Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers.
On
Pursuant to an Executive Employment Agreement, which is to be effective
· A base salary of
· Sign-on bonus of
· Eligibility to receive an annual discretionary bonus of up to seventy-five
percent (75%) of
· Subject to the approval of the Board and pursuant to the Company's Equity
Compensation Plan, an equity grant of 200,000 restricted stock unit ("RSU"), which shall vest into common stock of the Company over three years, subject toDr. Marques remaining employed and in good standing, one-third vesting 12 months after the grant date, and the remainder vesting in equal tranches quarterly for thereinafter;
· Subject to the approval of the Board and pursuant to the Company's Equity
Compensation Plan, an option to purchase 200,000 shares ("Options") of the Company's common stock, which shall vest over three years, subject to Dr. Marques remaining employed and in good standing, one-third vesting 12 months after the grant date, and the remainder vesting in equal tranches quarterly thereinafter;
· Eligibility to participate in all employee benefit programs for which Dr.
Marques is eligible under the terms and conditions of the benefit plans, including, at minimum, medical & dental forDr. Marques and his spouse and dependents and paid time off including twenty-one (21) days of paid vacation as well as other benefits; and
· Severance benefits in the event that the Company terminates
employment for any reason other than for "cause", as defined in the Executive Employment Agreement, equal to the equivalent of twelve (12) months of Dr. Marques's base salary in effect as of the date ofDr. Marques's employment termination, subject to standard payroll deductions and withholdings and subject toDr. Marques signing, not revoking, and complying with a separation agreement and release of claims in a form reasonably satisfactory to the Company.
The Executive Employment Agreement defines "cause" as: (a) commission of any felony or crime involving dishonesty or moral turpitude (whether or not a felony); (b) any action by Executive involving fraud, breach of the duty of loyalty, malfeasance, willful misconduct, or negligence, (ii) the failure or refusal by Executive u to perform any material duties hereunder or to follow any lawful and reasonable direction of the Company; (c) intentional damage to any property of the Company; (d) chronic neglect or absenteeism in the performance of Executive's duties; (e) willful misconduct, or other material violation of Company policy or code of conduct that causes an adverse effect upon the Company; (f) breach of any written agreement with the Company (including the Employment Agreement); or (g) any action that in the reasonable belief of the Company shall or potentially shall subject the Company to negative adverse publicity or effects.
The foregoing description of the Executive Employment Agreement is qualified in
its entirety by reference to the text of such letter, which will be filed as an
exhibit to the Company's Annual Report on Form 10-K for the fiscal year ended
In accordance with the provisions of the Executive Employment Agreement, on
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