Document:

Exhibit 10.3

 

AGREEMENT FOR CONSULTING SERVICES

 

This Consulting Services Agreement (“Agreement”) is made and entered into by and between Euan Thomson, Ph.D. (“CONSULTANT”) and Accuray Incorporated (“ACCURAY”).  This Agreement shall be effective on the effective date of the General Release and Separation Agreement (“Separation Agreement”) between CONSULTANT and ACCURAY (“Effective Date”).

 

W I T N E S S E T H

 

WHEREAS, CONSULTANT has training, expertise and prior experience in the development, manufacture and sale of radiation oncology, including radio surgery and radiation therapy, technologies and devices, and executive management of ACCURAY; and

 

WHEREAS, ACCURAY desires to retain the services of CONSULTANT to provide the consulting services specified in this Agreement; and

 

WHEREAS, CONSULTANT desires to provide consulting services for the benefit of ACCURAY and its related entities using his knowledge, skills, experience and abilities;

 

NOW THEREFORE, in consideration of the mutual promises contained herein, and other good and valuable consideration, the parties hereto agree as follows:

 

ARTICLE I - SERVICES TO BE PROVIDED

 

A.  Nature of Services.  CONSULTANT shall be available to provide advice and assistance to ACCURAY and its related entities, and specifically the President and Chief Executive Officer of ACCURAY, with respect to various questions, initiatives and projects in the areas of radio surgery and radiation therapy, and personnel, customers, prospective customers and vendors of ACCURAY (collectively, “Services”) on an as needed basis, up to a maximum of 80 hours of Services each month during the term of this Agreement.

 

B.  Right of Control.  CONSULTANT shall have exclusive control over the means, manner, methods and processes by which the Services are performed.

 

C.  Exclusive Services.  In order to ensure that CONSULTANT is available to provide, and to devote his undivided attention and effort in providing, the Services as required by ACCURAY, and to insure compliance with the obligations in Article IV of this Agreement, CONSULTANT agrees that he will not accept any employment or engage in any other consulting, business and/or commercial activities with the following entities: Varian Medical Systems, Elekta AB, Siemens AG, ViewRay Inc, Best Medical, Rotary Systems, Radiation Stabilization Solutions, Alliance Oncology, MedyTec, Oncology Systems Limited (the “Prohibited Entities”).  In addition, in the event CONSULTANT intends to provide services related in any way to radiation oncology, including radio surgery and radiation therapy, during the term of this Agreement to any entity other than a Prohibited Entity, CONSULTANT shall notify ACCURAY’s General Counsel to get approval by ACCURAY and such approval shall not be unreasonably withheld. In the event CONSULTANT desires to provide work to any of the

 

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above listed Prohibited Entities, CONSULTANT may terminate this Agreement in accordance with Article III (B).

 

ARTICLE II - COMPENSATION FOR SERVICES

 

A.  Consulting Fees.  As payment and consideration for the Services to be provided and promises made herein by CONSULTANT, ACCURAY agrees to pay CONSULTANT a “Consulting Fee” of $20,500 per month for the Services.  The Consulting Fee will be paid in two equal installments each month and mailed to CONSULTANT before the 15th and last day of each month in which the Services are provided.  To the extent ACCURAY requires more than 80 hours of Services per month, CONSULTANT will be paid for the Services at the rate of $255 per hour.

 

B.  Reimbursement of Authorized Expenses.  ACCURAY agrees to reimburse CONSULTANT for all actual out-of-pocket expenses that are necessary for the performance of CONSULTANT’s Services under this Agreement, provided, however, that any expenses must be approved in advance in writing by ACCURAY’s President and Chief Executive Officer.

 

C.  Tax Obligations.  CONSULTANT understands and agrees that all compensation to which he is entitled under the Agreement shall be reported on an IRS Form 1099, and that he is solely responsible for all income and/or other tax obligations, if any, including but not limited to all reporting and payment obligations, if any, which may arise as a consequence of any payment under this Agreement.

 

D.  No Benefits.  CONSULTANT understands and agrees that since he is no longer an employee of ACCURAY, he shall not be entitled to participate in ACCURAY employee benefits plans or receive any benefits provided to employees of ACCURAY, including, but not limited to participation in retirement savings or benefit plans, bonus plans and/or stock option plans beyond his participation during his employment by ACCURAY; holidays off with pay; vacation time off with pay; paid leaves of absence of any kind; and insurance coverage of any kind, specifically including, but not limited to, medical and dental insurance, workers’ compensation insurance and state disability insurance.

 

ARTICLE III - TERM AND TERMINATION

 

A.  Term of Agreement.  This Agreement shall continue in full force and effect from the Effective Date through April 15, 2013 (the “Term”).

 

B.  Termination Prior to Expiration of Term.  Either party hereto may terminate this Agreement at any time without cause on ten (10) business days’ advance written notice to the other.  If ACCURAY terminates the Agreement without Cause, it shall pay CONSULTANT the monthly Consulting Fee that otherwise would have been paid through the end of the Term. If CONSULTANT terminates the Agreement, ACCURAY shall have no obligation to pay any portion of the Consulting Fee after the termination is effective.  The Consulting Fee for the month in which the termination notice is effective shall be calculated by dividing the monthly Consulting Fee by the number of days in the month in which the termination is effective and multiplying that result by the number of days in the month until the termination is effective minus any portion of the Consulting Fee already paid that month.

 

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ACCURAY may terminate this Agreement for Cause before the expiration of the Term hereof without any prior notice.  “Cause” shall mean (i) CONSULTANT’S commission of a felony, (ii) CONSULTANT’S commission of a crime involving moral turpitude or CONSULTANT’S commission of any other material act or material omission involving dishonesty, disloyalty, breach of fiduciary duty or fraud with respect to ACCURAY or any of its subsidiaries or any of their customers or suppliers, (iii) the material violation of ACCURAY’S written Code of Conduct and Ethics that was provided to CONSULTANT, as determined in ACCURAY’S reasonable sole discretion, (iv) the violation of the Foreign Corrupt Practices Act (the “FCPA”), (v) CONSULTANT’S material failure to perform the normal and customary duties under the Agreement as reasonably directed by ACCURAY, provided, that any of the acts or omissions described in the foregoing clauses are not cured to ACCURAY’s reasonable satisfaction within thirty (30) days after written notice is given to CONSULTANT.  If CONSULTANT is terminated for cause, ACCURAY shall have no obligation to pay any portion of the Consulting Fee after the termination is effective.  The Consulting Fee for the month in which the termination is effective shall be calculated by dividing the monthly Consulting Fee by the number of days in the month in which the termination is effective and multiplying that result by the number of days in the month until the termination is effective minus any portion of the Consulting Fee already paid that month.

 

ARTICLE IV — PROPRIETARY RIGHTS

 

A.  No Impediments to Providing Consulting Services.  CONSULTANT represents that he is not party to any agreement with any individual or business entity, including any relating to protection of alleged trade secrets or confidential business information that would prevent him from providing the Services or that would be violated by the providing of the Services.

 

B.  Confidential and Proprietary Information.  CONSULTANT acknowledges that the post-employment terms of the ACCURAY Employee Invention Assignment and Confidentiality Agreement, the Employment Agreement that existed before this Agreement and the Separation Agreement remain in full force and effect, specifically including the prohibitions against using or disclosing any of ACCURAY’s trade secrets or proprietary and/or confidential information learned while employed by ACCURAY during any subsequent employment.  CONSULTANT also acknowledges that during the term of this Agreement he will have access to and learn additional confidential information and/or trade secrets regarding the business of ACCURAY and its related entities, including, but not limited to, radio surgery and radiation therapy devices, and various other business, financial, technical and employee information (collectively, “Confidential and Proprietary Information”).

 

C.  Restrictions on Use and Disclosure of Confidential and Proprietary Information.  In addition to the confidential information obligations that continue from the period of CONSULTANT’s employment with ACCURAY, CONSULTANT agrees to hold all Confidential and Proprietary Information in trust and in the strictest of confidence, and to protect the Confidential and Proprietary Information from disclosure, except as required to perform the Services hereunder.  CONSULTANT further agrees that he will not, directly or indirectly, use, publish, disseminate or otherwise disclose any Confidential and Proprietary Information to any

 

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third party without the prior written consent of ACCURAY, which may be withheld in its absolute discretion.

 

D.  Return of Property.  CONSULTANT agrees not to remove any property of ACCURAY or its related entities from their premises without express permission, and to return all such property, including computer data, written materials provided to or obtained during the term of this Agreement, customer and supplier address lists, and any other items of value at the time this Agreement is terminated.

 

E.  No Solicitation of Customers and Vendors.   CONSULTANT further agrees that, during the term of this Agreement and for a period of one year after the termination of it, he will not directly or indirectly, either on his own behalf or on behalf of any other person or entity, use any Confidential and Proprietary Information to attempt to persuade or solicit any customer or vendor of ACCURAY to cease to do business or to reduce the amount of business which any customer or vendor has customarily done or contemplates doing with them, or to expand the customer’s or vendor’s business with a competitor of ACCURAY or its related entities.

 

F.  No Solicitation of Employees and Other Consultants.  CONSULTANT further agrees, that during the term of this Agreement and for a period of one year after its termination, he will not directly or indirectly, either on his own behalf or on behalf of any other person or entity, attempt to persuade or solicit any person who is an employee or consultant of ACCURAY or its related entities to terminate such employment or consulting relationship.  In addition, CONSULTANT agrees that after the termination of this Agreement he will not seek to obtain or misappropriate any of the Confidential and Proprietary Information of ACCURAY or its related entities from any of their current or former employees and consultants.

 

G.  Violations.  CONSULTANT agrees that ACCURAY and its related entities would be irreparably harmed by any actual or threatened violation of the promises in this Article IV, and therefore, that, in addition to other remedies, ACCURAY and its related entities will be entitled to an injunction prohibiting CONSULTANT from committing any such violations.

 

ARTICLE V — MISCELLANEOUS PROVISIONS

 

A.  Independent Contractor Status.  CONSULTANT understands and agrees that he is an independent contractor and not an employee of ACCURAY and that he shall not become an employee of ACCURAY by virtue of the performance of the services called for under this Agreement.

 

B.  No Office Space.  CONSULTANT understands and agrees that he will not be provided with a regular office and access to telephone, clerical support and facsimile and internet services at ACCURAY.  CONSULTANT shall at his own expense acquire, operate, maintain and repair or replace any office and equipment and supplies as maybe required for his performance of consulting services under this Agreement.

 

C.  Subconsultants and Other Contractors.  CONSULTANT is not authorized to engage the services of subconsultants, vendors or other contractors on behalf of ACCURAY or its related entities, unless she has obtained written authorization from ACCURAY to do so in

 

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advance.  To the extent such advance authorization has been obtained, ACCURAY will pay for the services provided by such subconsultants, vendors and/or other contractors.

 

D.  Consultant’s Employees.  To the extent CONSULTANT has any employees as of the date he signs this Agreement or hires any employees during the term of this Agreement, CONSULTANT understands and agrees that all such employees shall be his employees only, and that ACCURAY shall not be an employer of the employees.  ACCURAY shall have no responsibility for providing and shall not provide directions, instructions or supervision to any of CONSULTANT’s employees.  Only CONSULTANT shall provide such directions, instructions and supervision.  In addition, all decisions with respect to the employment of CONSULTANT’s employees, if any, shall be made solely and exclusively by CONSULTANT.  ACCURAY shall have no responsibility for or input into such decisions.  CONSULTANT hereby agrees to indemnify, defend and hold ACCURAY harmless from and against any costs, losses, damages, obligations, liabilities and expenses, including attorneys’ fees, arising from or in connection with any claim asserted by any of CONSULTANT’s employees against ACCURAY based on the employees’ employment with CONSULTANT, such as claims for discrimination in employment, harassment, retaliation, violation of statutory law, and wrongful termination.

 

E.  No Purchases.  CONSULTANT shall not purchase materials or supplies for the accounts of ACCURAY or its related entities, or otherwise hold himself out as being authorized to make purchases for which ACCURAY or its related entities would be billed directly by the seller of the materials or supplies, unless such purchase is authorized in writing by ACCURAY in advance.

 

F.  Compliance with Governmental Requirements.  CONSULTANT will maintain in force and/or secure all required licenses, permits, certificates and exemptions necessary for the performance of his services under this Agreement, and at all times shall comply with all applicable federal, state and local laws, regulations and orders.

 

G.  Indemnification.  CONSULTANT shall indemnify and hold ACCURAY and its related entities, and the directors, officers, agents, representatives and employees of all such entities, harmless from and against any and all liabilities, losses, damages, costs, expenses, causes of action, claims, suits, legal proceedings and similar matters, including without limitation reasonable attorneys’ fees, resulting from or arising out of the failure of CONSULTANT or any of his employees to comply with and perform fully the obligations hereunder, or resulting from any act or omission on the part of CONSULTANT, provided however that the indemnification shall not apply to any good faith action on the part of the CONSULTANT that is within the scope of this Agreement.  If any cause of action, claim, suit or other legal proceeding is brought against CONSULTANT in connection with any services rendered under this Agreement, CONSULTANT shall promptly notify ACCURAY upon learning of any such proceeding.

 

ACCURAY shall indemnify and hold CONSULTANT and his agents, employees, representatives and heirs, harmless from and against any and all liabilities, losses, damages, costs, expenses, causes of action, claims, suits, legal proceedings and similar matters, including without limitation reasonable attorneys’ fees, resulting from or arising out of the performance of any act specifically requested or authorized by ACCURAY in connection with this Agreement.  This promise does not apply to any actions arising out of or in connection with

 

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CONSULTANT’s operation of any motor vehicle.  If any cause of action, claim, suit or other legal proceeding is brought against ACCURAY in connection with any services provided by CONSULTANT under this Agreement, ACCURAY shall promptly notify CONSULTANT upon learning of any such proceeding.

 

H.  Notices.  Any and all notices and other communications hereunder shall have been deemed to have been duly given when delivered personally or by e-mail during normal business hours, or 24 hours after being emailed outside of normal business hours or mailed, certified or registered mail, return receipt requested, postage prepaid, in the English language, to the addresses set forth below the signatures of the parties hereto or to such other address as either of the parties hereto may from time-to-time designate to the other party in writing.

 

I.  Waiver.  No purported waiver by either party hereto of any provision of this Agreement or of any breach thereof shall be deemed a waiver of such provision or breach unless such waiver is in writing signed by the party making such waiver.  No such waiver shall be deemed to be a subsequent waiver of such provision or waiver of any subsequent breach of the same or any other provision hereof.

 

J.  Severability.  The provisions of this Agreement are severable, and if any part of it is found to be unenforceable, the other paragraphs shall remain fully valid and enforceable.

 

K.  Arbitration.  This Agreement shall in all respects be interpreted and governed by and under the laws of the State of California.  Any dispute between the parties hereto, including any dispute regarding any aspect of this Agreement or any act which allegedly has or would violate any provision of this Agreement or any law (hereinafter “Arbitrable Dispute”), will be submitted to arbitration through Judicial Arbitration and Mediation Services, Inc. (“JAMS”) in San Jose, California, unless the parties agree to another location, using the JAMS Commercial Arbitration Rules (“JAMS Rules”). The arbitrator shall be an experienced arbitrator licensed to practice law in California and selected in accordance with the JAMS Rules, unless the parties agree to another arbitrator.  Arbitration shall be the exclusive remedy for any such Arbitrable Dispute.  The decision of the arbitrator shall be final, conclusive and binding upon the parties.  Should any party to this Agreement pursue any Arbitrable Dispute by any method other than said arbitration, the responding party shall be entitled to recover from the initiating party all damages, costs, expenses and attorneys’ fees incurred as a result of such action.  This section shall not restrict the right of ACCURAY to go to court seeking injunctive relief for a violation of Article IV of this Agreement, pending the outcome of an arbitration proceeding.

 

L.  Sole and Entire Agreement.  This Agreement sets forth the entire agreement between the parties hereto pertaining to the subject matter hereof, and fully supersedes any and all prior agreements or understandings between the parties hereto, whether written or oral, pertaining to the subject matter hereof.  No change in, modification of, or addition, amendment or supplement to this Agreement shall be valid unless set forth in writing and signed and dated by each of the parties hereto subsequent to the execution of this Agreement.

 

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ACCURAY INCORPORATED:
    	
CONSULTANT:
    
	
 
    	
 
    
	
By:
    	
/s/ Darren J. Milliken
    	
 
    	
By:
    	
/s/   Euan Thomson
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Darren J. Milliken, SVP General Counsel
    	
Euan   S. Thomson, Ph.D.
    
	
 
    	
 
    
	
Date: October 27, 2012
    	
Date:   October 27, 2012
    

 

7Exhibit 10.4

 

GENERAL RELEASE AND SEPARATION AGREEMENT

 

This General Release and Separation Agreement (hereafter “Agreement”) is entered into between Chris Raanes (the “Executive”), and Accuray Incorporated (the “Company”), effective on the eighth calendar day following the Executive’s signature (the “Effective Date”), unless he/she revokes his/her acceptance in accordance with the terms of Section 6(b), below.

 

WHEREAS, the Executive was Executive Vice President, Chief Operating Officer of the Company, pursuant to the terms of the original employment offer letter dated January 1, 2011 (the “Employment Agreement”);

 

WHEREAS, the Executive resigned effective November 16, 2012; and

 

WHEREAS, the Company and the Executive now wish to document the termination of their employment relationship and fully and finally to resolve all matters between them;

 

THEREFORE, in exchange for the good and valuable consideration set forth herein, the adequacy of which is specifically acknowledged, the Executive and the Company hereby agree as follows:

 

1.                                      Resignation of Employment.  The Executive confirms his/her resignation of his/her employment and of his/her position as an officer of the Company effective November 16, 2012 (the “Resignation Date”).  The parties hereby acknowledge and agree that the Executive’s resignation of employment constitutes a “separation from service” from the Company within the meaning of Section 409A(a)(2)(A)(i) of the Internal Revenue Code of 1986, as amended (the “Code”), and Treasury Regulation Section 1.409A-1(h) (a “Separation from Service”).  As of the Resignation Date, the Employment Agreement shall automatically terminate and be of no further force and effect, and neither the Company nor the Executive shall have any further obligations thereunder, except as expressly provided herein.  Notwithstanding the foregoing, the Company shall be obligated to Executive for severance payments and continuation of benefits as contemplated by Section 7 of the Employment Agreement and as set forth in Section 3 below.

 

2.                                      Payment of Accrued Wages and Expenses.  The Executive acknowledges receipt, on the Resignation Date, of an amount equal to all accrued wages through the Resignation Date, including accrued, unused vacation and/or paid time off, less applicable taxes and other authorized withholding (apart from the Executive’s bonus for the current fiscal year, which will be paid in accordance with the regular terms of the Company Bonus Plan). The Executive shall also be promptly reimbursed for all expenses incurred by him on behalf of the Company, so long as they are submitted for reimbursement and they are in accordance with the Company’s expense reimbursement policies.

 

3.                                      Cash Severance Benefits and COBRA Premiums.       The Executive agrees that, except as set forth in this Agreement, he/she is entitled to no additional pay or benefits in conjunction with the termination of his/her employment.  Subject to Section 22(b) of this Agreement, the Company shall pay to the Executive, in a lump-sum, cash severance in the gross amount of $475,120.05 (the “Severance Payment”), which the parties acknowledge and agree represents the amount of the “Severance Payment” calculated under, and as defined in, Section 7 of the Employment Agreement, consisting of:

 

	
1.   Salary:
    	
 
    	
$
    	
265,666.66
    	
 
    
	
2.   Bonus:
    	
 
    	
$
    	
172,683.33
    	
 
    
	
3.   Health   Benefit:
    	
 
    	
$
    	
36,770.06
    	
 
    

 

 

The Severance Payment shall be paid net of applicable taxes and other authorized withholding.

 

4.                                      Stock Options and Restricted Stock Units.  The Executive acknowledges that as of the Resignation Date, the Executive was vested in Stock Options and Restricted Stock Units (“RSUs”) as reflected in the report attached as Exhibit A hereto. Except as specifically set forth herein, the Executive’s rights with respect to Stock Options and RSUs issued to him/her are governed by the Stock Option and Restricted Stock Unit Agreements entered into between the Executive and the Company, and the applicable Company equity incentive plan(s) and Notice(s) of Grant.

 

5.                                      Outplacement Assistance.  The Company will pay for executive outplacement assistance for a period of up to twelve (12) months after the Effective Date of this Agreement, provided that Executive uses Accuray’s outplacement service provider. Accuray’s outplacement service provider will bill Accuray directly and there is no cash value to this benefit.

 

6.                                      General Release of Claims by the Executive.

 

(a)           The Executive, on behalf of himself/herself and his/her executors, heirs, administrators, representatives and assigns, hereby agrees to release and forever discharge the Company and all predecessors, successors and their respective parent corporations, affiliates, related, and/or subsidiary entities, and all of their past and present investors, directors, shareholders, officers, general or limited partners, executives, attorneys, agents and representatives, and executive benefit plans in which the Executive is or has been a participant by virtue of his/her employment with the Company, from any and all claims, debts, demands, accounts, judgments, rights, causes of action, equitable relief, damages, costs, charges, complaints, obligations, promises, agreements, controversies, suits, expenses, compensation, responsibility and liability of every kind and character whatsoever (including attorneys’ fees and costs), whether in law or equity, known or unknown, asserted or unasserted, suspected or unsuspected (collectively, “Claims”), which the Executive has or may have had against such entities based on any events or circumstances arising or occurring on or prior to the date hereof or on or prior to the Resignation Date, arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever the Executive’s employment by the Company or the separation thereof, and any and all claims arising under federal, state, or local laws relating to employment, including without limitation claims of wrongful discharge, breach of express or implied contract, fraud, misrepresentation, defamation, or liability in tort, claims of any kind that may be brought in any court or administrative agency, any claims arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Fair Labor Standards Act, the Executive Retirement Income Security Act, the Family and Medical Leave Act, and similar state or local statutes, ordinances, and regulations, including, without limitation, the California Family Rights Act, the California Fair Employment and Housing Act and the California Labor Code.

 

Notwithstanding the generality of the foregoing, the Executive does not release the following claims and rights:

 

(i)                                    Claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable state law;

 

(ii)                                 Claims to continued participation in certain of the Company’s group benefit plans pursuant to the terms and conditions of the federal law known as COBRA;

 

(iii)                              The Executive’s right to bring to the attention of the Equal Employment Opportunity Commission claims of discrimination; provided, however, that the Executive does release 

 

 

his/her right to secure damages for any alleged discriminatory treatment;

 

(iv)                             The Executive’s rights under the Indemnification Agreement between Company and Executive and under applicable law (including California Labor Code Section 2802), the General Corporation Law of Delaware and the Company’s D&O policy to seek indemnity for acts committed, or omissions, within the course and scope of the Executive’s employment duties; and

 

(v)           Claims for breach of this Separation Agreement.

 

(b)                                 In accordance with the Older Workers Benefit Protection Act of 1990, the Executive acknowledges that he/she is aware of the following:

 

(i)                                    This Section and this Agreement are written in a manner calculated to be understood by the Executive.

 

(ii)                                 The waiver and release of claims under the ADEA contained in this Agreement does not cover rights or claims that may arise after the date on which the Executive signs this Agreement.

 

(iii)                              This Agreement provides for consideration in addition to anything of value to which the Executive is already entitled.

 

(iv)                             The Executive has been advised to consult an attorney before signing this Agreement.

 

(v)                                The Executive has been granted forty-five (45) days after he is presented with this Agreement to decide whether or not to sign this Agreement.  If the Executive executes this Agreement prior to January 7, 2013, he does so voluntarily and after having had the opportunity to consult with an attorney, and hereby waives the remainder of the period.

 

(vi)                             The Executive has the right to revoke this general release within seven (7) days of signing this Agreement.  In the event this general release is revoked, this Agreement will be null and void in its entirety, and the Executive will not receive the benefits of this Agreement.

 

If the Executive wishes to revoke this agreement, he/she must deliver written notice stating that intent to revoke, in accordance with the notice provisions of Section 17 of this Agreement, on or before 5:00 p.m. on the seventh (7th) day after the date on which the Executive signs this Agreement.

 

7.                                     The Company’s Release of Claims. Nothing herein shall release or discharge any Claim by the Company against the Executive, or the right of the Company to bring any action, legal or otherwise, against the Executive as a result of any failure by him to perform his/her obligations under this Agreement, or as a result of any acts of intentional misconduct or recklessness (including, but not limited to, fraud, embezzlement, misappropriation, or other malfeasance).

 

8.                                     Waiver of Rights Under California Civil Code Section 1542.  The Company and the Executive acknowledge that they have been advised of and are familiar with the provisions of California Civil Code Section 1542, which provides as follows:

 

“A general release does not extend to claims which the creditor does not know or suspect to exist

 

 

in his/her or her favor at the time of executing the release, which if known by him or her must have materially affected his/her or her settlement with the debtor.”

 

Being aware of said code section, the Company and the Executive hereby expressly waive any rights they may have thereunder, as well as under any other statutes or common law principles of similar effect; provided, however, that such waiver is not intended to affect claims expressly preserved under the terms of the parties’ respective releases.

 

9.                                      Nondisparagement.  The Executive agrees that neither he/she nor anyone acting by, through, under or in concert with him shall disparage or otherwise communicate negative statements or opinions about the Company, its Board members, officers, executives or business.  The Company agrees that neither its Board members nor executive officers shall disparage or otherwise communicate negative statements or opinions about the Executive.

 

10.                               Restrictive Covenants.  The Executive acknowledges his/her continuing obligations, pursuant to Section 9(a), (b) and (d) of the Employment Agreement.

 

11.                               Cooperation.  The Executive agrees to give reasonable cooperation, at the Company’s request, in any pending or future litigation or arbitration brought against the Company and in any investigation that the Company or any government entity may conduct.    The Company shall reimburse the Executive for all out of pocket expenses reasonably incurred by him in compliance with this Section 11. For his/her part, Executive agrees to submit a reimbursement for such out of pocket expenses within thirty (30) days after they have been incurred.

 

12.                               Executive’s Representations and Warranties.  The Executive represents and warrants that:

 

(a)           He/she has been paid all wages owed to him by the Company, including all accrued, unused vacation and/or paid time off, as of the date of execution of this Agreement;

 

(b)           As of the date of execution of this Agreement, he/she has not sustained any injuries for which he/she might be entitled to compensation pursuant to California’s Workers Compensation law;

 

(c)           The Executive has not initiated any adversarial proceedings of any kind against the Company or against any other person or entity released herein, nor will he/she do so in the future, except as specifically allowed by this Agreement.

 

13.                               Confidential Information; Return of Company Property.

 

(a)           The Executive hereby expressly confirms his/her continuing obligations to the Company pursuant to Section 9(a) of the Employment Agreement, and pursuant to the Employee Invention Assignment and Confidentiality Agreement executed by the Executive, a copy of which is attached as Exhibit B and incorporated herein by reference.

 

(b)           The Executive shall deliver to the Company within five days of the Resignation Date, all originals and copies of correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the Company and its customers’, business plans, marketing strategies, products, processes or business of any kind, and all originals and copies of documents that contain proprietary information or trade secrets of the Company that are in the possession or control of the Executive or his/her agents or representatives.

 

 

(c)           The Executive shall return to the Company within five days of the Resignation Date all equipment of the Company in his/her possession or control. The Executive may however keep his/her Company issued laptop computer and cellular phone. Accuray will remove all Company licensed software and Confidential information before delivering possession.

 

14.                               Taxes.  To the extent any taxes may be payable by the Executive for the benefits provided to him by this Agreement beyond those withheld by the Company, the Executive agrees to pay them himself/herself and to indemnify and hold the Company and the other entities released herein harmless for any tax claims or penalties, and associated attorneys’ fees and costs, resulting from any failure by him to make required payments.

 

15.                               In the Event of a Claimed Breach.  All controversies, claims and disputes arising out of or relating to this Agreement, including without limitation any alleged violation of its terms, shall be resolved by final and binding arbitration before a single neutral arbitrator in San Jose, California, in accordance with the applicable dispute resolution rules of the Judicial Arbitration and Mediation Service (“JAMS”). The arbitration shall be commenced by filing a demand for arbitration with JAMS within 60 (sixty) days after the filing party has given notice of such breach to the other party.  The arbitrator shall have authority to award the prevailing party attorneys’ fees and expert fees, if any.  Notwithstanding the foregoing, it is acknowledged that it will be impossible to measure in money the damages that would be suffered if the parties fail to comply with any of the obligations imposed on them under Sections 13(a) and (b) hereof, and that in the event of any such failure, an aggrieved person will be irreparably damaged and will not have an adequate remedy at law.  Any such person shall, therefore, be entitled to injunctive relief, including specific performance, to enforce such obligations, and if any action shall be brought in equity to enforce any of the provisions of Sections 13(a) and (b) of this Agreement, neither of the parties hereto shall raise the defense that there is an adequate remedy at law.

 

16.                               Choice of Law.  This Agreement shall in all respects be governed and construed in accordance with the laws of the State of California, including all matters of construction, validity and performance, without regard to conflicts of law principles.

 

17.                               Notices.  All notices, demands or other communications regarding this Agreement shall be in writing and shall be sufficiently given if either personally delivered or sent by facsimile or overnight courier, addressed as follows:

 

(a)                                 If to the Company:

 

Accuray Incorporated

Attn:  General Counsel

1310 Chesapeake Terrace

Sunnyvale, CA  94089

Phone:  408-716-4600

Fax:  408-716-4747

 

(b)                                 If to the Executive:

 

Chris Raanes

50 Bear Gulch Drive

Portola Valley, CA 94028

 

 

18.          Severability.  Except as otherwise specified below, should any portion of this Agreement be found void or unenforceable for any reason by a court of competent jurisdiction, the parties intend that such provision be limited or modified so as to make it enforceable, and if such provision cannot be modified to be enforceable, the unenforceable portion shall be deemed severed from the remaining portions of this Agreement, which shall otherwise remain in full force and effect.  If any portion of this Agreement is so found to be void or unenforceable for any reason in regard to any one or more persons, entities, or subject matters, such portion shall remain in full force and effect with respect to all other persons, entities, and subject matters.  This paragraph shall not operate, however, to sever the Executive’s obligation to provide the binding release to all entities intended to be released hereunder.

 

19.          Understanding and Authority.  The parties understand and agree that all terms of this Agreement are contractual and are not a mere recital, and represent and warrant that they are competent to covenant and agree as herein provided.

 

20.          Integration Clause.  This Agreement, the Employment Agreement, and the Employee Invention Assignment and Confidentiality Agreement contain the entire agreement of the parties with regard to the matters referenced herein and supersede any prior agreements as to such matters. This Agreement may not be changed or modified, in whole or in part, except by an instrument in writing signed by the Executive and the Chief Executive Officer of the Company.   The Indemnification Agreement between the Company and the Executive shall not be affected by the existence of this Agreement, including this Section 20 hereof, and shall remain in full force and effect.

 

21.          Execution in Counterparts.  This Agreement may be executed in counterparts with the same force and effectiveness as though executed in a single document.

 

22.                               Section 409A of the Code.

 

(a)           The payments and benefits under this Agreement are intended to be exempt from the application of Section 409A of the Code.  To the extent applicable, this Agreement shall be interpreted in accordance with Section 409A of the Code and Department of Treasury Regulations and other interpretive guidance issued thereunder.  Notwithstanding any provision of this Agreement to the contrary, if the Company determines that any such compensation or benefits payable under this Agreement may be subject to Section 409A of the Code and related Department of Treasury guidance, the Company may, with the Executive’s prior written consent, adopt such amendments to this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company determines are necessary or appropriate to (i) exempt the compensation and benefits payable under this Agreement from Section 409A of the Code and/or preserve the intended tax treatment of such compensation and benefits, or (ii) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance.

 

(b)           Notwithstanding anything to the contrary in this Agreement, no payment or benefits, including without limitation the amount payable under Section 3 hereof, shall be paid to the Executive during the six (6) month period following the Executive’s Separation from Service if the Company determines that paying such amount at the time or times indicated in this Agreement would be a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code.  If the payment of any such amount is delayed as a result of the previous sentence, then on the first business day following the end of such six (6) month period (or such earlier date upon which such amount can be paid under Section 409A of the Code without resulting in a prohibited distribution, including as a result of the Executive’s death), the Company shall pay the Executive a lump-sum amount equal to the cumulative amount that would have otherwise been payable to the Executive during such period.

 

 

(c)           To the extent permitted under Section 409A of the Code, any separate payment or benefit under this Agreement or otherwise shall not be deemed “nonqualified deferred compensation” subject to Section 409A and the six (6) month delay requirement under 409A(a)(2)(B)(i) of the Code to the extent provided in the exceptions in Treasury Regulation Section 1.409A-1(b)(4), Section 1.409A-1(b)(9) or any other applicable exception or provision of Section 409A of the Code.

 

(d)           To the extent that any reimbursements or corresponding in-kind benefits provided to the Executive under this Agreement, including, without limitation under Section 2 or Section 11 hereof, are deemed to constitute compensation to the Executive, such amounts shall be paid or reimbursed reasonably promptly, but not later than December 31 of the year following the year in which the expense was incurred.  The amount of any such payments or expense reimbursements in one year shall not affect the expenses or in-kind benefits eligible for payment or reimbursement in any other taxable year, and the Executive’s right to such payments or reimbursement of any such expenses shall not be subject to liquidation or exchange for any other benefit.

 

 

The parties have carefully read this Agreement in its entirety; fully understand and agree to its terms and provisions; and intend and agree that it is final and binding on all parties.

 

IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed the foregoing on the dates shown below.

 

	
CHRIS   A. RAANES
    	
ACCURAY   INCORPORATED
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Chris Raanes
    	
 
    	
/s/   Darren Milliken
    
	
Chris   Raanes
    	
Darren   J. Milliken
    
	
 
    	
Senior   Vice President, General Counsel
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:   November 21, 2012
    	
Date:   November 26, 2012
    
			

 

 

Exhibit A

 

Equity Awards — Closing Statement

 

	
 

Closing Statement
    	
 
    	
 

Summary of all vested Options &   RSUs
    	
 
    	
Accuray Incorporated
    ID: 20-8370041
   1310 Chesapeake Terrace
   Sunnyvale, CA 94089
    

 

	
Termination Date:
    	
16-November-2012
    
	
Statement Effective Date:
    	
16-November-2012
    

 

	
Chris Raanes
    	
 
    	
 
    
	
50 Bear Gulch Drive
    	
 
    	
 
    
	
Portola Valley, CA United States   94028
    

 

Exercisable Options

 

	
 
    	
 
    	
Grant
    	
 
    	
Plan/
    	
 
    	
 
    	
 
    	
Shares
    	
 
    	
Shares
    	
 
    	
Shares
    	
 
    	
Vesting
    	
 
    	
Total
    	
 
    	
Last Date
    	
 
    
	
Number
    	
 
    	
Date
    	
 
    	
Type
    	
 
    	
Price ($)
    	
 
    	
Granted
    	
 
    	
Exercised
    	
 
    	
Exercisable
    	
 
    	
Stop Date
    	
 
    	
Price ($)
    	
 
    	
To Exercise
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
00000600
    	
 
    	
27-Aug-03
    	
 
    	
1998/ISO
    	
 
    	
0.75000
    	
 
    	
120,000.00
    	
 
    	
120,000.00
    	
 
    	
0.00
    	
 
    	
16-Nov-12
    	
 
    	
0.00
    	
 
    	
 
    	
 
    
	
00000706
    	
 
    	
10-Aug-04
    	
 
    	
1998/ISO
    	
 
    	
2.50000
    	
 
    	
68,750.00
    	
 
    	
0.00
    	
 
    	
68,750.00
    	
 
    	
16-Nov-12
    	
 
    	
171,875.00
    	
 
    	
16-Feb-13
    	
 
    
	
00004033
    	
 
    	
30-Sep-11
    	
 
    	
2007/NQ
    	
 
    	
4.01000
    	
 
    	
150,000.00
    	
 
    	
0.00
    	
 
    	
40,625.00
    	
 
    	
16-Nov-12
    	
 
    	
162,906.25
    	
 
    	
16-Feb-13
    	
 
    
	
00002179
    	
 
    	
29-Aug-08
    	
 
    	
2007/NQ
    	
 
    	
8.25000
    	
 
    	
85,000.00
    	
 
    	
0.00
    	
 
    	
85,000.00
    	
 
    	
16-Nov-12
    	
 
    	
701,250.00
    	
 
    	
16-Feb-13
    	
 
    
	
00002623
    	
 
    	
31-Aug-09
    	
 
    	
2007/NQ
    	
 
    	
6.41000
    	
 
    	
90,000.00
    	
 
    	
0.00
    	
 
    	
69,375.00
    	
 
    	
16-Nov-12
    	
 
    	
444,693.75
    	
 
    	
16-Feb-13
    	
 
    
	
00003039
    	
 
    	
31-Aug-10
    	
 
    	
2007/NQ
    	
 
    	
6.58000
    	
 
    	
40,000.00
    	
 
    	
0.00
    	
 
    	
20,833.00
    	
 
    	
16-Nov-12
    	
 
    	
137,081.14
    	
 
    	
16-Feb-13
    	
 
    
	
00000707
    	
 
    	
10-Aug-04
    	
 
    	
1998/NQ
    	
 
    	
2.50000
    	
 
    	
51,250.00
    	
 
    	
34,000.00
    	
 
    	
17,250.00
    	
 
    	
16-Nov-12
    	
 
    	
43,125.00
    	
 
    	
16-Feb-13
    	
 
    
	
00001561
    	
 
    	
31-Aug-07
    	
 
    	
2007/NQ
    	
 
    	
13.83000
    	
 
    	
60,000.00
    	
 
    	
0.00
    	
 
    	
60,000.00
    	
 
    	
16-Nov-12
    	
 
    	
829,800.00
    	
 
    	
16-Feb-13
    	
 
    
	
00000496
    	
 
    	
02-Dec-02
    	
 
    	
1998/ISO
    	
 
    	
0.75000
    	
 
    	
360,000.00
    	
 
    	
360,000.00
    	
 
    	
0.00
    	
 
    	
16-Nov-12
    	
 
    	
0.00
    	
 
    	
 
    	
 
    
	
00000792
    	
 
    	
07-Nov-05
    	
 
    	
1998/ISO
    	
 
    	
4.38000
    	
 
    	
22,448.00
    	
 
    	
0.00
    	
 
    	
22,448.00
    	
 
    	
16-Nov-12
    	
 
    	
98,322.24
    	
 
    	
16-Feb-13
    	
 
    
	
00000793
    	
 
    	
07-Nov-05
    	
 
    	
1998/NQ
    	
 
    	
4.38000
    	
 
    	
37,552.00
    	
 
    	
0.00
    	
 
    	
37,552.00
    	
 
    	
16-Nov-12
    	
 
    	
164,477.76
    	
 
    	
16-Feb-13
    	
 
    
	
00000998
    	
 
    	
23-Aug-06
    	
 
    	
1998/ISO
    	
 
    	
9.50000
    	
 
    	
17,018.00
    	
 
    	
0.00
    	
 
    	
17,018.00
    	
 
    	
16-Nov-12
    	
 
    	
161,671.00
    	
 
    	
16-Feb-13
    	
 
    
	
C0000998
    	
 
    	
23-Aug-06
    	
 
    	
1998/NQ
    	
 
    	
9.50000
    	
 
    	
82,982.00
    	
 
    	
0.00
    	
 
    	
82,982.00
    	
 
    	
16-Nov-12
    	
 
    	
788,329.00
    	
 
    	
16-Feb-13
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
TOTALS
    	
 
    	
 
    	
 
    	
1,185,000.00
    	
 
    	
514,000.00
    	
 
    	
521,833.00
    	
 
    	
 
    	
 
    	
3,703,531.14
    	
 
    	
 
    	
 
    

 

Releasable Restricted Stock Awards

 

	
 
    	
 
    	
Grant
    	
 
    	
Plan/
    	
 
    	
 
    	
 
    	
Shares
    	
 
    	
Shares
    	
 
    	
Shares
    	
 
    	
Shares
    	
 
    
	
Number
    	
 
    	
Date
    	
 
    	
Type
    	
 
    	
Price ($)
    	
 
    	
Granted
    	
 
    	
Released
    	
 
    	
Releasable
    	
 
    	
Cancelled
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
00001566
    	
 
    	
31-Aug-07
    	
 
    	
2007/RSU
    	
 
    	
0.00000
    	
 
    	
10,000.00
    	
 
    	
10,000.00
    	
 
    	
0.00
    	
 
    	
0.00
    	
 
    
	
P0004104
    	
 
    	
30-Sep-11
    	
 
    	
2007/PSU
    	
 
    	
0.00000
    	
 
    	
56,250.00
    	
 
    	
0.00
    	
 
    	
0.00
    	
 
    	
56,250.00
    	
 
    
	
00004060
    	
 
    	
30-Sep-11
    	
 
    	
2007/RSU
    	
 
    	
0.00000
    	
 
    	
37,500.00
    	
 
    	
9,375.00
    	
 
    	
0.00
    	
 
    	
28,125.00
    	
 
    
	
00003040
    	
 
    	
31-Aug-10
    	
 
    	
2007/RSU
    	
 
    	
0.00000
    	
 
    	
13,300.00
    	
 
    	
6,650.00
    	
 
    	
0.00
    	
 
    	
6,650.00
    	
 
    
	
P0004132
    	
 
    	
30-Sep-11
    	
 
    	
2007/PSU
    	
 
    	
0.00000
    	
 
    	
25,900.00
    	
 
    	
0.00
    	
 
    	
0.00
    	
 
    	
25,900.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
TOTALS
    	
 
    	
 
    	
 
    	
142,950.00
    	
 
    	
26,025.00
    	
 
    	
0.00
    	
 
    	
116,925.00

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]