Document:

acls_Ex10_1

		
			Exhibit 10.1
		

		
			AXCELIS TECHNOLOGIES, INC.
		

		
			2012 EQUITY INCENTIVE PLAN
		

		
			As approved by the Shareholders on May 2, 2012, May 14, 2013, May 13, 2014,
		

		
			May 13, 2015, and May 4, 2016
		

		
			1.Purpose.
		

		
			 
		

		
			The purpose of the Axcelis Technologies, Inc. 2012 Equity Incentive Plan (the “Plan”) is to attract and retain persons who are expected to make important contributions to the Company and its Affiliates, to provide an incentive for them to achieve the Company’s goals, and to enable them to participate in the growth of the Company by granting Awards with respect to the Company’s Common Stock. Certain capitalized terms used herein are defined in Section 7 below.
		

		
			 
		

		
			2.Administration.
		

		
			 
		

		
			The Plan shall be administered by the Committee; provided, that the Board may in any instance perform any of the functions of the Committee hereunder. The Committee shall have authority to adopt, alter and repeal such administrative rules, guidelines and practices governing the operation of the Plan as it shall from time to time consider advisable, and to interpret the provisions hereof in its discretion. The Committee’s determinations hereunder shall be final and binding. The Committee may, subject to applicable law, delegate to one or more Executive Officers of the Company the power to make Awards to Participants who are not Reporting Persons or Covered Employees and all determinations hereunder with respect thereto, provided that the Committee shall fix the maximum number of shares that may be subject to such Awards.
		

		
			 
		

		
			3.Eligibility.
		

		
			 
		

		
			All directors and all employees and consultants of the Company or any Affiliate capable of contributing to the successful performance of the Company, other than any person who has irrevocably elected not to be eligible, are eligible to be Participants in the Plan.
		

		
			 
		

		
			4.Stock Available for Awards.
		

		
			 
		

		
			(a)  Amount.  Subject to adjustment under subsection 4(b), up to an aggregate of 3,762,500 shares of Common Stock may be issued pursuant to Awards, including Incentive Stock Options, under the Plan. For the purposes of counting shares hereunder:
		

		
			 
		

		
			i.The number of shares issued as, or upon settlement of, any Award other than an Option or Stock Appreciation Right shall be multiplied by 1.5;
		

		
			 
		

		
			ii.Outstanding shares tendered by the Participant to pay for the exercise of an Option or Stock Appreciation Right, shares repurchased in the open market by the Company, and shares that are withheld by the Company to satisfy the exercise or tax withholding obligation upon exercise or vesting of an Award may not be netted out against shares of Common Stock issued pursuant to Awards hereunder;
		

		
			 
		

		
			iii.Shares subject to any Award granted under this Plan that are not issued because the Award expires, is terminated unexercised or is forfeited, in whole or in part, may be subject to new Awards without being deemed to exceed such maximum amount;
		

		
			 
		

		
			iv.Shares that are not issued under an award that is outstanding under the 2000 Stock Plan as of May 2, 2012 because such award expires, is terminated unexercised or is forfeited may be subject to new Awards under this Plan (other than Incentive Stock Options), without being deemed to exceed such maximum amount; and
		

		
			 
		

		
			v.Shares issued under this Plan as a result of the assumption or substitution of outstanding grants from an acquired company shall not be deemed to exceed such maximum amount.
		

		
			Shares issued under the Plan may consist of authorized but unissued shares or treasury shares
		

		
			 
		

		
			

		 

 

(b)  Adjustments.  Upon any equity restructuring, whether a stock dividend, recapitalization, split up or combination of shares, or otherwise, the number of shares in respect of which Awards may be made under the Plan, the number of shares subject to outstanding Awards, the exercise, purchase or conversion price with respect to any Award, and the limit on individual grants in subsection 5(c) shall be proportionately adjusted, provided that the number of shares subject to any Award shall always be a whole number. In the event the Committee determines that any other reorganization, recapitalization, merger, spin off or other corporate transaction affects the Common Stock such that an adjustment is required in order to preserve the benefits intended to be provided by the Plan, the Committee shall equitably adjust any or all of the number and kind of shares in respect of which Awards may be made under the Plan, the number and kind of shares subject to outstanding Awards, the exercise, purchase or conversion price with respect to any Award, and the limit on individual grants in subsection 5(c), provided that the number of shares subject to any Award shall always be a whole number. If considered appropriate, the Committee may make provision for a cash payment with respect to all or part of an outstanding Award instead of or in addition to any such adjustment. Any adjustment made pursuant to this subsection shall be subject, in the case of Incentive Stock Options, to any limitation required under the Code.
		

		
			 
		

		
			5.Awards under the Plan.
		

		
			 
		

		
			(a)  Types of Awards.  The Committee may grant Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Stock Equivalents, and Awards of shares of Common Stock that are not subject to restrictions or forfeiture. The effectiveness of any such grant may be conditioned on the passage of time, the achievement of any Performance Goals, or the happening of any other event.
		

		
			 
		

		
			(b)Terms and Conditions of Awards.
		

		
			 
		

		
			(i)  Participants; Terms.  The Committee shall select the Participants to receive Awards and determine the terms and conditions of each Award. Without limiting the foregoing but subject to the other provisions of the Plan and applicable law, the Committee shall determine (A) the number of shares of Common Stock subject to each Award or the manner in which such number shall be determined, (B) the price, if any, a Participant shall pay to receive or exercise an Award or the manner in which such price shall be determined, (C) the time or times when an Award may vest or be exercised, settled, or transferred, (D) any Performance Goals, restrictions or other conditions to vesting, exercise, settlement, or transferability of an Award, (E) whether an Award may be settled in the form of cash, Common Stock or other securities of the Company, Awards or other property, and the manner of calculating the amount or value thereof, (F) the duration of any Restricted Period or any other circumstances in which an Award may be forfeited to the Company, (G) the effect on an Award of the disability, death, retirement or other termination of employment or other service of a Participant, and (H) the extent to which, and the period during which, the Participant or the Participant’s legal representative, guardian or Designated Beneficiary may receive payment of an Award or exercise rights thereunder. Except as otherwise provided hereby or in a particular Award, any determination or action with respect to an Award may be made or taken by the Committee at the time of grant or at any time thereafter.
		

		
			 
		

		
			(ii)  Options and Stock Appreciation Rights.  Incentive Stock Options may only be granted to persons eligible to receive such Options under the Code. The exercise price for any Option or Stock Appreciation Right shall not be less than 100% of the Fair Market Value of the Common Stock on the Date of Grant; provided that Options granted in substitution for options granted by a former employer to persons who become eligible to receive Awards hereunder as a result of a transaction described in Section 424(a) of the Code may, consistent with such Section, have a lower exercise price. No Option or Stock Appreciation Right shall have a term longer than seven (7) years. No Incentive Stock Option may be granted more than ten years after the Effective Date. The Committee shall determine the manner of calculating the excess in value of the shares of Common Stock over the exercise price of a Stock Appreciation Right.
		

		
			 
		

		
			(iii)  Restricted Stock and Restricted Stock Units.  Shares of Restricted Stock and shares subject to Restricted Stock Units may not be sold, assigned, transferred, pledged or otherwise encumbered, except as permitted by the Committee, during the applicable Restricted Period. Restricted Stock Units may be settled in shares of Common Stock or cash as determined by the Committee.
		

		
			 
		

		
			(iv)  Minimum Vesting Requirements.  Notwithstanding Sections 5(b)(i) or Section 6(e), with respect to Awards to Executive Officers:
		

		
			 
		

		
			(A)vesting, settlement, or lapse of forfeiture restrictions that is solely based on continued employment, service or the passage of time shall occur (A) with respect to no more than one third of the shares subject to such Award per year 

		 

 

and (B) over not less than four years from the date of grant with respect to the full number of shares subject to such Award; and
		

		
			 
		

		
			(B)vesting, settlement, or lapse of forfeiture restrictions that is based on the achievement of Performance Goals shall occur based on a Performance Period of at least one year;
		

		
			 
		

		
			provided that the foregoing limitations shall not (1) apply to vesting, settlement, or lapse of forfeiture restrictions in connection with the termination of employment or other service of a Participant by the Company or due to the Participant’s disability, death or retirement nor (2) preclude the Committee from (x) exercising its discretion to accelerate the vesting of any Award upon a Transaction as contemplated by Section 5(b)(viii), (y) establishing a shorter vesting schedule for consultants or newly hired employees, or (z) establishing a shorter schedule for vesting, settlement, or lapse of forfeiture restrictions on Awards that are granted in exchange for or in lieu of the right to receive the payment of an equivalent amount of salary, bonus or other compensation.
		

		
			 
		

		
			(v)  Payment of Exercise Price.  The Committee shall determine the form of consideration and manner of payment of the exercise price, if any, of any Award. Without limiting the foregoing, the Committee may, subject to applicable law, permit such payment to be made in whole or in part in cash or by surrender of shares of Common Stock (which may be shares retained from the respective Award or any other Award) valued at their Fair Market Value on the date of surrender, or such other lawful consideration, including a payment commitment of a financial or brokerage institution, as the Committee may determine. The Company may accept, in lieu of actual delivery of stock certificates, an attestation by the Participant in form acceptable to the Committee that he or she owns of record the shares to be tendered free and clear of claims and other encumbrances.
		

		
			 
		

		
			(vi)  Dividends.  In the discretion of the Committee, any Award may provide the Participant with dividends or dividend equivalents payable (in cash, in shares of Common Stock, or in the form of Awards under the Plan) currently or deferred and with or without interest ; provided that any dividend paid or issued with respect to any portion of an Award of Restricted Stock and any dividend equivalent paid or issued with respect to any portion of any other Award shall be subject to the same restrictions (including risk of forfeiture) as such Restricted Stock or other Award, respectively, until the end of the respective Restricted Period or such portion has otherwise vested.
		

		
			 
		

		
			(vii)  Termination and Forfeiture.  The terms of any Award may include such continuing provisions for termination of the Award and/or forfeiture or recapture of any shares, cash or other property previously issued pursuant thereto relating to competition or other activity or circumstances detrimental to the Company as the Committee may determine to be in the Company’s best interests. Without limiting the foregoing, the terms of any Award shall be subject to, and shall be deemed automatically amended to incorporate, any “clawback,” “recapture,” or similar policy adopted by the Company and in effect before or after the grant of such Award.
		

		
			 
		

		
			(viii)  Certain Extraordinary Transactions.  The Committee may in its discretion provide, at the time of grant or at any time thereafter, that in the case of any recapitalization, stock acquisition, merger, consolidation or other form of corporate transaction in which a company other than the Company is the surviving, continuing, successor or purchasing entity (a “Transaction”), the surviving, continuing, successor or purchasing entity or a parent or subsidiary of such entity may, without the consent of the Participant, assume the Company’s rights and obligations under any Award or portion thereof outstanding immediately before the Transaction or substitute for any such outstanding Award or portion thereof a substantially equivalent award with respect to such entity’s own stock or other property or cash, in either case with equitable adjustments in the number and type of shares or other assets subject to the Awards and the exercise, purchase or conversion price with respect to any Award, in light of the consideration received by the Company’s stockholders in the Transaction. Any such Award that is not so assumed or substituted for shall terminate upon the consummation of such Transaction on such terms, if any, as the Committee shall provide. Notwithstanding the foregoing, if the stockholders of the Company receive consideration that is all or predominantly cash in exchange for their shares of common Stock in a Transaction, then, in order to preserve the Participants’ rights under outstanding Awards, the Committee shall, without the need for consent of any Participant, either (A) cause any unexercisable or unvested portion of an Award outstanding immediately before the Transaction to become fully exercisable and vested prior to such Transaction (but effective only on consummation of the Transaction), and any Options and Stock Appreciation Rights that have not been exercised as of the consummation of the Transaction shall thereupon terminate or (B) provide for payment to the Participant of cash, stock of another entity party to the Transaction, or other property with a Fair Market Value equal to the amount, if any, that would have been received upon the vesting, exercise, settlement, or transferability of the Award had any unexercisable or unvested portion of the Award become fully exercisable and vested and the 

		 

 

Award been exercised or paid in connection with the Transaction, reduced (but not below zero) by the exercise or purchase price per share, if any, under such Award, whereupon the Award shall terminate. If any portion of such consideration may be received by Company’s stockholders in the Transaction on a contingent or delayed basis, the Committee may, in its sole discretion, determine such Fair Market Value per share as of the time of the Transaction on the basis of the Committee’s good faith estimate of the present value of the probable amount of future payment of such consideration.
		

		
			 
		

		
			In the event of a recapitalization, stock acquisition, merger, consolidation or other form of corporate transaction in which the Company is the surviving, continuing, successor or purchasing entity, the Committee may make equitable adjustments to outstanding Awards pursuant to Section 4(b).
		

		
			 
		

		
			(ix)  Documentation.  Each Award under the Plan shall be evidenced by documentation in the form prescribed from time to time by the Committee and delivered to or executed and delivered by the Participant specifying the terms and conditions of the Award and containing such other terms and conditions not inconsistent with the provisions hereof as the Committee considers necessary or advisable to achieve the purposes of the Plan or to comply with applicable law and accounting principles. Any such documentation may be maintained solely in electronic format.
		

		
			 
		

		
			(x)  In General.  Any Award may be made alone, in addition to, or in relation to any other Award. The terms of Awards of each type need not be identical, and the Committee need not treat Participants uniformly. No Award shall be transferable except upon such terms and conditions and to such extent as the Committee determines, provided that no Award shall be transferable for value and Incentive Stock Options may be transferable only to the extent permitted by the Code. No Award to any Participant subject to United States income taxation shall provide for the deferral of compensation that does not comply with Section 409A of the Code. The achievement or satisfaction of any Performance Goals, restrictions or other conditions to vesting, exercise, settlement, or transferability of an Award shall be determined by the Committee.
		

		
			 
		

		
			(c)  Limit on Individual Grants.  The maximum number of shares of Common Stock subject to Options, Stock Appreciation Rights and other Awards intended to satisfy the requirements for “performance based compensation” within the meaning of Section 162(m) of the Code that may be granted to a Participant in any fiscal year may not exceed 312,500 shares, subject to adjustment under subsection 4(b). In the case of any performance based Awards settled in cash, no more than $1,000,000 may be paid to any Participant with respect to any one year of a Performance Period.
		

		
			 
		

		
			6.General Provisions.
		

		
			 
		

		
			(a)  Tax Withholding.  A Participant shall pay to the Company, or make provision satisfactory to the Committee for payment of, any taxes required by law to be withheld in respect of Awards under the Plan no later than the date of the event creating the tax liability. The Company and its Affiliates may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind due to the Participant under the Plan or otherwise. In the Committee’s discretion, the minimum tax obligations required by law to be withheld in respect of Awards may be paid in whole or in part in shares of Common Stock, including shares retained from the Award creating the tax obligation, valued at their Fair Market Value on the date of retention or delivery.
		

		
			 
		

		
			(b)  Legal Compliance.  The Company shall not be required to issue any shares of Common Stock or take any other action pursuant to the Plan unless the Company is satisfied that all requirements of law, or of any stock exchange on which the Common Stock is then listed, in connection therewith have been or will be complied with, and the Committee may impose any restrictions on the rights of Participants hereunder as it shall deem necessary or advisable to comply with any such requirements.
		

		
			 
		

		
			(c)  Foreign Nationals.  Awards may be made to Participants who are foreign nationals or employed outside the United States on such terms and conditions different from those specified herein as the Committee considers necessary or advisable to achieve the purposes of the Plan or to comply with applicable laws.
		

		
			 
		

		
			(d)  Awards Not Includable for Benefit Purposes.  Awards and other payments received by a Participant pursuant to the provisions of the Plan shall not be included in the determination of benefits under any pension, group insurance or other benefit plan applicable to the Participant which is maintained by the Company or any of its Affiliates, except as may be provided under the terms of such plans or determined by the Board.
		

		
			 
		

		
			

		 

 

(e)  Amendment, Exchange and Repurchase of Awards.
		

		
			 
		

		
			(i)Subject to clauses (ii) and (iii) below, the Committee may amend, modify or terminate any outstanding Award, including without limitation changing the dates of vesting, exercise or settlement, causing the Award to be assumed by another entity, and substituting therefor another Award of the same or a different type, provided that the Participant’s consent to such action shall be required unless the terms of this Plan or the Award permit such action, the Committee determines that such action is required by law or stock exchange rule, or the Committee determines that the action, taking into account any related action, would not materially and adversely affect the Participant.
		

		
			 
		

		
			(ii)Notwithstanding the attainment of Performance Goals in the case of any Award intended to satisfy the requirements for “performance based compensation” within the meaning of Section 162(m) of the Code, the Committee may reduce (but not increase) the amount payable at a given level of performance to take into account additional factors that the Committee may deem relevant.
		

		
			 
		

		
			(iii)The foregoing notwithstanding, without further approval of the stockholders of the Company, (A) the Committee shall not authorize the amendment of any outstanding Option or Stock Appreciation Right to reduce the exercise price, (B) no Option or Stock Appreciation Right shall be canceled and replaced with an Award exercisable for Common Stock at a lower exercise price and (C) no Award shall be canceled in exchange for a cash payment from the Company to the Award owner, except under the limited circumstances described above in Section 5(b)(viii) relating to Transactions.
		

		
			 
		

		
			7.Certain Definitions. As used in this Plan:
		

		
			 
		

		
			“Affiliate” means any business entity in which the Company owns directly or indirectly 50% or more of the total voting power or has a significant financial interest as determined by the Committee.
		

		
			 
		

		
			“Award” means any award of shares of Common Stock or right with respect to shares described in Section 5(a).
		

		
			 
		

		
			“Board” means the Board of Directors of the Company.
		

		
			 
		

		
			“Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor law.
		

		
			 
		

		
			“Committee” means one or more committees appointed by the Board to administer the Plan or a specified portion thereof. Each such committee shall be comprised of not less than two members of the Board who shall meet such criteria as the Board may specify from time to time.
		

		
			 
		

		
			“Common Stock” means the Common Stock, $0.001 par value, of the Company.
		

		
			 
		

		
			“Company” means Axcelis Technologies, Inc., a Delaware corporation.
		

		
			 
		

		
			“Covered Employee” means a “covered employee” within the meaning of Section 162(m) of the Code.
		

		
			 
		

		
			“Date of Grant” means the date on which all requirements under applicable law and the Company’s certificate of incorporation and bylaws for the effective grant of an Award have been satisfied.
		

		
			 
		

		
			“Designated Beneficiary” means the beneficiary designated by a Participant, in a manner determined by the Committee, to receive amounts due or exercise rights of the Participant in the event of the Participant’s death. In the absence of an effective designation by a Participant, “Designated Beneficiary” means the Participant’s legal representative.
		

		
			 
		

		
			“Effective Date,” from time to time, means the most recent date that the Plan was adopted or, if earlier, that it was approved by the stockholders (including approval of the Plan as amended), as such terms are used in the regulations under Section 422 of the Code.
		

		
			 
		

		
			“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor law.
		

		
			 
		

		
			“Executive Officer” has the meaning given in Rule 3b 7 under the Exchange Act, or any successor provision.
		

		
			 
		

		
			

		 

 

“Fair Market Value” with respect to the Common Stock or other property means the fair market value thereof determined by such methods as shall be established by the Committee from time to time. Unless otherwise determined by the Committee in good faith, the per share Fair Market Value of the Common Stock as of any date shall mean (a) if the Common Stock is then listed or admitted to trading on a national securities exchange, (i) the last reported sale price on such date on the principal national securities exchange on which the Common Stock is then listed or admitted to trading, (ii) if no such reported sale took place on such date, the average of the closing bid and asked prices on such exchange on such date, or (iii) if neither (i) nor (ii) applies, the last reported sale price on the next preceding date on which trading took place, or (b) if the Common Stock is then traded in the over the counter market, the average of the closing bid and asked prices on such date, as reported by The Wall Street Journal or other appropriate publication selected by the Committee, for the over the counter market.
		

		
			 
		

		
			“Incentive Stock Option” means an Option complying with the requirements of Section 422 of the Code or any successor provision and any regulations thereunder.
		

		
			 
		

		
			“Option” means a right to purchase shares of Common Stock and may be an Incentive Stock Option if specified by the Committee.
		

		
			 
		

		
			“Participant” means a person selected by the Committee to receive an Award under the Plan.
		

		
			 
		

		
			“Performance Goals” means, in the case of Awards intended to satisfy the requirements for “performance based compensation” within the meaning of Section 162(m) of the Code, one or more objective performance goals established by the Committee, based on one or more of the following criteria: revenue; revenue growth; sales; expenses; margins; net income; earnings or earnings per share; cash flow; stock price; shareholder return; return on investment; return on invested capital, assets, or equity; profit before or after tax; operating profit; operating margin; return on research and development investment; market capitalization; quality improvements; market share; cycle time reductions; customer satisfaction measures; strategic positioning or marketing programs; market penetration or expansion; business / information systems improvements; expense management; infrastructure support programs; human resource programs; customer programs; technology development programs; goals relating to acquisitions or divestitures, or any combination of the foregoing, including without limitation goals based on any of such measures relative to peer groups or market indices, and may be particular to a Participant or may be based, in whole or in part, on the performance of the division, department, line of business, subsidiary, or other business unit, whether or not legally constituted, in which the Participant works or on the performance of the Company generally.
		

		
			 
		

		
			“Performance Period” means any period of service of at least one year designated by the Committee as applicable to an Award intended to satisfy the requirements for “performance based compensation.”
		

		
			 
		

		
			“Reporting Person” means a person subject to Section 16 of the Exchange Act.
		

		
			 
		

		
			“Restricted Period” means any period during which an Award or any part thereof may be forfeited to the Company.
		

		
			 
		

		
			“Restricted Stock” means shares of Common Stock that are subject to forfeiture to the Company.
		

		
			 
		

		
			“Restricted Stock Unit” means the right, subject to forfeiture, to receive the value of a share of Common Stock in the future, payable in the form of cash, Common Stock or other securities of the Company, Awards or other property, and is an unfunded and unsecured obligation of the Company.
		

		
			 
		

		
			“Stock Appreciation Right” means the right to receive any excess in value of shares of Common Stock over the exercise price of such right.
		

		
			 
		

		
			“Stock Equivalent” means the right to receive payment from the Company based in whole or in part on the value of the Common Stock, payable in the form of cash, Common Stock or other securities of the Company, Awards or other property, and may include without limitation phantom stock, performance units, and Stock Appreciation Rights.
		

		
			 
		

		
			“Termination of employment or other service of a Participant” means the voluntary or involuntary termination of a Participant’s employment with the Company or an Affiliate for any reason, including death, disability, retirement or as the result of the divestiture of the Participant’s employer or any similar transaction in which the Participant’s employer ceases to be the Company or one of its Affiliates. Whether entering military or other government service shall constitute 

		 

 

“termination of employment or other service,” or whether a “termination of employment or other service” shall occur as a result of disability, shall be determined in each case by the Committee in its sole discretion before or after the grant of the respective Award. In the case of a member of the Board or consultant who is not an employee of the Company or an Affiliate, “termination of employment or other service” shall mean the voluntary or involuntary termination of Board service or the consulting relationship, as the case may be, for any reason.
		

		
			 
		

		
			“Transferable for value” means a transfer on terms that would prevent the Company from relying on Securities and Exchange Commission Form S 8 (or any successor form) with respect to the issuance of the Common Stock underlying the respective Award.
		

		
			 
		

		
			8.Miscellaneous.
		

		
			 
		

		
			(a)  No Rights with Respect to Service.  No person shall have any claim or right hereunder to be granted an Award. Neither the adoption, maintenance, or operation of the Plan nor any Award hereunder shall confer upon any person any right with respect to the continuance of his or her employment by or other service with the Company or any Affiliate nor shall they interfere with the rights of the Company or any Affiliate to terminate or otherwise change the terms of such service at any time, including, without limitation, the right to promote, demote or otherwise re assign any person from one position to another within the Company or any Affiliate. Unless the Committee otherwise provides in any case, the service of a Participant with an Affiliate shall be deemed to terminate for purposes of the Plan when such Affiliate ceases to be an Affiliate of the Company.
		

		
			 
		

		
			(b)  No Rights as Stockholder.  Subject to the provisions of the applicable Award, no Participant or Designated Beneficiary shall have any rights as a stockholder with respect to any shares of Common Stock to be issued under the Plan until he or she becomes the holder thereof. A Participant to whom Common Stock is awarded will be considered the holder of such Common Stock at the time of the Award, except as otherwise provided in the applicable Award.
		

		
			 
		

		
			(c)  Amendment of Plan.  The Board may amend, suspend or terminate the Plan or any portion thereof at any time, subject to such stockholder approval as the Board determines to be necessary or advisable to comply with any tax or regulatory requirement.EX-10.2

 

 
  

 Exhibit 10.2 

March 14, 2016 
 Michael Reed 

7395 SW 133rd Terrace 
 Miami, FL 33156 

Dear Mike, 
 It is a pleasure to confirm our offer of employment
and your verbal acceptance as Senior Vice President, R&D and Chief Science Officer (SVP, R&D and CSO) on behalf of OraSure Technologies, Inc. with a starting date of April 18, 2016. Your orientation to OraSure will occur on
April 18, 2016 at 9:00 am with a representative of the Human Resource department. 
 The terms and conditions of your employment are contained in this
letter and the attachments called “Compensation Package and “Relocation Package.” This is subject to Board of Directors approval. 
 Your
employment is contingent upon receipt of proof of eligibility to work in the United States (Form I-9), your successful completion of a pre-employment drug test, and completion of the attached Employee Confidentiality Agreement. Please complete the
signed offer letter and return it to the Human Resources Department. You will be asked to complete the I-9 form on your first day of employment. You must also bring the signed Confidentiality Agreement on your first day. Additionally, please contact
Ayesha Herrera at 610-882-1820 ext. 1637, to schedule your pre-employment drug test. 
 As an OraSure employee, you can enroll in an extensive employee
benefit package. You will be eligible for health, dental, and life insurance the first day of hire. You will be eligible to participate in the OraSure’s Savings Plan 401(k) on the first of the month following three months of employment.
Materials have been sent to you under separate cover. 
 This letter and attachments represent the entire job offer and is not a contract of employment.
Your employment with OraSure is “at will” and neither this letter nor any other oral or written representation may be considered a contract for any specific period of time. No changes, additions, or modifications to this letter or
attachments shall be binding unless they are in writing and signed by the parties to this letter. 
 We sincerely are excited that you will be joining our
“OraSure team.” We look forward to receiving your written confirmation within seven days from the date of this letter. To formally accept the offer, please sign in the place provided below and send it to Human Resources. 

Once again, congratulations! 
  

					
	Sincerely,	  	Accepted by:	  	 /s/ Michael Reed     3/16/16

		  		  	Signature and Date
	 /s/ Henry B. Cohen
	  		  	
		  		  	
	 Henry B. Cohen
	  		  	
	 Senior Vice President
	  		  	
	 Human Resources
	  	Name:	  	 Michael Reed

  

  

220 East First Street, Bethlehem, PA 18015-1360 

Phone: 610.882.1820 

www.orasure.com 

 

 
  

 Compensation Package 

Effective April 18, 2016 
  

			
	Name:	  	Michael Reed
	 Job Title:
	  	Senior Vice President, Research and Development and Chief Science Officer
	 Supervisor:
	  	Doug Michels
	 Job Grade:
	  	Executive Committee
	 Status:
	  	Full-time, Regular
		
	 Initial Base Salary:
	  	$11,730.77 biweekly, which is equivalent to an annual salary of $305,000.00.
		
	 2016 MIP Bonus:
	  	Payable in February, 2017 based on both company performance versus metrics and individual performance on goals and objectives. No proration of payment. Target payout is 35% and “meets requirements” rating of individual
performance.
		
	 Initial LTIP Award: 
	  	The initial incoming equity grant will be made shortly after you join the company. It will be for a value transfer of $274,500 (90% of your base salary). It will be awarded as follows: A) 50% in time-vested restricted stock with
a 3 year vesting period, and B) 50% in performance-vested restricted stock units with 3 year vesting. Grants will be made shortly after you join the company. Performance will be measured on the same basis as awards granted in OraSure on
2/1/16.
		
	 Subsequent LTIP Awards:
	  	Eligible for LTIP awards for the 2016 performance year and annually thereafter. Awards are discretionary and performance based. Target award is 75% of base salary. Awards are typically made in February. Your 2016 award would
typically be paid in February 2017 and consist of 50% time-vested restricted stock, and 50% performance-based restricted stock units. These awards will not be prorated.
		
	 Initial Salary Review:
	  	Effective 01/01/17 – no proration. Salary adjustments are typically implemented in mid-February with retroactivity to January 1st.
		
	 Paid Time Off:
	  	2016 – 20 days (160 hours) PTO
		
		  	2017 – 25 days (200 hours) PTO
		
	 Employment:
	  	If your employment is terminated by the company for reasons other than a code of conduct violation, we will provide a severance payment equal to twelve months of base salary.
		
	 Legal Expenses:
	  	In the event that Danaher Corporation seeks to enforce certain non-compete provisions in the “Agreement Regarding Competition and Protection of Proprietary Issues signed by Employee”, OraSure will provide legal counsel
at Company expense and is further detailed in the enclosed side agreement with Employee.

 OraSure is a dynamic company whose policies, procedures, and programs may change to address its business needs. Therefore,
OraSure reserves the right to amend, suspend, or terminate any pay program, benefit program, or incentive program; in whole or in part, at any time and for any reason, without the consent of or prior notification to any eligible employee. 

  

220 East First Street, Bethlehem, PA 18015-1360 

Phone: 610.882.1820 

www.orasure.com 

 

 
  

 March 14, 2016 

Mr. Michael R. Reed 
 7395 Southwest 133rd Terrace 
 Miami, FL 33156 
  

	Re:	Reimbursement Agreement 

 Dear Mike: 

I am writing to follow up our discussions concerning your employment with OraSure Technologies, Inc. (“OraSure” or the “Company”) and your
Agreement Regarding Competition and Protection of Proprietary Interests (the “Agreement”) with your current employer, Danaher Corporation (“Danaher”). Neither you nor OraSure believe that your employment as Senior Vice President,
Research and Development and Chief Science Officer with OraSure would violate any term of the Agreement and OraSure expects you to honor any and all valid agreements that you may have with any former employer. However, in the event that Danaher
asserts that your employment with OraSure violates your non-competition obligations under Sections 6(a), 6(b), 6(c) or 6(g) of the Agreement, OraSure agrees that it will reimburse your reasonable attorneys’ fees in responding to such
allegations, provided that: 1) you comply with OraSure’s direction concerning the scope and nature of your job responsibilities; and 2) you remain an employee in good standing with OraSure. OraSure’s obligation to reimburse
you under the terms of this letter shall cease upon the termination of your employment with OraSure where such termination is a voluntary action by you or a termination by the Company as a result of your violation of OraSure’s Code of Business
Conduct and Ethics. Nothing in this letter will change the at-will nature of your employment with OraSure nor does this letter constitute an employment agreement. 

If the foregoing is acceptable, please sign and date this letter in the space provided below. 

Sincerely, 
 /s/ Henry B.
Cohen                                        
     
 Henry B. Cohen 
 Senior Vice
President, Human Resources 
 Agreed and Understood 

/s/ Michael R. Reed 3/16/16 
 Michael R. Reed 

  

220 East First Street, Bethlehem, PA 18015-1360 

Phone: 610.882.1820 

www.orasure.com 

 

 
  

 Relocation Package 

Effective April 18, 2016 
  

			
	Name:	  	Michael Reed
	 Job Title:
	  	Senior Vice President, R&D and Chief Science Officer
	 Supervisor:
	  	Doug Michels, President & CEO
	 From/To:
	  	Miami, FL to Bethlehem, PA
		
	 Home Finding:
	  	2 trips; up to 4 days each; hotel, meals, travel not exceeding a total amount of $7,000.00.
		
	 Temporary Housing:
	  	Up to 6 months at a $4,000.00 monthly allowance – receipts required, not to exceed a total of $24,000.00. Will cease upon the close of sale of your primary residence in Florida.
		
	 Movement of
	  	
	 Household Goods:
	  	Packing, shipment, unpacking of normal household goods and effects not to exceed a total of $25,000.00. (Includes provision for shipping two cars).
		
	 Storage of
	  	
	 Household Goods:
	  	Up to 6 months at $600.00, not to exceed total of $3,600.00.
		
	 Home Sale Expenses:
	  	1. Real Estate Commission, not to exceed 5% of sale price, or $50,000.00, whichever is less.
		  	2. Other transactional expenses – attorney, transfer taxes, other taxes, not to exceed $8,000.00.
		
	 Home Purchase
	  	
	 Expenses:
	  	Attorney fees, transfer and realty taxes on transaction, etc. – not to exceed $8,000.00.
		
	 Travel Allowance:
	  	To and from Miami, Florida - $1,500/month for up to 6 months, not to exceed $9,000.00.
		
	 Final Move:
	  	For self and family, one way travel from Miami, FL to PA – not to exceed $2,000.00
		
	 Miscellaneous Allowance:
	  	You will receive reimbursement of up to $10,000.00 to cover other expenses related to your relocation, but not specified in this letter. These expenses will require receipts as documentation.
		
	 Tax Gross-up:
	  	At your incremental federal and state rates.

 It is anticipated that there will be overages and under spending on a line item basis. Allowances may be shifted between
areas, subject to Human Resources and Finance approval and subject to staying within the $146,600.00 spending limit (excluding tax gross-up). You will be expected to execute the attached repayment agreement for any relocation expense incurred by the
company on your behalf should you voluntarily leave the company before completing two years of employment. 

  

220 East First Street, Bethlehem, PA 18015-1360 

Phone: 610.882.1820 

www.orasure.com 

 

 
  

 RELOCATION 

REPAYMENT AGREEMENT 
 This Agreement, dated
as of the day of March 14, 2016, by and between OraSure Technologies, Inc., a Delaware corporation with its principal place of business at 220 E. First Street, Bethlehem, PA 18015 (the “Company”) and Michael Reed (the
“Employee”). 
  

	 	1)	After the commencement of Employee’s employment with Company, or a subsidiary or affiliate thereof on April 18, 2016 (the “Employment Commencement Date”) if Employee: (i) voluntarily resigns
his/her employment from Company or a subsidiary or affiliate; or (ii) Employee fails or refuses to report to work on the Employment Commencement Date, or if Company or such subsidiary or affiliate terminates Employee for “Cause”,
within 2 years of the Employment Commencement Date, then Employee shall repay to Company the Expenses previously reimbursed and or paid to Employee for relocation. Expenses may include, but are not limited to the following: 

 

	 	a.	Commission on sale of current residence; 

	 	b.	Administrative fees in accordance with home sale, including recording fees, title search, legal fees; 

	 	c.	Household Goods transfer from current location to new residence; 

	 	d.	Home purchase costs including inspection, mortgage broker, title attorney, closing attorney, title insurance, survey; 

	 	e.	Temporary living for 120 days; 

	 	f.	Tax Gross-up, if applicable; 

	 	g.	Miscellaneous relocation allowance; 

	 	h.	Any other expenses related to the Employee’s relocation. 

  

	 	2)	For the purposes of this Agreement, termination for “Cause” shall mean (i) Employee’s failure to perform and carry out his/her duties and responsibilities, within his/her reasonable control or
responsibility, other than as a result of Employee’s incapacity due to physical or mental disability, as determined in a manner consistent with the short-term disability policies of Company, (ii) any act by Employee of dishonestly or moral
turpitude relating to Company, any subsidiary or affiliate, or (iii) any breach by Employee of any non-compete, non-solicitation, confidentiality or restrictive covenants agreement(s) with Company or any subsidiary or affiliate thereof.

  

	 	3)	 In the event Employee must repay the Expenses in accordance with Section 2 above, Company will advise
Employee of the amount owed upon such termination. Company is hereby authorized to collect the Expenses by deducting from any sums Company is otherwise obligated to pay Employee (including Employee’s final paycheck) to the extent permitted by
law. Employee agrees to repay Company any balance remaining after any such deductions are made within thirty (30) days after termination of employment. In the event Employee fails to repay the Expenses after such demand, and it is necessary for

  

220 East First Street, Bethlehem, PA 18015-1360 

Phone: 610.882.1820 

www.orasure.com 

	 	
Company to take legal action to collect such amount, Employee agrees to pay Company for all costs incurred by Company to collect such amounts, including reasonable attorneys’ fees and court
costs. 

  

	 	4)	This Agreement shall be construed and interpreted according to the laws of the Commonwealth of Pennsylvania. This Agreement does not, in any way, change or modify Employee’s “at-will” employment status.

 Please sign and return a copy of this Agreement to: 

OraSure Technologies, Inc. 
 220 E. First Street 

Bethlehem, PA 18015 
 Attn: Human Resources 

No payment for Expenses will be issued until receipt of this signed Agreement. 

 

									
	Employee	  		  	OraSure Technologies, Inc.	  	
					
	 Michael Reed
	  		  		 		  	
	Please Print	  		  		 		  	
					
	 /s/ Michael Reed
	  		  	by:	 	 /s/ Henry B. Cohen
	  	
	Signature	  		  	Authorized Representative	  	
				
	 3/16/16
	  		  	 3/14/16
	  	
	Date	  		  	Date

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