XENOPORT, INC. CHANGE OF CONTROL AGREEMENTChange of Control Agreement |
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Exhibit 10.13
XENOPORT, INC.
CHANGE OF CONTROL AGREEMENT
This Change of Control Agreement (the "AGREEMENT") is made and entered
into by and between _________________ (the "EXECUTIVE") and XenoPort, Inc. a
Delaware corporation (the "COMPANY"), effective as of April 1, 2002.
RECITALS
It is expected that the Company from time to time may consider the
possibility of an acquisition by another company or other change of control. The
Board of Directors of the Company (the "BOARD") recognizes that such
consideration can be a distraction to the Executive and can cause the Executive
to consider alternative employment opportunities. The Board has determined that
it is in the best interests of the Company and its stockholders to assure that
the Company will have the continued dedication and objectivity of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control (as
defined below) of the Company.
The Board believes that it is in the best interests of the Company and its
stockholders to provide the Executive with an incentive to continue his
employment and to motivate the Executive to maximize the value of the Company
upon a Change of Control for the benefit of its stockholders.
Certain capitalized terms used in the Agreement are defined in Section 4
below.
The parties hereto agree as follows:
1. TERM OF AGREEMENT. This Agreement shall terminate upon the date that all
obligations of the parties hereto with respect to this Agreement have been
satisfied.
2. AT-WILL EMPLOYMENT. The Company and the Executive acknowledge that the
Executive's employment is and shall continue to be at-will. If the Executive's
employment terminates for any reason, including (without limitation) any
termination prior to a Change of Control, the Executive shall not be entitled to
any payments, benefits, damages, awards or compensation other than as provided
by this Agreement, or as may otherwise be available in accordance with the
Company's established written Executive plans or pursuant to other written
agreements with the Company.
3. TERMINATION FOLLOWING A CHANGE OF CONTROL.
(a) TERMINATION WITHOUT CAUSE OR VOLUNTARY TERMINATION FOR GOOD REASON. In
the event that a Change of Control (as defined below) of the Company occurs, and
during the period beginning on the closing date of the transaction giving rise
to such Change of Control and ending twelve (12) months after such closing date,
the Executive's employment with the Company (or the successor entity in such
Change of Control transaction) is either (1) terminated by the Company (or its
successor entity) without Cause (as defined below) or (2) terminated by the
Executive for Good Reason (as defined below), then the Executive shall be
entitled to receive Termination Benefits (as defined below).
1.
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(b) CONSTRUCTIVE TERMINATION. In the event that a Change of Control (as
defined below) of the Company occurs, and during the period beginning on the
closing date of the transaction giving rise to such Change of Control and ending
twelve (12) months after such closing date, the Executive's employment with the
Company (or the successor entity in such Change of Control transaction) is
Constructively Terminated (as defined below) by the Executive, then the
Executive shall be entitled to receive Termination Benefits (as defined below).
Notwithstanding the foregoing, the Executive shall not be entitled to the
Termination Benefits solely by reason of this Section 3(b) if the Executive
resigns his employment prior to the date six (6) months after the closing of the
transaction giving rise to such Change of Control.
4. DEFINITION OF TERMS. The following terms referred to in this Agreement shall
have the following meanings:
"CAUSE" shall mean either (i) any act of personal dishonesty taken by the
Executive in connection with his responsibilities as an Executive and intended
to result in substantial personal enrichment of the Executive, (ii) the
conviction of a felony, (iii) a willful act by the Executive which constitutes
gross misconduct and which is injurious to the Company, or (iv) following
delivery to the Executive of a written demand for performance from the Company
which describes the basis for the Company's belief that the Executive has not
substantially performed his duties, continued violations by the Executive of the
Executive's obligations to the Company which are demonstrably willful and
deliberate on the Executive's part.
"CHANGE OF CONTROL" means the completion by the Company of a
reorganization, merger, consolidation, in each case with respect to which
persons who were the stockholders of the Company immediately prior to such
reorganization, merger or consolidation would not immediately thereafter own
more than 50% of, respectively, the capital stock and the combined voting power
entitled to vote generally in the election of directors of the reorganized,
merged or consolidated corporation's then-outstanding votin






