Document:

Exhibit 10.2

 

SRS LABS, INC.

2005 CHANGE IN CONTROL PROTECTION PLAN

 

Participation
Agreement for Select Executive Officers

 

WHEREAS, SRS Labs,
Inc. (the “Company”)
sponsors and maintains the SRS Labs, Inc. 2005 Change in Control Protection
Plan (the “Plan”), and has
executed this agreement (the “Participation Agreement”)
in order to offer                              
(the “Officer”) the
opportunity to participate in the Plan;

 

WHEREAS, the
Officer has received a copy of the Plan (which also serves as its summary plan
description); and

 

WHEREAS, the
parties acknowledge that capitalized terms not defined in this Participation
Agreement shall have the meaning assigned to them in the Plan; and

 

WHEREAS, the
Officer understands that participation in the Plan requires that the
Participant to agree irrevocably to the terms of the Plan and the terms set
forth below; and

 

WHEREAS, the
Employee has had the opportunity to carefully evaluate this opportunity, and
desires to become a “Participant” in the Plan under the conditions set forth
herein.

 

NOW, THEREFORE,
the parties hereby AGREE as follows:

 

1.             If
the Officer incurs a Covered Termination while the Plan is in effect, the
Officer shall as soon as administratively practicable
thereafter (subject to Section 5 of the Plan and to Section 2 of this
Participation Agreement) receive the following benefits (the “Change in Control Benefits”):

 

(i)                                     A lump sum payment in cash equal to         times
the Officer’s “base amount” as determined by the Administrator in accordance with
Section 280G of the Internal Revenue Code of 1986, as amended.  The term “base amount” refers generally to an
Officer’s average W-2 taxable income during the five years preceding the year
in which a Change in Control occurs.

 

(ii)                                  The Company’s payment of all premiums
payable for the Officer’s COBRA coverage for a period of eighteen (18) months
following the Officer’s Covered Termination.

 

Each of the
Participant’s benefits provided under this Section shall be subject to any
reduction required in accordance with Section 6 of the Plan.

 

 

 

2.             Notwithstanding
Section 1 of this Participation Agreement, the Officer shall not receive the
Change in Control Benefit set forth in Section 1 above if the Officer is
entitled to collect severance-related benefits (the “Contract
Benefits”) pursuant to a separate employment agreement or
severance agreement that the Officer has entered into with the Company or any
of its affiliates, unless the Officer waives any and all Contract Benefits in
writing within five business days after the Covered Termination.  If the Officer waives the Contract Benefits, the
Officer shall become entitled to receive the Change in Control Benefits in
accordance with the terms and conditions of the Plan and this Participation
Agreement.

 

3.             In
consideration of becoming eligible to receive the benefits provided under the
terms and conditions of the Plan, the Officer hereby waives any and all rights,
benefits, and privileges to which the Officer is or would otherwise be entitled
to receive under any plan, program, or arrangement under which the Company or
any of its affiliates provides severance benefits (excluding any retirement
plan, stock option or other stock-based plan or agreement, or other plan that
is not a “welfare plan” within the meaning of ERISA).  Subject to Section 2 of this Participation
Agreement, the Officer’s collection of the Change in Control Benefit pursuant
to this Participation Agreement shall be absolutely contingent on the Officer’s
agreement in the Release (i) to waive any and all rights under any
employment agreement or severance agreement that the Officer has entered into
with the Company or any of its affiliates, and (ii) that all such
agreements shall be terminated and become null and void upon the Officer’s
collection of the Change in Control Benefit.

 

4.             The
Officer understands that the waiver set forth in Section 3 above is irrevocable
for so long as this Participation Agreement is in effect, and that this
Participation Agreement and the Plan set forth the entire agreement between the
parties with respect to any subject matter covered herein.

 

5.             This
Participation Agreement shall terminate, and the Officer’s status as a “Participant”
in the Plan shall end, on the first to occur of (i) if before a Change in
Control occurs, the Officer’s termination of employment with the Company and
its affiliates, (ii) if after a Change in Control occurs, the Officer’s
termination of employment for a reason other than a “Covered Termination” as
defined in Section 3(b)(i) of the Plan, (iii) the date two years
after a Change in Control, and (iv) if before a Change in Control occurs,
the date twelve (12) months after the Company provides the Officer with written
notice that this Participation Agreement is being terminated by the Company in its
discretion as employer and Sponsor.

 

 

1

 

6.             The
Officer recognizes and agrees that execution of this Participation Agreement
results in enrollment and participation in the Plan, agrees to be bound by the terms
and conditions of the Plan and this Participation Agreement, and understands
that this Participation Agreement may not be amended or modified except
pursuant to Section 10 of the Plan.  The Officer
further agrees that to the extent there is any conflict or ambiguity between
the Plan and the Participation Agreement, the Plan prevails.

 

ACCEPTED AND
AGREED TO this                   day
of                        ,
20      .

 

	
  The “Officer”:

  	
   

  	
  The “Company”:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  
	
   

  	
   

  	
  A Duly
  Authorized Officer

  

 

 

2

 

SCHEDULE TO EXHIBIT
10.2

 

                SRS Labs, Inc.
entered into Participation Agreement for Select Executive Officers with several
executive officers, each substantially identical to this Exhibit 10.2
except that the Officer and the size of the Change of Control Benefit were as
follows:

 

	
  Officer

  	
   

  	
  Amount
  of Change in

  Control Benefit

  
	
  Thomas
  C.K. Yuen

  	
   

  	
  2 times base amount

  
	
  Janet
  M. Biski

  	
   

  	
  1.5 times base amount

  
	
  Alan
  D. Kraemer

  	
   

  	
  1.5 times base amountExhibit 10.3

 

SRS LABS, INC.

2005 CHANGE IN CONTROL PROTECTION PLAN

 

Participation
Agreement for Select Employees

 

                WHEREAS, SRS Labs, Inc. (the “Company”) sponsors and maintains the
SRS Labs, Inc. 2005 Change in Control Protection Plan (the “Plan”), and has executed this agreement
(the “Participation Agreement”) in order
to offer                       (the
“Employee”) the opportunity
to participate in the Plan;

 

                WHEREAS, the Employee has
received a copy of the Plan (which also serves as its summary plan description);
and

 

                WHEREAS, the parties acknowledge
that capitalized terms not defined in this Participation Agreement shall have
the meaning assigned to them in the Plan; and

 

                WHEREAS, the Employee
understands that participation in the Plan requires that the Employee agree
irrevocably to the terms of the Plan and the terms set forth below; and

 

                WHEREAS, the Employee has had
the opportunity to carefully evaluate this opportunity, and desires to become a
“Participant” in the Plan under the conditions set forth herein.

 

                NOW, THEREFORE, the parties
hereby AGREE as follows:

 

                1.             If the Employee incurs a Covered Termination while the
Plan is in effect, the Employee shall as soon as
administratively practicable thereafter (but subject to Section 5 of the Plan)
receive a lump sum payment in cash (the “Change in Control Benefit”) equal to           
times the Employee’s “base amount” as determined by the Administrator in
accordance with Section 280G of the Internal Revenue Code of 1986, as amended,
subject to any reduction required in accordance with Section 6 of the
Plan.  The term “base amount” refers
generally to an Employee’s average W-2 taxable income during the five years
preceding the year in which a Change in Control occurs.  In addition, the Company shall pay all
premiums payable for the Employee’s COBRA coverage for a period of eighteen
(18) months following the Employee’s Covered Termination.  All of the Employee’s benefits provided under
this Section shall be subject to any reduction required in accordance with
Section 6 of the Plan

 

                2.             In consideration of becoming eligible to receive the
benefits provided under the terms and conditions of the Plan, the Employee
hereby waives any and all rights, 

 

 

 

benefits, and
privileges to which the Employee is or would otherwise be entitled to receive
under —

 

(a)                                  any employment agreement or severance
agreement that the Employee has entered into with the Company or any of its
affiliates; and

(b)                                 any plan, program, or arrangement under
which the Company or any of its affiliates provides severance benefits
(excluding any retirement plan, stock option or other stock-based plan or
agreement, or other plan that is not a “welfare plan” within the meaning of
ERISA).

 

                3.             The Employee understands that the waiver set forth in
Section 2 above is irrevocable for so long as this Participation Agreement is
in effect, and that this Participation Agreement and the Plan set forth the
entire agreement between the parties with respect to any subject matter covered
herein.

 

                4.             This Participation Agreement shall terminate, and the
Employee’s status as a “Participant” in the Plan shall end, on the first to
occur of (i) if before a Change in Control occurs, the Employee’s
termination of employment with the Company and its affiliates, (ii) if
after a Change in Control occurs, the Employee’s termination of employment for
a reason other than a “Covered Termination” as defined in Section 3(b)(i) of
the Plan, (iii) the date two years after a Change in Control, and (iv) if
before a Change in Control occurs, the date twelve (12) months after the
Company provides the Employee with written notice that this Participation
Agreement is being terminated by the Company in its discretion as employer and
Sponsor.

 

                5.             The Employee recognizes and agrees that execution of
this Participation Agreement results in enrollment and participation in the
Plan, agrees to be bound by the terms and conditions of the Plan and this
Participation Agreement, and understands that this Participation Agreement may
not be amended or modified except pursuant to Section 10 of the Plan.  The Employee further agrees that to the
extent there is any conflict or ambiguity between the Plan and the
Participation Agreement, the Plan prevails.

 

                ACCEPTED AND AGREED TO this                day
of                      ,
20    .

 

	
  The “Employee”:

  	
   

  	
  The “Company”:

  
	
   

  	
   

  	
  By

  
	
   

  	
   

  	
  A Duly Authorized Officer

  

 

 

1

SCHEDULE TO EXHIBIT
10.3

 

                SRS Labs, Inc.
entered into Participation Agreement for Select Employees with several
executive officers, each substantially identical to this Exhibit 10.3
except that the Officer and the size of the Change of Control Benefit were as
follows:

 

	
  Officer

  	
   

  	
  Amount
  of Change in Control Benefit

  
	
  Philip
  Wong

  	
   

  	
  1.5 times base amount

  
	
  Jennifer
  A. Drescher

  	
   

  	
  1 times base amount

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