Document:

EXHIBIT 10.51

 

CERTAIN
CONFIDENTIAL INFORMATION IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

AMENDMENT 5 TO

Software License and Distribution
Agreement

 

 

THIS AMENDMENT 5 to the IONA Independent
Software Vendor Agreement dated June 29, 1998 (with an effective date of January 1,
1998), as amended from time, between IONA Technologies, Inc. (“IONA”) and
BroadVision, Inc. (“BroadVision”) (the “Agreement”) is entered into between
IONA and BroadVision on this 20th day of December, 2004 (the “Effective Date”).
Capitalized terms used herein and not defined shall have the meaning ascribed
to them in the Agreement.

 

WHEREAS, the parties desire to amend the Agreement to extend the
Agreement through December 31, 2006 and revise certain of the licensing
rights set forth in the Agreement.

 

NOW THEREFORE, in
consideration of the mutual promises and covenants set forth herein, the
parties agree as follows:

 

1.               The
term of the Agreement, and accordingly, any existing licensing rights and
obligations of BroadVision under the Agreement, as modified herein, shall be
extended through December 31, 2006.

 

2.               Section 4.1.1
of the Agreement shall be deleted in its entirety and replaced with a new Section 4.1.1
that shall read as follows:

 

“‘Developed
Software’ shall mean BroadVision’s “Enterprise” customer application, which is
Broad Vision’s base platform on which other of BroadVision’s proprietary
software runs (e.g., Commerce, Portal and Content) (collectively, “BroadVision’s
Proprietary Software”), that is developed using the Software or that embeds or
accesses the Software.”

 

3.               Section 5
of the Agreement shall be deleted in is entirety and replaced with the
following language:

 

“5. [Intentionally Deleted].”

 

4.           All references in the Agreement to “Integrated Orbix
Development Licenses” and “Standalone Orbix Development Licenses” shall be
deleted from the Agreement.

 

5.               The
parties agree that BroadVision is not acquiring any support from IONA and,
accordingly, IONA shall have no support obligations to BroadVision under the
Agreement.

 

6.               Section 8
of the Agreement shall be deleted in its entirety and replaced with the
following language:

 

“8. 
[Intentionally Deleted].”

 

7.               Schedule B
of the Agreement shall be deleted in its entirety and replaced with the
following language:

 

“Schedule B
— Intentionally Deleted”

 

 

 

8.               Section 13
of the Agreement shall be deleted in its entirety and replaced with the
following language:

 

“13. DURATION

This Agreement shall be effective as of January 1,
1998 through December 31, 2006, unless terminated as provided for herein,
or by the agreement of the parties.”

 

9.               Schedule A
of the Agreement shall be deleted in its entirety and replaced with a new First
Supplemental Schedule A, a copy of which is attached hereto as Exhibit 1.

 

10.         A new Schedule D shall
be added to the Agreement, a copy of which is attached hereto as Exhibit II.

 

11.         Except for the changes
specified herein, all terms and conditions of the Agreement shall remain in
full force and effect.

 

 

IN WITNESS WHEREOF, the parties have executed
these Amendment 5 as of the Effective Date.

 

	
  IONA Technologies, Inc.

  	
   

  	
  BroadVision, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Peter M. Zotto

  	
   

  	
  By:

  	
   

  	
  /s/ Scott C. Neely

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Peter Zotto

  	
   

  	
  Name:

  	
  Scott C. Neely

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  President

  	
   

  	
  Title:

  	
  VP & General Counsel

  

 

 

 

Exhibit I

 

First Supplemental Schedule A

 

1.             Software

 

The
definition of “Software” under this Agreement shall mean the following
products:

 

•                  Orbix 3.0.1 on Solaris 2.6, HP-UX 11, and Windows 2000

•                  Orbix Web 3.2 on Solaris 2.6, HP-UX 11, and Windows 2000

•                  Orbix 3.3 on AIX 4.3

 

The above identified
versions of the operating systems are the versions that BroadVision used to
develop the Developed Software.  The
Developed Software and BroadVision’s Proprietary Software have been and can
continue deploying on later versions of the operating systems that  are compatible with the identified versions.

 

2.             Development
Licenses

 

No
new Development Licenses are being acquired. 
BroadVision shall continue to have the right to use, pursuant to Section 3
of the Agreement, the Development Licenses that were acquired prior to the
Effective Date of Amendment 5 to the Agreement.

 

3.             Runtime
Licenses

 

BroadVision
shall pay IONA the following royalty fees in connection with the embedding or
accessing of the Software in the Developed Software:

 

A.  Deployment of the Developed Software on
a stand-alone basis:

 

BroadVision
shall pay IONA a royalty fee equal to [**]% of the net revenue paid or payable
to BroadVision with respect to the deployment of the Developed Software on a
stand alone basis.

 

B.  Deployment of the Developed Software as
bundled with BroadVision’s Proprietary Software:

 

BroadVision
shall pay IONA a royalty fee equal to [**]% of the net revenue paid or payable
to BroadVision with respect to the deployment of the Developed Software, as
bundled with BroadVision’s Proprietary Software, where net revenue with respect
to the Developed Software in such bundled transaction is calculated at [**]% of
the net revenue for the bundled transaction.  By way of example only, if
BroadVision sold a license to BroadVision Portal to a new customer for
$1,000,000, the royalty due under this Section 3.B would be $[**] ([**]%
of $1,000,000 times [**]% royalty rate).

 

C.  Existing End Users

 

For
purposes of clarity, BroadVision shall not have to pay any additional royalty
fees under this Agreement for the distribution of additional Development
Software and/or Runtime Components pertaining to the Software associated with
the Developed Software to the extent 

 

 

 

such
Software is being distributed to persons that have been end users of the
Developed Software on or before the Effective Date of Amendment 5 to the
Agreement

 

 

D.  Royalty Reports

 

Broad
Vision shall pay royalties in arrears on a quarterly basis. BroadVision shall
provide IONA quarterly royalty reports with respect to the deployment of the
Developed Software, as provided for in Section 4.3.3 of the Agreement. A
copy of the form of royalty report is attached to the Agreement as Schedule D
to the Agreement

 

 

4.             Support
and Consulting

 

The
parties agree that BroadVision is not acquiring any support from IONA and,
accordingly, IONA shall have no support obligations to BroadVision under the
Agreement.

 

Consulting
Services may be purchased from IONA based upon IONA’s then current fess and
terms and conditions.

 

 

 

Exhibit II

 

Schedule D

 

IONA Technologies Quarterly Royalty Report Form

 

Quarter
Ending: (month)                               
(day)                       ,
20      .

 

	
  Name of Customer’s End user

  	
   

  	
  Customer Application

  	
   

  	
  Royalty
  Calculation

  	
   

  	
  Subtotal

  	
   

  
	
   

  	
   

  	
  (A)
  License Fees to Customer or

  	
   

  	
  (B)
  Royalty rate %

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Royalties
  Incurred in this Report:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (See Schedule A of
  the Agreement)

  
	
  Company:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Support
  Due:

  	
   

  	
   

  	
   

  	
   

  
	
  By
  (signature):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total
  Amount Due*:

  	
   

  	
   

  	
   

  
	
  Print
  Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Royalties
  Initially Paid:

  	
   

  	
   

  
	
  Phone:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Remaining
  Balance:

  	
   

  	
   

  	
   

  
	
  Email:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
															

 

*         Please attach
payment or a purchase order for all royalties payable with this report under
the terms of the Agreement. If attaching a purchase order, payment terms are
net 45.

 

The
above information must be reported within 45 days from the end of each
calendar quarter, unless otherwise specified in the Agreement, whether or not
shipment has occurred.Exhibit 10.1

 

December 17, 2004

 

Mr. Richard Cimino

 

Re:                             Employment
Letter Agreement (the “Agreement”)

 

Dear Rick:

 

It is my pleasure to formally confirm your promotion to the office of
Corporate Senior Vice President and President, Clinical Development, Periapproval
and Central Diagnostic Services of Covance Inc. (“Covance”) on the terms and
conditions of this Agreement.

 

Position

 

As Corporate Senior Vice President and President, Clinical Development,
Periapproval and Central Diagnostic Services, your duties include the
management of Covance Clinical Development, Periapproval and Central Diagnostic
Services.  In addition, you will perform
such other duties and responsibilities that I, as the Chief Operating Officer (“CEO”),
or the Chief Executive Officer may assign to you from time to time.  You will report to me.  Your office will be located in Covance’s
World Headquarters, which, as you know, is currently located at 210 Carnegie
Center, Princeton, New Jersey, or such other location as determined by the CEO
or I.

 

Salary and Bonus

 

Your salary will be $275,000 per year.

 

You will participate in the Covance Variable Compensation Plan (the “Bonus
Plan”) subject to the terms and conditions thereof.  Payouts under the Bonus Plan are contingent
upon a number of factors, as specified in the Bonus Plan, including Covance and
your performance.  If budgeted targets
and individual performance criteria are met, you would be eligible for a bonus
equal to 70% of your earned base salary (the “Target Bonus Award”).  This Agreement does not constitute an
amendment, modification or supplement to the Bonus Plan and to the extent there
are any inconsistencies between this Agreement and the Bonus Plan, the latter
shall govern.  Further, the Bonus Plan is
subject to modification or discontinuation at the discretion of Covance.  Your base annual incentive target, however,
may be increased from 70%, but not decreased, while you are employed by
Covance.

 

 

May 7, 2002

 

Pension Plan

 

A supplemental executive retirement plan (as amended, modified or
adopted from time to time, the “SERP”) has been adopted for the senior
executives of Covance in which you will participate.  The SERP is a non-qualified, unfunded
retirement plan designed to provide retirement benefits to you starting at age
60 with provisions enabling you to begin receiving reduced benefits if you
retire at age 55.  A copy of the plan
will be available upon request.

 

Investment and Benefit Plans

 

You will be eligible to participate in all the Covance employee benefit
plans, including medical, dental, life insurance, disability, 401(k) savings
plan, and Employee Stock Purchase Plan (“ESPP”), in accordance with the terms
and conditions of those plans.  In
addition, you will receive paid time off benefits consistent with the provisions
of our Paid Time Off Plan.  A copy of the
current benefits program will be provided to you.

 

Auto and Financial Counseling Allowance

 

You will receive a non-accountable, gross monthly auto allowance of
$1,070 per month paid semi-monthly.  This
allowance is in lieu of any direct or per mile charges you may incur while
using your personal car on company business, except for tolls and parking
costs.  You will be responsible for
insurance and all other expenses related to your car.  In addition, you will also be eligible to
participate in other perquisites and/or benefits programs as are offered to all
other senior executives of Covance as a class. 
These include a tax/financial counseling allowance of $6,000 per year
under the terms of the Covance plan.  Any
expenses actually incurred under this tax/financial counseling plan will be
grossed up for tax purposes at an incremental income tax rate of 45%.

 

Equity Awards

 

You may be awarded from time to time additional compensation (such as
stock options or performance shares) pursuant to Covance’s 2002 Employee Equity
Participation Plan (as amended, modified or supplemented from time to time, the
“EEPP”) or any additional or replacement incentive compensation or long-term
compensation program established by Covance for its senior officers.  Any awards under such programs shall be at
such levels or in such amounts as Covance’s Board of Directors or the
Compensation and Organization Committee thereof (the “Compensation Committee”)
deems, in its sole discretion, appropriate for your position and the
performance of your duties.

 

Covance shall recommend to the Board of Directors a grant to you of
5,000 restricted shares under the EEPP in 2004, all as more fully set forth in
the applicable Restricted Stock Agreement. 
The rights, obligations and other conditions of any restricted shares
and stock options shall be as

 

2

 

specified in the EEPP and, as applicable, Restricted Stock Agreements
and Stock Option Agreements, as such agreements may be amended, modified or
supplemented from the to time, in each case between you and Covance.

 

Severance

 

Except as provided below under the paragraph headed “Change-of-Control”,
should you be involuntarily terminated for reasons other than for Cause, the
Company shall pay you the following:

 

(i)  an amount
equal to the sum of (a) one year of base salary (payable on the normal payroll
cycle) determined at the time of termination and (b) one year of the annual
incentive bonus (payable on the normal bonus cycle) in an amount equal for such
year to the product of your base salary and target bonus percentage in effect
at termination (the sum of (a) and (b) being, collectively, the “Termination
Payments”);

 

(ii)  during the
period between the first anniversary of the date of the involuntary termination
of your employment with the Company for reasons other than Cause and the second
anniversary of such event, your base salary (payable on the normal payroll
cycle) with the Company determined at the time of such involuntary termination
in the event that, after reasonable efforts by you, you have been unable to
obtain a suitable alternative vocation, as determined by Company’s Chief
Executive Officer in his sole discretion;

 

(iii)  your
financial counseling and automobile allowance for the one year period starting
on the date of your involuntary termination from the Company for reasons other
than Cause and the first anniversary of the date of such event on the terms and
conditions of the Section of the Letter Agreement entitled “Auto and
Financial Counseling Allowance”; and

 

(iv)  you shall
be entitled to make the COBRA election for continued medical and dental health
insurance benefits for you and your eligible dependents, subject to the terms
and conditions of the applicable policies and all COBRA requirements, for up to
18 months after the date of your termination of employment.  In the event you elect COBRA continuation,
and such termination was involuntary for reasons other than Cause, the Company
shall pay you an amount equal to the monthly premium for such coverage, less
usual withholding taxes and other customary withholdings, from the date of such
involuntary termination for reasons other than Cause until the date that is the
later of (x) the first anniversary of such involuntary termination and (y) the
date you have obtained a suitable alternative vocation, as determined in
accordance with Section (ii) above (such period, not to exceed 18 months after
the date of your involuntary termination from the Company for reasons other
than Cause, being the “Health Continuation Period”).  For the remainder of such 18 month period, if
applicable, you shall be responsible for such costs.  If you have not found a suitable alternative
vocation, as determined in accordance with Section (ii) above on or prior to
the date that is 18 months after your involuntary termination

 

3

 

from the Company for reasons other than Cause, then the Company shall
continue paying to you the foregoing premium payments until the earlier of (I)
the date you find a suitable alternative vocation, as determined in accordance
with Section (ii) above and (II) the date that is the second anniversary of
your involuntary termination from the Company for reasons other than
Cause.  Such payments will be made to you
in equal installments on the dates during the Health Continuation Period, or
such later period, as applicable, that Covance makes its regular payroll
payments.  In the event you were terminated
for Cause and the COBRA election is still available to you under applicable
law, and you so elect the COBRA continuation, you shall be responsible for all
health benefit premium costs.  Life
insurance coverage will continue, at the Company’s expense, for the period
during which the Company pays the premiums for health coverage provided above.

 

Notwithstanding anything in this Severance section to the
contrary, you agree that if you obtain or are provided with medical, dental and
life insurance from a new employment position which provides comparable
coverage and benefits to that provided by the Company under the respective
Company benefit plans and at an equivalent or lesser expense (both deductible
and direct) to you, then you shall promptly notify the Company which of such
insurance benefits is then being provided to you and the Company shall cease
providing such coverage or discontinue paying the premiums for such insurance,
as applicable.  You agree to promptly
update the Vice President – Global Compensation, Benefits and HR Technology of
the Company of any change in your employment or benefits coverage status during
any period you are receiving benefits hereunder.

 

Please refer to that certain Confidentiality and Non-Competition
Agreement between you and the Company (the “Non-Competition Agreement”).  You agree that any of the severance payments
under Section (i) or (ii) above shall constitute the payment of your base
salary under Section 4(a)(ii) of the Non-Competition Agreement.

 

“Cause” shall mean (i) your convictions of a felony or a
misdemeanor if such misdemeanor involves moral turpitude; (ii) your committing
any act of gross negligence or intentional misconduct in the performance or
non-performance of your duties as an employee of Covance or its affiliates,
including, any actions which constitute sexual harassment under applicable
laws, rules or regulations; (iii) your failure to perform your duties assigned
for a period of thirty (30) or more days unless such failure is caused by an
Extended Disability; or (iv) misappropriation of assets, personal dishonesty or
intentional misrepresentation of facts which may cause Covance or its
affiliates financial or reputational harm.

 

Should your employment be terminated by Covance because of an Extended
Disability (as defined below), and not for any other reason that constitutes
Cause, for 180 consecutive days where you have not returned to your duties on a
full-time basis after the expiration of such 180 day period within 30 days
after written notice of termination is given to you, Covance shall pay to you
an amount equal to the sum of (a) two years base salary (payable on the normal
payroll cycle) determined at the time of termination, and (b) two years of the
annual incentive bonus

 

4

 

(payable on the normal bonus cycles) in an amount equal for each such
year to the product of your base salary and target bonus percentage in effect
at termination (the sum of (a) and (b) being, collectively, the “Extended Disability
Payments”).

 

Extended Disability shall (i) mean
you are unable, as a result of a medically determinable physical or mental
impairment, to perform the duties and services of your position, or (ii) have
the meaning specified in any disability insurance policy maintained by Covance,
whichever is more favorable to you.

 

Except as may be otherwise provided in applicable Covance compensation
and benefit plans, Covance shall not be liable for any salary or benefit
payments to you beyond the date of your voluntary termination of employment
with Covance.  In the event of a
termination of employment for Cause or Extended Disability, you shall not be
entitled to any compensation or other benefits not already earned and owing to
you on account of your services on the date of such termination of employment
except as provided above with respect to a termination for Extended
Disability.  The provision of any
benefits pursuant to this Agreement shall be in lieu of, and not in addition
to, any payment or benefits you otherwise would have been entitled to pursuant
to any severance pay plan of Company, including, without limitation, that
certain Amended and Restated Severance Pay Plan.

 

Change-of-Control

 

In the event of an Event of Termination (as defined below), you will be
entitled to a lump sum payment equal to the sum of (1) the product of (a) 3 and
(b) your base annual salary in effect at the time of the Event of Termination
and (2) the product of (a) 3 and (b) number that is your base annual salary
times your target bonus percentage in effect at the time of the Event of
Termination.  Such payment will be made
within 60 days of the Event of Termination. 
In addition to, and as a result of, the foregoing (i) all of your stock
options, restricted stock, deferred compensation and similar benefits which
have not become vested on the date of an Event of Termination shall become
vested upon such event and (ii) you shall be entitled to receive any payments
calculated pursuant to the paragraph headed “Certain Additional Payments by
Covance”.

 

For the purposes of this Agreement, an Event of Termination is defined
to be a termination of your employment by Covance (for reasons other than
Cause) or a Constructive Termination (as defined below) of your employment, in
each case within 24 months following a Change-of-Control (as defined below), or
your voluntary termination of your employment for any reason or no reason
during the one-month period commencing twelve months following a
Change-of-Control and ending thirteen months after such Change-of-Control (a “Voluntary
Termination”); provided, however, that a Voluntary Termination
shall not be an Event of Termination if it arises from a Change-of-Control
pursuant to clause (iv) under the definition of Change-of-Control

 

5

 

unless the tender offer or exchange offer is a tender or exchange offer
for securities representing 20% or more of the combined voting power of Covance’s
then outstanding securities.

 

For purposes of this Agreement, a Change-of-Control is defined to occur
when:

 

(i)  any person
(including as such term is used in Section 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934) becomes the beneficial owner, directly or indirectly, of
Covance’s securities representing 20% or more of the combined voting power of
Covance’s then outstanding securities; or

 

(ii)  as a
result of a proxy contest or contests or other forms of contested shareholder
votes (in each case either individually or in the aggregate), a majority of the
individuals elected to serve on Covance’s Board of Directors are different than
the individuals who served on Covance’s Board of Directors at any time within
the two years prior to such proxy contest or contests or other forms of
contested shareholder votes (in each case either individually or in the
aggregate); or

 

(iii)  Covance
shareholders approve a merger, or consolidation (where in each case Covance is
not the survivor thereof), or sale or disposition of all or substantially all
of Covance’s assets or a plan or partial or complete liquidation; or

 

(iv)  an offeror
(other than Covance) purchases shares of Covance common stock pursuant to a
tender or exchange offer for such shares.

 

For purposes of this Agreement, a Constructive Termination is defined
to be:

 

(i)  a material
breach by Covance of this Agreement, including, without limitation, a reduction
in your then current salary or the percentage of base salary eligible for
incentive compensation;

 

(ii)  a
diminution of your responsibilities, status, title or duties hereunder;

 

(iii)  a
relocation of your work place which increases the distance between your
principal residence and your work place by more than 25 miles;

 

(iv)  a failure
by Covance to provide you with benefits which are as favorable to you in all
material respects as those provided immediately prior to the Change-of-
Control; or

 

(v)  the failure
of any acquiror or successor in interest to the business of Covance to agree in
writing to be bound by the terms of this Agreement within four months of any
Change-of-Control.

 

6

 

In the event you are involved in any dispute about your rights under
this Agreement arising on or after a Change-of-Control, Covance shall pay all
legal costs and fees incurred by you in connection with such dispute promptly
upon receipt of any invoice relating thereto.

 

With respect to an Event of Termination, the benefits set forth under
the paragraph headed Auto and Financial Counseling Allowance and
medical, dental, disability and life insurance will be continued, to the extent
they are not otherwise prohibited under the respective plans, until you find
other employment but not longer than three years from the date of the Event of
Termination.

 

Certain Additional Payments by Covance

 

(a)                                  Anything
in this Agreement to the contrary notwithstanding, in the event it shall be
determined that any payment or distribution by, to or for the benefit of you,
whether made under this Agreement or otherwise (a “Payment”), would be subject to
the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended (the “Excise Tax”), then you shall be entitled to receive an additional
payment (a “Gross-Up Payment”) in an amount such that after payment by you of
all taxes (including any Excise Tax) imposed upon the Gross-Up Payment, you
retain an amount of the Gross-Up Payment equal to the Excise Tax imposed upon
the Payments.

 

(b)                                 All
determinations required to be made under these provisions, including whether a
Gross-Up Payment is required and the amount of such Gross-Up Payment, shall be
made by the accounting firm utilized by Covance for the preparation of its
annual external financial statements (the “Accounting Firm”) which shall
provide detailed supporting calculations both to Covance and you within 30 days
of the Event of Termination, if applicable, or such earlier time as is
requested by Covance.  The Gross-Up
Payment, if any, as determined pursuant to this Paragraph (b), shall be paid to
you within 10 days of the receipt of the Accounting Firm’s determination.  Any determination by the Accounting Firm
shall be binding upon Covance and you. 
If subsequent final determinations of the Excise Tax made by the
Internal Revenue Service give rise to additional Excise Tax, then additional
Gross-Up Payments shall be made by Covance to you within 10 days after the
notice is received by Covance of such final determination.

 

(c)                                  You
shall notify Covance in writing of any claim by the Internal Revenue Service
that, if successful, would require the payment by Covance of a Gross-Up
Payment.  Such notification shall be
given as soon as practicable but no later than 10 business days after you know
of such claim.  You shall not pay such
claim prior to the expiration of the thirty-day period following the date on
which you give such notice to Covance (or such shorter period ending on the
date that any payment of taxes with respect to such claim is due).  If Covance notifies you in writing prior to
the expiration of such period that it desires to contest such claim, you shall:

 

(i)                                     give
Covance any information reasonably requested by Covance relating too such
claim,

 

7

 

(ii)                                  take
such action in connection with contesting such claims as Covance shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney
selected by Covance,

 

(iii)                               cooperate
with Covance in good faith in order effectively to contest such claim, and

 

(iv)                              permit
Covance to participate in any proceedings relating to such claim;

provided, however, that Covance
shall bear all costs and expenses incurred in connection with such contest and
shall indemnify and hold you harmless, on an after-tax basis, for any Excise
Tax or income tax imposed as a result of such contest or representation and
payment of costs and expenses.  Covance
shall control all proceedings taken in connection with such contest.  Covance may, at its sole option, either
direct you to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and you agree to prosecute such contest to a
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as Covance shall determine; provided,
however, that if Covance directs you to pay such claim and sue for a
refund, Covance shall advance the amount of such payment to you on an
interest-free basis and shall indemnify and hold you harmless, on an after-tax
basis, from any Excise Tax or income tax imposed with respect to such advance.

 

(d)                                 If,
after the receipt by you of an amount advanced by Covance pursuant to Paragraph
(c), you become entitled to receive any refund with respect to such claim, you
shall promptly pay to Covance the amount of such refund (together with any
interest paid or credited thereon after taxes applicable thereto).  If, after the receipt by you of an amount
advanced by Covance pursuant to Paragraph (c), a final determination is made
that you shall not be entitled to any refund with respect to such claim, then
such advance shall be forgiven and shall not be required to be repaid and the
amount of such advance shall offset the amount of Gross-Up Payment required to
be paid.

 

Injunctive Relief

 

You agree that the
remedies available to Covance at law for any breach of any of your obligations
under this Agreement may be inadequate, and you accordingly agree and consent
that temporary or permanent injunctive relief, and/or an order of specific
performance, may be granted in any proceeding which may be brought to enforce
any provision hereof, without the necessity of proof of actual damage, in
addition to any other remedies available to Covance at law.

 

8

 

Outplacement

 

If there has been an Event of Termination, Covance shall provide for
you, at Covance’s cost, executive outplacement support for one-year following
such termination.

 

Release

 

If there has been an Event of Termination or if there has been no
Change-of-Control but you have been terminated without Cause, the obligation of
Covance to make to you any or all of the payments specified under this
Agreement (including, without limitation, the Termination Payments, the salary
continuation payments described in Section (ii) of the section entitled Severance
of this Letter Agreement or the payments specified under the paragraph headed “Change
of Control”, as applicable) shall be subject to your execution and delivery
to Covance of a release in form and substance reasonably satisfactory to
Covance of all claims, demands, suits or actions, whether in law or at equity,
you have or may have relating to or giving rise from such Event of Termination
or non-Cause termination.

 

Plans and Conflicts

 

As in the case with the Bonus Plan, the Agreement does not constitute
an amendment, modification or supplement to any other plan or policy (benefit,
compensation or otherwise, including without limitation the EEPP, SERP, 401(k)
Savings Plan, and ESPP) of Covance, whether or not described in the Agreement,
and to the extent there is any inconsistency between the Agreement and any
other plan (benefit, compensation or otherwise, including without limitation
the EEPP, SERP, 401(k) Savings Plan, and ESPP), of Covance, whether or not
described herein, such plans or policies shall govern.  Further, nothing in this Agreement shall
constitute a limitation on Covance’s right to modify or discontinue any such
plans or policies.

 

The provisions of employment relating to health benefits, vacation and
reimbursement for business expenses, professional dues, etc. will be
administered in accordance with company policies, as they may be amended,
modified or supplemented from time to time.

 

Governing Law

 

This Agreement shall be governed by and construed in accordance with
the laws of the State of New Jersey.

 

Conditions to Effectiveness

 

This Agreement will become effective as of the date first written above
upon which all of the following conditions have been satisfied:

 

9

 

a)                                      The
Board of Directors has approved this Agreement; and

 

b)                                     The
Agreement has been executed and delivered by each of you and Covance.

 

Representations and Warranties

 

You hereby represent and warrant to Covance the following:

 

a)                                      You
are not currently party to any contract of employment that might impede or
impair your ability to execute this Agreement or perform the services
contemplated hereof;

 

b)                                     You
are not subject to any non-competition agreement, arrangement or understanding
or any other restrictive covenants that might restrict your employment by
Covance pursuant to this Agreement or otherwise.

 

c)                                      You
shall hold the terms and conditions of your employment with Covance, including
this Agreement, in strict confidence and will not divulge the terms thereof to
anyone else except employees or agents of Covance who have a need to know or
your spouse, accountant, investment advisor, lawyer or others who have a need
to know, provided, they are under similar obligations of
confidentiality.

 

Waivers

 

The failure of either party at any time to require performance by the
other party of any provision hereof shall not affect in any way the full right
to require such performance at any time thereafter, nor shall a waiver by
either party of a breach of any provision hereof be taken or held to be a
waiver of future performance under the provision itself.

 

Scope of Restrictions Reasonable

 

You hereby expressly agree that all of the covenants in this Agreement
are reasonable and necessary in order to protect Covance and its business.  If any provision or any part of any provision
of this Agreement shall be invalid or unenforceable under applicable law, such
part shall be ineffective only to the extent of such invalidity or unenforceability
and shall not affect in any way the validity or enforceability of the remaining
provisions of this Agreement, or the remaining parts of such provision.

 

Assignment; Amendments

 

This Agreement shall be binding on and inure to the benefit of the
parties hereto and their heirs, executors, legal representatives, successors
and assigns.  Except in the event of a
transfer to a

 

10

 

successor corporation or other entity or affiliate of Covance, neither
party shall have the right to assign its rights or delegate its obligations, or
all or any portion of its rights or interests under this Agreement without the
prior written consent of the other party hereto.  This Agreement may be amended only by a
written instrument signed by both parties hereto making specific reference to
this Agreement and expressing the plan or intention to modify it.

 

Notification

 

Any notice, request, demand, or other communication required or
permitted by this Agreement shall be deemed to be properly given if delivered
by hand or when mailed certified, registered or first class mail or overnight
courier with postage or shipping charge prepaid, addressed to Covance at 210
Carnegie Center, Princeton, New Jersey 
08540, Attention: CEO and to you at your address specified above, and
all such notices shall be deemed effective at the time of delivery or at the
time delivery is refused by the addressee upon participation.  The addresses for the purpose of this
Paragraph may be changed only by giving written notice of such change in the
manner provided herein for giving notices.

 

Captions

 

The captions of the Paragraphs herein are inserted as a matter of
convenience only and in no way define, limit or describe the scope of this
Agreement or any provisions hereof.

 

Entire Agreement

 

This Agreement sets forth the entire agreement and understanding
between the parties hereto as to the subject matter hereof, and as such
supersedes in its entirety any existing agreement or offer letters, whether oral
or written, between you and Covance, except for any confidentiality and/or
non-competition agreements between you and Covance which shall continue in full
force and effect in addition to any of the provisions contained in this
Agreement.

 

Employee at Will

 

This Agreement is not a contract of employment.  Your employment by Covance is for no fixed
term, and either you or Covance may terminate the employment relationship at
any time for no reason or any reason not prohibited by applicable laws.

 

11

 

Please indicate your agreement with the terms and conditions of this
Agreement by signing two copies of this Agreement and returning them to my
attention.

 

Very truly yours,

 

 

Joseph Herring

President and Chief Operating Officer

 

 

Accepted as of the date first above specified:

 

 

	
  By:

  	
  /s/ Richard Cimino

  	
   

  
	
   

  	
  Richard Cimino

  

 

12

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