Document:

exv10w77

 

Exhibit 10.77

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made as of [DATE] (the “Effective Date”) by and
between Gen-Probe Incorporated, a Delaware corporation with offices at 10210 Genetic Center Drive,
San Diego, California 92121 (“Gen-Probe”), and [NAME] (the “Executive”).

     WHEREAS, the Executive is currently employed as an officer of Gen-Probe;

     WHEREAS, prior to September 15, 2002, Gen-Probe was a wholly-owned subsidiary of Chugai
Pharmaceutical Co., Ltd.;

     WHEREAS, Chugai distributed its Gen-Probe shareholdings to its shareholders in a “spin off”
transaction on September 15, 2002; and

     WHEREAS, the Board of Directors of Gen-Probe (the “Board”), having considered the proposed
spin-off transaction and other circumstances, deems it in the best interest of Gen-Probe to offer
this Agreement to the Executive and the Executive desires to enter into this Agreement.

     ACCORDINGLY, the parties hereto agree as follows:

	1.	 	Term of Employment. This Agreement shall be immediately effective. This Agreement,
and Executive’s employment hereunder, shall be for an indefinite term. At any time during the
term of this Agreement, either party may terminate this Agreement, and Executive’s employment,
in accordance with the provision of Sections 6 and 7 of this Agreement.

	2.	 	Position and Duties. The Executive shall serve
as [ TITLE] of Gen-Probe,
and shall have commensurate responsibilities and authority. The Board of Directors may from
time to time particularly specify the Executive’s duties and authority. The Executive shall
not engage in or perform duties for any other persons or entities that interfere with the
performance of his duties hereunder. Any outside board of director positions held by the
Executive will be subject to approval by the Board of Directors of Gen-Probe.

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	3.	 	Salary, Bonus and Benefits. 

	 	(a)	 	Salary. During the period of the Executive’s employment, Gen-Probe
shall pay him an annual base salary at the rate the Executive is being paid as of the
Effective Date. This base salary may be adjusted annually by the Board, subject to the
terms of this Agreement and consistent with the Executive’s performance and
Gen-Probe’s policy regarding adjustments in officer compensation established from time
to time by the Board.
	 
	 	(b)	 	Bonus. In addition, at the Board’s discretion, the Executive may be
awarded incentive compensation, in the form of a cash bonus for each fiscal year
during his employment, based upon performance.
	 
	 	(c)	 	Benefits. The Executive shall be entitled to participate in the
employee benefit programs (including but not limited to medical, dental, life and
disability insurance, 401K retirement plan, and vacation program), which may be
adopted and maintained by Gen-Probe. The Executive may receive such other and
additional benefits as the Board may determine from time to time in its sole
discretion.

	4.	 	Expense Reimbursement. The Executive shall be entitled to receive prompt
reimbursement for all reasonable and customary expenses incurred by him in performing services
hereunder, including all expenses of travel and living expenses while away from home on
business or at the request of, and in the service of Gen-Probe; provided, that such expenses
are incurred and accounted for in accordance with the policies and procedures established by
Gen-Probe.

	5.	 	Indemnification. Gen-Probe shall indemnify the Executive to the maximum extent
permitted by law and by the by-laws of Gen-Probe if the Executive is made a party, or
threatened to be made a party, to any threatened or pending legal action, suit or proceeding,
whether civil, criminal, administrative or investigative, by reason of the fact that the
Executive is or was an officer, director or employee of Gen-Probe or any subsidiary or
affiliate thereof, in which capacity the Executive is or was serving at Gen-Probe’s request,
against reasonable expenses (including reasonable attorneys’ fees), judgments, fines and
settlement payments incurred by him in connection with such action, suit or proceeding.

	6.	 	Termination. The Executive may terminate his employment hereunder at any time, with
or without Good Reason (as defined below) upon written notice to Gen-Probe. If Executive
contends that Good Reason exists for his termination, such notice shall specifically and
expressly state the grounds which he contends constitute Good Reason. Gen-Probe may terminate
the Executive’s employment hereunder at any time, subject to the terms of this Agreement, with
or without Cause (as defined below) upon written notice to the Executive. If this Agreement
is terminated, all compensation and benefits other than severance benefits

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described in Section 7 below, to the extent applicable, shall immediately cease, except
that the Executive will be entitled, through the date of termination, to payment of his
salary and benefits under Gen-Probe benefit programs and plans in accordance with their
terms.

As used in this Agreement, “Good Reason” shall mean any of the following events that are
not consented to by the Executive: (i) a substantial and material diminution in the
Executive’s duties and responsibilities hereunder; (ii) the location of the Executive’s
assignment on behalf of Gen-Probe is moved to a location more than 30 miles from its
present location; (iii) a reduction of more than ten percent (10%) in the Executive’s base
salary or in the Executive’s benefits received from Gen-Probe; (iv) the failure of
Gen-Probe to obtain a satisfactory agreement from any other successor to Gen-Probe to
assume and agree to perform this Agreement; or (iv) a material breach by Gen-Probe of its
obligations under this Agreement after notice in writing from the Executive and a
reasonable opportunity for Gen-Probe to cure or substantially mitigate any material adverse
effect of such breach. The Executive’s consent to any event which would otherwise
constitute Good Reason shall be conclusively presumed if the Executive does not exercise
his rights to terminate this Agreement for Good Reason under this section within ninety
(90) days of notice of the event.

As used in this Agreement, “Cause” shall mean any of the following events: (i) any act of
gross or willful misconduct, fraud, misappropriation, dishonesty, embezzlement or similar
conduct on the part of Executive; (ii) the Executive’s conviction of a felony or any
crime involving moral turpitude (which conviction, due to the passage of time or otherwise,
is not subject to further appeal); (iii) the Executive’s misuse or abuse of alcohol, drugs
or controlled substances and failure to seek and comply with appropriate treatment; (iv)
willful and continued failure by the Executive to substantially perform his duties under
this Agreement (other than any failure resulting from disability or from termination by the
Executive for Good Reason) as determined by a majority of the Board after written demand
from the Board of Directors for substantial performance is delivered to the Executive, and
the Executive fails to resume substantial performance of his duties on a continuous basis
within 30 days of such notice; (vi) the death of the Executive; or (vii) the Executive
becoming disabled such that he is not able to perform his usual duties for Gen-Probe for a
period in excess of six (6) consecutive calendar months.

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	7.	 	Severance Benefits in Certain Events. If Gen-Probe terminates the Executive’s
employment for reasons other than Cause, or if the Executive terminates his employment for
Good Reason, the Executive shall be entitled to receive as liquidated damages, the following
severance benefits:

	 	(a)	 	Salary. The Executive shall continue to receive his base salary, at
the rate in effect at the time of his termination of employment, in monthly
installments commencing the first day of the first month following termination and
continuing for an aggregate period of six (6) months (the “Salary Continuation
Period”); provided, however, that if termination under this Section 7 occurs in
connection with a Change in Control, then the Executive shall receive a single lump
sum payment, payable within 10 days of termination, equal to twelve (12) months’ base
salary.
	 
	 	 	 	For purposes of this Agreement, “Change in Control” shall have the meaning set forth on
Attachment “1” to this Agreement (hereby incorporated by reference). For purposes of
this Agreement, a termination shall be “in connection with” a Change in Control if
termination occurs within the period six (6) months prior to or eighteen (18) months
after a Change in Control.
	 
	 	 	 	(b)Bonus. If termination under this Section 7 occurs in
connection with a Change in Control then the Executive shall be entitled to receive,
in lieu of the bonus provided in Section 3(b) and in addition to the salary payment
described in Section 7(a), above, an amount equal to the greater of (i) the
Executive’s targeted level bonus in the year of the termination, or (ii) the
Executive’s highest discretionary bonus in the preceding three years. The amount
payable shall be paid in the same manner as and on the same schedule as the salary
compensation paid under subsection (a) above. No bonus compensation shall be payable
under this section 7 unless termination occurs in connection with a change in control.
	 
	 	(c)	 	Health Care and Life Insurance Coverage. Continued health care coverage
under Gen-Probe’s medical plan will be provided, without charge, to the Executive and
his eligible dependents until the earlier of (i) one (1) year following the
termination date or (ii) the first date that the Executive is covered under another
employer’s health benefit program providing substantially the same or better benefit
options to the Executive without exclusion for any pre-existing medical condition.
The period of time medical coverage continues under this agreement will be counted as
coverage time under COBRA. Gen-Probe will pay the premium for continued life
insurance coverage, if any, that the Executive may have elected under Gen-Probe’s Life
Insurance and Supplemental Life Insurance plan, subject to payment by the Executive of
the portion of such premium not contributed by Gen-Probe under such plan, during the
Salary Continuation Period.

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	 	(d)	 	401(k) Plan. The Executive’s interest in any unvested contributions
made by Gen-Probe to the Executive’s 401(k) account shall vest as of the date of
termination.
	 
	 	(e)	 	Outplacement Services. Gen-Probe agrees to provide Executive with
outplacement services during the first six months of the Salary Continuation Period.
	 
	 	(f)	 	Tax Matters. All compensation described in this Section 7 will be
subject to Gen-Probe’s collection of all applicable federal, state and local income
and employment withholding taxes. If any excise tax is imposed under Section 4999 in
connection with the compensation described in this Section 7 and/or in connection with
the acceleration upon severance of any stock options granted by Gen-Probe to the
Executive, Executive shall be solely responsible for any such excise tax.
	 
	 	(g)	 	Release of Claims. Gen-Probe’s obligation to make the payments and
provide the benefits hereunder shall be conditioned upon Executive’s execution of a
release of all claims, in standard form and content. The release shall be mutual and
shall also be signed on behalf of Gen-Probe.

	8.	 	Miscellaneous. 

	 	(a)	 	Arbitration. Executive and Gen-Probe agree that any and all claims or
disputes that in any way relate to or arise out of Executive’s employment with
Gen-Probe or the termination of such employment (including but not limited to claims
under this Agreement or any other contract, tort claims, and statutory claims of
employment discrimination, retaliation or harassment) shall be resolved exclusively
through final and binding arbitration in San Diego, California. Executive and
Gen-Probe waive any rights to a jury trial in connection with such claims or disputes.
The costs of the arbitration, including the fees of the arbitrator, shall be borne
exclusively by Gen-Probe. Any such arbitration shall take place in San Diego,
California and shall be conducted by a single neutral arbitrator who shall be a
retired federal or state judge, to be appointed by Judicial Arbitration and Mediation
Services (“JAMS”) in accordance with JAMS rules. The applicable procedural rules of
JAMS shall govern the arbitration. The arbitrator’s decision shall be delivered in
writing and shall disclose the essential findings and conclusion on which the
arbitrator’s decision is based. The parties shall be permitted to conduct adequate
discovery to allow for a full and fair exploration of the issues in dispute in the
arbitration proceeding. The arbitrator may grant any relief which otherwise would have
been available to the parties in a court proceeding. The decision and award of the
arbitrator shall be final and binding, and judgment upon the arbitrator’s award may be
entered by any court of competent jurisdiction.

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	 	(b)	 	Governing Law. This Agreement shall be construed and enforced in
accordance with and be governed by the laws of the State of California.
	 
	 	(c)	 	Entire Agreement. This Agreement sets forth the entire Agreement and
understanding between the Executive and the Company on the subject matter hereof, and
supersedes any other negotiations, agreements, understandings, oral agreements,
representations and past or future practices whether written or oral. No provision of
this Agreement may be amended, supplemented, modified, cancelled, or discharged unless
such amendment, supplement, modification, cancellation or discharge is agreed to, in
writing, signed by the Executive and a duly authorized officer of the Company (other
than the Executive); and no provisions hereof may be waived, except in writing, so
signed by or on behalf of the party granting such waiver.
	 
	 	(d)	 	Validity. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of any
other provision of this Agreement, which shall remain in full force and effect.
	 
	 	(e)	 	Notices.  For the purposes of this Agreement, notices, demands and
all other communications provided for in this Agreement shall be in writing and shall
be deemed to have duly given when personally delivered or mailed by United States
certified or registered mail, return receipt requested, postage prepaid, addressed as
follows:

	 	 	 	 	 	 	 
	 

	 	If to the Executive:
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	[ADDRESS]	 	 
	 
	 	 	 	 	 	 
	 

	 	If to Gen-Probe:	 	 	 	 
	 

	 	 	 	President and Chief Executive Officer	 	 
	 

	 	 	 	Gen-Probe Incorporated	 	 
	 

	 	 	 	10210 Genetic Center Drive	 	 
	 

	 	 	 	San Diego, California 92121	 	 
	 
	 	 	 	 	 	 
	 

	 	With a copy to:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	General Counsel	 	 
	 

	 	 	 	Gen-Probe Incorporated	 	 
	 

	 	 	 	10210 Genetic Center Drive	 	 
	 

	 	 	 	San Diego, California 92121	 	 

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	 	(f)	 	Successors. Gen-Probe will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all
the business and/or assets of Gen-Probe, by agreement in form and substance
satisfactory to the Executive, expressly to assume and agree to perform this Agreement
in the same manner and to the same extent that Gen-Probe would be required to perform
it if no such succession had taken place. This Agreement and all rights under the
Agreement shall be binding upon and shall inure to the benefit of and be enforceable
by the party’s personal or legal representatives, executors, administrators, heirs,
and successors.
	 
	 	(g)	 	No Right to Continued Employment. Nothing herein shall be construed
as giving the Executive any rights to continued employment with Gen-Probe, and
Gen-Probe shall continue to have the right to terminate the Executive’s employment at
any time, with or without cause, subject to the provisions of this Agreement.

     In witness whereof, the parties have executed this Agreement.

	 	 	 	 	 	 	 
	Executive:	 	Gen-Probe Incorporated:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	 	 	 
	 
	 	 	 
	 	 
	[NAME]	 	Henry L. Nordhoff	 	 
	 	 	Chairman, President and Chief Executive Officer	 	 

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ATTACHMENT “1”

DEFINITION OF “CHANGE IN CONTROL”

          Change in Control. “Change in Control” shall mean a change in ownership or control of the
Company effected through any of the following transactions:

          (a) any person or related group of persons (other than the Company or a person that,
prior to such transaction, directly or indirectly controls, is controlled by, or is under
common control with, the Company) directly or indirectly acquires beneficial ownership
(within the meaning of Rule 13d-3 under the Exchange Act) of securities possessing more
than fifty percent (50%) of the total combined voting power of the Company’s outstanding
securities by means of any transaction or series of transactions; or

          (b) there is a change in the composition of the Board over a period of thirty-six
(36) consecutive months (or less) such that a majority of the Board members (rounded up to
the nearest whole number) ceases, by reason of one or more proxy contests for the election
of Board members, to be comprised of individuals who either (i) have been Board members
continuously since the beginning of such period or (ii) have been elected or nominated for
election as Board members during such period by at least a majority of the Board members
described in clause (i) who were still in office at the time such election or nomination
was approved by the Board; or

          (c) the stockholders of the Company approve a merger or consolidation of the Company
with any other corporation (or other entity), other than a merger or consolidation which
would result in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or another entity) more than 66-2/3% of the combined
voting power of the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation; provided, however, that a
merger or consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no person acquires more than 25% of the combined voting
power of the Company’s then outstanding voting securities shall not constitute a Change in
Control; or

          (d) the stockholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or substantially
all of the Company’s assets.

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Schedule to Exhibit 10.77

The preceding form of Employment Agreement was entered into between the Company and the following
individuals:

	 	 	 	 	 
	Name

	 	Title
	 	Execution Date
	Lyle J. Arnold

	 	Vice President — Research
	 	January 12, 2004
	Martin B. Edelshain

	 	Vice President — Strategic Planning
and Business Development
	 	November 11, 2003
	Paul E. Gargan

	 	Vice President — Business Development
	 	November 12, 2002
	Gurney I. Lashley

	 	Vice President — Supply Chain
	 	November 12, 2002
	Donald D. Tartre

	 	Vice President — Finance and
Corporate Controller
	 	January 19, 2004
	Valerie M. Day

	 	Vice President — Product Development
	 	April 1, 2004

9exv10w90

 

EXHIBIT 10.90

AMENDMENT NO. 7 TO

AGREEMENT

     This Amendment No. 7 (“Amendment No. 7”) is entered into effective as of May 20, 2005 (the
"Amendment Effective Date”), pursuant to and amending that certain Agreement between Gen-Probe
Incorporated, a Delaware corporation (“Gen-Probe”) and Chiron Corporation, a Delaware corporation
(“Chiron”). Capitalized terms used but not defined herein shall have the meanings set forth in the
Agreement.

Recitals

     A. The parties entered into the Agreement as of June 11, 1998 pursuant to which, among other
things, the parties described their respective rights and obligations with respect to the
development, manufacture, marketing and distribution of Products in the Blood Screening and
Clinical Diagnostic Fields.

     B. The Agreement has been previously amended and supplemented by further written agreements of
the parties.

     C. Subsequent to the execution of the Agreement, Chiron assigned its rights and obligations
with respect to Clinical Diagnostic Products to Chiron Diagnostics Corporation (“CDC”), and sold
the common stock of CDC to Bayer Corporation (CDC, Bayer Corporation, and Bayer Corporation’s
affiliates being collectively referred to as “Bayer”). Chiron retained all rights and obligations
under the Agreement with respect to Blood Screening Products. This amendment is effective as
between Chiron and Gen-Probe with respect to Blood Screening Products only, and nothing herein
shall affect any rights or obligations of Gen-Probe or Bayer with respect to Clinical Diagnostic
Products.

     D. The parties have discussed a revision to and clarification of their respective rights and
obligations with respect to Section 1.29, and have agreed to make certain changes to the Agreement
in connection therewith, in accordance with the provisions of this Amendment No. 7.

Agreement

     NOW, THEREFORE, for and in consideration of the mutual covenants and agreements set forth in
this Amendment No. 7, the parties agree as follows:

     1. Definition of First Commercial Sale. Section 1.29 of the Agreement shall be and is
hereby amended to read as follows:

1.29 “First Commercial Sale” shall mean, with respect to any Product, the
first sale of such Product in the United States, for use by a Third Party, after FDA
license approval or clearance of such Product (and without considering product
transfers made pursuant to an Investigational New Drug application).

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     2. No Other Amendment. Except as is expressly set forth in this Amendment No. 7, all
other terms and conditions of the Agreement shall continue in full force and effect.

     3. Counterparts. This Amendment No. 7 may be executed in counterparts, each of which
shall be an original, and all of which together shall constitute one and the same instrument.

     IN WITNESS WHEREOF, the parties have caused this Amendment No. 7 to be executed and the
persons signing below warrant that they are duly authorized to sign for and on behalf of the
respective parties.

	 	 	 	 	 	 	 	 	 	 	 
	Gen-Probe:	 	 	 	Chiron:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	GEN-PROBE INCORPORATED,	 	 	 	CHIRON CORPORATION,	 	 
	a Delaware corporation	 	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Herry Nordhoff
	 	 	 	By:
	 	/s/ Gene Walther	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Henry Nordhoff	 	 	 	Gene Walther	 	 
	Its: President & Chief Executive Officer	 	 	 	Its: President, Chiron Blood Testing	 	 
	Date: May 16, 2005	 	 	 	Date: May 20, 2005	 	 

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