ServiceMagic 2015 Annual Report Download - page 23
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outstandingandunvestedstockoptionsand/orRSUs,asapplicable,heldbyMessrs.DillerandLevinwouldhavebeenaccelerated.
Inaddition,inthecaseofMr.Dilleronly,undertheEquityandBonusCompensationAgreement,datedAugust24,1995,betweenIACandMr.Diller,we
agreedthattotheextentanypaymentordistributionbyIACtoorforthebenefitofMr.Diller(whetherunderthetermsoftherelatedagreementorotherwise)
wouldbesubjecttotheexcisetaximposedby§4999oftheInternalRevenueCode,oranyinterestorpenaltiesareincurredbyMr.Dillerwithrespecttosuch
excisetax,thenMr.Dillerwouldbeentitledtoagross-uppaymentcoveringtheexcisetaxesandrelatedinterestandpenalties.GiventhatMr.Dillerwouldnot
havereceivedanypaymentorotherbenefitsuponanassumedchangeincontrolofIACattheendof2015,theCompanydoesnotbelievethatanyexcisetaxwould
beimposedorthatanygross-upwouldberequired.
Mr. Kaufman
UponaterminationwithoutcauseorresignationforgoodreasononDecember31,2015,pursuanttothetermsofhisamendedemploymentagreement,
Mr.Kaufmanwouldhavebeenentitledto:
·thepartialvestingofoutstandingandunvestedRSUsinamountsequaltothenumberthatwouldhaveotherwisevestedinaccordancewiththeterms
ofsuchawardsduringthe12-monthperiodfollowingsuchterminationofemployment;and
·continuetohavetheabilitytoexercisehisvestedstockoptionsthroughJune30,2017.
NopaymentswouldhavebeenmadetoMr.KaufmanpursuanttoanyagreementbetweentheCompanyandMr.Kaufmanuponachangeincontrolof
IAConDecember31,2015.UponaterminationwithoutcauseorresignationforgoodreasonfollowingachangeincontrolofIAConDecember31,2015,in
accordancewithouromnibusstockandannualincentiveplansandtherelatedawardagreements,thevestingofallthenoutstandingandunvestedRSUsheldby
Mr.Kaufmanwouldhavebeenaccelerated.ForMr.Kaufman,“goodreason”meansamaterialbreachofhisamendedemploymentagreementbytheCompanythat
itfailstoremedy.
Mr. Kip
UponaterminationwithoutcauseorvoluntaryresignationonDecember31,2015,pursuanttothetermsofanoralagreementbetweenMr.Kipandthe
CompanythatwasreachedfollowinghistenureastheCompany’sChiefFinancialOfficer,Mr.Kipwouldhavebeenentitledto:
·receive12monthsofhisbasesalary,subjecttotheexecutionandnon-revocationofareleaseandcompliancewithpost-terminationconfidentiality,
non-solicitationofemployees(18months),non-solicitationofbusinesspartners(12months)andassignmentofcertainemployeedevelopments
covenants,andsubjecttooffsetforanyamountsearnedfromotheremploymentduringtheseveranceperiod;
·thepartialvestingofoutstandingandunvestedstockoptionsandRSUsinamountsequaltothenumberthatwouldhaveotherwisevestedin
accordancewiththetermsofsuchawardsduringthe12-monthperiodfollowingsuchterminationofemployment;and
·continuetohavetheabilitytoexercisehisvestedstockoptionsthroughJune30,2017.
NopaymentswouldhavebeenmadetoMr.KippursuanttoanyagreementbetweentheCompanyandMr.KipuponachangeincontrolofIACon
December31,2015.Lastly,uponaterminationwithoutcauseorresignationforgoodreasonfollowingachangeincontrolofIAConDecember31,2015,in
accordancewiththeapplicableomnibusstockandannualincentiveplansandtherelatedawardagreements,thevestingofallthenoutstandingandunvestedstock
optionsandRSUsheldbyMr.Kipwouldhavebeenaccelerated.
Mr. Winiarski
UponaterminationwithoutcauseorresignationforgoodreasononDecember31,2015,pursuanttothetermsofhisemploymentagreement,
Mr.Winiarskiwouldhavebeenentitledto:
·receive12monthsofhisbasesalary,subjecttotheexecutionandnon-revocationofareleaseandcompliancewithpost-terminationconfidentiality,
non-solicitationofemployees(18months),non-solicitationofbusinesspartners(12months)andassignmentofcertainemployeedevelopments
covenants,andsubjecttooffsetforanyamountsearnedfromotheremploymentduringtheseveranceperiod;
·thepartialvestingofoutstandingandunvestedstockoptionsandRSUsinamountsequaltothenumberthatwouldhaveotherwisevestedin
accordancewiththetermsofsuchawardsduringthe12-monthperiodfollowingsuchterminationofemployment;and
·continuetohavetheabilitytoexercisehisvestedstockoptionsthroughJune30,2017.
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