Exhibit 10.93
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
Originally Effective March 12, 2003
First Amendment Effective January 1, 2004
Amendment and Restatement Effective May 17, 2006
Second Amendment and Restatement Effective March 1, 2007
THIS EMPLOYMENT AGREEMENT (the
“Agreement”) is made by and between Gen-Probe
Incorporated, a Delaware corporation with offices at 10210 Genetic
Center Drive, San Diego, California 92121
(“Gen-Probe”), and Henry L. Nordhoff (the
“Executive”).
The parties hereto agree as
follows:
| 1. |
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Amendment and Restatement of Employment Agreement
. The Employment Agreement between Gen-Probe and Executive
dated March 12, 2003, as previously amended as of
January 1, 2004 and May 17, 2006, is hereby amended and
restated as set forth herein as of March 1, 2007 (the
“Amendment Effective Date”). |
| 2. |
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Term of Employment . This Agreement shall be
immediately effective. This Agreement, and Executive’s
employment hereunder, shall be for a term of three years from
May 17, 2006, provided, however, that Gen-Probe’s
obligations pursuant to Sections 8(c) and 9 of this Agreement 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 7 and 8 of this Agreement. |
| 3. |
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Position and Duties . The Executive shall serve
as President and Chief Executive Officer 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 duties hereunder, provided
that the Executive may continue to serve on the boards of directors
and boards of trustees on which he served on March 12, 2003.
Any outside board of director positions accepted by the Executive
after March 12, 2003 will be subject to approval by the Board of
Directors of Gen-Probe. |
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| 4. |
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Salary, Bonus and Benefits . |
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(a) |
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Salary . During the period of Executive’s
employment, Gen-Probe shall pay Executive an annual base salary of
$645,000.00. This base salary may be increased by the Compensation
Committee of 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 Compensation
Committee. The base salary shall not be decreased during the term
of this Agreement. |
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(b) |
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Bonus . In addition, at the discretion of the
Compensation Committee, the Executive will be awarded incentive
compensation, in the form of a cash bonus for each fiscal year
during his employment, based upon performance. Executive’s
target bonus shall be seventy-five percent (75%) of his base
salary; however, the actual bonus shall be set at the discretion of
the Compensation Committee. |
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(c) |
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Stock Options/Restricted Stock . In addition,
Executive may be awarded stock options, restricted stock awards and
other equity compensation awards by Gen-Probe’s Compensation
Committee, with such terms and conditions as the Compensation
Committee may determine in its sole discretion. |
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(d) |
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Life Insurance . Gen-Probe will obtain and pay
for a term life insurance policy providing for payment of
$1,000,000 in benefits to the Executive’s designated
beneficiaries should the Executive die during the term of this
Agreement. (This policy shall be in addition to any coverage
provide by Gen-Probe’s group life insurance plan pursuant to
subsection (g), below.) |
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(e) |
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Disability Insurance . Gen-Probe will obtain and
pay for a long-term disability insurance policy providing for
payment at a rate of no less than $200,000 per annum to Executive
should Executive suffer a long-term disability during the term of
this Agreement. (This policy shall be in addition to any coverage
provide by Gen-Probe’s group disability insurance plan
pursuant to subsection (g), below.) |
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(f) |
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AD& D Insurance . Gen-Probe will obtain and
pay for an AD&D insurance policy providing for a benefit to
Executive (or his beneficiaries) of $400,000 (airplane) or
$200,000 (automobile or walking) should Executive suffer accidental
death or accidental disability during the term of this
Agreement. |
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(g) |
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Other 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), as adopted and maintained
by Gen-Probe. The Executive may receive such other and additional
benefits as the Compensation Committee or Board may determine from
time to time in its sole discretion. |
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Expense Reimbursement . The Executive shall be
entitled to receive prompt reimbursement for all reasonable and
customary expenses incurred by him 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. |
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Indemnification . Gen-Probe shall indemnify the
Executive to the maximum extent permitted by law, by the by-laws of
Gen-Probe and by the Indemnification Agreement dated
August 19, 2002, between the Executive and Gen-Probe, as it
may be amended (the “Indemnification Agreement”), if
the Executive is made a party, or threatened to be made |
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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 him in connection with such action, suit or
proceeding.
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Termination . The Executive may terminate his
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 termination, such notice
shall specifically and expressly state the grounds which he
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 8 below, to the extent
applicable, shall immediately cease, except that the Executive will
be entitled, through the date of termination, to payment of his
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) the removal of the Executive from his position
as the Chief Executive Officer of Gen-Probe; (ii) a
substantial and material diminution in the Executive’s duties
and responsibilities hereunder; (iii) a reduction of the
Executive’s base salary or target bonus percentage;
(iv) 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; (v) the failure of Gen-Probe to obtain a
satisfactory agreement from any successor to Gen-Probe to assume
and agree to perform this Agreement; or (vi) a material breach
by Gen-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 rights to terminate
this Agreement for Good Reason under this section within six
(6) months 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 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 duties on a continuous
basis within 30 days of such notice; (v) the death of the
Executive; or |
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(vi) the
Executive becoming disabled such that he is not able to perform his
usual duties for Gen-Probe for a period in excess of six
(6) consecutive calendar months.
| 8. |
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Severance Benefits in Certain Events . If
Gen-Probe terminates the Executive’s employment for reasons
other than Cause, or if the Executive terminates his employment for
Good Reason, the Executive shall be entitled to receive the
following severance benefits: |
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(a) |
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Salary . 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 commencing the
first day of the first month following termination and continuing
for an aggregate period of twenty-four (24) months (the
“Salary Continuation Period”); provided, however, that
if termination under this Section 8 occurs in connection with
a Change in Control, then the Executive shall receive a single lump
sum payment, payable within 10 days of termination, equal to
thirty-six (36) months’ base salary. For purposes of
this Agreement, “Change in Control” shall have the
meaning set forth on Attachment “1” to this Agreement
(hereby incorporated by reference). For purposes of this Agreement,
a termination shall be “in connection with” a Change in
Control if termination occurs within the period six (6) months
prior to or eighteen (18) months after a Change in
Control. |
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Notwithstanding anything to the contrary set forth herein, the
provisions of this paragraph shall control if Executive’s
employment terminates within the period six (6) months prior
to a Change in Control. Any lump sum payment contemplated by this
Section 8(a) shall be made within 10 days of the Change in
Control and shall be in lieu of, and not in addition to, payments
that would otherwise be made to Executive over the remainder of the
Salary Continuation Period. Additionally, any payments that would
otherwise be made to Executive over the remaining portion of the
Salary Continuation Period following the Change in Control shall
accelerate as of the date of the Change in Control only if such
Change in Control is a change in the ownership or effective control
of the Company, or in the ownership of a substantial portion of the
assets of the Company, in each case for purposes of
Section 409A(a)(2)(A)(v) of the Internal Revenue Code and the
regulations and other guidance thereunder. Any lump sum payment
contemplated by this Section 8(a) shall be reduced by an amount
equal to the aggregate Salary Continuation Period payments already
made to Executive, if any. It is the intent of this paragraph to
structure the Executive’s severance benefit payments so that
any lump sum payment of the Executive’s severance that may
occur in connection with a Change in Control shall not result in
the payments being subject to Section 409A(a)(1) of the
Internal Revenue Code. |
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(b) |
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Bonus . The Executive shall be entitled to
receive a pro rata portion of the target bonus provided in Section
4(b) for the year in which his employment terminates. The Executive
shall also be entitled to receive, in addition to the salary
payment described in Section 8(a), above, an amount |
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