Document:

COLM2014.12.3110KExhibit 10.1(c)

EMPLOYMENT AGREEMENT

between

Columbia Sportswear International Sàrl
Geneva Business Center, 12 Avenue des Morgines, 1213 Petit-Lancy, Switzerland ("Employer")

and

Franco Fogliato
an individual residing currently in Capbreton, France
("Employee")

		
	1.
	POSITION AND RESPONSIBILITIES

		
	1.1
	The Employer hereby employs the Employee and the Employee accepts employment as Senior Vice President/General Manager EMEA, Columbia Sportswear International Sàrl, reporting to Tim Boyle, President/CEO.

		
	1.2
	Employee’s duties will consist of directing Employer’s operations in the countries where the Columbia Sportswear Group has direct sales operations in EMEA region. The Employee's responsibilities may, from time to time, be expanded by the Employer to perform other assignments or assume further responsibilities to support the Employer's overall business objectives. 

		
	1.3
	Place of work is Petit-Lancy, Switzerland. The employee is not allowed to conduct work from home. The Employer reserves the right to relocate the Employee to another appropriate place of work, within Europe, but without lowering the Employee's salary entitlement. It is understood that the above mentioned position of the Employee includes a high level of travel activities.

		
	1.4
	This Employment Agreement is contingent upon the issuance of the required authorizations permitting the Employee to work for the Employer and to reside in Switzerland as necessary.  

		
	2.
	REMUNERATION

		
	2.1
	Salary

The Employee shall receive an annual gross base salary of CHF 460’000 (Four hundred sixty thousand Swiss Francs) per year (“Base Salary”) for full-time employment, paid in 12 equal installments on the final day of each month. The remuneration shall compensate for all overtime, if any (cf. para. 6.2 hereafter).
		
	2.2
	Bonus Payments

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In addition to the Base Salary the Employee shall be eligible to participate in the Top Executive European annual bonus program provided he is still employed by the Employer at the end of the period of reference for the bonus calculation. Payments are based on achievement of performance goals as established annually by the Employer in its discretion. Employee will be eligible for a target bonus of 50% (fifty percent) of Base Salary when objectives are fully achieved. The bonus will be paid within three months after the end of the respective period of reference. 

The terms and conditions of the bonus program are defined in a separate document provided to the Employee and susceptible to be updated unilaterally by the Employer each year.

Any bonus payment shall be considered as a gratification whose amount is determined by the Employer. The granting of a bonus in any given year even repeated during several years shall not create a precedent for any subsequent years, regardless of the amounts that might have been paid. The Employee can in no event lay claim to a bonus that has not yet been granted.

		
	2.3
	New Hire Equity Grant

Following the hiring of the Employee, the Employee will receive a one-time New Hire Equity Grant amount of approximately 250’000 USD in value, consisting of 100% RSU’s, from Columbia Sportswear Company. The terms of this Equity Grant arrangement, including granting, vesting, blockage and leaver provisions shall be determined and set out in a separate document, at time of grant, to be signed by the parties. 

		
	2.4
	Equity Grant

Starting in 2014, and generally on an annual basis, the Employee will receive an Equity Grant amount. For 2014, the approximate amount will be 150’000 USD in value from Columbia Sportswear Company (50% Stock Options and 50% RSU’s). The Equity Grants are subject to review and approval on an annual basis by the Board of Directors. The granting of equity in any given year, even repeated during several years, shall not create a precedent for any subsequent years, regardless of the amounts that might have been granted. The terms of this Equity Grant arrangement, including granting, vesting, blockage and leaver provisions shall be determined and set out in a separate document, at time of grant, to be signed by the parties.

		
	2.5
	Medical Insurance Allowance

The Employer agrees to pay Employee a monthly medical insurance allowance of CHF 300 per dependent family member residing with the Employee and not already covered by another employer contribution and fiscally dependent on the Employee. The allowance is payable from the effective date of the medical insurance contract. 
2.6      Refund of Representation Expenses
The Employee’s gross remuneration includes a refund of representation expenses that the Employee will incur in fulfilling his representation duties for the Employer. The non-taxable status of a portion of this Representation Expenses is subject to 

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the acceptance of the fiscal administration, according to the terms of Annex 2 of the Agreement. All items forming the Employee’s gross remuneration, as defined by the fiscal administration regulations in force from time to time, are taking into account for the calculation of the refund.
 2.7    Further Payments
Unless otherwise expressly agreed upon in writing, the payment of any other gratuities, profit shares, premiums or other extra payments shall be determined in their principle and their amount on a voluntary basis at Employer’s own discretion. Such payments, regardless of their amounts and even repeated during several years or granted without the reservation of voluntarity shall not create any legal claim for the Employee, either in respect to their cause or their amount, either for the past or for the future.

Such amounts shall in any case be granted only if the present employment agreement is not terminated at the time of their payment.

		
	2.8
	Deductions

Unless otherwise agreed upon in writing, the Base Salary and bonus payments as well as any other payments made by the Employer under this Agreement are gross payments. The Employer shall deduct from such payments the Employee's share in the prevailing premiums for social security insurances mandatory under Swiss law such as "AVS", "AI", "AC", "APG" etc., as well as for the pension plan maintained by the Employer (cf. para. 4 hereafter) and the source taxes due on such gross payments, as applicable.
		
	3.
	EXPENSES / COMPANY CAR

		
	3.1
	The Employer shall reimburse the Employee upon submission of appropriate vouchers for reasonable and customary business travel expenses in accordance with the applicable Employer's travel policy guidelines. The Employee shall submit such expense receipts monthly.

		
	3.2
	The Employer shall provide Employee with a leased car for the Employee’s use primarily for company purposes, but also for private purposes, always in compliance with the Employer's car policy as in force from time to time. The Employer will pay the reasonable running costs (fuel, oil, regular servicing, taxes, insurance) of such car. It is understood that no further compensation for the vehicle's operation and maintenance shall be paid. The Employee shall return the company car, together with the keys, documents and accessories forthwith upon termination of this agreement or in the event the Employee takes another position within the Company for which a company car is not granted. The Employee agrees to abide by the Employer’s car policy and the social and tax regulations in force regarding the company car.

		
	4.
	PENSION FUND

The Employee will participate in Employer’s Pension Plan, at terms corresponding with the mandatory requirements of the Federal Law on Occupational Old Age, Survivors and Disability Benefit Plan ("LPP"). As of the date of this employment 

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agreement, the Employee is insured with the pension fund “Groupe Mutuel”. The Employer can, at its own discretion, change the pension fund partner. Employer and Employee shall pay their premiums in the pension plan according to the applicable pension regulations, and at minimum in equal shares. A copy of the Pension Plan policy is available on demand at Human Resources.
		
	5.
	SICKNESS / ACCIDENT

		
	5.1
	If the Employee is prevented from work due to sickness or accident, he shall inform the Employer without delay and at the Employer's request submit within three days a medical certificate.

		
	5.2
	In case the Employee is prevented from work for a longer period of time than stated in the medical certificate, he shall so inform the Employer and at the Employer's request submit another medical certificate. The Employer shall be entitled to demand a physical exam by a medical referee.

		
	6.
	WORKING HOURS / VACATIONS  

		
	6.1
	The Employee agrees to exercise his best efforts to successfully and carefully accomplish the duties assigned to him by the Employer.

		
	6.2
	As a full-time employee, Employee’s regular working time is 40 hours per week. It is understood that no extra compensation shall be paid for the performance of overtime work or work performed on days or during hours of the day which may be considered outside customary working hours.

		
	6.3
	The Employee shall be entitled to paid vacations per calendar year according to the following schedule: 25 days per complete year of service. Days are accrued based on regular hours worked. The vacation year coincides with the calendar year. 

If upon termination of the employment contract the Employee has taken more vacation days than the number that he accrued during his employment, the Employer will be entitled to reclaim the Employee’s salary with respect to those vacation days and to set it off against any amounts payable to the Employee by the Employer.

The timing of the Employee's vacations shall be approved in advance by the Employer who agrees to take into consideration the Employee's wishes to the extent that these are compatible with the interest of the Employer's enterprise. This shall also apply to granting of extra vacations for exceptional circumstances (e.g. death of close relatives).
		
	7.
	DUTIES OF LOYALTY AND CONFIDENTIALITY

		
	7.1
	The Employee shall devote his efforts exclusively to the Employer in furtherance of the Employer's interests. Any engagement in additional occupations for or without remuneration, or any participation in any kind of enterprise requires the written consent of the Employer. This shall not apply to the usual acquisition of shares of other stocks or other shares for investment purposes. Membership in the 

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board of directors or supervisory board of other companies shall also require the written approval of the Employer.

		
	7.2
	The Employee shall, during the period of employment with the Employer and at any time thereafter, keep secret any confidential information concerning the business, contractual arrangements, deals, transactions or particular affairs of the Employer or its affiliates and shall not use any such information for her own benefit or the benefit of others.

		
	7.3
	Upon termination of this Agreement for any reason, the Employee shall return to the Employer all samples, files and any company documents concerning the business of the Employer and its affiliates in her possession or open to her access, including all designs, customer and price lists, printed material, documents, sketches, notes, drafts as well as copies thereof, regardless whether or not the same are originally furnished by the Employer or its affiliates.

		
	8.
	INVENTIONS

		
	8.1
	Any invention of the Employee relating to the products and services of the Employer which is conceived or which comes into being during the term of this Agreement belongs to the Employer.

		
	8.2
	The Employer reserves the right to acquire inventions made by the Employee while performing his employment activities but not in execution of his contractual duties. However, to the extent the Employee makes the inventions in the performance of his contractual obligations, the Employer acquires the inventions for free.

		
	8.3
	Any and all rights including in particular any copyrights and/or patents as well as any rights in computer programs which the Employee develops or creates on her own or together with others during the term of his employment shall be automatically transferred to the Employer. Based on this transfer the Employer has the exclusive right to publish, to make copies and duplicates and to sell these works, inventions and/or software.

		
	8.4
	The Employer is entitled to transfer any rights in the inventions, computer programs and works to third parties. The Employer and such third parties are not obliged to mention the Employee as the author if they publish any inventions, computer programs or other works. They are free to make any modifications, translations and/or other adaptations and/or can refrain from making any publications. 

		
	9.
	DATA PROTECTION

With the execution of this Agreement, the Employee consents that the Employer may store, transfer, change and delete all personal data in connection with this employment relationship. The Employee acknowledges that personal data may be transferred to Columbia Sportswear Company in the USA.
		
	10.
	NON-COMPETITION

		
	10.1
	In view of the fact that the Employee in the course of his employment under this Agreement will acquire knowledge of the Employer's trade secrets and/or will have 

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insight into the Employer's customer base, the Employee undertakes not to perform any activity in Switzerland and all member states of the European Union that competes with the Employer in the field of producing, designing, marketing and selling Outdoor apparel, sportswear and footwear during the term of this employment agreement as well as for a period of 6 months after the term of this agreement. This provision is (a) subject to the Company’s option to waive all or any portion of the 6-months’ time period of non-competition following termination and (b) subject to the Company’s option to specifically identify, at the time of termination, those businesses which the Employee may not be employed by or connected with for the period of non-competition. The Company agrees to act in good faith in its exercise of the above-noted options. 

		
	10.2
	In particular, the Employee agrees:

		
	-
	not to have, directly or indirectly, any financial or other interest in a business or company which develops, produces, markets or distributes products substantially similar to the products of the Employer or its related companies or to render services similar to those rendered by the Employer;

		
	-
	not to accept any part or full time employment in such a business or company or to act as consultant or representative of such a business or company;

		
	-
	not to directly or indirectly establish such a business or company. 

		
	10.3 
	As additional consideration for the covenant not to compete described above, the Company shall pay the Employee a monthly payment equal to 100 % of his last monthly Base Salary for the 6-months’ period after termination of employment, payable on the final day of each month. The Company has the option, for whatever reason, to elect to waive all or a portion of the 6-months period of non-competition by giving the Employee notice of such election at or before termination or, if after termination, not less than thirty days prior to the effective date of the waiver. In that event, the Company shall not be obligated to pay the Employee under this paragraph for any months as to which the covenant not to compete has been waived.

		
	11.
	SANCTIONS

		
	11.1 
	In case of violation of the obligations under article 10 of this Agreement, the Company shall immediately stop the payment of the additional consideration paid under paragraph 10.3 above and reserves the right to claim reimbursement of any monthly payment made in the past pursuant to paragraph 10.3.

		
	11.2 
	The Employee understands that a violation of the obligations under article 10 of this Agreement might cause serious damage to the Employer. In the event the Employee violates an obligation under article 10 of this Agreement, the Employer shall be entitled to seek judicial enforcement of and/or indemnification of violation of said obligations.

		
	12.
	DURATION AND TERMINATION

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	12.1
	The start date of employment is November 1, 2013, and should be no later than January 1, 2014. Agreement shall be effective as of the issuance of any necessary work authorization and continue for an indefinite period of time unless terminated according to this Agreement or for “cause” as defined by law. 

		
	12.2
	There is no probationary period with specific provision in term of notice period. This Agreement may be terminated by either party by respecting a notice period of three months with effect to the end of a calendar month.

		
	12.3 
	If employment is terminated by the Employer for reasons related to Employee’s individual performance or for reasons related to the performance of the Employee’s division, the Company will provide the Employee with a severance payment of one year’s Base Salary less required withholding for social security and tax at source, contingent upon the Employee signing a release of claims as drafted by the Company. If employment is terminated by the Employee, a severance payment will not be provided. If employment is terminated by the Employer resulting from actions on the Employee’s part that violate Columbia Sportswear’s corporate Code of Business Conduct and Ethics or from Employee’s misconduct, a severance payment will not be provided.   

		
	13.
	MISCELLANEOUS

		
	13.1
	This Employment Agreement replaces all prior understandings and/or contracts between the parties.

		
	13.2
	Amendments and additions to this Agreement including this clause must be in writing to be effective.

		
	13.3
	Should one or several provisions of this Agreement prove invalid, in part or in whole, such invalid provision(s) shall not affect the validity of the other provisions in this Agreement.

		
	14.
	APPLICABLE LAW AND JURISDICTION

This Agreement shall be governed by Swiss law. The legal forum shall be Geneva with the labour courts (“Tribunaux de prud’hommes”) of the Republic and Canton of Geneva having exclusive jurisdiction.

Place and date: ___________________

	
			
	/s/ FREDERIC VERNET
	 
	/s/ FRANCO FOGLIATO

	Frédéric Vernet
	 
	Franco Fogliato

	Human Resources Director EMEA
	 
	 

	Columbia Sportswear International Sàrl
	 
	 

8/11

ANNEX 1
Special Provisions

The Present Annex 1 forms an integral part of the Employment Agreement.

		
	1.1
	Long Term Cash Incentive Plan 

In 2015, 2016 and 2017, the Employee will receive a Long Term Cash Incentive amount of 100’000 CHF per year. The terms of this Long Term Cash Incentive arrangement shall be set out in a separate document to be signed by the parties in 2014.
Any Long Term Cash Incentive payment shall be considered as a gratification whose amount is determined by the Employer. The Employee must be employed by the Company on December 31 of the year of reference to be eligible for payment.
The granting of a Long Term Cash Incentive in any given year even repeated during several years shall not create a precedent for any subsequent years, regardless of the amounts that might have been paid. The Employee can in no event lay claim to a incentive amount that has not yet been granted.
		
	1.2
	New Hire Bonus

Following the hiring of the Employee, the Employee will receive a New Hire Bonus amount of 300’000 CHF. Payments are not based on achievement of performance goals but are linked to the recruitment. This bonus will be paid in 2 equal installments: the first one within three months on the regular payroll payment date following the hiring date; the second one within six months on the regular payroll payment date following the hiring date. Employee must be employed by the Company at the payment date to be eligible for payment.
Any bonus payment shall be considered as a gratification whose amount is determined by the Employer. The granting of a bonus in any given year even repeated during several years shall not create a precedent for any subsequent years, regardless of the amounts that might have been paid. The Employee can in no event lay claim to a bonus that has not yet been granted.
		
	1.3
	2014 Guaranteed Bonus

As an exception to the bonus rules as defined in Article 2.2 of the Employment Agreement, the Employer shall guarantee that the Employee’s 2014 Bonus total payment will be equivalent to an overall of 100% target criteria achievement, according to the rules of bonus calculation. In the event that the total of all target criteria achievement is above 100%, this total target achievement will be used for the bonus calculation. 

This bonus will be paid within three months after the start of 2015, during a regular payroll payment date. Employee must be employed by the Company on December 31, 2014 to be eligible for this payment.

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The granting of a Guaranteed Bonus in any given year even repeated during several years shall not create a precedent for any subsequent years, regardless of the amounts that might have been paid. The Employee can in no event lay claim to a bonus that has not yet been granted.
		
	1.4
	2015 Guaranteed Bonus

As an exception to the bonus rules as defined in Article 2.2 of the Employment Agreement, the Employer shall guarantee that the Employee’s 2015 Bonus total payment will be equivalent to an overall of 100% target criteria achievement, according to the rules of bonus calculation. 
In the event that the total of all target criteria achievement is above 100%, this total target achievement will be used for the bonus calculation. 

This bonus will be paid within three months after the start of 2016, during a regular payroll payment date. Employee must be employed by the Company on December 31, 2015 to be eligible for this payment.
The granting of a Guaranteed Bonus in any given year even repeated during several years shall not create a precedent for any subsequent years, regardless of the amounts that might have been paid. The Employee can in no event lay claim to a bonus that has not yet been granted.
		
	1.5
	Relocation Expenses

The Employer agrees to pay Employee’s reasonable costs associated with relocating his belongings and family from Capbreton, to Geneva canton, Switzerland or to Ain or Haute-Savoie, France, in accordance with the separate Relocation Agreement.
		
	1.6 
	Housing Allowance

The Employer agrees to pay the Employee a housing allowance of 3’334 CHF per month.  The allowance will commence from the end of the 60 days temporary housing, and continue for a period up to 36 months.  The amount of the housing allowance will not increase during the course of this period; and should be considered as gross payment, subject to income taxes and other deductions. 
The Employee must be employed by the Employer in order to be eligible for the housing allowance. 
		
	1.7
	Assistance with tax consulting

The Employee will receive an annual allowance of up to CHF 5’000, according to actual expenses incurred, to be used for tax consulting for personal tax declarations in Employee’s country of residence and country of employment (Switzerland).  This allowance will be reimbursed to the employee on an annual basis for the duration of the employment relationship upon presentation of receipts.  

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The above special payments are paid during a regular payroll payment date, and are subject to income taxes and deductions if required by law.

Place and date: ___________________

	
			
	/s/ FREDERIC VERNET
	 
	/s/ FRANCO FOGLIATO

	Frédéric Vernet
	 
	Franco Fogliato

	Human Resources Director EMEA
	 
	 

	Columbia Sportswear International Sàrl
	 
	 

11/11

ANNEX 2
Tax Aspects 

The Present Annex 2 forms an integral part of the Employment Agreement.

Overview

A portion of the refund of representation expenses (paragraph 2.6 of the Agreement) may be considered as non-taxable income. Such practice is subject to approval by the canton of Employee’s residence and the contents of such practice vary by canton. The Employer cannot guarantee the content or the granting of such a practice by the cantonal tax authorities.  

Consequently, the Employee agrees to pay taxes and social security contributions on all payments made by the Employer which cannot be considered as a non-taxable refund of expenses.

Furthermore, the Employer will not compensate the Employee for the loss of any benefit should the cantonal tax authorities modify or discontinue the practice, or should the Employee choose to relocate in a different canton of Switzerland or in France.

The situation of employees residing in the canton of Geneva is governed by the memo n°6/2005 of the cantonal fiscal administration for the Canton of Geneva dated December 7th, 2005. The employees residing in other cantons should revert to the Human Resources department for detailed information. The employees residing in France are subject to the aforementioned memo of the cantonal fiscal administration for the Canton of Geneva.

Place and date: ___________________

	
			
	/s/ FREDERIC VERNET
	 
	/s/ FRANCO FOGLIATO

	Frédéric Vernet
	 
	Franco Fogliato

	Human Resources Director EMEA
	 
	 

	Columbia Sportswear International Sàrltmok2014ex10_55.htm

 

Exhibit 10.55

 

 

 

 

December 31, 2013

 

Mark P. Stevenson

[Address]

 

Dear Mark:

 

This letter will confirm our offer to you of the position of Executive Vice President and President, Life Sciences Solutions Group of Thermo Fisher Scientific Inc. (“Thermo Fisher” or the “Company”) once the acquisition of Life Technologies Corporation (“Life Technologies”) by Thermo Fisher (as more fully described in the Agreement and Plan of Merger dated April 14, 2013 among Thermo Fisher, Polpis Merger Sub, and Life Technologies) has been completed (the “Closing”). The terms of this letter are contingent upon the Closing and will only become effective at that time. This offer is also contingent upon formal approval by the Compensation Committee of the Company’s Board of Directors, which we expect to receive prior to the Closing.

 

The position offered is an exempt, Senior Executive, Band VII position, and in this role, you will report directly to the Company’s President and CEO. In addition, a recommendation will be made to the Company’s Board of Directors to elect you an Executive Officer of Thermo Fisher as soon as practicable after the Closing. This position will be based in Carlsbad, CA and you will assume the role effective on the Closing. We will also review certain aspects of this offer, such as base salary and long-term incentives, if the Closing occurs after April 1, 2014, to reflect any actions taken by Life Technologies as a part of its normal annual compensation cycle.

Effective on the Closing, your annual salary will be $800,000 and will be paid to you on a biweekly basis at the rate of $30,769 per pay period. You understand that you will not participate in the 2014 annual salary planning process. Accordingly, your first performance review will be in the first quarter of 2015 and annually thereafter to determine your eligibility for a merit increase.

 

Effective on the Closing, you will also be eligible to participate in the Thermo Fisher incentive bonus plan, which provides you the opportunity to annually earn additional compensation based on Company and individual performance. Your annual bonus target for 2014 will be 105% of your base annual salary and is subject to a multiplier of 0-2 times based on a combination of objective and subjective factors, the details of which will be provided to you. To be eligible for a bonus payment under the 2014 incentive bonus plan, you must be employed at the time the bonuses are paid (which is anticipated to be in March, 2015). For the 2014 plan year, your bonus will be based on your full calendar year of service without any proration, in lieu of partial year participation in the Life Technologies annual incentive program.

 

Effective on the Closing, you will receive a $3,100,000 retention bonus (“Retention Bonus”). This amount will be paid to you (less applicable withholding taxes) as soon as practicable following the Closing. You must be employed at the time this bonus is scheduled to be paid. As more fully explained below, this Retention Bonus will, under the circumstances described below, reduce (to not less than zero) amounts that would otherwise be payable to you under the Change in Control Agreement between you and Life Technologies dated as of March 5, 2009, as amended (“LIFE CIC Agreement”), as well as under the TMO Severance Policy (as defined below). The retention bonus will not reduce amounts that would otherwise be payable to you under the TMO CIC Agreement (as defined below).

 

In addition, effective upon the Closing, you will be eligible to participate in a Synergy Bonus Plan (the “Synergy Plan”) that we will develop for select Life Technologies senior leaders, pursuant to which you will be eligible to earn up to 1.5 times your initial annual target bonus, or up to $1,260,000. The Synergy Plan will include individual synergy objectives with one and two year cumulative Company targets that must be achieved for individual payouts to be earned. Up to 60% of your individual target opportunity will be earned based on achievement of synergy objectives in the first 12 month period following the Closing, and up to 40% of your individual target will be earned based on achievement of synergy objectives in the second 12 month period following the Closing. Additional information on the plan design and individual and company targets will be provided to you as we continue with our integration planning.

 

A recommendation will be made to the appropriate committee of the Company’s Board of Directors to approve the issuance to you of an equity award with a calculated value of $5,000,000 in lieu of participation in the 2014 annual grant cycle of either the Company or Life Technologies. The recommendation will consist of 50% stock options and 50% time-based restricted stock units (“TRSAs”). The stock options will be granted at a price that approximates market value on the date of grant. This recommendation will be submitted for approval as soon as practicable following the Closing. The grants will be effective on the date of approval.

 

The stock options are 7 year options, vesting ratably over a four year period, with 25% vesting on each of the first through fourth anniversaries of the grant date. Vested stock options are exercisable at any time during the remainder of their seven year term.

 

The TRSAs vest over a 31/2 year period, with 15% vesting six months following the grant date, and 25%, 30% and 30% vesting 018 months, 30 months, and 42 months following the grant date, respectively. The underlying shares will be delivered to you shortly after vesting (less applicable withholding taxes).

 

The stock options and TRSAs are subject to the terms and conditions of the applicable agreements and equity plan documents, which will be provided to you subsequent to the approval of the grants. You must be actively employed at the time of vesting for the stock options to be exercisable and for the TRSAs to be distributed.

 

Your targeted level of long-term incentives for 2015 will be $4,000,000. Your actual 2015 grant may be adjusted, up or down, based on a combination of company and business unit performance, and your individual contributions in your role.

 

In accordance with the merger agreement referenced above, your Life Technologies restricted stock units (“Life RSUs”) that are not distributed at Closing will be converted to an equivalent cash amount at $76.00 per Life RSU (“Life Restricted Cash”). The Life Restricted Cash will continue to vest after the Closing in accordance with the underlying vesting schedules of the corresponding Life RSUs. Upon acceptance of this position and effective on the Closing, we agree to provide you with a one-time right to voluntarily terminate your employment effective December 31, 2014, provided that you give the Company at least 30 days prior written notice. Should you choose to exercise this right, you will be entitled to receive any unvested and undistributed Life Restricted Cash (less applicable withholding taxes) as of your termination date. In accordance with the terms and conditions of the underlying plans and agreements, you will not be eligible to receive any payments under the Thermo Fisher incentive bonus plan or the Synergy Plan, and any unvested stock options and unvested and/or undistributed TRSAs will be forfeited.

 

Effective on the Closing, you will be eligible to participate in Thermo Fisher’s standard employee benefit programs. Because we anticipate that you will be a Named Executive Officer in Thermo Fisher’s 2015 proxy statement, your participation in the benefit programs offered by Life Technologies will end on the date you are covered under the Company’s benefit plans, with no gap in coverage for you or your dependent family members following the Closing.

 

As an executive at Thermo Fisher, you will also be eligible, effective on the closing, for additional Company-paid life insurance and you will have the option to defer a portion of your compensation (salary and bonus) into the Company’s deferred compensation plan, which provides a 100% match on the first 6% of compensation deferred into the plan, subject to plan rules and restrictions. In addition, you may also be eligible for the Company-paid executive long-term disability (“LTD”) benefit, which can provide up to an additional $10,000 of monthly LTD benefit.

 

As a Band VII executive of Thermo Fisher, you will also be eligible effective upon the Closing to the benefits provided under the Company’s standard Executive Severance Policy, as amended (“TMO Severance Policy”) and standard Executive Change in Control Retention Agreement (“TMO CIC Agreement”). In brief, under the TMO Severance Policy, you would be entitled to, among other benefits, severance pay equal to 1.5 times your base annual salary and target bonus at the time if your employment is terminated without “cause” (as defined in the policy). Your eligibility to receive severance benefits under the TMO Severance Policy is contingent upon your signing the Company’s Noncompetition Agreement at the time of the Closing.

 

Under the TMO CIC Agreement, you would be entitled to, among other benefits, severance pay equal to two times your base annual salary and target bonus at the time if your employment is terminated without “cause” or you terminate your employment with “good reason” within 18 months of a “change in control” of Thermo Fisher (as these terms are defined in the agreement).

 

 

  

  

  

 

During the period between the Closing and the second anniversary of the Closing, you will be eligible to receive benefits under your LIFE CIC Agreement, the TMO Severance Policy or the TMO CIC Agreement. For the avoidance of doubt, you will eligible for benefits under whichever one, but not more than one, of these agreements provides a greater level of benefits, in the aggregate. For example, if the Company terminates your employment without cause prior to the second anniversary of the Closing, you will be eligible to receive all of the benefits payable under the LIFE CIC Agreement (since that agreement provides you a greater level of benefits) reduced by the Retention Bonus amount; you would not receive any benefits under the TMO Severance Policy. Likewise, if a change-in-control of Thermo Fisher occurs prior to the second anniversary of the Closing, you will be eligible to receive the benefits under either the TMO CIC Agreement (with no reduction for the Retention Bonus amount) or the LIFE CIC Agreement (reduced by the Retention Bonus amount), but not both, depending on which agreement would provide you the greater level of benefits. Immediately following the second anniversary of the Closing, you will no longer be eligible for any benefits under the LIFE CIC Agreement (other than benefits already scheduled to be received based on events occurring prior to the second anniversary of the Closing) and you will only be eligible for benefits under the TMO Severance Policy or the TMO CIC Agreement in accordance with their terms. In addition, there will be no reduction in the amount of the severance benefits payable to you under the TMO Severance Policy or the TMO CIC Agreement for the Retention Bonus amount in the event that your employment is terminated by the Company without “cause” at any time after the second anniversary of the Closing. For avoidance of doubt, all of your rights under the LIFE CIC Agreement remain in place and in full force and effect, including without limitation your right to receive tax restoration payments from the Company in the event any taxes are imposed on you under Internal Revenue Code Sections 280G or 4999, until the second anniversary of the Closing, immediately following which you will no longer be eligible for any benefits under the LIFE CIC Agreement (other than benefits already scheduled to be received based on events occurring prior to the second anniversary of the Closing).

 

Copies of the TMO Severance Policy, the TMO CIC Agreement, and the Noncompetition Agreement have been provided.

 

We both acknowledge and agree that upon the Closing, you will cease to be President and Chief Operating Officer of Life Technologies, and your acceptance of your new position with Thermo Fisher and the terms of the offer described above may not be used by you in the future as the basis for your claiming “Good Reason” (as that term is defined under your LIFE CIC Agreement). We further agree that notwithstanding the waiver contained in the preceding sentence, you have not waived your right to claim “Good Reason” including, for example, if on or after the Closing and within 2 years following the Closing, the Company changes your new position or its duties, responsibilities, compensation (including but not limited to your annual base salary) or location in such a way that, when compared with the terms of your new position with Thermo Fisher immediately following the Closing, one or more of the conditions required to allow you to claim “Good Reason” would exist. In the event that you claim “Good Reason” pursuant to the previous sentence, you will continue to be eligible for all of the benefits to which you be entitled pursuant to your LIFE CIC Agreement, subject to reduction for the Retention Bonus referenced above.

 

Thermo Fisher will reimburse you for advisory services provided to you directly in connection with this offer of employment, up to a maximum reimbursement of $25,000. The invoices are subject to review and approval for reasonableness by the Company. You may submit to the Company applicable invoices for this reimbursement within 45 days of the Closing and the Company shall provide you with such reimbursement within 30 days of its receipt of such invoices.

 

This offer letter and all compensatory payments or benefits that will be provided to you are intended to either be exempt from or comply with the requirements of Internal Revenue Code Section 409A (“Section 409A”) and the Company shall interpret and administer such payments and benefits in accordance with this intention. Each payment made to you shall be considered a separate payment and not one of a series of payments for purposes of Section 409A. If upon your “separation from service” within the meaning of Section 409A, you are then a “specified employee” (as defined in Section 409A), then solely to the extent necessary to comply with Section 409A and avoid the imposition of taxes under Section 409A, the Company shall defer payment of “nonqualified deferred compensation” that is payable as a result of and within six (6) months following such separation from service until the earlier of (i) the first business day of the seventh month following your separation from service, or (ii) ten (10) days after your death.

 

Thermo Fisher, as a government contractor, is required to maintain a drug free workplace. Therefore, this employment offer is conditional upon your passing a pre-employment drug test and a background investigation. In the event that the background investigation reveals information that, in the Company’s reasonable discretion, raises material concerns about your qualifications for the position, we will contact you (by no later than 30 days after the Closing) to discuss our concerns, which if not resolved to our satisfaction, could result in a revocation of this offer or a termination of your employment.

 

In accordance with the Company’s standard employment practice, you will also be required to sign the Company’s Information and Invention Agreement prior to the Closing, a copy of which has been provided.

 

Mark, our employees are committed to the success and growth of our business. At Thermo Fisher, we believe that our core values of Integrity, Intensity, Innovation and Involvement are the key to this success. We are very enthusiastic about the prospect of you joining our team and your commitment to our values. We are confident that your skills and experience will enable Thermo Fisher Scientific to maintain its premier position as the world leader in serving science.

 

You may accept our offer of employment by signing and returning this letter to Martin Van Walsum by January 3, 2014.

 

Sincerely,

 

 

 

/s/ Marc Casper                

Marc Casper

President and Chief Executive Officer

 

 

Accepted and Agreed:

 

By: /s/ Mark P. Stevenson                        

       Mark P. Stevenson

 

Dated: 12/31/13

 

cc: Martin Van Walsum, Vice President, Compensation

 

  

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