Document:

EXHIBIT 10.34

 

CHANGE OF CONTROL AND SEVERANCE AGREEMENT

THOMAS E. PETERSON

 

This Agreement is made effective as of November 18, 2013 between Digital River, Inc., a Delaware corporation (the “Company”), with its principal administrative office at 10380 Bren Road West, Minnetonka, MN 55343, and Thomas E. Peterson, a Minnesota resident (the “Executive”).

 

WHEREAS, the Company wishes to assure that the Company will have the continued dedication and objectivity of the Executive, notwithstanding the possibility or occurrence of a change of control of the Company and to motivate the Executive to maximize the value of the Company upon a change of control for the benefit of its stockholders;

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereby agree as follows:

 

1.                             PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION.

 

The provisions of this Section shall in all respects be subject to the terms and conditions stated in Sections 4 and 11, and subject to the execution by Executive of a general release of all claims against the Company in a form reasonably acceptable to the Company.

 

(a)                       Upon the occurrence of an Event of Termination (as herein defined) during the Executive’s employment by the Company, the provisions of this Section 1 shall apply.  As used in this Agreement, an “Event of Termination” shall mean and include any one or more of the following:  (i) the termination by the Company of Executive’s full-time employment by the Company for any reason, other than a termination following a Change in Control (as defined in Section 2(a) hereof), upon Retirement (as defined in Section 3 hereof), upon death or Disability (as defined in Section 3 hereof), or for Cause (as defined in Section 4 hereof); and (ii) Executive’s resignation from the Company’s employ, upon (A) any material change in Executive’s function, duties, or responsibilities, which change would cause Executive’s position to become one of lesser responsibility, importance, or scope, unless consented to by the Executive, (B) a relocation of Executive’s principal place of employment by more than 30 miles from its location at the effective date of this Agreement, or a material reduction in the benefits and perquisites to the Executive from those being provided as of the effective date of this Agreement, in each case, unless consented to by the Executive, or (C) material breach of this Agreement by the Company.  Upon the occurrence of any event described in clauses (ii)(A), (B) or (C) above (a “resignation for Good Reason”), Executive shall have the right to elect to terminate his employment with the Company by resignation for Good Reason upon not less than thirty (30) days prior written notice given within a reasonable period of time not to exceed, except in case of a continuing breach, three (3) calendar months after the event giving rise to such right to elect. Notwithstanding any other provision of this Section 4(a) to the contrary, no Event of Termination shall be deemed to have occurred unless the Executive also has Separated from Service with the Company, as defined in Exhibit A, in accordance with Internal Revenue Code Section 409A and the regulations promulgated thereunder (“Section 409A”).

 

1

 

EXECUTION VERSION

 

(b)                       Subject to Section 7 hereof, upon the occurrence of an Event of Termination, the Company shall be obligated to pay Executive, as severance pay or liquidated damages, or both, an amount equal to (i) twelve (12) months of the Executive’s base salary in effect at the time of the occurrence of the Event of Termination and (ii) a pro-rata portion of Executive’s target bonus for such year.  Such payment shall be made in one lump sum on the date that is six (6) months after the date of Executive’s Separation from Service; provided, however, that in the event that, at the time of such Separation from Service, Executive is not a “specified employee” of the Company within the meaning of Section 409A(a)(2)(B)(i) or the Company does not have a class of stock that is publicly traded on an established securities market or otherwise, and a six-month delay in payment of benefits is not otherwise required by Section 409A, then such payment shall be made in twelve (12) equal monthly installments during the twelve (12) months following such Separation from Service.

 

(c)                        Upon the occurrence of an Event of Termination, the Company will cause to be continued life, medical, dental and disability coverage (to the extent available and effected in compliance with Section 409A) substantially identical to the coverage maintained by the Company for Executive prior to his termination for twelve (12) months.

 

(d)                       Upon the occurrence of an Event of Termination, the Executive will be entitled to receive vested benefits due him under or contributed by the Company on his behalf pursuant to any retirement, incentive, profit sharing, bonus, performance, disability (if coverage is available under the Company’s current policy) or other employee benefit plans maintained by the Company on the Executive’s behalf to the extent provided for by the terms and conditions of the applicable plan documents and to the extent that such benefits are not otherwise paid to Executive under a separate provision of this Agreement.

 

2.                             CHANGE IN CONTROL.

 

(a)                       No benefit shall be payable under this Section 2 unless there shall have been a Change in Control of the Company as set forth below and unless the Executive executed a general release of all claims against the Company in a form reasonably acceptable to the Company.  For purposes of this Agreement, a “Change in Control” of the Company shall mean any of the following, but only to the extent that such change of control transaction is a change in the ownership or effective control of Company or a change in the ownership of a substantial portion of the assets of the Company as defined under Section 409A:  (A) individuals who constitute the Board of Directors of the Company on the date hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the date hereof whose election was approved by a vote of at least a majority of the directors comprising the Incumbent Board (or directors elected by the process set forth in this clause (A)), shall be, for purposes of this clause (A), considered as though he were a member of the Incumbent Board; or (B) a sale of all or substantially all of the assets of the Company, (C) a plan of reorganization, merger or consolidation or similar transaction occurs in which the stockholders of the Company prior to such transaction do not continue to hold, as a result of shares of capital stock of the Company held by them prior to such transaction, a majority of the voting power of the capital stock of the surviving corporation or entity; (D) a proxy statement shall be distributed soliciting proxies from stockholders of the Company, by someone other than the current management of the Company, seeking stockholder approval of a

 

2

 

plan of reorganization, merger or consolidation of the Company with one or more entities as a result of which the outstanding shares of the class of securities then subject to such a plan or transaction are subsequently exchanged for or converted into cash or property or securities not issued by the Company shall be distributed; or (E) a tender offer is completed for 50% or more of the voting securities of the Company then outstanding.

 

(b)                       If any of the events described in Section 2(a) hereof constituting a Change in Control have occurred or the Board of Directors has determined that a Change in Control has occurred, Executive shall be entitled to the benefits provided in paragraphs (c) and (d) of this Section 2 upon his subsequent involuntary Separation from Service with the Company or the Executive’s Separation from Service with the Company on account of his resignation for Good Reason or in the event of Executive’s subsequent death, unless any such Separation from Service is because of Termination for Cause.

 

(c)                        Upon the occurrence of a Change in Control followed by the Executive’s Separation from Service with the Company (other than a Termination for Cause or a resignation without Good Reason), or in the event of Executive’s subsequent death, the Company shall pay Executive, or in the event of his subsequent death, his beneficiary or beneficiaries, or his estate, as the case may be, as severance pay or liquidated damages, or both, an amount equal to (i) twelve (12) months of the Executive’s base salary in effect at the time of the occurrence of the Change in Control and (ii) a pro-rated portion of Executive’s target bonus for the year in which the Change of Control occurs.  Such payment shall be made (A) immediately upon the Executive’s death or (B) in one lump sum on the date that is six (6) months after the date of Executive’s Separation from Service; provided, however, that in the event that, at the time of such Separation from Service, Executive is not a “specified employee” of the Company within the meaning of Section 409A(a)(2)(B)(i) or the Company does not have a class of stock that is publicly traded on an established securities market or otherwise, and a six-month delay in payment of benefits is not otherwise required by Section 409A, then such payment shall be made in twelve (12) equal monthly installments during the twelve (12) months following such Separation from Service.

 

(d)                       Upon the occurrence of a Change in Control followed by the Executive’s Separation from Service with the Company (other than a Termination for Cause or a resignation without Good Reason), the Company will cause to be continued life, medical, dental and disability coverage (if coverage is available under the Company’s current policy and subject to compliance with Section 409A) substantially identical to the coverage maintained by the Company for Executive prior to his termination for twelve (12) months following termination.

 

(e)                        Upon the occurrence of a Change in Control, any unvested stock options, restricted stock, stock appreciation rights or other equity incentive awards granted to the Executive shall immediately vest and be immediately exercisable and free from any rights of repurchase, subject to the provisions of Section 2(f) hereof.

 

(f)                         If any payment or benefit Executive would receive pursuant to this Section 2 (“Payment”) would constitute a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code (the “Code”), and, but for this paragraph (f), be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to

 

3

 

the Reduced Amount.  The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive’s receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax.  If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order unless Executive elects in writing a different order (provided, however, that such election shall be subject to Company approval if made on or after the effective date of the event that triggers the Payment):  reduction of cash payments; cancellation of accelerated vesting of Incentive Equity; reduction of employee benefits.  In the event that acceleration of vesting of Incentive Equity compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of Executive’s Incentive Equity unless Executive elects in writing a different order for cancellation.  The Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder, and shall bear the expenses thereof.  Such accounting firm shall provide its calculations, together with detailed supporting documentation, to the Company and Executive within thirty (30) calendar days after the date on which Executive’s right to a Payment is triggered (if requested at that time by the Company or Executive).  If the accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish the Company and Executive with an opinion reasonably acceptable to Executive that no Excise Tax will be imposed with respect to such Payment.  Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive.

 

3.                             TERMINATION UPON RETIREMENT, DEATH, AND DISABILITY.

 

(a)                       For purposes of this Agreement, termination based on “Retirement” shall mean termination in accordance with the Company’s retirement policy or in accordance with any retirement arrangement established with Executive’s consent with respect to him.  Upon termination of Executive upon Retirement, Executive shall be entitled to all benefits under any retirement plan of the Company and other plans to which Executive is a party to the extent provided for by the terms and conditions of the applicable retirement or other plan documents.

 

(b)                       Upon the Executive’s death, Executive’s beneficiaries shall be awarded a pro-rated bonus, in an amount equal to the Board of Directors’ good faith estimate of the bonus Executive would have been awarded for the current year, if any, pro-rated by the number of completed calendar months of such year (such that, for example, if the Executive’s death occurred on October 5 in a calendar year, his bonus would be pro-rated by 9/12ths); provided that in no event will such bonus amount be less than such pro-rated portion of the average of Executive’s bonuses for the three most recent years.

 

(c)                        If the Executive is Disabled (as defined below) for a continuous period of six (6) months, the Company may terminate Executive’s employment and this Agreement upon written notice to the Executive.  If the Company terminates the Executive due to the Disability of the Executive, the Company shall, for a period of one (1) year from the date of termination,

 

4

 

provide the Executive with the term life insurance and medical insurance and, to the extent permitted by law and the terms and conditions of the Company’s benefit plans, other employee benefits generally available to the Company’s employees, that are in effect at the time of termination.  The Executive, for purposes of this Agreement, shall be deemed to be “Disabled” if he (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last of a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under any accident and health plan covering employees of the Company.  In addition, Executive shall be awarded (i) a cash amount equal to twelve (12) months of the Executive’s base salary in effect at the time of termination due to Disability, and (ii) a pro-rated bonus, in an amount equal to the Board of Directors’ good faith estimate of the bonus Executive would have been awarded following the end of the current year, if any, pro-rated by the number of completed calendar months of such year (such that, for example, a termination on October 5 in a calendar year would result in payment of the 9/12 of Executive’s bonus); provided that in no event will such bonus amount be less than such pro-rated portion of the average of Executive’s bonuses for the three most recent years.

 

4.                             TERMINATION FOR CAUSE.

 

The term “Termination for Cause” shall mean termination because of (i) any knowing act, or knowing failure to act, by the Executive involving fraud or willful malfeasance in the performance of his duties for the Company, including, but not limited to, Executive’s willful failure to serve as a full time employee of the Company, (ii) the Executive’s unlawful appropriation of a corporate opportunity or other breach of fiduciary duty or other material obligation to the Company, or (iii) the conviction of the Executive of a felony under federal or state law.  For purposes of this Section, no act, or the failure to act, on Executive’s part shall be “willful” unless done, or omitted to be done, not in good faith and without reasonable belief that the action or omission was in the best interest of the Company or its affiliates.  Notwithstanding the foregoing, Executive shall not be deemed to have been Terminated for Cause unless and until there shall have been delivered to him a Notice of Termination (after 30 days’ notice to Executive and an opportunity for him, together with counsel, to be heard before the Board of Directors), stating that Executive was guilty of conduct justifying Termination for Cause and specifying the particulars thereof in detail.  The Executive shall not have the right to receive compensation or other benefits for any period after Termination for Cause.

 

5.                             NOTICE

 

(a)                       Any purported termination by the Company or by the Executive shall be communicated by Notice of Termination to the other party hereto.  For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated.

 

5

 

(b)                       “Date of Separation from Service” shall mean, subject to compliance with Section 409A: (A) if Executive’s employment is terminated for Disability, thirty (30) days after a Notice of Termination is given (provided that he shall not have returned to the performance of his duties on a full-time basis during such thirty (30) day period), and (B) if his employment is terminated for any other reason, the date specified in the Notice of Termination.

 

6.                             CONFIDENTIALITY

 

Executive will not, during or after the term of his employment, disclose any knowledge of the past, present, planned or considered business activities of the Company to any person, firm, corporation, or other entity for any reason or purpose whatsoever which is not otherwise publicly available.  In the event of a breach or threatened breach by the Executive of the provisions of this Section 6, the Company will be entitled to an injunction restraining Executive from disclosing, in whole or in part, the knowledge of the past, present, planned or considered business activities of the Company, or from rendering any services to any person, firm corporation or other entity to whom such knowledge, in whole or in part, has been disclosed or is threatened to be disclosed.  Nothing herein will be construed as prohibiting the Company from pursuing any other remedies available to the Company for such breach or threatened breach, including the recovery of damages from Executive.

 

7.                             NON-COMPETITION.

 

Upon any termination of Executive’s employment hereunder, Executive agrees not to compete with the Company for a period of twelve (12) months following such termination in those states within the United States and those countries outside the United States in which the Company conducts business (the “Restricted Area”); provided that the ownership by the Executive of less than five percent (5%) of a publicly-traded class of securities shall not be deemed a violation of this Section 7.  Executive agrees that during such period and within the Restricted Area, Executive shall not work for or advise, consult or otherwise serve with, directly or indirectly, any entity whose business materially competes with the Company.  The parties hereto, recognizing that irreparable injury will result to the Company, its business and property in the event of Executive’s breach of this Section 7 agree that in the event of any such breach by Executive, the Company will be entitled, in addition to any other remedies and damages available, to an injunction to restrain the violation hereof by Executive.  Executive represents and admits that in the event of the termination of his employment, Executive’s experience and capabilities are such that Executive can obtain employment in a business engaged in other lines and/or of a different nature than the Company, and that the enforcement of a remedy by way of injunction will not prevent Executive from earning a livelihood.  Nothing herein will be construed as prohibiting the Company from pursuing any other remedies available to the Company for such breach or threatened breach, including the recovery of damages from Executive.

 

8.                             SOURCE OF PAYMENTS.

 

All payments provided in this Agreement shall be timely paid in cash or check from the general funds of the Company.  The Company may use insurance proceeds especially obtained therefor as partial payment in the event of disability.

 

6

 

9.                             EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.

 

This Agreement contains the entire understanding between the parties hereto with respect to the subject matter hereof.  No provision of this Agreement shall be interpreted to mean that Executive is subject to receiving fewer benefits than those available to him without reference to this Agreement.

 

10.                      NO ATTACHMENT.

 

(a)                       Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void, and of no effect.

 

(b)                       This Agreement shall be binding upon, and inure to the benefit of, Executive and the Company and their respective successors and assigns.

 

11.                      MODIFICATION AND WAIVER.

 

(a)                       This Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto.

 

(b)                       No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel.  No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future as to any act other than that specifically waived.

 

12.                      ACCELERATION OF PAYMENT PROHIBITED.

 

Notwithstanding any other provision of the Agreement to the contrary, no payment shall be made under the Agreement that would constitute an impermissible acceleration of payment as defined in Section 409A(a)(3) of the Code and the regulations promulgated thereunder.

 

13.                      SEVERABILITY.

 

If, for any reason, any provision of this Agreement, or any part of any provision, is held invalid, such invalidity shall not affect any other provision of this Agreement or any part of such provision not held so invalid, and each such other provision and part thereof shall to the full extent consistent with law continue in full force and effect.

 

7

 

14.                      HEADINGS FOR REFERENCE ONLY.

 

The headings of sections and paragraphs herein are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement.

 

15.                      GOVERNING LAW

 

This Agreement shall be governed by the laws of the State of Minnesota.

 

8

 

IN WITNESS WHEREOF, the parties hereto have caused this Change of Control and Severance Agreement to be duly executed and delivered as of the day and year first above written.

 

	
EXECUTIVE:
    	
 
    	
COMPANY:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
DIGITAL   RIVER, INC.
    
	
By:
    	
/s/ Thomas E. Peterson
    	
 
    	
 
    
	
 
    	
Thomas E. Peterson
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   David C. Dobson
    
	
 
    	
 
    	
 
    	
David   C. Dobson, Chief Executive Officer
    

 

9

 

EXHIBIT A

DEFINITION SEPARATION FROM SERVICE

 

For purposes of this Agreement, “Separation from Service” shall mean termination of the Executive’s employment as a common-law employee of the Company.  A Separation from Service will not be deemed to have occurred if the Executive continues to provide services to the Company in a capacity other than as an employee and if the Executive is providing services at (A) an annual rate that is fifty percent (50%) or more of the services rendered, on average, during the immediately preceding three full calendar years of employment with the Company (or if employed by the Company less than three years, such lesser period) and (B) the annual remuneration for such services is fifty percent (50%) or more of the average annual remuneration earned during the final three full calendar years of employment (or if less, such lesser period).

 

A Separation from Service will be deemed to have occurred if the Executive’s service with the Company as an employee is reduced to an annual rate that is less than twenty percent (20%) of the services rendered, on average, during the immediately preceding three full calendar years of employment with the Company (or if employed by the Company less than three years, such lesser period) or the annual remuneration for such services is less than twenty percent (20%) of the average annual remuneration earned during the three full calendar years of employment with the Company (or if less, such lesser period).

 

In addition to the foregoing, a Separation from Service will not be deemed to have occurred while the Executive is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six (6) months, or if longer, so long as the Executive’s right to reemployment with the Company is provided either by statute or contract.  If the period of leave exceeds six (6) months and the Executive’s right to reemployment is not provided either by statute or contract, then the Executive is deemed to have Separated from Service on the first day immediately following such six-month period.

 

1Exhibit 10.42

 

Employment Agreement

 

between

 

Thomas Bachmann, Wieslerstrasse 36, CH - 8702 Zollikon

 

“Employee”

 

and

 

Bruker BioSpin AG, Industriestrasse 26, CH - 8117 Fällanden

 

(Handelsregister-Nr.  CH-020.3.924.534-8)

 

“Employer”  or “Company”

 

as well as

 

Bruker Corporation, a Delaware corporation located at 40 Manning Road, Billerica, Massachusetts 01821, USA

 

“Bruker”

 

Recitals

 

The Employee has on July 29th, 2013 entered into a first employment agreement with Bruker BioSpin International AG, Aegeristrasse 52, CH - 6300 Zug and Bruker. The Company and Bruker will based upon this Employment Agreement take over all rights and obligations of Bruker BioSpin International AG and Bruker under the first employment agreement, which will cease to be effective, once this Employment Agreement has been duly signed. Based upon this Employment Agreement, the Employee will forthwith be employed by the Company and be appointed by Bruker in a global functional role as

 

Group President

 

of the Bruker BioSpin Group (BBIO Group), which presently consists of the following two Divisions: 

 

·             Bruker BioSpin Magnetic Resonance (MRS) Spectroscopy Division, with its major operations in Fällanden/CH, Rheinstetten/DE and Karlsruhe-Rheinhafen/DE, Wissembourg/FR and Billerica, MA (USA).

·             Bruker BioSpin Preclinical Imaging (PCI) Division, with its major facilities in Ettlingen/DE, Kontich/B and Billerica, MA (USA).

 

The exact composition of this BBIO Group within Bruker could change from time to time in the future.

 

	
Emplyoment Agreement THBA   / BioSpin AG
    	

    

 

 

Employer and Employee hereby agree on the terms and conditions of the Employee’s employment and certain other matters as follows:

 

1.                                      Commencement of Employment

 

This Employment Agreement becomes effective and shall replace the employment agreement dated July 29th, 2013 once it has been duly signed by the parties.

 

2.                                      Position, Place of Work

 

2.1                               The Employee will be employed by the Company and appointed by Bruker as of the Effective Date in an executive position as Group President of the BBIO Group and shall report to the President and Chief Executive Officer (“CEO”) of Bruker. The Employee will coordinate strategic or major decisions within the BBIO Group also with Jörg Laukien, the Executive Chairman of the BBIO Group.

 

2.2                               The Employee’s place of work shall be at the Company’s offices in Fällanden /  CH. The Employee’s duties require the Employee to regularly travel on business for the Company or Bruker to other locations both in Europe and overseas.

 

3.                                      Remuneration

 

The total annual compensation consists of (i) the Base Salary, (ii) the Target Bonus and (iii) the Long-Term Equity Incentive:

 

3.1                               The Base Salary shall be CHF 360’000 (three-hundred sixty thousand Swiss Francs) per annum, pro-rated for the remainder of 2013, and for the year 2014, payable in cash with 12 equal monthly installments, subject to any deductions or withholdings required by Swiss law. The base salary will be reviewed annually, for the first time in January 2015 for the year 2015.

 

3.2                               The Target Bonus shall be 50% of the Base Salary, i.e. initially CHF 180’000 for 2014 in cash, subject to an annual goals achievement review which is based upon achieving key financial metrics of the annual BBIO Group business plan, and other agreed-upon qualitative goals. Should the Employee exceed various elements of the annual BBIO Group business plan, then the target bonus elements can increase linearly, and are presently not capped.

 

The annual quantitative goals to be achieved will be set either by the Bruker CEO or the Bruker Board of Directors Compensation Committee, based upon the annual business plan for the BBIO Group.  Qualitative goals shall be discussed between the Employee and the CEO and then will be set by the Bruker CEO or the Bruker Board of Directors Compensation Committee, typically early in the first quarter of each calendar year.

 

For the period starting on Effective Date until 3lst December 2013, the Employee shall be entitled to a pro-rated share of the Target Bonus in cash, regardless of whether the goals of the BBIO Group are achieved, i.e. CHF 66’575 is guaranteed for the employment period in 2013.

 

The Target Bonus for a given calendar year is typically paid in March of the following year.

 

3.3                               The Long-Term Equity Incentive (LTEI) shall consist of Bruker options and/or restricted shares, or similar equity or equity-like grants, valued at approximately 100% of the annual Base

 

2

 

Salary. It is Bruker’ s intention to make this an annual grant, as it is understood, that this is an important part of the Employee’s overall annual compensation, but formally equity grants are at the discretion of the Bruker Board’s Compensation Committee. Should such a LTEI grant not be made, total annual compensation will be reviewed.

 

The LTEI grants will typically be awarded in July of each calendar year and be legally governed by individual Bruker Stock Option and/or Restricted Stock Award Agreements.

 

The grants will typically consist of a mix of 50% Bruker stock options and 50% Bruker restricted shares. However, upon Employee’s request, the mix of stock options can be likely altered up to a ratio of 30% stock options and 70% restricted shares (in terms of value, not in terms of units).

 

Upon start of the employment at the Effective Date, the Employee shall receive a one-time start-up grant of 14’000 Bruker restricted shares and 11’400 Bruker stock options, within weeks of the start of the employment.

 

4.                                      Pension Plan (BVG) and Business Salary Insurance

 

(BVG = Swiss “Bundesgesetz über die berufliche Alters-, Hinterlassenen- und Invalidenvorsorge“)

 

4.1                               Employee will participate in the Employer’s pension fund scheme (BVG), which presently provides insurance protection (life and disability) and pension coverage for an insured sum that is capped at CHF 130’000 per annum of salary and bonus.

 

4.2                               Employee shall work with Employer and Bruker’s global HR management to revise the pension coverage so that starting with the year 2014, the Employee’s pension coverage and protection shall be adequate for the position and reasonable in cost.

 

4.3                               Employee shall work with Employer and Bruker’s global HR management to revise insurance coverage for Swiss employees of Bruker, with the goal of having updated insurance coverage in place before the end of the year 2013, which is intended to provide for a “Business Salary Insurance” for a period of up to 720 days that provide adequate coverage in favor of the Employee, should the Employee be incapable to perform its duties under this agreement due to illness or accident.

 

4.4                               In addition, in case of Employee’s death, the Employer shall continue to pay Base Salary for six months.

 

5.                                      Business Travel and Mobile Phone & Data Devices

 

5.1                               Employee’s air travel shall typically be in Economy Class within Europe and in Business Class for overseas trips.

 

5.2                               The Employee shall be provided with mobile phone and mobile data devices for business and reasonable private use /  purposes, whereby all costs shall be borne by the Company.

 

6.                                      Reimbursement of Costs

 

The Company shall reimburse Employee for any business expenses against invoice and in accordance with expense regulations, if these were reasonably incurred by the Employee when promoting the business of Bruker.

 

3

 

7.                                      Company Car

 

For the time being, no company car is provided. However, the Company’s car policy is under review and eligibility will be assessed when appropriate.

 

8.                                      Hours of Work

 

The Employee’s working time shall be commensurate with the tasks and responsibility of his position. It shall be adapted to the necessities of the business and the proper conduct of the Company’s and Bruker’s affairs. Any overtime work or travel outside ordinary business hours shall be deemed compensated by the remuneration set out above and the Employee shall not be entitled to any overtime pay or compensation.

 

9.                                      Employee’s General Obligations and Rights

 

9.1                               The Employee shall faithfully and diligently perform his tasks, in compliance with the instructions given to him by the CEO and/or the Board of Directors of Bruker.

 

9.2                               During the entire employment, the Employee will be required to follow all of the Employer’s and Bruker’s internal policies and to conduct his business activities at all times in accordance with the highest legal, ethical and professional standards.

 

9.3                               The Employee shall devote his full working time to Bruker and shall not undertake other professional activities, whether paid or unpaid, and/or accept other employments (except for 9.5).

 

9.4                               The Employee shall not establish or maintain any material form of additional, non-company related business connection with any customer or supplier of Bruker, or Bruker itself, unless written permission from an authorized officer of Bruker is obtained prior to the establishment of such additional business connection (except for 9.5).

 

9.5                               The Employee has Bruker’s permission to accept one board of directors assignment with a third company, assuming this company has no conflict of interest with Bruker, and provided the company is Swiss or German, i.e. there is no excessive travel or periods of absence involved; any further assignment will have to be discussed with Bruker, which shall not unreasonably withhold its consent. It is further assumed that the involvement with such company is normal Board involvement, rather than extensive strategic consulting, turn-around support or similar.

 

10.                               Vacation & Holidays

 

10.1                        The Employee will be entitled to 30 days of vacation per annum (if employment starts or ends during the year pro rata).

 

10.2                        In addition, 9 days paid public holidays per calendar year are granted.

 

11.                               Term and Termination

 

11.1                        This agreement is entered into for a fixed term until the end of 2014, starting from the Effective Date and shall thereafter continue to be in effect for an indefinite term until the official Swiss retirement age, or until the Employer’s 65th birthday, whichever is later.

 

4

 

11.2                        After the Employer’s 65th birthday or the Swiss retirement age, both parties may optionally extend the employment by written mutual agreement, as is or in modified form.

 

11.3                        This agreement may - earliest at the beginning of 2015 - be terminated by either party giving six (6) months written notice as per the end of any calendar month.

 

11.4                        The statutory probation period is waived.

 

12.                               D&O Insurance

 

The Employee shall be covered by Bruker’s Directors & Officers (D&O) Insurance and Bruker shall, upon the Employee’s request, disclose the policy and any extension or alteration thereof.

 

13.                               Confidentiality

 

13.1                        The Employee acknowledges and agrees to the fact that the employment relationship will give him access to the customers and to business secrets of Bruker and that the use of such knowledge other than for the benefit of Bruker would significantly damage Bruker.

 

13.2                        The Employee further acknowledges and agrees that as a result of his employment by the Company, he will become acquainted with other Bruker employees and their abilities and that such information is proprietary to Bruker.

 

13.3                        The Employee shall not disclose at any time (except as the Employee’s Company or Bruker duties may require), either during, or subsequent to, the Employee’s employment, any technical or business information, including, but not limited to, electronic circuitry, electronic and mechanical drawings, measurement methods, manufacturing techniques, software, chemical or biological techniques or methods, production or sales activities, customer lists of either existing customers or prospects, inventions, application notes, research and development reports, present and future business lines or direction of business or other matters which are of a secret or confidential nature; as all such and related items are information considered to be of a confidential nature, and to be Bruker property.

 

13.4                        Upon termination of his employment hereunder (for whatever reason) and at any other time at Bruker’s request the Employee shall, without retaining any copies or other record thereof, deliver to Bruker or any person Bruker may nominate, each and every document and all other material of whatever nature in the possession or under the control of the Employee containing or relating directly or indirectly to any Confidential Information.

 

13.5                        The confidentiality undertaking set forth in this Section 12 shall cease to apply to any information which shall become available to the public generally otherwise than through the default of the Employee.

 

14.                               Intellectual Property

 

14.1                        All inventions and designs and other proprietary work effort which the Employee either alone or in conjunction with others invents, conceives, makes or produces while employed by Bruker (whether during working hours or not) and which directly or indirectly:

 

(a)         relate to matters within the scope of the Employee’s duties or field of responsibility; or

 

5

 

(b)         are based on the Employee’s knowledge of the actual or anticipated business or interests of the Company or any of the Bruker companies; or

 

(c)          are aided by the use of time, materials, facilities or information of the Company or any of the Bruker companies;

 

and all legal rights therein shall be the sole and exclusive property of Bruker.

 

14.2                        The Employee shall communicate to Bruker promptly, confidentially and fully all inventions made or conceived by the Employee (whether made solely by the Employee, or jointly with others) from the time of entering Bruker’s employment until the Employee leaves Bruker.

 

14.3                        The Employee shall assist, execute and perform at the expense of Bruker and its nominees both during the continuance of his employment hereunder and at all times thereafter all such applications, assignments, documents, acts and things as may reasonably be required by Bruker for the purpose of obtaining and enforcing in such countries as Bruker may direct all necessary legal protection in respect of inventions, designs and other proprietary work effort owned by Bruker and for vesting the same in Bruker or as Bruker may direct.

 

Such inventions to be and remain the sole and exclusive property of Bruker or its nominees, whether patented or not.

 

14.4                        The Employee shall make and maintain adequate and current written records of all such inventions, in the form of notes, sketches, drawings, or reports relating thereto, which records shall be and remain the property of and available to Bruker or its nominees at all times.

 

14.5                        The Employee is recognizing that inventions made or conceived by the Employee relating to the Employee’s activities while working for Bruker and conceived, reduced to practice, created, derived, developed, or made by the Employee, alone or with others, within three (3) months after the termination of the Employee’s employment with Bruker may have been conceived, reduced to practice, created, derived, developed, or made in significant part while employed by Bruker, to presume that such inventions have been conceived, reduced to practice, created, derived, developed, or made during the Employee’s employment with Bruker and to assign the same promptly to Bruker, unless and until the Employee establishes to the contrary by written evidence satisfying the clear and convincing standard of proof.

 

14.6                        The Employee agrees, to notify Bruker in writing before the Employee makes any disclosure or performs any work for, or on behalf of, Bruker, which appears to threaten or conflict with:

 

a)    rights that the Employee claims in any invention or idea conceived by the Employee or others prior to his employment with Bruker, or otherwise outside the scope of this Agreement; or

 

b)    rights of others arising out of obligations incurred by the Employee prior to this Agreement, or otherwise outside the scope of this Agreement;

 

In the event of the Employee’s failure to give such notice under such circumstances, Bruker may assume that no such conflict exists.  The Employee will make no claim against Bruker with respect to the use of any such invention or idea in the Employee’s work which the Employee performs or causes to be performed for or on behalf of Bruker.

 

6

 

15.                               Personal Data Protection

 

With the execution of this Agreement, the Employee consents that the Company may store, transfer, change and delete all personal data in connection with this employment relationship. In particular, the Employee consents to the transfer of personal data concerning the Employee by the Company to an affiliated company of Bruker outside Switzerland. Bruker agree to keep all personal data of the Employee strictly confidential.

 

16.                               Non-Competition and Non-Solicitation

 

16.1                        The Employee shall not work for, consult for, or otherwise provide services for, a competitor of the BBIO Group for one (1) year after the termination for any reason of the Employee’s employment with the Company.  A competitor of the BBIO Group is narrowly defined as any for profit company or entity which manufactures, designs, markets, consults on or sells any types of magnetic resonance- (MR), superconducting magnet-, computer aided tomography- (CT), positron-emission tomography- (PET) or optical imaging- (OI) instrumentation for use in biology, chemistry, physics or materials research, or for pre-clinical imaging (everything except human in vivo imaging) applications that the BBIO Group represents. Employee agrees that the above non-compete restrictions cover much less than 5% of the analytical instruments industry.

 

16.2                        The Employee shall not, during the period of the Employee’s employment with the Company and for a period of two (2) years after the termination thereof, either directly or indirectly, separately or in association with others, interfere with, impair, disrupt or damage the BBIO Group’s (a) relationship with any of its customers or customer prospects by soliciting or encouraging others to solicit any of them for the purpose of diverting or taking away business from the BBIO Group; or (b) business by soliciting, encouraging or attempting to hire any of the BBIO Group’s employees or causing others to solicit or encourage any of the BBIO Group’s employees to discontinue their employment with the BBIO Group.

 

17.                               General Provisions

 

17.1                        All notices shall be addressed to the other party at the address specified at the beginning of this Agreement, or to any other address as provided by the parties through subsequent written notice.

 

17.2                        This Agreement constitutes the entire agreement and understanding among the parties with respect to the employment of the Employee with the Company, and shall supersede all prior oral and written agreements or understandings of the parties relating hereto (in particular the duly signed Offer Letter, dated June 15th 2013 with Bruker).

 

Any representation or statement (in whatever form) made to the Employee in connection with the Employee’s employment not incorporated in this Agreement shall not be valid and have no effect.

 

17.3                        This Agreement may only be modified or amended in a written form signed by the Employee and an officer or authorized executive of the Company or Bruker. Any provision contained in this Agreement may only be waived by a document signed by the party waiving such provision. No waiver of any violation or non-performance of this Agreement in one instance shall be deemed to be a waiver of any violation or non-performance in any other instance. All waivers must be in writing.

 

7

 

17.4                        If any provision of this Agreement is found by any competent authority to be void, invalid or unenforceable, such provision shall be deemed to be deleted from this Agreement and the remaining provisions of this Agreement shall continue in full force. In this event, the Agreement shall be construed, and, if necessary, amended in a way to give effect to, or to approximate, or to achieve a result which is as close as legally possible to the result intended by the provision hereof determined to be void, illegal or unenforceable.

 

17.5                        This Agreement shall be binding upon the Employee’s heirs, executors, administrators, legal representatives and assigns.

 

17.6                        The Employee represents that he has no agreements with, or obligations to, others in conflict with the foregoing.

 

18.                               Governing Law and Jurisdiction

 

18.1                        This Agreement, shall be governed by, interpreted and construed in accordance with the substantive laws of Switzerland.

 

18.2                        Exclusive jurisdiction for all disputes arising out of or in connection with this Agreement shall be with the competent courts of the Canton of Zürich.

 

        “        

 

	
Billerica, MA (USA), 
    	
 
    	
Fällanden (CH), 
    	
 
    	
Zollikon (CH), 
    
	
December 3rd, 2013
    	
 
    	
December 3rd, 2013
    	
 
    	
December 3rd, 2013
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
For Bruker:
    	
 
    	
For Employer:
    	
 
    	
Employee:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Frank H. Laukien
    	
 
    	
By: 
    	
/s/ Jörg Laukien
    	
 
    	
By: 
    	
/s/ Thomas Bachmann
    
	
Frank H. Laukien 
    	
 
    	
Jörg Laukien
    	
 
    	
Thomas Bachmann
    
	
President & CEO 
    	
 
    	
Executive Chairman, BBIO   Group 
    	
 
    	
 
    
	
Bruker Corporation
    	
 
    	
on behalf of Bruker   BioSpin AG
    	
 
    	
 
    
								

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00227-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00227-of-00352.parquet"}]]