Document:

Exhibit 10.3

 

CONFIDENTIALITY
AND LOYALTY AGREEMENT

 

This
CONFIDENTIALITY AND LOYALTY AGREEMENT (“Agreement”) is entered into as of the
30 day of June 2010, between OSHKOSH CORPORATION, a Wisconsin corporation
(together with its successors, assigns and Affiliates, the “Company”), and
Craig E. Paylor (the “Executive”).

 

WHEREAS, the Company’s growth and success have
attracted attention of other companies and businesses seeking to obtain for
themselves or their clients some of the Company’s business acumen and know-how;
and

 

WHEREAS, Executive, due to the nature of his
association with JLG Industries, Inc. (“JLG”), possesses Confidential
Information and Trade Secrets (each as defined below) of JLG and has continued
to acquire Confidential Information and Trade Secrets of the Company, JLG and
its Affiliates (as defined herein), the disclosure of which to others,
especially to any Competitive Business (as defined below), or the unauthorized use of
such information by others would cause substantial loss and harm to the
Company; and

 

WHEREAS, the Company and its Affiliates have shared
or will share with Executive certain aspects of their business acumen and
know-how as well as specific confidential and proprietary information about the
products, markets, manufacturing processes, costs, developments, ideas, and
personnel of the Company and its Affiliates; and

 

WHEREAS, the Company and its Affiliates have imbued
or will imbue Executive with certain aspects of the goodwill that the Company
and/or its Affiliates have developed with its customers, distributors,
representatives and employees, and with federal, state, local and foreign
governmental entities; and

 

WHEREAS, as consideration for entering into this
Agreement, the Company or an Affiliate has conferred certain benefits on
Executive.

 

NOW, THEREFORE, in consideration of the foregoing,
and of the respective covenants and agreements of the parties set forth in this
Agreement, the parties hereto agree as follows:

 

1.                                       Definitions.  As used in this Agreement, the following
terms have the meanings indicated:

 

a.                                       “Affiliate”
shall mean any subsidiary or other person or entity that, directly or
indirectly through one or more intermediaries, controls, is controlled by or is
under common control with Oshkosh Corporation, whether now existing or
hereafter formed or acquired, by which Executive has been, is now or is
hereafter employed.  For purposes hereof,
“control” means the power to vote or direct the voting of sufficient securities
or other interests to elect one-third of the directors or managers or to
control the management of such subsidiary or other entity.

 

 

b.                                      “Company
Employment” means the time (including time prior to the date hereof) during
which Executive is employed as a regular employee, contractor, consultant or
consulting employee by any entity comprised within the definition of “Company”,
regardless of any change in the entity actually employing Executive, including
for the purposes of this Agreement, the time in which Executive was employed
with JLG.

 

c.                                       “Competitive
Business” means any corporation, partnership, association, or other person or
entity, including but not limited to Executive, (i) which competes
directly, or is planning to compete directly, with the Company with respect to
the design, development, manufacture, remanufacture, assembly, marketing,
sales, or service of any access equipment, aerial work platforms, telehandlers,
aerial lifts, stock pickers, personal portable lifts, drop-deck trailers,
excavators, trailers, specialty trucks, truck bodies or concrete batch plants
for defense, fire, emergency, homeland security, wrecker, vehicle recovery,
snow removal, medical diagnosis, law enforcement, concrete placement or refuse
hauling applications, or components or technologies useful in such trucks,
bodies or plants, or any other business of the Company or its Affiliates, that
was within Executive’s management, operational, marketing, purchasing or sales
responsibility, including the responsibility of personnel reporting directly to
Executive, or about which Executive received any Confidential Information or
Trade Secrets at any time within twenty-four (24) months prior to the latter of
the termination of Executive’s Company Employment or consulting employment
relationship, and (ii) which engages or plans to engage in such
competition in any country, state or territory in which the Company or any of
its Affiliates sold or distributed, or actively attempted to sell or to
distribute, such products within 
twenty-four (24) months prior to the latter of the termination of
Executive’s Company Employment or consulting employment relationship.

 

d.                                      “Confidential
Information” means information related to the Company’s business, including the
business of any of its Affiliates, not generally known in the trade or industry,
which Executive learns or creates during the period of Executive’s Company
Employment, which may include but is not limited to product specifications,
manufacturing procedures, methods, equipment, compositions, technology,
formulas, know-how, research and development programs, sales methods, customer
lists, customer usages and requirements, computer programs and other
confidential technical or business information and data.

 

e.                                       “Goodwill”
means any tendency of customers, distributors, representatives, employees, or
federal, state, local or foreign governmental entities to continue or renew any
valuable business relationship with the Company, its Affiliates or any
Competitive Business with which Executive may be associated, based in whole or
in part on past successful relationships with the Company or the lawful efforts
of the Company to foster such relationships, and in which Executive, or any
personnel reporting directly to Executive, actively

 

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participated at any time
within  twenty-four (24) months prior to
termination of Executive’s Company Employment.

 

f.                                         “Inventions”
means designs, discoveries, improvements and ideas, whether or not patentable,
including, without limitation upon the generality of the foregoing, novel or
improved products, processes, machines, promotional and advertising materials,
business data processing programs and systems, and other manufacturing and
sales techniques, which either (i) relate to (A) the business of the
Company or (B) the Company’s actual or demonstrably anticipated research
or development, or (ii) result from any work performed by Executive for
the Company.

 

g.                                      “Trade
Secret(s)” means information, including a formula, pattern, compilation,
program, device, method, technique or process, that derives independent
economic value, actual or potential, from not being generally known to, and not
being readily ascertainable by proper means by, other persons who can obtain
economic value from its disclosure or use, and that is the subject of efforts
to maintain its secrecy that are reasonable under the circumstances.

 

2.                                       Employment.  During Executive’s Company employment,
Executive shall devote all of Executive’s professional time and attention to
the duties required by such Company Employment and to the best interests of the
Company and to engage in other business, professional or philanthropic
activities only with the prior written approval of the Company.  Except as may be otherwise expressly provided
in any written agreement between the Company and Executive other than this
Agreement, Executive’s Company Employment and any consulting, independent
contractor, or consulting employee relationship is terminable by either party
at will.

 

3.                                       Disclosure and
Assignment of Inventions. 
Executive agrees to disclose to the Company and to assign to the
Company, and hereby does assign to the Company, all of Executive’s rights in
any Inventions conceived or reduced to practice at any time during Executive’s
Company Employment, either solely or jointly with others and whether or not
developed on Executive’s own time or with the Company’s or any of its
Affiliates’ resources.  Executive agrees
that Inventions first reduced to practice within one (1) year after the
latter of the termination of Executive’s Company Employment or consulting
employment relationship shall be treated as if conceived during such employment
unless Executive can establish specific events giving rise to the conception
that occurred after such employment. 
Further, Executive disclaims and will not assert any rights in
Inventions as having been made, conceived or acquired prior to Executive’s
Company Employment except such (if any) as are specifically listed at the
conclusion of this Agreement. Executive agrees to create, maintain, preserve
and make available to the Company, as part of the Company’s property, complete
and up-to-date records, including but not limited to correspondence,
prototypes, models and other written or tangible data, relating to Inventions
and Trade Secrets.

 

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4.                                       Cooperation.  Executive shall cooperate with the Company
and shall execute and deliver such documents and do such other acts and things
as the Company may request, at the Company’s expense, to obtain and maintain
letters patent or registrations covering any Inventions and to vest in the
Company all rights therein free of all encumbrances and adverse claims.

 

5.                                       Confidentiality.  In addition to all duties of loyalty imposed
on Executive by law, during the term of Executive’s Company Employment and for
two (2) years following the latter of the termination of such employment
or consulting employment relationship for any reason, Executive shall maintain
Confidential Information in confidence and secrecy and shall not disclose
Confidential Information or use it for the benefit of any person or
organization (including Executive) other than the Company without the prior
written consent of an authorized officer of the Company (except for disclosures
to persons acting on the Company’s behalf with a need to know such
information), under any circumstances where any Confidential Information so
disclosed or used is reasonably likely to be used anywhere on behalf of any
Competitive Business.

 

6.                                       Non-Disclosure
of Trade Secrets. During his or her Company Employment, Executive
shall preserve and protect Trade Secrets of the Company and its Affiliates from
unauthorized use or disclosure; and after the latter of the termination of such
employment or consulting employment, Executive shall not solicit, use or
disclose any Trade Secret of the Company for so long as that Trade Secret
remains a Trade Secret.

 

7.                                       Third-Party
Confidentiality.  Executive
shall not disclose to the Company or any of its Affiliates, use on its behalf,
or otherwise induce the Company or any of its Affiliates to use any secret or
confidential information belonging to persons not affiliated with the Company,
including any former employer of Executive. 
Executive acknowledges that the Company has disclosed that the Company
is now, and may be in the future, subject to duties to third parties to
maintain information in confidence and secrecy. 
By executing this Agreement, Executive consents to be bound by any such
duty owed by the Company to any third party.

 

8.                                       Return of
Property.  Executive shall, upon the Company’s
demand and in any event before termination of Executive’s Company Employment,
deliver to the Company the original and all copies of all documents, files,
data, records and property of any nature whatsoever which are in Executive’s
possession or control and which are the property of the Company or which relate
to the business activities, facilities or locations of the Company, or contain
any Confidential Information or Trade Secrets, including any records, documents
or property created by Executive in said capacity or maintained by Executive on
any device or media Executive owns.  Upon
termination of Company Employment, Executive agrees to attend an exit interview
and to provide the Company with access to any personal computer, rolodex, PDA,
or other device or media owned by Executive but used in the course of his
Company Employment to ensure compliance with the terms of this Agreement.

 

9.                                       Noncompetition.  During the term of Executive’s Company
Employment and for  twelve (12) months
following the latter of the termination of such employment or consulting
employment relationship for any reason, Executive shall not, directly or
indirectly, participate in, consult with, be employed by, or assist with the
organization, planning, ownership, 

 

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financing, management, operation or control of any
Competitive Business in any capacity in which, in the absence of this
Agreement, Confidential Information, Trade Secrets or Goodwill of the Company
or any of its Affiliates would reasonably be considered useful.  Notwithstanding the foregoing, Executive
shall not be precluded hereby from (i) engaging in the sales, marketing,
distribution or service of JLG products as an authorized dealer or otherwise,
or (ii) in the event the Company is no longer in the access equipment
remanufacturing business, engaging in the access equipment remanufacturing
business.

 

10.                                 Nonsolicitation.   During the term of Executive’s Company
Employment and for  twelve (12) months
following the latter of the termination of such employment or consulting
employment relationship, for any reason, Executive shall not, directly or
indirectly, on behalf of any Competitive Business, either by himself or by
providing substantial assistance to others, solicit to terminate employment
with the Company, or to accept or begin employment with or service to any
Competitive Business, any employee of the Company or any of its Affiliates
about whom Executive gained Confidential Information at any time during the
latter of the last eighteen (18) months of Executive’s Company Employment or
consulting employee relationship.

 

11.                                 Non-disparagement.  Consistent with law, during the term of
Executive’s Company Employment and for 
twelve (12) months following the latter of the termination of such
employment or consulting employment relationship for any reason, Executive
shall not disparage, or make any false, derogatory, or inflammatory statements
about, the Company or any of its employees, officers, directors, or
shareholders or Affiliates.

 

12.                                 Public Comments.  Executive agrees that for the period of his
employment and the period after his employment in which there exists any
engagement between the Company and the Executive as a consultant, independent
contractor, or consulting employee, Executive shall not engage in any
discussions or interviews with any public official(s), industrial
association(s), or media entity or entities, or their agents, regarding any of
the industries described in Section 1.c of this Agreement or the Company’s
businesses as described in Section 1.c., without advance written
authorization by the Company’s Chairman, President and Chief Executive Officer,
and President and Chief Operating Officer. 
For the period of time described in this Section 12, Executive
shall observe these restrictions as they may pertain to new businesses entered
into by the Company and current businesses of the Company in which the Company
no longer engages.

 

13.                                 Future
Employment.  During the
term of Executive’s Company Employment and for eighteen (18) months following
the latter of the termination of such employment or consulting employee
relationship for any reason, before accepting any employment with any Competitive
Business, Executive shall disclose to the Company the identity of any such
entity and a complete description of the duties involved in such prospective
employment, including a full description of any territory or market segment to
which Executive will be assigned. 
Further, during the term of Executive’s Company Employment and for two
years following the latter of the termination of such employment or consulting
employee relationship for any reason, Executive agrees that, before accepting
any future employment, Executive will provide a copy of this Agreement to any
prospective employer of Executive, and 

 

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Executive hereby authorizes the Company to do
likewise, whether before or after the outset of the future employment.

 

14.                                 Consideration.  Executive acknowledges and agrees that the
covenants contained in this Agreement are supported by adequate consideration,
as set forth in the Offer Letter from the Company to Executive, dated June 30,
2010.

 

15.                                 Notices. All notices,
request, demands and other communications required or permitted hereunder shall
be in writing and shall be deemed to have been duly given when delivered by
hand or when mailed by United States certified or registered mail with postage
prepaid addressed as follows:

 

a.                                       If to
Executive, to the address set forth by Executive on the signature page of
this Agreement or to such other person or address which Executive shall furnish
to the Company in writing pursuant to the above.

 

b.                                      If to the Company,
to the attention of the officer signing this Agreement on behalf of the Company
at the address set forth on the signature page of this Agreement or to
such other person or address as the Company shall furnish to Executive in
writing pursuant to the above

 

16.                                 Enforceability.  Executive recognizes that irreparable injury
may result to the Company or its Affiliates, or their respective businesses and
property, and the potential value thereof in the event of a sale or other
transfer, if Executive breaches any of the restrictions imposed on Executive by
this Agreement, and agrees that if Executive shall engage in any act in
violation of such provisions, the Company shall be entitled, in addition to
such other remedies and damages as may be available, to an injunction
prohibiting Executive from engaging in any such act.

 

17.                                 Successors and
Assigns. 
This Agreement shall inure to the benefit of and be binding
upon and enforceable by Oshkosh Corporation, its successors, assigns and
Affiliates, all of which (other than Oshkosh Corporation) are intended
third-party beneficiaries of this Agreement. 
Executive hereby consents to the assignment of this Agreement to any
person or entity that hereafter employs Executive without substantial
interruption.

 

18.                                 Validity.  Any invalidity or unenforceability of any
provision of this Agreement is not intended to affect the validity or
enforceability of any other provision of this Agreement, which the parties
intend to be severable and divisible, and to remain in full force and effect to
the greatest extent permissible under applicable law.

 

19.                                 Miscellaneous.  No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition
or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time.  No
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are
not set forth expressly in this Agreement. 
This Agreement may be modified only by a written agreement signed by
Executive and a duly authorized officer of the Company.

 

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EXECUTIVE ACKNOWLEDGES HAVING READ AND SIGNED THIS
AGREEMENT AND HAVING RECEIVED A COPY THEREOF, INCLUDING THE FOLLOWING
NOTICE:

 

This Agreement does not apply to an Invention for
which no equipment, supplies, facility, or trade secret information of the
Company were used and which was developed entirely on Executive’s own time,
unless (a) the invention relates (i) to the business of the Company
or an Affiliate or (ii) to the Company’s actual or demonstrable
anticipated research or development, or (b) the Invention results from any
work performed by Executive for the Company or an Affiliate.

 

IN WITNESS WHEREOF, the parties have executed this
Agreement on the date and year first above written.

 

	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Craig E. Paylor

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OSHKOSH CORPORATION

  
	
   

  	
  2307 Oregon Street

  
	
   

  	
  P.O. Box 2566

  
	
   

  	
  Oshkosh, Wisconsin 54902

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles L. Szews

  
	
   

  	
   

  
	
   

  	
  Its: President and Chief Operating Officer

  

 

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7ex10_1.htm

Exhibit 10.1

 

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

This Agreement is made by and between diaDexus, Inc. (the “Company”), and Patrick Plewman (“Executive”) effective as of May 1, 2008 (the “Effective Date”) and amends and restates that certain Employment Agreement entered into by and between the Company and Executive effective as of June 4, 2000 in its entirety.

1.              Duties and Scope of Employment.

(a)            Positions; Employment Term; Duties.   Executive’s employment with the Company commenced in October 1997, and as of June 4, 2000, the Executive was appointed Chief Executive Officer, President, Chief Operating Officer and Secretary of the Company, and he continues to be employed in such capacities in accordance with the terms hereof.  The period of Executive’s employment hereunder is referred to herein as the Employment Term.  During the Employment Term, Executive shall render such business and professional services in the performance of his duties, consistent with Executive’s position within the Company, as shall reasonably be assigned to him by the Board of Directors (the “Board”).

(b)            Obligations.  During the Employment Term, Executive shall devote his full business efforts and time to the Company.  Executive agrees, during the Employment Term, not to actively engage in any other employment, occupation or consulting activity for any direct or indirect remuneration without the prior approval of the Board;  provided, however, that Executive may serve in any capacity with any civic, educational or charitable organization, or as a member of corporate Boards of Directors or committees thereof upon which Executive currently serves, without the approval of the Board; provided, further that Executive may devote a reasonable amount of time to managing his family investments.

(c)            Paid Time Off.  Executive shall be entitled to paid time off in accordance with the Company’s policies for senior executives of the Company, as may be in effect from time to time.  For purposes of this Agreement “paid time off” includes vacation, personal time off, sick leave, family illness, bereavement leave and religious holiday observances.  During such paid time off periods, Executive shall not be relieved of his duties under this Agreement and there will be no abatement or reduction of Executive’s compensation hereunder.

2.              Employee Benefits; Indemnification Agreement.  During the Employment Term, except as otherwise provided herein, Executive shall be eligible to participate in the employee benefit plans maintained by the Company that are applicable to other senior management to the full extent provided for under those plans.  Upon his commencement of employment with the Company, Executive entered into an indemnification agreement comparable in form and substance to indemnification agreements entered into by and between the Company and its executive officers.

3.              At-Will Employment.  Executive and the Company understand and acknowledge that Executive’s employment with the Company constitutes at-will employment.  Subject to the Company’s obligation to provide severance benefits as specified herein, Executive and the Company acknowledge that this employment relationship may be terminated at any time, upon written notice to the other party, with or without good cause or for any or no cause, at the option either of the Company or Executive.

  

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4.              Compensation.

(a)            Base Salary.  While employed by the Company, the Company shall pay the Executive as compensation for his services a base salary at the annualized rate of $345,050 (as may be increased from time to time, the “Base Salary”).  Such salary shall be paid periodically in accordance with normal Company payroll practices and subject to the usual, required withholding. Executive’s Base Salary shall be reviewed annually by the Compensation Committee of the Board for possible increases in light of Executive’s performance and competitive data.

(b)            Bonuses.  Executive shall be eligible to earn a bonus.  Executive’s performance shall be evaluated by the Compensation Committee of the Board based upon performance criteria specified by that committee.  The payment of any bonus under this Section 4(b) shall be subject to Executive’s employment with the Company through the end of the relevant evaluation period.  Executive’s bonus shall be reviewed annually by the Compensation Committee of the Board for possible increases in light of Executive’s performance and competitive data.

(c)            Equity Compensation.  Executive has received certain past grants of stock options and will be eligible to receive such future grants of stock options and other equity awards as are approved by the Board in accordance with the Company’s equity incentive plan.

(d)            Severance.

(i)             Covered Terminations.  If Executive experiences a Covered Termination, then, subject to Executive executing and not revoking a standard form of release of claims with the Company in a form acceptable to the Company within sixty (60) days of such termination (i) Executive shall be entitled to receive an amount equal to one year’s Base Salary, less applicable withholding, payable in substantially equal bi-monthly installments in accordance with the Company’s standard payroll practices, (ii) all of Executive’s then outstanding options to purchase shares of Company common stock and other equity-based awards shall become fully vested and exercisable, and/or the restrictions applicable to unvested shares of common stock held by Executive shall lapse, immediately prior to the date of Executive’s Covered Termination, (iii) the Company shall pay the group health, dental and vision plan continuation coverage premiums for Executive and, if relevant, his covered dependents under Title X of the Consolidated Budget Reconciliation Act of 1985, as amended (“COBRA”) for the lesser of (A) twelve (12) months from the date of Executive’s termination of service, or (B) the date upon which Executive and his covered dependents are covered by similar plans of Executive’s new employer and (iv) the Company shall reimburse Executive for the expense of relocation for Executive and Executive’s family from the San Francisco Bay Area, California to the United Kingdom incurred within twelve (12) months of Executive’s termination of services, if any; provided, however that such reimbursement shall not exceed the relocation benefits paid to Executive in connection with his initial commencement of employment with the Company, and, provided further, that Executive shall submit a claim for such reimbursement to the Company prior to the end of the calendar year following the calendar year in which such expense is incurred and the Company shall make such reimbursement payment as soon as administratively practicable thereafter.

  

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For the purposes of this Agreement, “Cause” means (i) a material act of dishonesty made by Executive in connection with Executive’s responsibilities as a service provider, (ii) Executive’s conviction of, or plea of nolo contendere to, a felony, (iii) Executive’s gross misconduct in connection with the performance of his duties hereunder or (iv) Executive’s material breach of his obligations under this Agreement; provided, however, that with respect to clauses (iii) and (iv), such actions shall not constitute Cause if they are cured by Executive within thirty (30) days following delivery to Executive of a written explanation specifying the basis for the Company’s beliefs with respect to such clauses.

For the purposes of this Agreement, “Good Reason” shall mean (i) a material reduction in Executive’s Base Salary, (ii) a material reduction in Executive’s title, authority or duties, (iii) the requirement that Executive’s principal place of employment materially relocates more than 15 miles from its current location, or (iv) the Company’s material breach of its obligations under this Agreement; provided, however, that any such condition shall not provide a basis for termination for Good Reason if it is cured by the Company within thirty (30) days following delivery to the Company of a written explanation specifying the basis for the Executive’s beliefs with respect to such condition within ninety (90) days of its first occurrence.

For the purposes of this Agreement, “Covered Termination” shall mean the termination of Executive’s employment with the Company by the Company for other than Cause or by the Executive for Good Reason, in either case, that constitutes a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the Department of Treasury regulations and other guidance promulgated thereunder.

The Executive shall not be required to mitigate the value of any severance benefits contemplated by Section 4 of this Agreement, nor shall any such benefits be reduced by any earnings or benefits that the Executive may receive from any other source.

Notwithstanding anything in this Section 4 to the contrary, if the Executive is deemed at the time of his separation from service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of any portion of the benefits to which Executive is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of Executive’s benefits shall not be provided to Executive prior to the earlier of (a) the expiration of the six-month period measured from the date of the Executive’s “separation from service” with the Company (as such term is defined in the Treasury Regulations issued under Section 409A of the Code) or (b) the date of Executive’s death.  Upon the expiration of the applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this paragraph shall be paid in a lump sum to the Executive, and any remaining payments due under the Agreement shall be paid as otherwise provided herein.

  

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For purposes of Section 409A of the Code (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), Executive’s right to receive the installment payments under this Agreement shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment.

5.              Total Disability of Executive.  If Executive becomes permanently and totally disabled (as defined in accordance with Section 22(e)(3) of the Code or its successor provision) during the term of this Agreement, Executive’s service hereunder shall automatically terminate and Executive shall be treated as having been terminated other than for Cause for purposes of Section 4 of this Agreement.

6.              Death of Executive.  If Executive dies during the term of this Agreement, Executive shall be treated as having been terminated other than for Cause for purposes of Section 4 of this Agreement.

7.              Assignment.  This Agreement shall be binding upon and inure to the benefit of (a) the heirs, beneficiaries, executors and legal representatives of Executive upon Executive’s death and (b) any successor of the Company.  Any such successor of the Company shall be deemed substituted for the Company under the terms of this Agreement for all purposes.  As used herein, successor shall include any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.  None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement shall be assignable or transferable except through a testamentary disposition or by the laws of descent and distribution upon the death of Executive.  Any attempted assignment, transfer, conveyance or other disposition (other than as aforesaid) of any interest in the rights of Executive to receive any form of compensation hereunder shall be null and void.

8.              Notices.  All notices, requests, demands and other communications called for hereunder shall be in writing and shall be deemed given if (i) delivered personally or by facsimile, (ii) one (1) day after being sent by Federal Express or a similar commercial overnight service, or (iii) three (3) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors in interest at the following addresses, or at such other addresses as the parties may designate by written notice in the manner aforesaid:

	  	
If to the Company:

	  	
Attn: Chief Financial Officer

	  	
diaDexus, Inc.

	  	
343 Oyster Point Boulevard

	  	
South San Francisco, CA  94080

	  	  
	  	
If to Executive:

  

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Patrick Plewman

	  	 
	  	 
	  	
Tel:  

	  	
Fax:  

	  	  
	  	
Or at the last residential address known by the Company.

9.              Severability.  In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision.

10.            Proprietary Information Agreement.  Executive has entered into the Company’s standard Employee Proprietary Information Agreement (the “Proprietary Information Agreement”) upon commencing employment hereunder.

11.            Entire Agreement.  This Agreement, the indemnification agreement and employee benefit plans referred to in Section 2 and the Proprietary Information Agreement represent the entire agreement and understanding between the Company and Executive concerning Executive’s employment relationship with the Company, and supersede and replace any and all prior agreements and understandings concerning Executive’s employment relationship with the Company.

12.            Non-Binding Mediation, Arbitration and Equitable Relief.

(a)            The parties agree to make a good faith attempt to resolve any dispute or claim arising out of or related to this Agreement through negotiation.  In the event that any dispute or claim arising out of or related to this Agreement is not settled by the parties hereto, the parties will attempt in good faith to resolve such dispute or claim by non-binding mediation in San Mateo County, California to be conducted by one mediator belonging to the American Arbitration Association.  The mediation shall be held within thirty (30) days of the request therefor.  The costs of the mediation shall be borne equally by the parties to the mediation.

(b)            Except as provided in Section 12(e) below, Executive and the Company agree that, to the extent permitted by law, any dispute or controversy arising out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof which has not been resolved by negotiation or mediation as set forth in Section 12(a) shall be finally settled by binding arbitration to be held in San Mateo County, California, in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association (the “Rules”).  The arbitrator may grant injunctions or other relief in such dispute or controversy.  The decision of the arbitrator shall be confidential, final, conclusive and binding on the parties to the arbitration.  Judgment may be entered under a protective order on the arbitrator’s decision in any court having jurisdiction.

(c)            The arbitrator shall apply California law to the merits of any dispute or claim, without reference to rules of conflict of law.  The arbitration proceedings shall be governed by federal arbitration law and by the Rules, without reference to state arbitration law.  Executive hereby expressly consents to the personal jurisdiction of the state and federal courts located in California for any action or proceeding arising from or relating to this Agreement and/or relating to any arbitration in which the parties are participants.

  

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(d)            Executive understands that nothing in Section 12 modifies Executive’s at-will status.  Either the Company or Executive can terminate the employment relationship at any time, with or without cause.

(e)            EXECUTIVE HAS READ AND UNDERSTANDS SECTION 12, WHICH DISCUSSES ARBITRATION.  EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, EXECUTIVE AGREES, TO THE EXTENT PERMITTED BY LAW, TO SUBMIT ANY FUTURE CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH, OR TERMINATION THEREOF TO BINDING ARBITRATION, AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EXECUTIVE’S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EXECUTIVE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO, THE FOLLOWING CLAIMS:

(i)             ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT; BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL MISREPRESENTATION; NEGLIGENT OR INTENTIONAL INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION.

(ii)            ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL STATE OR MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, THE CIVIL RIGHTS ACT OF 1991, THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE AMERICANS WITH DISABILITIES ACT OF 1990, THE FAIR LABOR STANDARDS ACT, THE CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT, AND LABOR CODE SECTION 201, et seq;

(iii)           ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND REGULATIONS RELATING TO EMPLOYMENT OR EMPLOYMENT DISCRIMINATION.

13.            No Oral Modification, Cancellation or Discharge.  This Agreement may only be amended, canceled or discharged in writing signed by the parties hereto.

14.            Withholding.  The Company shall be entitled to withhold, or cause to be withheld, from payment any amount of withholding taxes required by law with respect to payments made to Executive in connection with his employment hereunder.

  

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15.            Governing Law.  This Agreement shall be governed by the laws of the State of California, without regard to the conflict of law provisions thereof.

16.            Acknowledgment.  Executive acknowledges that he has had the opportunity to discuss this matter with and obtain advice from his private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement.

  

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IN WITNESS WHEREOF, the undersigned have executed this Agreement:

	/s/ Louis C. Bock	  	5/27/08	  
	
By: Louis C. Bock

	  	
Date

	  
	
diaDexus, Inc.

	  	  	  
	  	  	  	  
	  	  	  	  
	/s/ Patrick Plewman	  	5/20/08	  
	
Patrick Plewman

	  	
Date

	  
	
Executive

	  	  	  

 

 

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