Document:

BZH-12.31.2012-Q1 EX.10.1

        
Exhibit 10.1

BEAZER HOMES USA, INC.
EMPLOYEE CASH AWARD AGREEMENT

THIS EMPLOYEE CASH AWARD AGREEMENT (this “Agreement”) is made as of December ____, 2012 by and between BEAZER HOMES USA, Inc., a Delaware corporation (the “Company”), and ________________, an individual resident of the State of __________ (“Participant”).
WITNESSETH:
WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Committee”) wishes to make certain awards to Participant. 
NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, the parties hereto hereby agree to the terms set forth below.  
1.CASH AWARD
(a)    Award; Effective Date.  The Company hereby notifies Participant that, effective as of November 14, 2012 (the “Award Effective Date”), the Company has awarded to Participant the right to receive a cash payment, subject to the terms and conditions set forth; such cash payment, if any, will hereinafter be referred to as Participant’s “Award Payment.” The target amount of Participant’s Award Payment will equal $[100/75% of Participant’s Base Salary on Award Effective Date] (the “Target Amount”), with the potential for a maximum Award Payment of $[215.6% times [100/75]% of Participant’s Base Salary on Award Effective Date].  In the event the cash award becomes payable as described below, the Company will pay the cash award as soon as administratively practicable (and within sixty (60) days) after the award becomes payable.
(b)    Terms of Cash Payment; Vesting.  Subject in each case to the provisions of this Agreement, on the third anniversary of the Award Effective Date, Participant will be entitled to receive, in cash, the Award Payment that equals the product of (x) the Target Amount multiplied by (y) the Increase in Gross Margin Dollars (as hereinafter defined) (rounded to the nearest dollar), provided Participant has remained 

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continuously employed with the Company and/or its Affiliates (as defined in the Company’s 2010 Equity Incentive Plan (the “Plan”)) from the Award Effective Date until such vesting date.  Expressed as a formula, the Award Payment will be determined as follows:  Award Payment = Target Amount x Increase in Gross Margin Dollars.
(c)    Calculation of Cash Payment.  The calculation of Participant’s Award Payment will be made as follows:
Step 1:  Determine the Increase in Gross Margin Dollars achieved by the Company for the Performance Period.  
Step 2:  Determine the Award Payment by multiplying the Increase in Gross Margin Dollars by the Target Amount.  
No cash award will become payable to Participant if the Increase in Gross Margin Dollars is less than Sixty-Nine and Three-Tenths Percent (69.3%).  For illustrative purposes, Sixty-Nine and Three-Tenths Percent (69.3%) of the Target Amount will become payable if the Increase in Gross Margin Dollars is Sixty-Nine and Three-Tenths Percent (69.3%); One Hundred Percent (100%) of the Target Amount will become payable if the Increase in Gross Margin Dollars is One Hundred Percent (100%); and Two Hundred Fifteen and Six-Tenths Percent (215.6%) of the Target Amount will become payable if the Increase in Gross Margin Dollars is Two Hundred Fifteen and Six-Tenths Percent (215.6%) or greater.  In no event shall the amount of any cash payment to be made hereunder exceed Two Hundred Fifteen and Six-Tenths Percent (215.6%) of the Target Amount.  
An example of Participant’s Award Payment calculation is set forth on Attachment A.  Set forth on Attachment B is an illustrative performance matrix showing the various payout percentages of the Target Amount that Participant would earn based on achieving various three-year revenue compound annual growth rates and gross margin percentage improvements.
2.    DEFINITIONS
For purposes of this Agreement, the following terms shall be defined as follows:

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(a)    “Gross Margin Dollars” means the Company’s homebuilding gross profit, excluding impairments and abandonments and interest, as of the end of the applicable annual fiscal period; 
(b)    “Increase in Gross Margin Dollars” means the increase in Gross Margin Dollars during the Performance Period, expressed as a percentage, determined by dividing (1) the Gross Margin Dollars for the fiscal year ended September 30, 2015 reduced by the Gross Margin Dollars for the fiscal year ended September 30, 2012, by (2) the Gross Margin Dollars for the fiscal year ended September 30, 2012; and 
(c)    “Performance Period” means the three-year period beginning on the Award Effective Date and ending on the third anniversary of the Award Effective Date.
3.    TERMINATION OF EMPLOYMENT; CHANGE IN CONTROL
(a)    In the event Participant’s employment is terminated as a result of his/her becoming Disabled (as hereinafter defined), or Participant dies while an employee of the Company or any of its Affiliates, in either case prior to the third anniversary of the Award Effective Date, then Participant will be entitled to receive in cash the Target Amount (if such termination occurs prior to the end of the Performance Period) or the actual Award Payment (if such termination occurs after the end of the Performance Period but prior to the third anniversary of the Award Effective Date) as of the date of Participant’s termination of employment as a result of his/her becoming Disabled or the date Participant dies while an employee of the Company or any of its Affiliates, as applicable.  For purposes of this Agreement, Participant shall be deemed “Disabled” if the Participant becomes ill or is injured or otherwise becomes disabled or incapacitated such that, in the opinion of the Committee, he/she cannot fully carry out and perform his/her duties as an employee of the Company (or any of its Affiliates), and such disability or incapacity shall continue for a period of forty-five (45) consecutive days.
(b)    In the event Participant terminates employment with the Company (or any of its Affiliates) by reason of Retirement (as defined hereinafter) prior to the third anniversary of the Award Effective Date, then Participant will remain entitled to receive in cash, on the third anniversary of the Award Effective Date, the time-weighted portion of the Award Payment (determined by multiplying the Award Payment by a fraction 

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(not to exceed one), the numerator of which shall be equal to the number of whole months (counting each month as ending on the first day of the calendar month) elapsed from the Award Effective Date until the date Participant terminates employment with the Company (or any of its Affiliates) by reason of Retirement, and the denominator of which is thirty-six (36)).  For purposes of this Agreement, “Retirement” shall mean a voluntary termination of employment by Participant at age 65 or older with at least five (5) years of service with the Company and/or any of its Affiliates.  Participant may request approval for Retirement treatment if between the ages of 62 and 65 with at least five (5) years of service with the Company and/or any of its Affiliates at the time of any voluntary termination.  At the sole discretion of the Committee, such requests can be approved or denied.  
(c)    In the event a Change in Control (as defined in the Plan) occurs prior to the third anniversary of the Award Effective Date, but after the date Participant terminated employment with the Company (or any of its Affiliates) by reason of Retirement, then the Participant will be entitled to receive in cash the time-weighted portion of the Target Amount (if such Change in Control occurs prior to the end of the Performance Period) or of the actual Award Payment (if such Change in Control occurs after the end of the Performance Period but prior to the third anniversary of the Award Effective Date) upon the occurrence of the Change in Control (determined by multiplying the Target Amount or the Award Payment, as applicable, by a fraction (not to exceed one), the numerator of which shall be equal to the number of whole months (counting each month as ending on the first day of a calendar month) elapsed from the Award Effective Date until the date Participant terminated employment with the Company (or any of its Affiliates) by reason of Retirement, and the denominator of which is thirty-six (36)).
(d)    Upon the occurrence of a Change in Control prior to the third anniversary of the Award Effective Date, provided Participant has remained continuously employed with the Company and/or any of its Affiliates from the Award Effective Date until such Change in Control, then Participant will be entitled to receive in cash the Target Amount (if such Change in Control occurs prior to the end of the Performance Period) or the actual Award Payment (if such Change in Control occurs after the end of the Performance 

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Period but prior to the third anniversary of the Award Effective Date) upon the occurrence of the Change in Control.  
(e)    Prior to payment, this Award shall not be voluntarily or involuntarily sold, assigned, transferred, pledged, alienated, hypothecated or encumbered by Participant, other than by will or the laws of descent and distribution. 
4.    FORFEITURE OF AWARD
In the event that Participant has a Termination for Cause (as hereinafter defined) or voluntarily resigns from or otherwise terminates his/her employment with the Company or any of its Affiliates (other than as a result of (A) his/her becoming Disabled, (B) death or (C) Retirement) or Participant’s employment with the Company or any of its Affiliates is terminated as a result of a Termination Not for Cause (as hereinafter defined), prior to the third anniversary of the Award Effective Date and prior to a Change in Control, then the Award which is held by Participant on the date of such termination shall be forfeited by Participant, and the Company shall have no further obligation to Participant with respect to such forfeited Award.  For purposes of this Agreement, a “Termination for Cause” shall mean a termination of employment by the Company or any of its Affiliates due to Cause.  For purposes of this Agreement, “Cause” has the same definition as under any employment or service agreement between the Company or any of its Affiliates and the Participant or, if no such employment or service agreement exists or if such employment or service agreement does not contain any such definition, Cause means (i) the Participant’s act or failure to act amounting to gross negligence or willful misconduct to the detriment of the Company or any of its Affiliates; (i) the Participant’s dishonesty, fraud, theft or embezzlement of funds or properties in the course of Participant’s employment or service; (iii) the Participant’s commission of or pleading guilty to or confessing to any felony; or (iv) the Participant’s breach of any restrictive covenant agreement with the Company or any of its Affiliates, including, but not limited to, covenants not to compete, non-solicitation covenants and non-disclosure covenants.  For purposes of this Agreement, a “Termination Not for Cause” shall mean a Participant’s termination of employment by the Company (or any of its Affiliates) which is not a Termination for Cause.  

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5.    MISCELLANEOUS
(a)    The Plan.  The grant of the Award provided for herein is not being made pursuant to the Plan.  However, capitalized terms used herein and not otherwise defined herein shall have the same meaning as provided under the Plan.  The Plan is available for inspection during business hours at the principal offices of the Company (currently located at 1000 Abernathy Road, Atlanta, Georgia 30328), and a copy of the Plan may be obtained by Participant through a request in writing therefor directed to the Secretary of the Company.
(b)    No Right to Employment.  This Agreement shall not confer on Participant any right with respect to continuance of employment by the Company or any of its Affiliates, nor will it interfere in any way with the right of the Company or any of its Affiliates to terminate such employment at any time for any reason.  
(c)    Taxes.  The Participant shall be responsible for satisfying any income and employment tax withholding obligations attributable to any cash payment hereunder, and the Company may withhold applicable withholding taxes from any payment to be made hereunder.
(d)    Clawback.  In the event the Company is required to prepare an accounting restatement due to the material non-compliance of the Company as a result of misconduct with regard to any financial reporting requirement under federal or state securities laws, rules or regulations, and Participant knowingly engaged in the misconduct, was grossly negligent in engaging in the misconduct, knowingly failed to prevent the misconduct or was grossly negligent in failing to prevent the misconduct, Participant shall reimburse the Company the amount of any payment to Participant hereunder, which payment is made during the twelve-month period following the first public issuance or filing with the United States Securities and Exchange Commission of the financial document that contained such material non-compliance.  
(e)    Waivers.  No waiver at any time of any term or provision of this Agreement shall be construed as a waiver of any other term or provision of this Agreement and a waiver at any time of any term or provision of this Agreement shall not be construed as a waiver at any subsequent time of the same term or provision. 

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(f)    Headings.  All headings set forth in this Agreement are intended for convenience only and shall not control or affect the meaning, construction or effect of this Agreement or of any of the provisions hereof.  
(g)    Counterparts.  This Agreement may be executed via facsimile transmission signature and in counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.
(h)    Board and Committee Determinations.  All matters to be determined under this Agreement shall be determined by the Board or any committee thereof, including, without limitation, the Compensation Committee, without the vote of Participant.  Any such determinations shall be final, binding and conclusive on all parties.
(i)    Unsecured Creditor.  Subject to the terms and conditions set forth herein, this award represents an unsecured promise of the Company to pay the amount described above at the time and on the terms and conditions set forth herein.  The Participant has only the rights of a general unsecured creditor of the Company with respect to this award.
(j)    Law Governing Agreement.  This Agreement shall be governed by and construed in accordance with the laws of the State of Georgia.

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IN WITNESS WHEREOF, the parties hereto have executed this EMPLOYEE CASH AWARD AGREEMENT covering the grant of the cash award effective as of November 14, 2012 and dated as of the date first written above.
BEAZER HOMES USA, INC.

By: _____________________________________
Executive Vice President, General Counsel
and Chief Administrative Officer

PARTICIPANT

________________________________________
Name

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Attachment A

Example Calculation

Assume –

		
	◦
	Participant’s Annual Base Salary on the Award Effective Date is $100,000; 

		
	◦
	Participant’s Target Amount is $75,000 (75% of Annual Base Salary);

		
	◦
	The Company achieves an Increase in Gross Margin Dollars of 102.1% ((FY 2015 Gross Margin of $356,224 – FY 2012 Gross Margin of $176,267) / FY 2012 Gross Margin of $176,267)

Step 1 – Determine the Increase in Gross Margin Dollars for the Performance Period, which in this case is 102.1%.  

Step 2 – Determine the Award Payment by multiplying (1) the Target Amount by (2) the Increase in Gross Margin Dollars (rounded to the nearest dollar), which in this case is $75,000 x 102.1% = $76,575.

If the Increase in Gross Margin Dollars achieved by the Company is less than 69.3%, then no Award Payment will be paid.  

If the Increase in Gross Margin Dollars equals or exceeds 215.6%, the maximum Award Payment will be $75,000 x 215.6% = $161,700.  

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Attachment B

The matrix below illustrates the various payout percentages of the Target Amount that Participant would earn based on achieving various three-year revenue compound annual growth rates and gross margin percentage improvements.

	
								
	Payout % of Target Equal to the % Increase in Gross Margin Dollars

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	3-Year Revenue CAGR

	 
	 
	10.0%
	15.0%
	20.0%
	25.0%
	30.0%
	35.0%

	Cumulative
	5.0%
	0.0%
	95.1%
	121.6%
	150.5%
	181.8%
	215.6%

	Increase in
	4.0%
	0.0%
	86.5%
	111.9%
	139.5%
	169.4%
	201.7%

	Gross Margin %
	3.0%
	0.0%
	77.9%
	102.1%
	128.4%
	156.9%
	187.7%

	 
	2.0%
	0.0%
	69.3%
	92.3%
	117.4%
	144.5%
	173.8%

	 
	1.0%
	0.0%
	0.0%
	0.0%
	0.0%
	0.0%
	0.0%

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Threshold = 69.3% of Target Payout for 69.3% Improvement in Gross Margin Dollars [($298,377-$176,267)/$176,267]

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Target = 102.1% of Target Payout for 102.1% improvement in Gross Margin Dollars [($356,224-$176,267)/$176,267]

	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	Maximum = 215.6% of Target Payout for 215.6% improvement in Gross Margin Dollars[($556,216-$176,267)/$176,267]

	 
	 
	 
	 
	 
	 
	 
	 

	 
	No payout for 3-year CAGR revenue growth < 15% and Gross Margin improvement < 2.0%, regardless of incremental Gross

	 
	Margin Dollars

10ex101to8k09073_01222013.htm

Exhibit 10.1

 

MYREXIS, INC.

 

Executive Severance and Consulting Agreement

 

THIS EXECUTIVE SEVERANCE AND CONSULTING AGREEMENT (this “Agreement”), by and between Myrexis, Inc., a Delaware corporation (the “Company”), and Andrea Kendell (the “Executive”), is made as of January 22. 2013.

 

 

WHEREAS, the Company and the Executive are parties to that certain Executive Severance and Change in Control Agreement dated September 22, 2011 (the “Severance Agreement”);

 

 

WHEREAS, the Company has made the determination to suspend further development activities;

 

 

WHEREAS, the Company will continue to need the services of the Executive in order to maximize Company value for its shareholders; and

 

WHEREAS, in order to incentivize the Executive to continue her services to the Company, the Company desires to enter into this Agreement with the Executive providing certain benefits to the Executive provided she continues in the employ of the Company for a specified period of time.

 

NOW, THEREFORE, as an inducement for and in consideration of the Executive remaining in its employ, the Company agrees that the Executive shall receive the benefits set forth in this Agreement in the event the Executive’s employment with the Company is terminated.

 

1.           Key Definitions.

 

As used herein, the following terms shall have the following respective meanings:

 

1.1            “Cause” means:

 

(a)             the Executive’s willful and continued failure to substantially perform her reasonable assigned duties (other than any such failure resulting from incapacity due to physical or mental illness), which failure is not cured within 30 days after a written demand for substantial performance is received by the Executive from the Board of Directors of the Company which specifically identifies the manner in which the Board of Directors believes the Executive has not substantially performed the Executive’s duties; or

 

(b)             the Executive’s willful engagement in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company.

 

For purposes of this Section 1.1, no act or failure to act by the Executive shall be considered “willful” unless it is done, or omitted to be done, in bad faith and without reasonable belief that the Executive’s action or omission was in the best interests of the Company.

 

  

  

  

 

1.2            “Company Paid Benefits” means any Company-paid health, disability, accident and/or life insurance plans or programs.

 

2.           Term of Agreement.  This Agreement, and all rights and obligations of the parties hereunder, shall take effect upon the date hereof (the “Effective Date”) and shall expire on June 30, 2013 (the “Term”).

 

3.           Services.  During the period beginning on the Effective Date and ending on February 28, 2013, Executive will continue to provide services to the Company as its Chief Financial Officer (such period the “Employment Term”).  Following the expiration of the Employment Term and during the period beginning on March 1, 2013 and continuing until June 30, 2013, the Executive shall be engaged as a consultant to the Company providing such services as the Company may request from time to time (such period, the “Consulting Term”).  Following the Consulting Term, the Executive will no longer provide services to the Company on a regular basis and will be engaged, if at all, as a consultant on an as-needed basis.

 

4.           Compensation.  During the Employment Term, the Company will pay to the Executive an annual base salary of $280,000, pursuant to the Company’s regular payroll schedule.  During the Consulting Term, the Company will pay to the Executive an amount equal to $14,000 per month, payable in arrears on the last business day of each month.  Thereafter, the Company will pay to the Executive at the rate of $175.00 per hour for consulting services requested by the Company, if any.

 

5.           Employment Status.

 

5.1           Not an Employment Contract.  The Executive acknowledges that this Agreement does not constitute a contract of employment or impose on the Company any obligation to retain the Executive as an employee and that this Agreement does not prevent the Executive from terminating employment at any time.

 

6.           Termination

 

6.1           Employment Term.  The Employment Term will terminate on the earlier of:

 

(a)             The date the Executive resigns for any reason.

 

(b)             The date the Company terminates the Employment Term for any reason.

 

(c)             The expiration of the Employment Term.

 

(d)             Any termination of the Executive’s employment by the Company or by the Executive (other than due to the death of the Executive) prior to the expiration of the Employment Term and other than as a result of the expiration of the Employment Term shall be communicated by a written notice to the other party hereto (the “Notice of Termination”), given in accordance with Section 8.  Any Notice of Termination shall: (i) indicate the specific termination provision (if any) of this Agreement relied upon by the party giving such notice, (ii) to the extent applicable, set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated and (iii) specify the Date of Termination (as defined below).  The effective date of an employment termination (the “Date of Termination”) shall be the close of business on the date specified in the Notice of Termination (which date may not be less than 10 days or more than 30 days after the date of delivery of such Notice of Termination) in the case of a termination other than one due to the Executive’s death.  In the case of the Executive’s death, the Date of Termination shall be the date of the Executive’s death.

 

  

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(e)             Any Notice of Termination for Cause given by the Company must be given within 20 days of the occurrence (or if later, the discovery) of the event(s) or circumstance(s) which constitute(s) Cause.  Prior to any Notice of Termination for Cause being given (and prior to any termination for Cause being effective), the Executive shall be entitled to a hearing before the Board of Directors of the Company at which she may, at her election, be represented by counsel and at which she shall have a reasonable opportunity to be heard.  Such hearing shall be held on not less than 15 days prior written notice to the Executive stating the Board of Directors’ intention to terminate the Executive for Cause and stating in detail the particular event(s) or circumstance(s) which the Board of Directors believes constitutes Cause for termination.

 

6.2           Consulting Term.  The Consulting Term will terminate on the earlier of:

 

(a)             the expiration of the Consulting Term;

 

(b)             the date that the Company terminates the Consulting Term for Cause; and

 

(c)             the death of the Executive.

 

7.           Benefits Following Termination.

 

7.1           Benefits Following Termination of the Employment Term.

 

(a)             Termination Without Cause or upon expiration of the Employment Term.  If the Executive’s employment with the Company is terminated by the Company without Cause (and other than due to the death of the Executive) prior to the expiration of the Employment Term, or upon the Executive’s employment termination as a result of the expiration of the Employment Term, the Company shall pay to the Executive the following amounts:

 

(1)           in a lump sum, in cash, on the tenth (10th) day after the Date of Termination, the sum of (A) the Executive’s base salary through the Date of Termination, and (B) any accrued vacation pay to the extent not previously paid (the sum of the amounts described in clauses (A) and (B) shall be hereinafter referred to as the “Accrued Obligations”);

 

(2)           in a lump sum, in cash, on the tenth (10th) day after the Date of Termination, the Executive’s base salary from the Date of Termination through the expiration of the Employment Term,

 

  

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(3)           in a lump sum, in cash, on the tenth (10th) day after the Date of Termination, the sum of (A) one times the Executive’s then current annual base salary and (B) one times the Executive’s then current fiscal year target bonus amount; and

 

(4)           in a lump sum, in cash, on the tenth (10th) day after the Date of Termination, a retention bonus in the amount of $100,000.

 

(ii)           if the Executive is covered under the Company’s group health plan immediately prior to the Date of Termination, then if the Executive timely elects to continue such coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), the Company will pay the premium for the Executive’s COBRA coverage until the earlier of (A) twelve months from the Expiration of the Employment Term and (B) the date the Executive becomes covered under another group health plan; and

 

(iii)           to the extent not previously paid or provided, the Company shall timely pay or provide to the Executive any other amounts or benefits required to be paid or provided or which the Executive is eligible to receive following the Executive’s termination of employment under any plan, program, policy, practice, contract or agreement of the Company and its affiliated companies (such other amounts and benefits shall be hereinafter referred to as the “Other Benefits”).

 

(b)             Termination for any other reason.  If the Executive voluntarily terminates her employment with the Company, or if the Executive’s employment with the Company is terminated for Cause or by reason of the Executive’s death, then the Company shall (i) pay the Executive (or her estate, if applicable), in a lump sum in cash on the earlier of the next regularly scheduled payroll date or 30 days after the Date of Termination, the Accrued Obligations and (ii) timely pay or provide to the Executive the Other Benefits.

 

(c)             Release.  As a condition to Executive receiving the benefits under this Section 7.1(a), the Executive must first execute and deliver to Company a general release of claims against the Company and its affiliates in a form substantially similar to the general release attached hereto as Exhibit A, and such release, by its terms, has become irrevocable prior to the tenth (10th) day following the Date of Termination.

 

7.2           Benefits Following Termination of the Consulting Term.  Upon termination of the Consulting Term for any reason or upon expiration of the Consulting Term, the Executive shall be paid any accrued but unpaid fees for her consulting services.

 

8.           Disputes.  All claims by the Executive for benefits under this Agreement shall be directed to and determined by the Board of Directors of the Company and shall be in writing.  Any denial by the Board of Directors of a claim for benefits under this Agreement shall be delivered to the Executive in writing and shall set forth the specific reasons for the denial and the specific provisions of this Agreement relied upon.  The Board of Directors shall afford a reasonable opportunity to the Executive for a review of the decision denying a claim.  Any further dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in Salt Lake City, Utah, in accordance with the rules of the American Arbitration Association then in effect.  Judgment may be entered on the arbitrator’s award in any court having jurisdiction.

 

  

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9.           Successors.

 

9.1           Successor to Company.  The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to at least one-third or more of Company’s gross assets to expressly assume and agree to perform this Agreement to the same extent that the Company would be required to perform it if no such succession had taken place.  As used in this Agreement, “Company” shall mean the Company as defined above and any successor to its business or assets as aforesaid which assumes and agrees to perform this Agreement, by operation of law or otherwise.

 

9.2           Successor to Executive.  This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If the Executive should die while any amount would still be payable to the Executive or her family hereunder if the Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the executors, personal representatives or administrators of the Executive’s estate.

 

10.           Nondisparagement.  The Executive and the Company acknowledge and agree that each shall not make any statements that are professionally or personally disparaging about or adverse to the interests of the other, including, but not limited to, any statements that disparage any of the other’s products, services, finances, financial condition, capabilities or other characteristics.

 

11.           Notice.  All notices, instructions and other communications given hereunder or in connection herewith shall be in writing.  Any such notice, instruction or communication shall be sent either (i) by registered or certified mail, return receipt requested, postage prepaid, or (ii) prepaid via a reputable nationwide overnight courier service, in each case addressed to the Company, at 305 Chipeta Way, Salt Lake City, Utah 84108, Attn: Chief Executive Officer, and to the Executive at the address for notices indicated below (or to such other address as either the Company or the Executive may have furnished to the other in writing in accordance herewith).  Any such notice, instruction or communication shall be deemed to have been delivered five business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, or one business day after it is sent via a reputable nationwide overnight courier service. Either party may give any notice, instruction or other communication hereunder using any other means, but no such notice, instruction or other communication shall be deemed to have been duly delivered unless and until it actually is received by the party for whom it is intended.

 

12.           Miscellaneous.

 

12.1           Timing for Payment of Benefits.  Notwithstanding the foregoing, if at the time a payment is to be made under this Agreement, it is determined that the Executive is a “specified employee” of the Company (within the meaning of Section 409A of the Code, as amended, and any successor statute, regulation and guidance thereto), then limited only to the extent necessary to comply with the requirements of Section 409A of the Code, any payments to which the Executive may become entitled under this Agreement which are subject to Section 409A of the Code (and not otherwise exempt from its application) will be withheld until the first (1st) business day of the seventh (7th) month following the termination of employment at which time Executive shall be paid an aggregate amount equal to the accumulated, but unpaid, payments otherwise due to Executive under the terms of this Agreement, and the original schedule shall resume with respect to the remaining payments. Further, any payment to Executive under this Agreement that constitutes nonqualified deferred compensation under Section 409A payable as a result of a termination of employment may only be paid upon a “separation from service” under Section 409A(a)(2)(A)(i) of the Code.  For purposes of clarification, the foregoing sentence shall not cause any forfeiture of benefits on the part of the Executive, but shall only act as a delay until such time as a “separation from service” occurs.  Each payment to which Executive is entitled upon her separation of service from the Company shall constitute a “separate payment” for purposes of Section 409A.

 

  

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12.2           Reimbursements.  To the extent any reimbursements by the Company to the Executive under this Agreement are subject to Section 409A, (i) payments will be made upon receipt of any documentation of such expenses required by the Company, (ii) the expenses eligible for reimbursement in any taxable year may not affect the expenses eligible for reimbursement in any other taxable year, (iii) such reimbursement must be made on or before the last day of the year following the year in which the expenses were incurred, and (iv) the right to reimbursement is not subject to liquidation or exchange for another benefit.

 

12.3           Construction.  Section 409A and the rules and regulations promulgated thereunder, in general, provide for the taxation of certain payments made following the termination of employment of an employee.  Section 409A and the rules and regulations promulgated thereunder provide that payments will not be subject to taxation under Section 409A if certain conditions are met.  It is the intent of the parties that any payments made to the Executive following a termination of employment are to not be subject to taxation under Section 409A.  Accordingly, this Agreement shall be construed, interpreted and applied so as to accomplish this intent, and also recognizing that there may be future guidance and interpretation of the application of Section 409A and the rules and regulations promulgated thereunder by the Internal Revenue Service or the judicial courts.

 

12.4           Employment by Subsidiary.  For purposes of this Agreement, the Executive’s employment with the Company shall not be deemed to have terminated solely as a result of the Executive continuing to be employed by a wholly-owned subsidiary of the Company.

 

12.5           Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

 

12.6           Injunctive Relief.  The Company and the Executive agree that any breach of this Agreement by the Company is likely to cause the Executive substantial and irrevocable damage and therefore, in the event of any such breach, in addition to such other remedies which may be available, the Executive shall have the right to specific performance and injunctive relief.

 

  

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12.7           Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the internal laws of the State of Utah, without regard to conflicts of law principles.

 

12.8           Waivers.  No waiver by the Executive at any time of any breach of, or compliance with, any provision of this Agreement to be performed by the Company shall be deemed a waiver of that or any other provision at any subsequent time.

 

12.9           Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original but both of which together shall constitute one and the same instrument.

 

12.10           Tax Withholding.  All amounts payable to the Executive as compensation for her services as an employee of the Company shall be subject to required payroll withholdings and deductions.  Executive shall be responsible for the payment of all local, state and federal taxes resulting from the payment of compensation for Executive’s services as a consultant. Executive agrees to indemnify and hold harmless the Company from and against any and all claims, liabilities, suits and penalties for any amounts assessed by or due to any federal, state or local government with respect to compensation payable to Executive for her services as a consultant.  The Company will issue to Executive an IRS Form 1099 on or before January 31 of the year following the year in which Executive performed any services as a consultant to the Company with respect to the compensation paid for such services.

 

12.11           Entire Agreement.  This Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party hereto in respect of the subject matter contained herein; and any prior agreement of the parties hereto in respect of the subject matter contained herein, including, without limitation, the Severance Agreement and the Retention Agreement dated July 2, 2012, is hereby terminated and cancelled.  This Agreement shall not impact or be interpreted as impacting the parties’ respective rights and obligations under any authorized and lawful agreement between the parties regarding subject matters outside the scope of this Agreement, including but not limited to the Executive’s non-competition and non-solicitation, confidentiality, and intellectual property ownership obligations to the Company.

 

12.12           Amendments.  This Agreement may be amended or modified only by a written instrument executed by both the Company and the Executive.

 

  

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first set forth above.

 

	
MYREXIS, INC.

	  	
EXECUTIVE

	  	  	  	  	  
	  	/s/ Gerald P. Belle	  	/s/ Andrea Kendell
	
By:

	
Gerald P. Belle

	  	
Name:

	
Andrea Kendell

	
Title:

	
Chairman of the Board

	  	  	  
	  	  	  	  	
Address for Notices:

	  	  	  	  	  
	  	  	  	  	
758 East Verona Meadows Court

	  	  	  	  	
Murray, UT  84107

 

  

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EXHIBIT A

GENERAL RELEASE

1.           General Release.  In consideration of the payments and benefits to be made under that certain Executive Severance and Consulting Agreement, dated January 22, 2013, (the "Agreement"), Andrea Kendell (the "Executive"), with the intention of binding the Executive and the Executive's heirs, executors, administrators and assigns, does hereby release, remise, acquit and forever discharge Myrexis, Inc. (the "Company") and each of its subsidiaries and affiliates (the "Company Affiliated Group"), their present and former officers, directors, executives, agents, attorneys, employees and employee benefits plans (and the fiduciaries thereof), and the successors, predecessors and assigns of each of the foregoing (collectively, the "Company Released Parties"), of and from any and all claims, actions, causes of action, complaints, charges, demands, rights, damages, debts, sums of money, accounts, financial obligations, suits, expenses, attorneys' fees and liabilities of whatever kind or nature in law, equity or otherwise, whether accrued, absolute, contingent, unliquidated or otherwise and whether now known or unknown, suspected or unsuspected which the Executive, individually or as a member of a class, now has, owns or holds, or has at any time heretofore had, owned or held, against any Company Released Party in any capacity, including, without limitation, any and all claims (i) arising out of or in any way connected with the Executive's service to any member of the Company Affiliated Group (or the predecessors thereof) in any capacity, or the termination of such service in any such capacity, (ii) for severance or vacation benefits, unpaid wages, salary or incentive payments, (iii) for breach of contract, wrongful discharge, impairment of economic opportunity, defamation, intentional infliction of emotional harm or other tort and (iv) for any violation of applicable state and local labor and employment laws (including, without limitation, all laws concerning unlawful and unfair labor and employment practices), any and all claims based on the Employee Retirement Income Security Act of 1974 ("ERISA"), any and all claims arising under the civil rights laws of any federal, state or local jurisdiction, including, without limitation, Title VII of the Civil Rights Act of 1964 ("Title VII"), the Americans with Disabilities Act ("ADA"), Age Discrimination in Employment Act (“ADEA”), Sections 503 and 504 of the Rehabilitation Act, the Family and Medical Leave Act, and any and all claims under any whistleblower laws or whistleblower provisions of other laws, excepting only:

(a)  rights of the Executive under this General Release and the Agreement;

(b)   rights of the Executive relating to equity awards held by the Executive as of her Date of Termination (as defined in the Agreement);

(c)   the right of the Executive to receive continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 in accordance with applicable law;

(d)   rights to indemnification the Executive may have (i) under applicable corporate law, (ii) under the by-laws or certificate of incorporation of any Company Released Party or (iii) as an insured under any director's and officer's liability insurance policy now or previously in force;

 

  

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(e)   claims (i) for benefits under any health, disability, retirement, deferred compensation, life insurance or other, similar Executive benefit plan or arrangement of the Company Affiliated Group and (ii) for earned but unused vacation pay through the Date of Termination in accordance with applicable Company policy; and

(f)   claims for the reimbursement of unreimbursed business expenses incurred prior to the Date of Termination pursuant to applicable Company policy.

2.           No Admissions.  The Executive acknowledges and agrees that this General Release is not to be construed in any way as an admission of any liability whatsoever by any Company Released Party, any such liability being expressly denied.

3.           Application to all Forms of Relief.  This General Release applies to any relief no matter how called, including, without limitation, wages, back pay, front pay, compensatory damages, liquidated damages, punitive damages for pain or suffering, costs and attorney's fees and expenses.

4.           Specific Waiver.  The Executive specifically acknowledges that her acceptance of the terms of this General Release is, among other things, a specific waiver of her rights, claims and causes of action under Title VII, ADEA, ADA and any state or local law or regulation in respect of discrimination of any kind; provided, however, that nothing herein shall be deemed, nor does anything herein purport, to be a waiver of any right or claim or cause of action which by law the Executive is not permitted to waive.

5.           No Complaints or Other Claims.  The Executive acknowledges and agrees that she has not, with respect to any transaction or state of facts existing prior to the date hereof, filed any complaints, charges or lawsuits against any Company Released Party with any governmental agency, court or tribunal.

6.           Conditions of General Release.

(a)   Terms and Conditions.  From and after the Date of Termination, the Executive shall abide by all the terms and conditions of this General Release and the terms and any conditions set forth in any employment or confidentiality agreements signed by the Executive, which is incorporated herein by reference.

(b)   Confidentiality.  The Executive shall not, without the prior written consent of the Company or as may otherwise be required by law or any legal process, or as is necessary in connection with any adversarial proceeding against any member of the Company Affiliated Group (in which case the Executive shall cooperate with the Company in obtaining a protective order at the Company's expense against disclosure by a court of competent jurisdiction), communicate, to anyone other than the Company and those designated by the Company or on behalf of the Company in the furtherance of its business, any trade secrets, confidential information, knowledge or data relating to any member of the Company Affiliated Group, obtained by the Executive during the Executive's employment by the Company that is not generally available public knowledge (other than by acts by the Executive in violation of this General Release).  This confidentiality obligation is in addition to, and not in lieu of, any other contractual, statutory and common law confidentiality obligation of the Executive to the Company.

 

  

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(c)   Return of Company Material.  The Executive represents that she has returned to the Company all Company Material (as defined below).  For purposes of this Section 6(c), "Company Material" means any documents, files and other property and information of any kind belonging or relating to (i) any member of the Company Affiliated Group, (ii) the current and former suppliers, creditors, directors, officers, employees, agents and customers of any of them or (iii) the businesses, products, services and operations (including without limitation, business, financial and accounting practices) of any of them, in each case whether tangible or intangible (including, without limitation, credit cards, building and office access cards, keys, computer equipment, cellular telephones, pagers, electronic devices, hardware, manuals, files, documents, records, software, customer data, research, financial data and information, memoranda, surveys, correspondence, statistics and payroll and other employee data, and any copies, compilations, extracts, excerpts, summaries and other notes thereof or relating thereto), excluding only information (x) that is generally available public knowledge or (y) that relates to the Executive's compensation or Executive benefits.

(d)   Cooperation.  Following the Date of Termination, the Executive shall reasonably cooperate with the Company upon reasonable request of the Board of Directors and be reasonably available to the Company with respect to matters arising out of the Executive's services to the Company Affiliated Group.

(e)   Nondisparagement.  The Executive acknowledges and agrees that she shall not make any statements that are professionally or personally disparaging about or adverse to the interests of the Company or any Company Released Party, including, but not limited to, any statements that disparage in any way whatsoever the Company’s products, services, businesses, finances, financial condition, capabilities or other characteristics.

(f)   Ownership of Inventions, Non-Disclosure, Non-Competition and Non-Solicitation.  The Executive expressly acknowledges and agrees that Sections 4, 5, 6 and 7 of her Employment Agreement with the Company dated July 1, 2009 (the “Employment Agreement”) are incorporated herein by reference, and shall survive the execution of this General Release in full force and effect pursuant to their terms.

(g)   No Representation.  The Executive acknowledges that, other than as set forth in this General Release and the Agreement, (i) no promises have been made to her and (ii) in signing this General Release the Executive is not relying upon any statement or representation made by or on behalf of any Company Released Party and each or any of them concerning the merits of any claims or the nature, amount, extent or duration of any damages relating to any claims or the amount of any money, benefits, or compensation due the Executive or claimed by the Executive, or concerning the General Release or concerning any other thing or matter.

 

  

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(h)   Injunctive Relief.  In the event of a breach or threatened breach by the Executive of this Section 6, the Executive agrees that the Company shall be entitled to injunctive relief in a court of appropriate jurisdiction to remedy any such breach or threatened breach, the Executive acknowledging that damages would be inadequate or insufficient.

7.           Voluntariness.  The Executive agrees that she is relying solely upon her own judgment; that the Executive is over eighteen years of age and is legally competent to sign this General Release; that the Executive is signing this General Release of her own free will; that the Executive has read and understood the General Release before signing it; and that the Executive is signing this General Release in exchange for consideration that she believes is satisfactory and adequate.

8.           Legal Counsel.  The Executive acknowledges that she has been informed of the right to consult with legal counsel and has been encouraged to do so.

9.           Complete Agreement/Severability.  Other than the agreements and/or obligations specifically referenced as surviving herein, this General Release constitutes the complete and final agreement between the parties and supersedes and replaces all prior or contemporaneous agreements, negotiations, or discussions relating to the subject matter of this General Release.  All provisions and portions of this General Release are severable.  If any provision or portion of this General Release or the application of any provision or portion of the General Release shall be determined to be invalid or unenforceable to any extent or for any reason, all other provisions and portions of this General Release shall remain in full force and shall continue to be enforceable to the fullest and greatest extent permitted by law.

10.           Acceptance.  The Executive acknowledges that she has been given a period of twenty-one (21) days within which to consider this General Release, unless applicable law requires a longer period, in which case the Executive shall be advised of such longer period and such longer period shall apply.  The Executive may accept this General Release at any time within this period of time by signing the General Release and returning it to the Company.

11.           Revocability.  This General Release shall not become effective or enforceable until seven (7) calendar days after the Executive signs it.  The Executive may revoke her acceptance of this General Release at any time within that seven (7) calendar day period by sending written notice to the Company.  Such notice must be received by the Company within the seven (7) calendar day period in order to be effective and, if so received, would void this General Release for all purposes.

12.           Governing Law.  Except for issues or matters as to which federal law is applicable, this General Release shall be governed by and construed and enforced in accordance with the laws of the State of Utah without giving effect to the conflicts of law principles thereof.

  

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IN WITNESS WHEREOF, the Executive has executed this General Release as of the date last set forth below.

EXECUTIVE

_______________________________                                                                Date: __________________________

Name:

  

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