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Exhibit
10.10
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Name
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Title
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Percentage of
Base
Salary |
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Number of Months
for COBRA |
| Colin Broom M.D. |
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Vice
President, Chief Scientific Officer |
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100% |
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12 months |
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| Thomas F.
Doyle |
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Vice
President, General Counsel and Secretary |
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150% |
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18 months |
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| Vincent J.
Milano |
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Vice
President, Chief Financial Officer and Treasurer |
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150% |
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18 months |
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| Daniel
Soland |
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Vice
President, Chief Commercial Officer |
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100% |
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12 months |
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| Robert
Pietrusko |
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Vice
President, Global Regulatory Affairs and Quality |
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100% |
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12 months |
CHANGE OF CONTROL
AGREEMENT
THIS CHANGE OF CONTROL
AGREEMENT (the “ Agreement ”), is made on this
day of
,
, by and between VIROPHARMA INCORPORATED (the “
Company ”) and (the “ Employee
”).
WHEREAS, the Employee serves
as an employee of the Company; and
WHEREAS, the Company and the
Employee desire to establish certain protections for the Employee
in the event of Employee’s termination of employment under
the circumstances described herein.
NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and
promises contained herein, and intending to be bound hereby, the
parties agree as follows:
SECTION 1 Definitions
. As used herein:
1.1. “ Base
Salary ” means, as of any given date, the annual base
rate of salary payable to the Employee by the Company, as then in
effect; provided, however, that in the case of a resignation
by the Employee for the Good Reason described in
Section 1.7.4, “Base Salary” will mean the annual
base rate of salary payable to the Employee by the Company, as in
effect immediately prior to the reduction giving rise to the Good
Reason.
1.2. “ Board
” means the Board of Directors of the Company.
1.3. “ Cause
” means fraud, embezzlement, or any other serious criminal
conduct that adversely affects the Company committed intentionally
by the Employee in connection with Employee’s employment or
the performance of Employee’s duties as an officer or
director of the Company or the Employee’s conviction of, or
plea of guilty or nolo contendere to, any felony.
1.4. “ Change of
Control ” means the happening of an event, which shall be
deemed to have occurred upon the earliest to occur of the following
events:
1.4.1. the date the
stockholders of the Company (or the Board, if stockholder action is
not required) approve a plan or other arrangement pursuant to which
the Company will be dissolved or liquidated;
1.4.2. the date the
stockholders of the Company (or the Board, if stockholder action is
not required) approve a definitive agreement to sell or otherwise
dispose of all or substantially all of the assets of the
Company;
1.4.3. the date the
stockholders of the Company (or the Board, if stockholder action is
not required) and the stockholders of the other constituent
corporations (or their respective boards of directors, if and to
the extent that stockholder action is not required) have approved a
definitive agreement to merge or consolidate the Company with or
into another corporation, other than, in either case, a merger or
consolidation of the Company in which holders of shares of the
Company’s voting capital stock immediately prior to the
merger or consolidation will have more than 50% of the ownership of
voting capital stock of the surviving corporation immediately after
the merger or consolidation (on a fully diluted basis), which
voting capital stock is to be held in the same proportion (on a
fully diluted basis) as such holders’ ownership of voting
capital stock of the Company immediately before the merger or
consolidation;
1.4.4. the date any entity,
person or group (within the meaning of Section 13(d)(3) or
Section 14(d)(2) of the Exchange Act), other than (i) the
Company, or (ii) any of its subsidiaries, or (iii) any
employee benefit plan (or related trust) sponsored or maintained by
the Company or any of its subsidiaries, or (iv) any affiliate
(as such term is defined in Rule 405 promulgated under the
Securities Act) of any of the foregoing, shall have acquired
beneficial ownership of, or shall have acquired voting control
over, 50% or more of the outstanding shares of the Company’s
voting capital stock (on a fully diluted basis), unless the
transaction pursuant to which such person, entity or group acquired
such beneficial ownership or control (i) resulted from the
original issuance by the Company of shares of its voting capital
stock, (ii) was approved by at least a majority of Directors
who were either members of the Board on the date that this
Agreement was originally adopted by the Board or members of the
Board for at least twelve (12) months before the date of such
approval and (iii) does not otherwise constitute a Change of
Control pursuant to Section 1.4.3 of this
Agreement;
1.4.5. the date the Board
determines (in its sole discretion) that based on then-currently
available information, the events described in Section 1.4.4
are reasonably likely to occur; or
1.4.6. the first day after
the date of this Agreement when members of the Board (each a
“Director”) are elected such that there is a change in
the composition of the Board such that a majority of Directors have
been members of the Board for less than twelve (12) months,
unless the nomination for election of each new Director who was not
a Director at the beginning of such twelve (12) month period
was approved by a vote of at least sixty percent (60%) of the
Directors then still in office who were Directors at the beginning
of such period;
provided, however, for purposes
of determining the precise date of any Change of Control, an event
described above will be deemed to have occurred on the date on
which the last condition required for the consummation of that
event is fulfilled or otherwise completed.
1.5. “ Code
” means Internal Revenue Code of 1986, as amended.
1.6. “
Disability ” means the Employee’s inability, by
reason of any physical or mental impairment, to substantially
perform Employee’s regular duties as contemplated by this
Agreement, as determined by the Board in its sole discretion (after
affording the Employee the opportunity to present Employee’s
case), which inability is reasonably contemplated to continue for
at least one year from its commencement and at least 90 days from
the date of such determination.
1.7. “ Good
Reason ” means, without the Employee’s prior
written consent, any of the following:
1.7.1. a change in the
Employee’s role such that his or her authority, duties or
responsibilities are not substantially equivalent to the
Employee’s authority, duties or responsibilities in effect
immediately prior to such change;
1.7.2. the location of the
facility at which Employee is required to perform his or her duties
is more than 50 miles from Exton, Pennsylvania, unless such new
location does not increase the Employee’s commuting
time;
1.7.3. a reduction of five
percent (5%) or more in either of the Employee’s Base
Salary or the amount of the Employee’s Target
Bonus;
1.7.4. the Company’s
failure to pay or make available any material payment or benefit
due under this Agreement or any other material breach by the
Company of this Agreement.
However, the foregoing events or
conditions will constitute Good Reason only if (A) such event
or condition occurs during the period commencing on the date of a
Change of Control and continuing for twelve consecutive months
thereafter and (B) the Employee provides the Company with
written objection to the event or condition within 60 days
following the occurrence thereof, the Company does not reverse or
otherwise cure the event or condition within 30 days of receiving
that written objection and the Employee resigns Employee’s
employment within 90 days following the expiration of that cure
period.
1.8. “ Release
” means a release substantially identical to the one attached
hereto as Exhibit A.
1.9. “ Target
Bonus ” means, with respect to any year, the target
amount of the annual bonus that would be payable to the Employee
with respect to that year, whether under an employment or incentive
agreement, under any bonus plan or policy of the Company or
otherwise, assuming that all applicable performance goals are met
and conditions to the payment of such bonus are
satisfied.
SECTION 2 Certain Terminations
Following a Change of Control . If the Employee’s
employment with the Company ceases within the twelve
(12) month period following the date of a Change of Control as
a result of a termination by the Company without Cause, a
resignation by the Employee for Good Reason or due to
Employee’s death or Disability, then subject to
Section 4 and Section 5:
2.1 the Company will make a
lump sum cash payment to the Employee of all accrued but unpaid
compensation through the date of such termination;
2.2 the Company will make a
lump sum cash payment to the Employee equal to % of the
Employee’s Base Salary as in effect on such date (without
taking into effect any reduction described in Section 1.7.3
above); and
2.3 for a period of
months commencing from the date of the Employee’s termination
of employment, the Company will waive all applicable premiums
otherwise due for any group health continuation coverage elected by
the Employee or Employee’s spouse or eligible dependents
under COBRA (29 U.S.C. §§ 1161-1169) to the extent the
Company would have paid such premiums for Employee during
Employee’s term of employment with the Company;
provided, however, that if the
Company’s obligation to make the payments provided for in
clause 2.1 above arises due to the Employee’s death or
Disability, the cash payments described in clause 2.1 will be
offset by the amount of benefits paid to the Employee (or
Employee’s representative(s), heirs, estate or beneficiaries)
pursuant to the life insurance or disability plans, policies or
arrangements of the Company by virtue of Employee’s death or
Disability (including, for this purpose, only that portion of such
life insurance or disability benefits funded by the Company or by
premium payments made by the Company). The payments and benefits
described in this section are in lieu of (and not in addition to)
any other severance plan, fund, agreement or other arrangement
maintained by the Company.
SECTION 3 Parachute Payments .
Payments under Section 2 shall be made without regard to
whether the deductibility of such payments (or any other payments)
would be limited or precluded by Section 280G of the Internal
Revenue Code of 1986 (the “Code”) and without regard to
whether such payments would subject Employee to the federal excise
tax levied on certain “excess parachute payments” under
Section 4999 of the Code; provided, however, that if
the Total After-Tax Payments (as defined below) would be increased
by limitation or elimination of any amount paya
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