Sample Business Contracts
Employment Agreement - Winn-Dixie Stores Inc. and Mark Matta
Employment Forms
- Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
- Answer simple questions to build a contract with a consultant. Specify the services rendered, when payment is due, as well as IP rights.
- Employers who compensate their sales employees based on commissions can prepare an agreement to reduce misunderstandings by specifying the base salary and how commissions are calculated.
- Companies may offer their business executives a contract that is different from the one provided to their regular employees. Executive employment agreements may be more complex because the compensation structure may include a combination of salary and commissions, provide for bonuses based on sales, stock or other financial targets, and include non-compete, confidentiality and severance provisions.
- Independent sales representatives offer companies the potential to increase the sale of products or services without the burden of increasing headcount. Both parties should understand how commissions are calculated, when commissions will be paid, as well as how the representative will treat confidential information from the company and whether the representative may also sell a competing line of products or services.
- More Employment Agreements
March 4, 2003
Mr. Mark Matta
[ADDRESS]
Dear Mark:
This letter will serve as an offer of Winn-Dixie Stores, Inc. to employ you as our Senior Vice President of Human Resources. We anticipate that your employment will commence on March 24, 2003. It will be recommended to the Board of Directors at its next meeting that you be elected an Officer of the Company as of the date you commence employment.
Base Salary, Annual and Long-Term Incentive
From the start of your employment through the fiscal year ending June 25, 2003, we will pay you a base salary of $300,000 per full year, payable monthly in arrears on the last banking day of the month. Based on the proposed start date above, you will also be granted a prorated annual Perquisite Benefit of approximately $6,370 for 2003. For the fiscal year ended June 25, 2003, you will be eligible to receive the prorated cash annual incentive bonus provided under the Company’s Officer Compensation Program, which shall be targeted at 60% of your base salary (which is partially uncapped). In addition, you will receive options to purchase approximately 6,250 shares of the Company’s common stock, at an exercise price per share equal to the New York Stock Exchange close on the date determined by the Program. You will also be granted at that time, approximately 2,175 shares of the Company’s restricted stock. (Note that the number of options and shares shown above are based on the market closing price of $12.30 on March 3, 2003 and a start date of March 24, 2003. Actual numbers granted will be based upon a closing stock price for a future date, and may therefore be different. In addition, if your starting date changes, the number of shares and/or options granted may also change.) You will also be granted a contingent cash payment (for purposes of partially offsetting the tax consequences of the restricted stock) equal to the value, when issued, of the aforementioned restricted stock. These options, restricted stock, and contingent cash payments will vest over a three-year period starting August 7, 2002, with the first one-third vesting on August 7, 2003. More detailed information regarding the terms of these stock options and restricted shares will be supplied to you in due course.
Page Two
March 4, 2003
Full Year Example:
The following chart illustrates the maximum value of a full year’s compensation at target performance:
|
Base salary | $ | 300,000 | |
|
Perquisite Benefit | $ | 25,000 | |
|
Annual Incentive | $ | 180,000 | |
|
Long Term Incentive | |||
|
• Stock Options | $ | 210,000 | |
|
• Restricted Stock | $ | 105,000 | |
|
• Contingent Cash | $ | 105,000 | |
|
Total | $ | 925,000 |
Sign-On Equity Bonus
You will receive a Sign-on Equity Grant of 5,000 shares of the Company’s restricted stock. One-third of these restricted shares and will vest on each of the first three anniversaries of your start date.
Benefits
You will have the various Company benefits, including four weeks of paid vacation, and be entitled to participate in the various plans generally available to Officers of the Company. The Company will also reimburse you for your COBRA expenses during the waiting period (first of the month following 90 days of service) for medical and dental benefits, less the employee contributions that would have been required had you been covered on the Winn-Dixie plans.
Severance and Change-in-Control
You will be covered by our Officer Severance Policy, which calls for severance of 18 months base salary, plus 1 year of target bonus, plus 18 months of benefit continuation for involuntary termination other than “for cause”. (All components are promoted during the first 18 months of employment.)
In the event of a Change-in-Control as defined in the Officer Compensation Program, in conjunction with your involuntary termination other than “for cause” within one year of the Change-in-Control, or your resignation due to a material change in your work responsibilities, title, location, or reduction of compensation within one year of a Change-in-Control, severance will be payable.
Page Three
March 4, 2003
In connection with your relocation, attached is a brief overview of your relocation benefits as stated in Policy 7001. Within five business days of accepting this offer you will receive a detailed package from Lexicon Relocation Services that will outline your relocation benefits. If you do not receive your package within this timeframe please call Carrie Thomas at (904) 370-7010.
Note that if you voluntarily leave the company one year or less after your start date, you will be required to repay Winn-Dixie one hundred percent of the relocation costs and associated expenses paid on your behalf. If you voluntarily leave the company between one and two years of your start date, you will be required to repay Winn-Dixie fifty percent of the relocation costs and associated expenses paid on your behalf.
Our offer of employment at Winn-Dixie Stores, Inc., is of course, contingent upon your submission of satisfactory proof of your identity and your legal authorization to work in the United States, along with successful completion of the Company’s drug test and background check.
The terms set forth in this letter shall be binding on Winn-Dixie and you through March 24, 2004, subject to your satisfactory performance of the duties of your position. After that date, your employment will be at the will and discretion of Winn-Dixie on the one hand, and you on the other hand, and either party may terminate such employment at any time with or without reason or cause.
If this letter correctly states your understanding of our offer, please so indicate by signing and returning the enclosed copy of this letter to me, in an envelope marked Personal & Confidential, at your earliest convenience.
We look forward to having you with us.
Sincerely,
/s/ Al Rowland
Page Four
March 4, 2003
|
/s/ Mark W. Matta |
3/5/03 | |
|
Agreed To |
Date |
| cc: | F. Lazaran |
February 20, 2004
Mr. Mark Matta
[ADDRESS]
Dear Mark:
In recognition of your contribution to the Company and the value your efforts have on the organization, I am pleased to advise you that your base salary will be increased as of March 1, 2004, from $300,000 per year to $330,000 per year.
In addition, I am pleased to advise you that on March 1, 2004, you will be granted 75,000 non-qualified stock options with a strike price of the closing price on that day. Also, on that date, you will be granted 30,000 shares of restricted stock, and a contingent cash grant equal to the value of those shares based on the grant date’s closing price. The options, restricted stock, and contingent cash will vest 50% on March 1, 2006, and the remaining 50% on March 1, 2007, if you remain employed by the Company through those dates.
In addition, your protection under a Change In Control (as defined in the Restricted Stock Plan) has been increased to three times your then-current base salary, plus three times your target annual incentive. Also, severance for involuntary termination without cause* has been increased to two times your then-current base salary, plus two times your annual target incentive.
I want to personally thank you for your continued support.
Sincerely,
/s/ Frank Lazaran
Frank Lazaran
| * | Cause is defined as gross misconduct in the performance of duties or conviction of any felony involving moral turpitude. |