result in taxable income to the Executive by reason of Section 409A(b) of the Code; and provided, further, in no event shall any Trust assets at any time be located or transferred outside of the United States, within the meaning of Section 409A(b) of the Code. Any fees and expenses of the Trustee shall be paid by the Company.

(j) Notwithstanding any provision of this Agreement to the contrary, in the event that the Effective Date and the Date of Termination occur in the same fiscal year, any payment to the Executive pursuant to Section 5(a)(1)(A)(v) hereof shall be reduced (but not below zero) by any amounts payable to the Executive pursuant to the Assurant, Inc. Executive Short Term Incentive Plan in respect of such fiscal year.

Section 12. Survivorship. Upon the expiration or other termination of this Agreement or the Executive’s employment, the respective rights and obligations of the parties hereto shall survive to the extent necessary to carry out the intentions of the parties under this Agreement.

IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the authorization from the Board, the Company has caused these presents to be executed in its name on its behalf, all as of the day and year first above written.

 

  

[Executive]

 

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APPENDIX A

FORM OF GENERAL RELEASE

THIS RELEASE (this “Release”) is granted effective as of the [    ] day of [                    ], 20[    ], by Executive (the “Executive”) in favor of Assurant, Inc. (the “Company”). This is the release referred to in that certain Change of Control Severance Agreement dated as of January 1, 2009 by and between the Company and the Executive (the “COC Agreement”). The Executive gives this Release in consideration of the Company’s promises and covenants as recited in the COC Agreement, with respect to which this Release is an integral part.

Section 1. Release of the Company. The Executive, for himself/herself, his/her successors, assigns, attorneys and all those entitled to assert his/her rights, now and forever hereby releases and discharges the Company and its respective officers, directors, stockholders, trustees, employees, agents, parent corporations, subsidiaries, affiliates, estates, successors, assigns and attorneys (the “Released Parties”), from any and all claims, actions, causes of action, sums of money due, suits, debts, liens, covenants, contracts, obligations, costs, expenses, damages, judgments, agreements, promises, demands, claims for attorney’s fees and costs or liabilities whatsoever, in law or in equity, which the Executive ever had or now has against the Released Parties, including any claims arising by reason of or in any way connected with any employment relationship which existed between the Company or any of its parents, subsidiaries, affiliates, or predecessors and the Executive. It is understood and agreed that this Release is intended to cover all actions, causes of action, claims or demands for any damage, loss or injury, which may be traced either directly or indirectly to the aforesaid employment relationship, or the termination of that relationship, that the Executive has, had or purports to have, from the beginning of time to the date of this Release, whether known or unknown, that now exists, no matter how remotely they may be related to the aforesaid employment relationship including but not limited to claims for employment discrimination under federal or state law, except as provided in Paragraph 2; claims arising under Title VII of the Civil Rights Act, 42 U.S.C. § 2000(e), et seq. or the Americans With Disabilities Act, 42 U.S.C. § 12101 et seq.; claims for statutory or common law wrongful discharge, including any claims arising under the Fair Labor Standards Act, 29 U.S.C. § 201 et seq.; claims for attorney’s fees, expenses and costs; claims for defamation; claims for wages or paid time off; claims for benefits, including any claims arising under the Employee Retirement Income Security Act, 29 U.S.C. § 1001, et seq.; and provided, however, that nothing herein shall release the Company of its obligations to the Executive under the COC Agreement or any other contractual obligations between the Company or its affiliates and the Executive, or any indemnification obligations to Executive under the Company’s bylaws, certificate of incorporation, New York law or otherwise.

Section 2. Release of Claims Under Age Discrimination in Employment Act. Without limiting the generality of the foregoing, the Executive agrees that by executing this Release, he/she has released and waived any and all claims he/she has or may have as of the date of this Release for age discrimination under the Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq. It is understood that the Executive is advised to consult with an attorney prior to executing this Release; that the Executive in fact has consulted a knowledgeable, competent attorney regarding this Release; that the Executive may, before executing this Release, consider this Release for a period of forty-five (45) calendar days calendar days; and that the consideration the Executive receives for this Release is in addition to amounts to which the Executive


was already entitled. It is further understood that this Release is not effective until seven (7) calendar days after the execution of this Release and that the Executive may revoke this Release within seven (7) calendar days from the date of execution hereof.

The Executive agrees that he/she has carefully read this Release and is signing it voluntarily. The Executive acknowledges that he/she has had forty-five (45) days from receipt of this Release to review it prior to signing or that, if the Executive is signing this Release prior to the expiration of such 45-day period, the Executive is waiving his/her right to review the Release for such full 45-day period prior to signing it. The Executive has the right to revoke this release within seven (7) days following the date of its execution by him/her.

Section 3. Certain Exceptions. Notwithstanding any provision of the COC Agreement to the contrary, this Release shall not affect and expressly excludes any claim relating to: (1) obligations under this Agreement; (2) obligations that, in each case, by their terms are to be performed after the date hereof (including, without limitation, obligations to the Executive under any equity compensation awards or agreements or obligations under any pension plan or other benefit or deferred compensation plan, all of which shall remain in effect in accordance with their terms); (3) obligations to indemnify the Executive respecting acts or omissions in connection with the Executive’s service as a director, officer or employee of the Company or any Affiliated Company (as defined in the COC Agreement); (4) obligations with respect to insurance coverage under any directors’ and officers’ liability insurance policies; (5) Executive’s rights to obtain contribution in the event of the entry of judgment against Executive as a result of any act or failure to act for which both the Executive and the Company or any Affiliated Company (as defined in the COC Agreement) are jointly responsible; (6) any rights that the Executive may have as a stockholder of the Company; and (7) on facts or circumstances arising after the date hereof.

THE EXECUTIVE HAS CAREFULLY READ THIS RELEASE AND ACKNOWLEDGES THAT IT CONSTITUTES A GENERAL RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS AGAINST THE COMPANY UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT. THE EXECUTIVE ACKNOWLEDGES THAT HE/SHE HAS HAD A FULL OPPORTUNITY TO CONSULT WITH AN ATTORNEY OR OTHER ADVISOR OF THE EXECUTIVE’S CHOOSING CONCERNING HIS/HER EXECUTION OF THIS RELEASE AND THAT HE/SHE IS SIGNING THIS RELEASE VOLUNTARILY AND WITH THE FULL INTENT OF RELEASING THE COMPANY FROM ALL SUCH CLAIMS.

 

  

[Executive]