Exhibit 10.55
EXECUTIVE CHANGE IN CONTROL
RETENTION AGREEMENT
THIS AGREEMENT by and between THERMO FISHER
SCIENTIFIC INC., a Delaware corporation (the
“Company”), and _____ (the “Executive”) is
made as of _______, 2009 (the
“Effective Date”).
WHEREAS, the Company recognizes
that, as is the case with many publicly-held corporations, the
possibility of a change in control of the Company exists and that
such possibility, and the uncertainty and questions which it may
raise among key personnel, may result in the departure or
distraction of key personnel to the detriment of the Company and
its stockholders; and
WHEREAS, the Board of Directors of
the Company (the “Board”) has determined that
appropriate steps should be taken to reinforce and encourage the
continued employment and dedication of the Company's key personnel
without distraction from the possibility of a change in control of
the Company and related events and circumstances;
NOW, THEREFORE, as an inducement
for and in consideration of the Executive remaining in its employ,
the Company agrees that the Executive shall receive the severance
benefits set forth in this Agreement in the event the Executive's
employment with the Company is terminated under the circumstances
described below subsequent to a Change in Control Date (as defined
in Section 1.2).
As used herein, the following terms
shall have the following respective meanings:
1.1 “
Change in Control ” means an event or occurrence set
forth in any one or more of subsections (a) through (d) below
(including an event or occurrence that constitutes a Change in
Control under one of such subsections but is specifically exempted
from another such subsection):
(a) the
acquisition by an 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”) of beneficial ownership of any capital stock
of the Company if, after such acquisition, such Person beneficially
owns (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) 50% or more of either (i) the then-outstanding shares
of common stock of the Company (the “Outstanding Company
Common Stock”) or (ii) the combined voting power of the
then-outstanding 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 subsection (a), the following
acquisitions shall not constitute a Change in Control: (i) any
acquisition by the Company, (ii) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the
Company or any corporation controlled by the Company, or (iii) any
acquisition by any corporation pursuant to a transaction which
complies with clauses (i) and (ii) of subsection (c) of this
Section 1.1; or
(b) such
time as the Continuing Directors (as defined below) do not
constitute a majority of the Board (or, if applicable, the Board of
Directors of a successor corporation to the Company), where the
term “Continuing Director” means at any date a member
of the Board (i) who was a member of the Board on the date of the
execution of this Agreement or (ii) who was nominated or elected
subsequent to such date by at least a majority of the directors who
were Continuing Directors at the time of such nomination or
election or whose election to the Board was recommended or endorsed
by at least a majority of the directors who were Continuing
Directors at the time of such nomination or election;
provided , however , that there shall be excluded
from this clause (ii) any individual whose initial assumption of
office occurred 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; or
(c) the
consummation of a merger, consolidation, reorganization,
recapitalization or statutory share exchange involving the Company
or a sale or other disposition of all or substantially all of the
assets of the Company in one or a series of transactions (a
“Business Combination”), unless, immediately following
such Business Combination, each of the following two conditions is
satisfied: (i) all or substantially all of the individuals and
entities who were the beneficial owners of the Outstanding Company
Common Stock and Outstanding Company Voting Securities immediately
prior to such Business Combination beneficially own, directly or
indirectly, more than 50% of the then-outstanding shares of common
stock and the combined voting power of the then-outstanding
securities entitled to vote generally in the election of directors,
respectively, of the resulting or acquiring corporation in such
Business Combination (which shall include, without limitation, a
corporation which as a result of such transaction owns the Company
or substantially all of the Company's assets either directly or
through one or more subsidiaries) (such resulting or acquiring
corporation is referred to herein as the “Acquiring
Corporation”) in substantially the same proportions as their
ownership, immediately prior to such Business Combination, of the
Outstanding Company Common Stock and Outstanding Company Voting
Securities, respectively; and (ii) no Person (excluding the
Acquiring Corporation or any employee benefit plan (or related
trust) maintained or sponsored by the Company or by the Acquiring
Corporation) beneficially owns, directly or indirectly, 50% or more
of the then outstanding shares of common stock of the Acquiring
Corporation, or of the combined voting power of the
then-outstanding securities of such corporation entitled to vote
generally in the election of directors; or
(d) approval
by the stockholders of the Company of a complete liquidation or
dissolution of the Company.
1.2
“ Change in Control Date ” means the first date
during the Term (as defined in Section 2) on which a Change in
Control occurs. Anything in this Agreement to the
contrary notwithstanding, if (a) a Change in Control occurs, (b)
the Executive's employment with the Company is terminated prior to
the date on which the Change in Control occurs, and (c) it is
reasonably demonstrated by the Executive that such termination of
employment (i) was at the request of a third party who has taken
steps reasonably calculated to effect a Change in Control or (ii)
otherwise arose in connection with or in anticipation of a Change
in Control, then for all
purposes of this Agreement the
“Change in Control Date” shall mean the date
immediately prior to the date of such termination of
employment.
1.3 “
Cause ” means the Executive's willful engagement in
illegal conduct or gross misconduct after the Change in Control
Date which is materially and demonstrably injurious to the
Company. For purposes of this Section 1.3, no act or
failure to act by the Executive shall be considered
“willful” unless it is done, or omitted to be done, in
bad faith and without reasonable belief that the Executive's action
or omission was in the best interests of the Company.
1.4 “
Good Reason ” means the occurrence, without the
Executive's written consent, of any of the events or circumstances
set forth in clauses (a) through (g)
below. Notwithstanding the occurrence of any such event
or circumstance, such occurrence shall not be deemed to constitute
Good Reason if, prior to the Date of Termination specified in the
Notice of Termination (each as defined in Section 3.2(a)) given by
the Executive in respect thereof, such event or circumstance has
been fully corrected and the Executive has been reasonably
compensated for any losses or damages resulting therefrom (provided
that such right of correction by the Company shall only apply to
the first Notice of Termination for Good Reason given by the
Executive).
(a) the
assignment to the Executive of duties inconsistent in any material
respect with the Executive's position (including status, offices,
titles and reporting requirements), authority or responsibilities
in effect immediately prior to the earliest to occur of (i) the
Change in Control Date, (ii) the date of the execution by the
Company of the initial written agreement or instrument providing
for the Change in Control or (iii) the date of the adoption by the
Board of Directors of a resolution providing for the Change in
Control (with the earliest to occur of such dates referred to
herein as the “Measurement Date”) or a material
diminution in such position, authority or
responsibilities;
(b) a
reduction in the Executive's annual base salary as in effect on the
Measurement Date or as the same was or may be increased thereafter
from time to time;
(c) the
failure by the Company to (i) continue in effect any material
compensation or benefit plan or program, including without
limitation any life insurance, medical, health and accident or
disability plan and any vacation or automobile program or policy,
in which the Executive participates or which is applicable to the
Executive immediately prior to the Measurement Date (a
“Benefit Plan”), unless an equitable arrangement
(embodied in an ongoing substitute or alternative plan) has been
made with respect to such plan or program, (ii) continue the
Executive's participation therein (or in such substitute or
alternative plan) on a basis not materially less favorable than the
basis existing immediately prior to the Measurement Date (iii)
award cash bonuses to the Executive in amounts and in a manner
substantially consistent with past practice in light of the
Company's financial performance or (iv) continue to provide any
material fringe benefit enjoyed by Executive immediately prior to
the Measurement Date;
(d) a
change by the Company in the location at which the Executive
performs the Executive’s principal duties for the Company to
a new location that is both (i)
outside a radius of 50 miles from
the Executive's principal residence immediately prior to the
Measurement Date and (ii) more than 30 miles from the location at
which the Executive performed the Executive’s principal
duties for the Company immediately prior to the Measurement Date;
or a requirement by the Company that the Executive travel on
Company business to a substantially greater extent than required
immediately prior to the Measurement Date;
(e) the
failure of the Company to obtain the agreement from any successor
to the Company to assume and agree to perform this Agreement, as
required by Section 6.1;
(f) a
purported termination of the Executive's employment which is not
effected pursuant to a Notice of Termination satisfying the
requirements of Section 3.2(a); or
(g) any
failure of the Company to pay or provide to the Executive any
portion of the Executive's compensation or benefits due under any
Benefit Plan within seven days of the date such compensation or
benefits are due, or any material breach by the Company of this
Agreement or any employment agreement with the
Executive.
The Executive's right to
terminate the Executive’s employment for Good Reason shall
not be affected by the Executive’s incapacity due to physical
or mental illness.
1.5 “
Disability ” means the Executive's inability, due to a
physical or mental disability, for a period of 90 days, whether or
not consecutive, during any 360-day period to perform the
Executive’s duties on behalf of the Company, with or without
reasonable accommodation as that term is defined under state or
federal law. A determination of disability shall be made
by a physician satisfactory to both the Executive and the Company,
provided that if the Executive and the Company
do not agree on a physician, the Executive and the Company shall
each select a physician and these two together shall select a third
physician, whose determination as to disability shall be binding on
all parties.
2.
Term of Agreement . This
Agreement, and all rights and obligations of the parties hereunder,
shall take effect upon the Effective Date and shall expire upon the
first to occur of (a) the expiration of the Term (as defined below)
if a Change in Control has not occurred during the Term, (b) the
date 18 months after the Change in Control Date, if the Executive
is still employed by the Company as of such later date, or (c) the
fulfillment by the Company of all of its obligations under Sections
4 and 5.2 if the Executive's employment with the Company terminates
within 18 months following the Change in Control
Date. “Term” shall mean the period
commencing as of the Effective Date and continuing in effect
through May 15, 2013.
3.
Employment Status; Termination Following Change in Control
.
3.1
Not an Employment Contract . The Executive
acknowledges that this Agreement does not constitute a contract of
employment or impose on the Company any obligation to retain the
Executive as an employee and that this Agreement does not prevent
the Executive from terminating employment at any
time. If the Executive's employment with the
Company terminates for any reason
and subsequently a Change in Control shall occur, the Executive
shall not be entitled to any benefits hereunder except as otherwise
provided pursuant to Section 1.2.
3.2
Termination of Employment .
(a) If
the Change in Control Date occurs during the Term, any termination
of the Executive's employment by the Company or by the Executive
within 18 months following the Change in Control Date (other than
due to the death of the Executive) shall be communicated by a
written notice to the other party hereto (the “Notice of
Termination”), given in accordance with Section
7. Any Notice of Termination shall: (i) indicate the
specific termination provision (if any) of this Agreement relied
upon by the party giving such notice, (ii) to the extent
applicable, set 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 (iii)
specify the Date of Termination (as defined below). The
effective date of an employment termination (the “Date of
Termination”) shall be the close of business on the date
specified in the Notice of Termination (which date may not be less
than 15 days or more than 120 days after the date of delivery of
such Notice of Termination), in the case of a termination other
than one due to the Executive's death, or the date of the
Executive's death, as the case may be. In the event the
Company fails to satisfy the requirements of Section 3.2(a)
regarding a Notice of Termination, the purported termination of the
Executive’s employment pursuant to such Notice of Termination
shall not be effective for purposes of this Agreement.
(b) The
failure by the Executive or the Company to set forth in the Notice
of Termination any fact or circumstance which 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 any such
fact or circumstance in enforcing the Executive's or the Company's
rights hereunder.
(c) Any
Notice of Termination for Cause given by the Company must be given
within 90 days of the occurrence of the event(s) or circumstance(s)
which constitute(s) Cause. Prior to any Notice of
Termination for Cause being given (and prior to any termination for
Cause being effective), the Executive shall be entitled to a
hearing before the Board at which the Executive may, at the
Executive’s election, be represented by counsel and at which
the Executive shall have a reasonable opportunity to be
heard. Such hearing shall be held on not less than 15
days prior written notice to the Executive stating the
Board’s intention to terminate the Executive for Cause and
stating in detail the particular event(s) or circumstance(s) which
the Board believes constitutes Cause for termination.