Document:

Exhibit 10.17

 

CONFIDENTIAL TREATMENT REQUESTED.  CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE COMMISSION.

 

	
 
    	

    

 

October 18, 2011.

 

 

Ms. Kathy Hibbs

Senior Vice President & General Counsel

Genomic Health, Inc.

301 Penobscot Drive

Redwood City, CA 94063

 

	
Re:
    	
Agreement   effective February 5, 2005 between Roche Molecular Systems, Inc.   (“RMS”)
    
	
 
    	
and   Genomic Health, Inc. (“GH”) for use of the Polymerase Chain Reaction   (PCR)
    
	
 
    	
technology   in human in vitro diagnostic   services (“the Agreement”)
    

 

Dear Ms. Hibbs:

 

Pursuant to the terms of the Agreement and our recent communications regarding Combination Services, enclosed is a revised Attachment II effective July 1, 2011, which reflects the change in the royalty bearing fraction of GH’s Oncotype assays from ***% to ***% and which supersedes the previous Attachment II.

 

Please acknowledge GH’s acceptance of the new Attachment II by having an authorized representative of GH execute both copies of this letter, each of which, once executed, shall constitute an original.  Please forward one of the executed duplicate originals to the attention of Donna Donohue, Licensing Manager, at the below address, retain the other, and replace the dated Attachment II in your Agreement with this version.

 

	
Sincerely,
    	
 
    	
Agreed   and Accepted
    
	
ROCHE   MOLECULAR SYSTEMS, INC.
    	
 
    	
GENOMIC   HEALTH, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/ Sushma   Selvarajan
    	
 
    	
By:
    	
/s/   Kimberly J. Popovits
    
	
Sushma   Selvarajan
    	
 
    	
 
    	
(authorized signature)
    
	
Head of   Business Development
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
Kimberly   J. Popovits
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
President   & CEO
    
	
dd
    	
 
    	
 
    	
 
    
	
Enclosure
    	
 
    	
Date:
    	
10.21.11
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Apprv’d   As To Form
    	
 
    	
 
    
	
LAW DEPT.  
    	
 
    	
 
    
	
By:
    	
/s/ [ILLEGIBLE]
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Roche Molecular Systems, Inc.
    	
 
    	
4300   Hacienda Drive   
    
	
 
    	
 
    	
PO Box 9002
    
	
 
    	
 
    	
Pleasanton,   CA 94566-0900
    
	
 
    	
 
    	
USA
    

 

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.

 

 

ATTACHMENT II

 

COMBINATION SERVICES

 

	
 
    	
 
    	
Percent of Net Service
    	
 
    
	
 
    	
 
    	
Revenues for Combination
    	
 
    
	
 
    	
 
    	
Services which is Attributable
    	
 
    
	
Licensed Service(s)
    	
 
    	
to Licensed Service(s)
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Oncotype DX
    	
 
    	
***
    	
%
    

 

 

This revision is effective as of July 1, 2011

 

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION.Exhibit 10.9

 

MOCON INC. INCENTIVE PAY PLAN

 

1)               This Incentive Pay Plan (the “Plan”) covers employees of MOCON, Inc. and its subsidiaries who do not have a variable compensation component.

 

2)               The incentive as a percentage of salary at goal for all MOCON, Inc. officers will be determined by the Compensation Committee; the actual incentive paid will be based on the percentage of goal achieved, up to a maximum of one hundred fifty percent, prior to any re-allocation of an amount that is forfeited by a participant who is terminated for cause or voluntary resigns his or her employment without providing two weeks’ notice prior to an incentive being paid.

 

3)               The profit goal amounts for the CEO and all other MOCON, Inc. officers will be determined annually by the Compensation Committee.

 

4)               The incentive as a percentage of salary at goal for all participants in this Plan who are not an officer of MOCON, Inc. will be determined by the CEO; the actual incentive paid will be based on the percentage of goal achieved, up to a maximum of one hundred fifty percent, prior to any re-allocation of an amount that is forfeited by a participant who is terminated for cause or voluntary resigns his or her employment without providing two weeks’ notice prior to an incentive being paid.

 

5)               The goals for all non-MOCON, Inc. officer Company employees will be determined by the CEO.

 

6)               The incentives, if any, for the CEO and all other MOCON, Inc. officers who are not in charge of specific business units, will be paid annually on or before March 15th of the year following the end of each Plan year. The frequency and timing of the incentive payments for all other participants in this Plan will be determined by the CEO.Exhibit 10.13

 

MOCON, INC.

 

DESCRIPTION OF NON-EMPLOYEE DIRECTOR
 COMPENSATION ARRANGEMENTS

 

Retainer and Meeting Fees.    Each of the non-employee directors of MOCON, Inc. receives an annual retainer fee of $10,000, paid in equal quarterly installments, without regard to the number of board of directors or committee meetings held or attended by such director, along with an additional $500 for each board meeting or committee meeting attended in person or via telephone. The Chairman of the Audit Committee receives an additional annual retainer fee of $3,000, paid in equal quarterly installments.

 

Stock Options.    Non-employee directors are granted options to purchase shares of MOCON common stock from time to time in the sole discretion of the board of directors.

 

Director Retirement Plan.    Pursuant to the MOCON, Inc. Director Retirement Plan, a non-employee director who has served on the board of directors of MOCON for at least five years will, upon retirement, receive an amount equal to the annual retainer fee such director would have been entitled to receive during the fiscal year in which such director’s retirement occurs. This payment, however, will not be made to a director who, following his or her retirement, continues to serve as a consultant to MOCON or any of its subsidiaries. Any amount payable under this retirement plan will be paid as determined by the MOCON board of directors in its sole discretion following such director’s retirement.

 

Reimbursement of Expenses.    Non-employee directors are reimbursed for actual expenses incurred in attending board and committee meetings.Exhibit 10.14

 

MOCON, INC.

 

DESCRIPTION OF EXECUTIVE OFFICER

COMPENSATION ARRANGEMENTS

 

All of the employees of MOCON, Inc., including executive officers, are employed “at will” and do not have employment agreements with MOCON.  MOCON has, however, entered into a written Executive Severance Agreement, a form of which was filed as an exhibit to our Annual Report on Form 10-K for our fiscal year ended December 31, 2007, with five of our full-time executive officers, including each of our officers listed below.  The following is a description of oral compensation arrangements for 2012 between MOCON, Inc. and our executive officers who are listed as “named executive officers” in our proxy statement relating to our 2012 annual meeting of shareholders:

 

	
Name of
   Executive
   Officer
    	
 
    	
Title
    	
 
    	
Base
   Salary
    	
 
    	
Bonus
   Arrangements
    	
 
    	
Stock
    Options
    	
 
    	
Other
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Robert   L. Demorest
    	
 
    	
Chairman,   President and Chief Executive Officer
    	
 
    	
$310,503 per year
    	
 
    	
See   footnotes (1) and (2) below
    	
 
    	
Stock   options to purchase shares of MOCON common stock are granted from time to   time in the sole discretion of the Compensation Committee of the MOCON board   of directors
    	
 
    	
Under   the MOCON, Inc. Savings and Retirement Plan, participants, including   executive officers, may voluntarily request that MOCON reduce pre-tax   compensation by up to 75% (subject to certain special limitations) and   contribute such amounts to a trust. MOCON contributed an amount equal to 50%   of the first 6% of the amount that each participant contributed under this   plan. MOCON provides an automobile for each of its full-time executive   officers. Executive Officers generally receive 3-5 weeks of vacation per   year. MOCON employees, including its executive officers, are not compensated   for unused vacation. Executive officers are reimbursed for expenses incurred   in the ordinary course of business. Executive officers receive other benefits   received by other MOCON employees, including health, dental and life   insurance benefits.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Daniel   W. Mayer
    	
 
    	
Executive Vice   President
    	
 
    	
$234,476 per year
    	
 
    	
See   footnotes (1) and (2) below
    	
 
    	
See   above
    	
 
    	
See   above
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Darrell   B. Lee
    	
 
    	
Vice   President, Chief Financial Officer, Treasurer and Secretary
    	
 
    	
$183,674 per year
    	
 
    	
See   footnotes (1) and (2) below
    	
 
    	
See   above
    	
 
    	
See   above
    

 

 

	
Name of
   Executive
   Officer
    	
 
    	
Title
    	
 
    	
Base
   Salary
    	
 
    	
Bonus
   Arrangements
    	
 
    	
Stock
    Options
    	
 
    	
Other
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Douglas   J. Lindemann
    	
 
    	
Vice   President and General Manager
    	
 
    	
$199,902 per year
    	
 
    	
See   footnotes (1) and (2) below
    	
 
    	
See   above
    	
 
    	
See   above
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Robert   E. Forsberg
    	
 
    	
President,   Baseline-MOCON, Inc.
    	
 
    	
$168,818
    	
 
    	
See   footnotes (1) and (2) below
    	
 
    	
See   above
    	
 
    	
See   above
    

 

(1)                                 MOCON provides its executive officers and other employees a direct financial incentive to achieve MOCON’s annual profit goals through the MOCON, Inc. Incentive Pay Plan, which was established pursuant to resolutions of the Compensation Committee effective January 1, 2003 and filed as an exhibit to MOCON’s annual report on Form 10-K for the year ended December 31, 2002.  Under the Incentive Pay Plan, annual goals are measured by MOCON’s annual net income before income taxes and incentives for Messrs. Demorest, Lee, Lindemann, Mayer and Forsberg, who have overall corporate responsibilities.  The Incentive Pay Plan contemplates that each year the Compensation Committee will establish goal amounts for MOCON’s executive officers and will determine the percentage of salary at goal for MOCON’s executive officers.  On December 28, 2011, the Compensation Committee established these goal amounts and determined these percentages.  Although the goal amounts are confidential, the 2012 percentages of salary at goal range from forty percent to sixty-five percent of 2012 base salary earned, at goal, with the actual incentive paid based on the percentage of goal achieved, up to a maximum of one hundred fifty percent.  The fiscal 2012 goals and percentages of salary were set forth in resolutions approved by the Compensation Committee and are not otherwise set forth in any written agreements between MOCON and the executive officers.  The following are the amounts paid to each of MOCON’s executive officers under the Incentive Pay Plan with respect to fiscal 2011:  Mr. Demorest: $281,523; Mr. Mayer: $130,860; Mr. Lee: $102,507, Mr. Lindemann: $125,462 and Mr. Forsberg: $82,319.  These amounts were paid in March 2012.

 

(2)                                 On December 28, 2011, the Compensation Committee established individual special performance related bonus arrangements for Messrs. Demorest, Mayer, Lee, Lindemann and Forsberg to further motivate these individuals to attain certain company-related performance goals in addition to the profitability performance-related goals covered under MOCON’s Incentive Pay Plan.  While the specific performance goals remain confidential, the bonuses if paid will be in the form of an extra week of paid vacation and an all-expense paid trip for two, up to maximum amounts ranging from $10,000 to $13,000.  The terms of the fiscal 2012 special performance related bonuses were set forth in resolutions approved by the Compensation Committee and are not otherwise set forth in any written agreements between MOCON and the executive officers.

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