Document:

Letter agreement dated July 3, 2003

 

 
 Exhibit 10.1 
  

	 Mark Hurd
	  	 	  	1700 South Patterson Boulevard
	 Chief Executive Officer
	  	 	  	Dayton, Ohio 45479

  
  
  
  

	July 3, 2003	 	PERSONAL AND CONFIDENTIAL

  
  
 Mr. Eric Berg  
 [Address] 
  
 Dear Eric: 
  
 I am delighted to extend to you an offer of employment with NCR Corporation as Senior Vice President and Chief Administrative Officer. As
you know, this offer is contingent on the approval of NCR’s Board of Directors. In this position, you will report directly to the CEO and be a member of the NCR leadership team. We’ll need to discuss a mutually agreeable start date, but
other details of your offer are as follows.  
  
 Annual Base Salary – Your base salary will be $320,000, commencing as of your effective start date. You will be paid on a bi-weekly pay schedule, one week in arrears. Your paycheck will be automatically deposited
in the bank of your choice via our convenient Easipay plan. 
  
 Sign-On Bonus – You will be extended a $50,000 gross sign-on bonus, paid to you within thirty days of your effective start date. All applicable taxes will be withheld from this award. Your sign-on bonus will not be
treated as compensation for purposes of determining employee pensions and benefits. In the event of voluntary separation within 12 months from the effective start date of your employment, you will be required to reimburse NCR in full for the amount
previously disbursed as your sign-on bonus. 
  
 Incentive
Award – You will be eligible to participate in the Management Incentive Plan for Executive Officers (MIP), which provides year-end incentive awards based on the success of NCR in meeting annual performance objectives. For your
position, the targeted incentive opportunity is 60% of your salary ($192,000) and the maximum award is 120% ($384,000) of your salary. For 2003, the objective for your award is NCR Non-Pension Operating Income after Capital Charge. Your award will
be prorated for 2003 for the number of months in which you are employed. 
  
 Equity Awards – 
 Stock Option Award – You will receive a management stock option
grant for 2003, as of your effective start date, for 10,000 shares of NCR common stock. In addition, you will receive a one-time option grant for 35,000 shares. The grant price of these 

 Eric Berg 
 July 3, 2003

 page 2 
  
  
 options will be determined by the fair market value of the average of the high and low share price of the Company’s
common stock on your first date of employment. These options will be subject to terms and conditions determined by the NCR Board of Directors. Future grants are discretionary and set annually by the Board of Directors. These stock options include a
non-competition provision, have a ten-year term, and vest as follows: 
  
 Initial Vesting Date – 1 year anniversary of start date – 1/3 of the grant 
 Next
Vesting Date – 2 year anniversary of start date – 1/3 of the grant 
 Final Vesting Date – 3 year anniversary
of start date – 1/3 of the grant 
  
 You will be eligible for
future management stock option grants based on market considerations. Again, as I know you appreciate, any actual award will be as finally determined by NCR’s Compensation Committee of the Board of Directors. 
  
 Salomon Smith Barney (SSB) in the U.S. is the record-keeper for NCR’s
option plan, which is administered electronically. Your stock option agreement and a record of your options will be maintained on the SSB website. SSB will contact you shortly after employment to provide you with passwords and information to access
the SSB website. You will need to accept the stock option agreement on-line before you can exercise your options. 
  
 Restricted Stock - You will receive a special restricted stock grant, as of your first date of employment, for 10,000 shares of NCR common stock.
These shares will be set up in a record account in your name with NCR’s Transfer Agent and Stock Registrar (Mellon Bank), and will vest (become transferable) on the third anniversary of your date of employment. The restricted stock will be
subject to other terms and conditions determined by the NCR Board of Directors, including a non-competition provision. 
  
 Incentives in General – For an officer in your position, short- and long-term incentives at NCR currently take the form of the
MIP and stock options. Since these incentives are designed to address the conditions of an ever-changing marketplace, NCR cannot make any definitive representations concerning the continuation of either program or the size of the individual awards.

  
 Vacation – In recognition of your
prior work experience, you will be eligible for four weeks of paid vacation. 
  
 NCR Benefits – On the first day of employment with NCR, you will automatically receive core benefit coverage for yourself. NCR’s core benefit coverage includes: Health Care Coverage
(Cigna PPO Plan), Dental Care Coverage (Cigna Dental PPO Plan), Short-Term and Long-Term Disability Coverage, Life Insurance Coverage, and Accidental Death and Dismemberment Insurance Coverage. 

 Eric Berg 
 July 3, 2003

 page 3 
  
  
  
 You will have the opportunity to design your
own personalized benefit elections through the company’s flexible benefits program. Upon receipt of your signed offer letter and employment paperwork, NCR will establish your payroll record which notifies the NCR Benefits Service Center to send
a Benefits New Hire Package to your home address. You will have thirty (30) days from the date your benefits package is mailed to make benefit elections. You also have this same thirty (30) day period to enroll eligible dependents, whose coverage
will be made retroactive to your date of hire. Open enrollment is traditionally conducted in October each calendar year. At that time, you will have an opportunity to make benefits elections for the following year. 
  
 Additionally, you will be eligible to participate in the NCR Savings Plan
(401(k)) and the NCR Employee Stock Purchase Plan. Information about each program will be provided in the Benefits New Hire Package. 
  
 Retirement – You will participate in the NCR Pension Plan, a qualified pension plan that provides a cash balance benefit equal
to 3% of annual compensation. This pension benefit vests after five years of employment. You will also participate in the NCR Officer Plan, which supplements the qualified pension benefit, by providing that your total retirement from NCR will
provide a career average pension of 1.75% of the total of your base salary and MIP award, times your years of service as an Officer. This plan benefit vests after five years of service. A summary of the plan is enclosed. 
  

	

 Relocation – It is expected that you will move to the Dayton area
shortly after your start date. You will be eligible for relocation benefits under NCR’s Executive Relocation Policy, with the following supplements: 
  

	 	1)	 	Until January 1, 2004, you will market your house in Hudson, and NCR will reimburse up to $3,500 of monthly temporary living costs for your family, until the end of the month in
which your house is sold. If you accept an offer that is less than your investment in the house, NCR will reimburse 50% of the difference between the sale price and your investment, to a maximum total difference of $120,000.

  

	 	2)	 	If your house has not sold by January 1, 2004, you may exercise the buy-out option in the Executive Relocation Plan. If you exercise the buy-out, NCR will reimburse you for any loss
due to the difference between the buy-out price and your investment in the house, to a maximum of $100,000. If your loss exceeds $100,000, NCR will reimburse 50% of the loss that exceeds $100,000. Alternatively, you may continue to market the house
yourself and continue the temporary living reimbursement for up to three additional months, with the ability to exercise the buy-out option during or at the end of that time, with the same loss protection. 

 Eric Berg 
 July 3, 2003

 page 4 
  
  
 Change in Control – You will participate in NCR’s current Change in Control Severance
Plan for Executive Officers. In the event of a qualified Change-In-Control (as defined in this Plan), you will receive three times your base salary and targeted bonus plus immediate vesting of your NCR stock options and restricted stock. A summary
of this plan is enclosed. The plan is currently scheduled to expire on December 31, 2005, unless the NCR Board acts to extend its term for an additional three years. In the past, the Board has routinely extended the plan when it was due to expire.

  
 This offer of employment is contingent upon your agreement to certain
Conditions of Employment as outlined in Attachment A, including the requirement of a negative drug screen. By signing this offer letter, you agree to the Conditions of Employment. 
  
 This letter reflects the entire agreement regarding the terms and conditions of your employment. Accordingly, it supersedes and completely
replaces any prior oral or written communication on this subject. This letter is not an employment contract and should not be construed or interpreted as containing any guarantee of continued employment. The employment relationship at NCR is by
mutual consent (“Employment-At-Will”). This means that managers have the right to terminate their employment at any time and for any reason. Likewise, the Company reserves the right to discontinue your employment with or without cause at
any time and for any reason. Also, this offer is contingent upon completion of full reference checks. 
  
 Eric, we are enthusiastic about the contributions, experience and vision you can bring to NCR. The company is positioned well in our market to be exceedingly successful and I personally would like to extend this
opportunity for you to be a part of my senior management team. 
  
 If you have any
questions concerning the details of the appointment, please feel free to call me. 
  
 Sincerely, 
  
 /s/ Wilbert Buiter 
  
 Wilbert Buiter 
 Senior Vice President, Human Resources 
  
  
  
  
  

	       /s/    Eric
Berg                                       
 
	  	Date        
7/5/03                    
	 Agreed and Accepted
	  	 
	 Eric Berg
	  	 

  
  
 pc:    Wilbert Buiter 
  Julie
Gallagher 

 Eric Berg 
 July 3, 2003

 page 5 
  
  
 ATTACHMENT A 
 CONDITIONS OF EMPLOYMENT 
  
 NCR requires employment candidates to
successfully complete various employment documentation and processes. This offer of employment is conditioned upon your satisfying and agreeing to the criteria which follow: drug screening test, education and employment verification, U.S employment
eligibility, NCR mutual agreement to arbitrate all employment related claims, NCR consent to collection of personal data, and NCR employment agreement. You assume any and all risks associated with terminating any prior or current employment, or
making any financial or personal commitments based upon NCR’s conditional offer. 
  

	1.     Drug	 	Screening Test: 

 This offer of employment is
conditioned upon your taking a urine drug screen test and our receipt of negative results from that test. By accepting this offer and these conditions you are giving NCR permission to release the results to NCR designated officials. 
  

	2.	 	Education and Employment Verification:  

 This offer of employment is conditioned upon the verification of your education and employment history, and our satisfaction with the results. Depending on job responsibilities, some positions may require that other aspects of your
background be verified, for example, criminal convictions and driving record. 
  

	3.	 	Employment Eligibility:  

 NCR can only hire
employees if they are legally entitled to work and remain in country of the job location. In the United States, NCR abides by the Immigration and Control Act of 1986. 
  
 4.     NCR Mutual Agreement to Arbitrate all Employment Related Claims: 
 As a condition of employment for any NCR position, you must read, understand and agree to NCR Mutual Agreement to Arbitrate All Employment Related
Claims. This document will be provided to you by your Human Resource Consultant. 
  

	5.	 	NCR Consent to Collection of Personal Data: 

 As a condition of employment you must read, understand and agree to the NCR Consent to Collection of Personal Data. The NCR Consent to Collection of Personal Data apprises you of NCR personal data collection practices. This
document will be provided to you by your Human Resource Consultant. 
  
 6.
    Non-competition and Protection of Trade Secrets: 
 By accepting and signing NCR’s offer of employment you
certify to NCR that you are not subject to a non-competition agreement with any company which would preclude or restrict you from performing the NCR position being offered in this letter. We also advise you of NCR’s strong policy of respecting
the intellectual property rights of other companies. You should not bring with you to your NCR position any documents or materials designated as confidential, proprietary or trade secret by another company, nor in any other way disclose trade secret
information while employed by NCR.Seperation of Employment Agreement between registrant and Robert L. Erwin

  Exhibit 10.1
  CONFIDENTIAL
  EXCEPTION LETTER
  June 17, 2003
  June 17, 2003
  Robert
L. Erwin
 435 Merganser Place
 Davis, CA 95616
  Re:  Separation of Employment Due to Reduction-in-Force Layoff 
  Dear
Bob:
  I write to confirm that your position has been eliminated and your employment with Large Scale Biology Corporation (the “Company”) has terminated effective at close of business
April 14, 2003.  As you have been informed, the Company is reducing its workforce due to the need to reduce operating costs. Your final paycheck for wages earned through April 14, 2003, including your balance of accrued but unused vacation has
previously been provided to you.  
  While we regret the impact on you, enclosed you will find information and materials we hope will assist you with your transition:

	   
 	  •
 	  Employment Separation Information which includes information on:
 
	  
 	   
 	  •
 	  Return of Company property and documents
 
	   
 	   
 	  •
 	  Final expense reimbursement requests
 
	   
 	   
 	  •
 	  Ongoing obligations under your Proprietary Information and Inventions Agreement
 
	   
 	   
 	  •
 	  Benefits status, including coverage continuation opportunities
 
	   
 	   
 	  •
 	  Stock options
 
	   
 	   
 	  
 	   
 
	  
 	  •
 	  2003 Severance Benefit Plan and related materials which describe the severance benefits available under the Plan, and the conditions that must be satisfied for you to
receive such benefits – a severance payment and Company-paid COBRA premiums due for group health insurance coverage for you and your dependents, less any shared cost for which you are currently responsible.
 
	   
 	   
 	   
 
	   
 	   
 	  Please be aware that the Plan Administrator is exercising discretion under the Plan and is making additional Severance Benefits available to you under the Plan compared to those
described in the Severance Guidelines, Sections III.B.1-2 of the Plan.  Rather than Severance Benefits under the Plan as described in Section III.B.1-2, you will receive the following severance benefits:
 

   June 17, 2003
 Page 2 of 4

	  
 	   
 	  1.
 	  Severance pay of a lump sum of  $79,500.00 and  $19,875.00 per month for 12consecutive months less current withholding for employment taxes.
 
	   
 	   
 	  2.
 	  You will also receive LSBC Common Stock equal in market value to $56,500.00 based on the NASDAQ closing price of such stock on June 30, 2003 in accordance with the provisions of the Stock
Issuance Agreement as amended June 17, 2003 between you and the Company.
 
	   
 	   
 	  3.
 	  Reimbursement of COBRA payment for you and your eligible dependents net of shared costs for 16 months (medical, dental and vision).
 
	   
 	   
 	  4.
 	  Reimbursement up to $71.55 per month for 16 consecutive months to pay life insurance premiums for term life insurance coverage on your life not to exceed $477,000.00 whether or not the
coverage results from an increase in coverage to an existing policy or results from the purchase of a separate insurance policy.
 
	  
 	   
 	  5.
 	  Immediate full vesting of all stock options and an extension of the exercise period for the remainder of the ten-year life of such options.
 
	   
 	   
 	  6.
 	  Upon cessation of your service as a director of the Company, ownership of the laptop computer, printer and peripherals and cell phone currently assigned to you will be transferred to you
after all Company information and specified Company-licensed software have been removed.
 
	   
 	   
 	  7.
 	  Continuance of cell phone use for 16 months from June 17, 2003 up to 700 minutes per month subject to the continuation of the Company’s current cell phone plan and any subsequent plan
if the same usage does not result in any increased cost to the Company for the subsequent plan over the cost of such usage under the current plan.
 
	   
 	   
 	  8.
 	  The Company agrees that Kevin Ryan and Ronald Artale will not make any negative or disparaging statement or comment about you unless such statements are made truthfully to the extent
required by a subpoena or other legal process.
 
	  
 	   
 	  9.
 	  The one-year service period through June 30, 2003 required under your Stock Issuance Agreement will be waived, and you will be issued stock under the Stock Issuance Agreement for the
portion of your cash salary reduced by approximately 19% from April 1, 2003 through April 14, 2003 based on the NASDAQ closing price of LSBC stock on June 30, 2003.
 
	   
 	   
 	  10.
 	  The right of the Company to amend or terminate the 2003 Severance Plan such that it will result in the cessation of your severance benefits will only apply in the event the Company becomes
insolvent (the Company’s cash is insufficient to meet its current liabilities).
 
	   
 	   
 	  11.
 	  In the event of your death prior to your receipt of any cash or stock severance benefits provided to you under the Plan as described in this Exception Letter, any outstanding monthly cash
payments and COBRA reimbursement severance benefits at the time of your death shall be payable to your spouse, if living, otherwise, to your estate.
 
	   
 	   
 	   
 	   
 
	  
 	   
 	  Because the Plan Administrator is providing you the opportunity to receive Severance Benefits under the Plan that are more than those described in the Severance Guidelines,
Sections III.B.1-2 of the Plan, your receipt of such increased Severance Benefits under the Plan will be subject to a strict non-disclosure and confidentiality provision (regarding this offer and your receipt of increased Severance Benefits) which
is contained in paragraph 11 of the General Release of All Claims document.
 
	   
 	   
 	   
 
	   
 	   
 	  Please be sure to carefully read the Plan and the General Release of All Claims document and comply with the conditions contained therein – at all times even before
you accept the severance opportunity.  Paragraph 11 of the General Release of All Claims document contains a damages provision in the event you do not comply with the strict non-disclosure and confidentiality provision.  If you
accept the increased Severance Benefits offered under
 

   June 17, 2003
 Page 3 of 4

	  
 	  
 	  the Plan per this letter, you will need to sign and return the General Release of All Claims document within the time period specified in that document.  Since one
of the benefits available to you is Company-paid COBRA premiums, you may want to complete the COBRA Election Form and return it along with your signed General Release of All Claims document.  The General Release of All Claims
document does not limit you in the performance of your fiduciary obligations to the Company as a director.
 
	   
 	  
 	   
 
	   
 	  •
 	  Notice of Right to Continue Group Health Coverage - COBRA and an Election Form – COBRA, You have previously elected to continue the COBRA coverage by completing
the latter form for you and/or your eligible dependents under any or all of the Company’s group health plans after your termination date.
 
	   
 	  
 	   
 
	   
 	  •
 	  If you have a Section 125 account balance LSBC’s plan states upon termination you have 30 days from the date of termination in which to submit your claims for reimbursement. If you
have a positive account balance you may be eligible for continuation coverage until the duration of the current calendar plan year. Continuation coverage would allow you to incur new medical, dental, or vision care expenses and zero-out your account
balance. You have 60 days to elect Section 125 continuation coverage. The continuation coverage amount you  pay will be 100% of your current contribution (per payroll period) and your contribution must be made with after-tax dollars. 
Please review the enclosed COBRA notice for more information and contact Human Resources if you would like to continue your Section 125 Plan.
 
	  
 	  
 	   
 
	   
 	  •
 	  Closing statement of your exercisable options of LSBC stock.  If you wish to exercise your option to purchase shares under the plan, please contact John Rakitan at (707)
469-2315.
 
	   
 	  
 	   
 
	   
 	  •
 	  Distribution Election Form for Biosource Technologies, Inc. 401(k) Plan.  You have completed this form  to withdraw funds from the 401(k) Plan.  If you had not
returned the Distribution Election Form within 60 days, a check for the full amount of your account balance, minus the mandatory income tax withholding, would have been sent to you (see Section III – Payment Made to You).  Because your
balance was greater than $5,000, you had your choice to either withdraw funds or leave them in the 401 (k) Plan.  You withdraw them to utilize an IRA as another investment vehicle.
 
	   
 	  
 	   
 
	   
 	  •
 	  Special Tax Notice Regarding Plan Payments (IRS Safe Harbor Notice).  This notice provides important information regarding how your decision regarding your 401(k) account
will affect your taxes. Questions about specific impact of your choices should be discussed with the appropriate tax or investment professional.  This notice is for your records and should be kept with copies of any other forms you may
complete at this time
 
	  
 	  
 	   
 
	   
 	  •
 	  Information on unemployment insurance benefits.  Because your employment is being terminated due to a layoff, you have the right to apply for unemployment insurance benefits.  In
order to apply for such government-sponsored benefits, you should inquire at your local office of the California Employment Development Department (“EDD”) whose addresses and telephone numbers can be found by consulting the
“blue” government pages of your local telephone book under “California, State of.”  Once you apply, the EDD will determine your eligibility for such benefits that are described in the enclosed pamphlet, California’s
Program for the Unemployed.
 

   June 17, 2003
 Page 4 of 4
  On behalf of the Company, I thank you for your past contributions as its
employee and wish you the very best in your future endeavors.  You should carefully review all of the enclosed materials, and call Human Resources at 707-469-2351 if you have any questions.

	  Very truly yours,
 	   
 
	   
 	   
 
	 LARGE SCALE BIOLOGY CORPORATION
 	  
 
	  
 	  
 
	   /s/ RONALD J. ARTALE
 	  
 
	 
 	  
 
	 Ronald J. Artale
 Sr. Vice President and Chief Operating Officer
 	  
 
	  
 	  
 
	 KP/jmb
 	  
 
	  
 	  
 
	 Enclosures

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