THIS EMPLOYMENT
AGREEMENT (the “Agreement”) is made as of
, 200 (the “Effective
Date”) by and between Gen-Probe Incorporated, a Delaware
corporation with offices at 10210 Genetic Center Drive, San Diego,
California 92121 (“Gen-Probe”), and
(the “Executive”).
The parties hereto
agree as follows:
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1.
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Term of Employment.
This Agreement shall be
immediately effective. This Agreement, and Executive’s
employment hereunder, shall be for an indefinite term. At any time
during the term of this Agreement, either party may terminate this
Agreement, and Executive’s employment, in accordance with the
provision of Sections 6 and 7 of this Agreement.
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2.
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Position and Duties.
The Executive shall
serve as [Title] of Gen-Probe, and shall have commensurate
responsibilities and authority. The Board of Directors may from
time to time particularly specify the Executive’s duties and
authority. The Executive shall not engage in or perform duties for
any other persons or entities that interfere with the performance
of his or her duties hereunder. Any outside board of director
positions held by the Executive will be subject to approval by the
Board of Directors of Gen-Probe.
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3.
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Salary, Bonus and
Benefits.
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(a)
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Salary . During the period of the
Executive’s employment, Gen-Probe shall pay Executive an
annual base salary of $
. This base salary may be adjusted annually by the Board, subject
to the terms of this Agreement and consistent with the
Executive’s performance and Gen-Probe’s policy
regarding adjustments in officer compensation established from time
to time by the Board.
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(b)
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Bonus . In addition, commencing with the
200 fiscal year, the
Executive may be awarded incentive compensation at the
Board’s discretion, in the form of a cash bonus for each
fiscal year during the Executive’s employment, based upon
performance.
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(c)
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Benefits
. The Executive shall
be entitled to participate in the employee benefit programs
(including but not limited to medical, dental, life and disability
insurance, 401K retirement plan, and vacation program), which may
be adopted and maintained by Gen-Probe. The Executive may receive
such other and additional benefits as the Board may determine from
time to time in its sole discretion.
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4.
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Expense
Reimbursement. The Executive shall be entitled to
receive prompt reimbursement for all reasonable and customary
expenses incurred by the Executive in performing services
hereunder, including all expenses of travel and living expenses
while away from home on business or at the request of, and in the
service of Gen-Probe; provided, that such expenses are incurred and
accounted for in accordance with the policies and procedures
established by Gen-Probe. To the extent that reimbursements made
pursuant to this Agreement are subject to the provisions of
Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”), (a) the reimbursement shall be made
in the no later than December 31 of the calendar year
following the year in which the expense was incurred, (b) the
amount of expenses reimbursed in one year shall not affect the
amount eligible for reimbursement in any subsequent year, and
(c) the Executive’s right to reimbursement under this
Section 4 will not be subject to liquidation or exchange for
another benefit.
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5.
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Indemnification.
Gen-Probe shall
indemnify the Executive to the maximum extent permitted by law and
by the by-laws of Gen-Probe if the Executive is made a party, or
threatened to be made a party, to any threatened or pending legal
action, suit or proceeding, whether civil, criminal, administrative
or investigative, by reason of the fact that the Executive is or
was an officer, director or employee of Gen-Probe or any subsidiary
or affiliate thereof, in which capacity the Executive is or was
serving at Gen-Probe’s request, against reasonable expenses
(including reasonable attorneys’ fees), judgments, fines and
settlement payments incurred by Executive in connection with such
action, suit or proceeding.
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6.
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Termination.
The Executive may
terminate his or her employment hereunder at any time, with or
without Good Reason (as defined below) upon written notice to
Gen-Probe. If Executive contends that Good Reason exists for his or
her termination, such notice shall specifically and expressly state
the grounds that Executive contends constitute Good Reason.
Gen-Probe may terminate the Executive’s employment hereunder
at any time, subject to the terms of this Agreement, with or
without Cause (as defined below) upon written notice to the
Executive. If this Agreement is terminated, all compensation and
benefits other than severance benefits described in Section 7
below, to the extent applicable, shall immediately cease, except
that the Executive will be entitled, through the date of
termination, to payment of Executive’s salary and benefits
under Gen-Probe benefit programs and plans in accordance with their
terms.
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As used in this Agreement,
“Good Reason” shall mean any of the following events
that are not consented to by the Executive: (i) a substantial
and material diminution in the Executive’s duties and
responsibilities hereunder; (ii) the location of the
Executive’s assignment on behalf of Gen-Probe is moved to a
location more than 30 miles from its present location; (iii) a
reduction of more than ten percent (10%) in the Executive’s
base salary; (iv) the failure of Gen-Probe to obtain a
satisfactory agreement from any other successor to Gen-Probe to
assume and agree to perform this Agreement; or (iv) a material
breach by Gen-
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Probe of its obligations under this Agreement
after notice in writing from the Executive and a reasonable
opportunity for Gen-Probe to cure or substantially mitigate any
material adverse effect of such breach. The Executive’s
consent to any event which would otherwise constitute Good Reason
shall be conclusively presumed if the Executive does not exercise
his or her rights to terminate this Agreement for Good Reason under
this section within ninety (90) days of notice of the
event.
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As used in this Agreement,
“Cause” shall mean any of the following events:
(i) any act of gross or willful misconduct, fraud,
misappropriation, dishonesty, embezzlement or similar conduct on
the part of Executive; (ii) the Executive’s conviction
of a felony or any crime involving moral turpitude (which
conviction, due to the passage of time or otherwise, is not subject
to further appeal); (iii) the Executive’s misuse or
abuse of alcohol, drugs or controlled substances and failure to
seek and comply with appropriate treatment; (iv) willful and
continued failure by the Executive to substantially perform his or
her duties under this Agreement (other than any failure resulting
from disability or from termination by the Executive for Good
Reason) as determined by a majority of the Board after written
demand from the Board of Directors for substantial performance is
delivered to the Executive, and the Executive fails to resume
substantial performance of his or her duties on a continuous basis
within 30 days of such notice; (vi) the death of the
Executive; or (vii) the Executive becoming disabled such that
Executive is not able to perform his or her usual duties for
Gen-Probe for a period in excess of six (6) consecutive
calendar months.
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7.
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Severance Benefits in Certain
Events. If Gen-Probe terminates the
Executive’s employment for reasons other than for Cause, or
if the Executive terminates his employment for Good Reason
(provided that (i) Executive notified Gen-Probe of his or her
intent to resign for Good Reason within 90 days of the initial
existence of the condition giving rise to Good Reason (a
“Good Reason Condition”) and provides Gen-Probe with a
period of 30 days during which it may remedy the Good Reason
Condition, (ii) Gen-Probe did not remedy the Good Reason
Condition during such period, and (iii) Executive terminated
for Good Reason based on the condition specified in the notice, and
such resignation occurs within one year after the initial existence
of such Good Reason Condition), and such termination constitutes a
“separation from service” within the meaning of
Treasury Regulation Section 1.409A-1(h) (a
“Separation from Service”), the Executive shall be
entitled to receive as liquidated damages, the following severance
benefits:
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(i) Unless
the Executive’s termination under this Section 7 occurs
within eighteen (18) months after a Change in Control, the
Executive shall continue to receive his base salary, at the rate in
effect at the time of his termination of employment, in monthly
installments following termination
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and continuing
for an aggregate period of twelve (12) months (the
“Salary Continuation Period”), except that any payments
that would otherwise have been made before the sixt
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