Document:

Exhibit

Exhibit 10.2
2019 Long-Term Incentive Program                        Denny’s Corporation
Performance Share Unit                            203 East Main Street
Award Certificate                                Spartanburg, SC 29319

«Name» (“Grantee”)

Denny’s Corporation (the “Company”) has granted to you a performance share unit award (the “Award”) denominated in a target number of performance share units (the “Performance Share Units”). The Performance Share Units are rights that entitle you to earn shares of the Company’s
$0.01 par value common stock (“Shares”), on a one-for-one basis. The Award is granted under the Denny’s Corporation 2017 Omnibus Incentive Plan (the “Plan”) and pursuant to the 2019 Long- Term Incentive Program Description (the “Program Description”). By accepting the Award, you shall be deemed to have agreed to the terms and conditions set forth in this Award Certificate, the Program Description and the Plan.

The Performance Share Units may become earned based on the Company’s Total Shareholder Return (“TSR” as defined below) ranking relative to the S&P 600 Small Cap Consumer Discretionary Index companies that are in this index on the first day of the Performance Period (as defined below) (the “TSR Performance Share Units”) and based on the Company’s Adjusted EPS Growth performance (the “Adjusted EPS Growth Performance Share Units”), as further described below and in the Program Description, over the “Performance Period” (three-year fiscal period beginning December 27, 2018 and ending December 29, 2021). The target number of TSR Performance Share Units and the target number of Adjusted EPS Growth Performance Share Units were determined as follows:

Target Grant Date Value of Award: $     /$XX.XX1 =        Total Target
Number of Performance Share Units 

		
	•
	Target Award of TSR Performance Share Units = Total Target Number of Performance Share Units * 50% =      

		
	•
	Target Award of Adjusted EPS Growth Performance Share Units = Total Target Number of Performance Share Units * 50% =      

                                                    
1The average closing market price per Share for the last 20 trading days of the fiscal month immediately prior to the calendar month in which the Award is granted by the Compensation Committee (the “Average Closing Market Price Per Share”).

The number of Adjusted EPS Growth Performance Share Units and TSR Performance Share Units earned will be an amount between 0% and 150% of the target number originally granted, adjusted based on the performance of both metrics.

The Award will vest (become non-forfeitable) on December 29, 2021, subject to your continued employment with the Company through such date, unless vesting is accelerated under Section 4 of the Terms and Conditions on the following page.

                                                    

For purposes of this Award Certificate,

TSR will be calculated as follows: TSR = (ending stock price - beginning stock price + reinvested dividends) / beginning stock price;

and

Adjusted EPS (Earnings Per Share) means the Company’s Earnings (Net Income), adjusted to exclude losses on sales of assets and other items, net of taxes, divided by the fully diluted Shares of the Company’s common stock outstanding.

                                                    

This Award is governed by the terms of the Plan and the Program Description, and subject to the Terms and Conditions on the following page. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Plan.

  Grant Date: January 29, 2019 
Jill Van Pelt
Senior Vice President, Human Resources
For Denny’s Corporation

TERMS AND CONDITIONS

		
	1.
	Vesting and Forfeiture of Award. If the Threshold Performance Goal is satisfied, the Award will vest and become non-forfeitable on December 29, 2021, subject to accelerated vesting under certain circumstances as provided in Section 4 below (the “Vesting Date”). Notwithstanding anything contained in the Plan to the contrary, if Grantee’s employment with the Company terminates for any reason other than as set forth in paragraph (a) or (b) of Section 4 below, Grantee shall forfeit all of Grantee’s right, title and interest in and to any unvested Performance Share Units as of the date of termination of employment. In addition, if Grantee’s employment is terminated by the Company for Cause, Grantee shall also forfeit any vested Performance Share Units that have not yet been converted to Shares; provided, that the foregoing shall not apply to any vested Performance Share Units that are deferred pursuant to Section 14 below.

		
	2.
	Performance Share Units Earned Based on TSR Comparison and Adjusted EPS Growth. Except as otherwise provided in Sections 4 and 5 below, the number of Performance Share Units earned shall be determined following the end of the Performance Period based on achievement of the TSR Comparison and Adjusted EPS Growth goals set by and on file with the Compensation Committee.

		
	3.
	Conversion to Shares. Except as otherwise provided in Sections 4, 5 and 14 below, the earned Performance Share Units (as determined based on the TSR Comparison and Adjusted EPS Growth as described in Section 2 above) will be converted into Shares as soon as practicable following the end of the Performance Period, and no later than February 28, 2022. Any fractional Shares will be rounded up or down to the nearest next whole Share. Any Performance Share Units that are not earned will be forfeited. Stock certificates evidencing Shares paid upon conversion of the Performance Share Units earned will be registered on the books of the Company in Grantee’s name (or in street name to Grantee’s brokerage account) as of the date of payment in uncertificated (book- entry) form.

		
	4.
	Vesting and Payout Under Certain Employment Terminations. The Award shall be subject to accelerated vesting and/or payout in connection with termination of employment under certain circumstances, as set forth below.

(a)Upon Grantee’s termination of employment with the Company due to death or Disability, a pro rata portion of the TSR Performance Share Units and the Adjusted EPS Growth Performance Share Units will vest and become non-forfeitable (the pro rata portion shall be determined by multiplying the Target Award of TSR Performance Share Units or the Target Award of Adjusted EPS Growth Performance Share Units, as the case may be, by a fraction, the numerator of which is the number of days elapsed from December 27, 2018, to the employment termination date, and the denominator of which is 1,099, as so determined, the “Pro Rata Target Amount”). The number of Performance Share Units earned shall be determined based on the TSR Comparison and Adjusted EPS Growth performance as described in Section 2 above applied to the applicable Pro Rata Target Amount, subject to the following adjustments: (i) the TSR Comparison shall be based on the Company’s TSR ranking relative to the Peer Group (S&P 600 Small Cap Consumer Discretionary Index companies) as of the end of the Company’s fiscal quarter preceding the fiscal quarter in which the termination of employment due to death or Disability occurs (as if the Performance Period had ended on such fiscal quarter ending date), and (ii) Adjusted EPS Growth performance shall be determined based on actual EPS Growth as of the end of such fiscal quarter preceding the fiscal quarter in which such termination of employment due to death or Disability occurs as described in (i). The earned Performance Share Units shall then be paid out within 30 days following the termination of employment.

(b)In the event of Grantee’s termination of employment with the Company due to Retirement (as defined below), the Pro Rata Target Amounts (as defined in Section 4(a) above) will vest and become non-forfeitable as of the regular Vesting Date, provided Grantee has not engaged in any Restricted Activities with a Competitor (each as defined below) during the Performance Period and prior to the Vesting Date. The number of Performance Share Units earned shall be determined based on the TSR Comparison and Adjusted EPS Growth performance set forth in Section 2 above through the end of the regular Performance Period, but applied to the applicable Pro Rata Target Amounts. The earned Performance Share Units shall convert into Shares and be paid at the same time and on the regular payment schedule set forth in Section 3 above.

		
	(c)
	In the event of Grantee’s termination of employment with the Company due to Retirement, 100% of the TSR Performance Share Units and the Adjusted EPS Growth Performance Share Units will vest and become non-forfeitable as of the regular Vesting Date, provided (i) Grantee has not engaged in any Restricted Activities with a Competitor during the Performance Period and prior to the Vesting Date, (ii) Grantee’s termination of employment with the Company due to Retirement occurs on or after December 31, 2020, and (iii) Grantee’s has achieved the Retirement Goal (as defined below).  For the avoidance of doubt, if Grantee’s Retirement does not comply with the foregoing requirements, the Pro Rata Target Amounts will vest and become non-forfeitable in accordance with Section 4(b).  The number of Performance Share Units earned shall be determined based on the TSR Comparison and Adjusted EPS Growth performance as described in Section 2 above through the end of the regular Performance Period. The earned Performance Share Units shall convert into Shares and be paid at the same time and on the regular payment schedule set forth in Section 3 above.  

For purposes of this Award Certificate:
“Retirement” means Grantee’s voluntary resignation or termination of employment without Cause on or after attainment
of age 55, provided that the sum of Grantee’s age and years of service with the Company is equal to or greater than 70.
“Restricted Activities” means with respect to a Competitor, accepting employment, serving on a board of directors or
otherwise being engaged as a consultant or advisor.
“Competitor” means any restaurant chain in the family dining segment, including but not limited to, IHOP, Bob Evans, Friendly’s, Cracker Barrel, Perkins, FRISCH’s Restaurants, Village Inn, Coco’s, Carrows, and Shoney’s.

		
	5.
	Change in Control. Upon a Change in Control of the Company, the Award will vest and become non-forfeitable. The number of Performance Share Units earned shall be determined based on the TSR Comparison and Adjusted EPS Growth performance as described in Section 2 above, subject to the following adjustments: (i) the TSR Comparison shall be applied based on the Company’s TSR ranking relative to the Peer Group (S&P 600 Small Cap Consumer Discretionary Index companies) as of the date of the Change in Control (as if the Performance Period had ended on the date of the Change in Control), and (ii) Adjusted EPS Growth performance shall be determined based on actual EPS Growth as of the end of the Company’s fiscal quarter preceding the fiscal quarter in which the Change in Control occurs. The earned Performance Share Units shall then be converted into Shares and paid out within 30 days following the Change in Control.

		
	6.
	Limitation of Rights. The Award does not confer to Grantee or Grantee’s beneficiary any rights of a stockholder of the Company unless and until Shares are in fact issued to such person in connection with the Award. Nothing in this Award Certificate shall interfere with or limit in any way the right of the Company or any Affiliate to terminate Grantee’s employment at any time, nor confer upon Grantee any right to continue in employment of the Company or any Affiliate.

		
	7.
	Payment of Taxes. Grantee will owe federal, state, and local taxes (including FICA required by law to be withheld with respect to any taxable event arising as a result of the vesting or settlement of the Award (the “Taxes”)). The withholding of Taxes shall be mandatorily satisfied by withholding from the settlement of the Performance Share Units a number of Shares having a fair market value equal to the amount required to be withheld for the Taxes (provided, however, that if Grantee has elected to defer 100% of his or her Award as provided in Section 14 herein (or a lesser amount but the remaining number of Shares are insufficient to cover the applicable FICA obligation), any Grantee FICA obligation will be separately payable to the Company by cash or check). Grantee’s acceptance of the Award constitutes Grantee’s instruction and authorization to the Company to withhold on Grantee’s behalf a number of Shares sufficient to satisfy the Taxes (except as provided in the foregoing sentence). The obligations of the Company under this Award Certificate will be conditional on such payment of the Taxes by Grantee.

		
	8.
	Restrictions on Issuance of Shares. If at any time the Compensation Committee shall determine, in its discretion, that registration, listing or qualification of the Shares underlying the Performance Share Units upon any securities exchange or similar self-regulatory organization or under any foreign, federal, or local law or practice, or the consent or approval of any governmental regulatory body, is necessary or desirable as a  condition to  the settlement of the Performance Share Units,  the Shares  will not  be paid unless     and until such registration, listing, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Compensation Committee.

		
	9.
	Plan Controls. The terms contained in the Plan are incorporated into and made a part of this Award Certificate and this Award Certificate shall be governed by and construed in accordance with the Plan. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Award Certificate, the provisions of the Plan shall be controlling and determinative.

		
	10.
	Successors. This Award Certificate shall be binding upon any successor of the Company, in accordance with the terms of this Award Certificate and thePlan.

		
	11.
	Severability. If any one or more of the provisions contained in this Award Certificate is deemed to be invalid, illegal or unenforceable, the other provisions of this Award Certificate will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included.

		
	12.
	Notice. Notices and communications under this Award Certificate must be in writing and either personally delivered or sent by registered or certified United States mail, return receipt requested, postage prepaid. Notices to the Company must be addressed to Denny’s Corporation, 203 East Main Street, Spartanburg, SC 29319-0001, Attn: Secretary, or any other address designated by the Company in a written notice to Grantee. Notices to Grantee will be directed to the address of Grantee then currently on file with the Company, or at any other address given by Grantee in a written notice to the Company.

		
	13.
	Clawback or Recoupment Policy. Grantee agrees that Grantee will be subject to any compensation, clawback and recoupment policies in the Plan and that may be applicable to Grantee as an employee of the Company, as in effect from time to time and as approved by the Board of Directors, the Compensation Committee or a duly authorized committee thereof, whether or not approved before or after the Grant Date.

		
	14.
	Deferral Election. Notwithstanding anything contained herein to the contrary, Grantee will be permitted to make deferral elections with respect to the Award pursuant to the Denny’s Deferred Compensation Plan, as amended and restated (the “DC Plan”). Any deferral election shall be made in accordance with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), the DC Plan terms and pursuant to a Deferral Agreement (as defined in the DC Plan) and may be credited with Dividend Equivalents as set forth in the DC Plan.

		
	15.
	Governing Law. This Award Certificate shall be governed by the laws of the State of Delaware, excluding any conflicts or choice of law, rule or principle that might otherwise refer construction or interpretation of this Award Certificate to the substantive law of another jurisdiction.

		
	16.
	Section 409A Compliance. This Award Certificate is intended to be exempt from or otherwise comply with the provisions of Section 409A of the Code. The Company may change or modify the terms of this Award Certificate without Grantee’s consent or signature if the Company determines, in its sole discretion, provided that such change or modification is necessary for purposes of compliance with or exemption from the requirements of Section 409A of the Code or any regulations or other guidance issued thereunder.vray-ex101_42.htm

Exhibit 10.1

 

 

September 10, 2018

 

 

James M. Alecxih

3780 N. Berkeley Lake Road

Berkeley Lake, GA 30096

 

 

Dear James:

 

We are pleased to extend you this offer to serve as Chief Commercial Officer of ViewRay, Inc. (the “Company”).  This offer of employment is conditioned upon the satisfactory completion of certain requirements, as more fully explained in the following. Your employment is subject to the terms and conditions set forth in this letter, which override anything said to you during your interview or any other discussions about your employment with the Company.  This offer may be accepted by countersigning at the end of this letter and will expire if your signed acceptance is not received by September 14, 2018.

 

	
1.
	
Duties and Extent of Service

You will be hired as a Chief Commercial Officer effective September 17, 2018, your start date.  However, you may modify this date with the consent of the Chief Executive Officer.  This is an exempt position.  You will work out of your home office, and at times out of the Company office at 815 E. Middlefield Road, Mountain View, CA 94043. You will report to the Chief Executive Officer.

 

As the Company’s Chief Commercial Officer you will have responsibility for performing those duties as are customary for, and are consistent with, such position, or other assignments management may from time to time designate.  You agree to abide by the rules, regulations, instructions, personnel practices and policies of the Company and any changes therein that may be adopted from time to time by the Company.  Except for vacations and absences due to temporary illness, you will be expected to devote your full business time and best efforts to the performance of your duties and the furtherance of the Company’s business and affairs.  

 

	
2.
	
Compensation

In consideration of your services, you will be paid a salary of $30,000/month, 
which annualizes to $360,000, payable in periodic installments in accordance with the Company’s standard payroll practices and subject to all withholdings and deductions as required by law.  

 

You will be eligible for an annual bonus of up to 45% of your annual base salary which will be based upon the achievement of certain milestones recommended by the Compensation Committee of the Board (the “Compensation Committee”) and approved by the Board, as may be further determined by the Company’s Chief Financial officer; provided that, any bonus for 2018 will be prorated, based on the number of days that you are employed by the Company during 2018; and, provided, further, that such bonus shall not reflect the achievement by the Company of any milestones prior to the Start Date.

 

In addition, the achievement of 45 – 54 orders in 2019 will result in a bonus of $75,000.  The achievement of 55 – 64 orders in 2019 will result in a bonus of $175,000.  The achievement of >65 orders in 2019 will result in a bonus of $325,000.   

 

In your initial year of employment, you will accrue paid vacation at the rate of twenty days per full year of employment, provided, that once you accrue thirty days of paid vacation, you will cease accruing additional paid vacation until your paid vacation balance is reduced below thirty days.  The number of days of vacation which can be accrued per full year of employment shall be subject to the Company’s vacation and benefits 

 

policies. You will be entitled to participate in such other employee benefit plans and fringe benefits as may be offered or made available by the Company from time to time to its employees.  The Board reserves the right from time to time to change the Company’s employee benefit plans and fringe benefits.  Your participation in such employee benefit plans and fringe benefits, and the amount and nature of the benefits to which you shall be entitled thereunder or in connection therewith, shall be subject to the terms and conditions of such employee benefit plans and fringe benefits.

	
3.
	
Stock Options

(a)You will be granted an option to purchase 275,000 shares of the Company’s common stock (the “Option”) under the terms and conditions set forth in a separate grant agreement and the Company’s 2015 Stock Incentive Plan, as amended (the “Plan”). The Options will be exercisable at a price per share equal to the fair market value of the Company’s common stock on the date the Option is granted.  Assuming your start date of September 17, your option Grant date will be October 15, 2018.

During the periods of your full employment with the Company, the shares subject to the Option will vest over a 4-year period as follows: the first 25% of the shares subject to the Option will vest 12 months after the vesting commencement date (currently anticipated to be your Start Date) and the remainder will vest in equal monthly installments for the remaining 36 months.  

(b)The Option Agreement shall provide that, in the event that (i) a Change of Control (defined below) occurs during your employment hereunder and (ii) your employment with the Company is terminated by the Company (or its successor) without Cause or you resign for Good Reason (as defined below) at any time during the twelve-month period following such Change of Control, then (x) without further action by the Company (or its successor) or the Company’s Board, all unvested Option Shares shall accelerate and become vested and exercisable as of the date of such termination.  As used herein, “Change of Control” means (i) a sale of all or substantially all of the assets of the Company and its subsidiaries taken as a whole or (ii) a merger, consolidation or other similar business combination involving the Company, if, upon completion of such transaction the beneficial owners of voting equity securities of the Company immediately prior to the transaction beneficially own less than fifty percent of the successor entity’s voting equity securities; provided, that “Change of Control” shall not include a transaction where the consideration received or retained by the holders of the then outstanding capital stock of the Company does not consist primarily of (i) cash or cash equivalent consideration, (ii) securities which are registered under the Securities Act of 1933, as amended (the “Securities Act”), or any successor statute and/or (iii) securities for which the Company or any other issuer thereof has agreed, including pursuant to a demand, to file a registration statement within ninety days of completion of the transaction for resale to the public pursuant to the Securities Act.

	
4.
	
Reimbursement

During your employment with the Company, the Company will reimburse you (or, in the Company’s sole discretion, will pay directly), upon presentation of vouchers and other supporting documentation as the Company may reasonably require, for reasonable out-of-pocket expenses incurred by you relating to the business or affairs of the Company or the performance of your duties hereunder, including, without limitation, reasonable expenses with respect to travel, lodging and similar items, provided that the incurring of such expenses shall have been approved in accordance with the Company’s regular reimbursement procedures and practices in effect from time to time. The Company’s regular reimbursement procedures and practices and the reasonableness of future travel, lodging and similar items shall be subject to the periodic review and amendment by the Board.

 

 

ViewRay HeadquartersCalifornia Office

 

2 Thermo Fisher Way815 East Middlefield Road

Oakwood Village, OH 44146Mountain View, CA 94043

Phone: +1 440.703.3210Phone: +1 650.252.0920

Fax: +1 800.417.3459Fax: +1 800.417.3459

 

	
5.
	
Immigration Status; Background Checks

For purposes of federal immigration law, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States.  Such documentation must be provided to us within three business days of your date of hire, or our employment relationship with you may be terminated.

The Company reserves the right to conduct background investigations and/or reference checks on all of its potential employees.  Your job offer, therefore, is contingent upon a clearance of such a background investigation and/or reference check, if any.

	
6.
	
Nondisclosure and Developments

Regardless of the reason your employment with the Company terminates, you will continue to comply with the Employee Confidentiality, Inventions and Non-Interference Agreement, dated as of the date hereof, between you and the Company (the “Employee Confidentiality Inventions and Non-Interference Agreement”).

	
7.
	
No Conflicting Obligation

You hereby represent and warrant that the execution and delivery of this letter agreement, the performance by you of any or all of the terms of this letter agreement and the performance by you of your duties as an employee of the Company do not and will not breach or contravene (i) any agreement or contract (including, without limitation, any employment or consulting agreement, any agreement not to compete or any confidentiality or nondisclosure agreement) to which you are or may become a party, or (ii) any obligation you may otherwise have under applicable law to any former employer or to any person to whom you have provided, provide or will provide consulting services. 

 

	
8.
	
Non-Disparagement

During your employment with the Company and thereafter, you agree that you will not knowingly disparage, criticize, or otherwise make any derogatory statements regarding the Company or its past, present or future directors, officers, employees or products.

	
9.
	
No Cooperation

During your employment with the Company and thereafter, you agree that you will not act in any manner that might damage the business of the Company.  You agree that you will not counsel or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges or complaints by any third party against the Company and/or any officer, director, employee, agent, representative, stockholder or attorney of the Company, unless under a subpoena or other court order to do so.

	
10.
	
At-Will

You acknowledge that the employment relationship between the Company and you is at-will, meaning that the employment relationship may be terminated, at any time, by the Company or you for any reason or for no reason, with or without notice.  However, you agree to make reasonable efforts to provide the Company at least thirty (30) days’ written notice prior to termination of the employment relationship.

 

ViewRay HeadquartersCalifornia Office

 

2 Thermo Fisher Way815 East Middlefield Road

Oakwood Village, OH 44146Mountain View, CA 94043

Phone: +1 440.703.3210Phone: +1 650.252.0920

Fax: +1 800.417.3459Fax: +1 800.417.3459

 

	
11.
	
Severance

	
a.
	
If your employment with the Company is terminated for any or no reason, then the Company will pay you all accrued but unpaid wages and paid vacation, based on your then current base salary, and any other amounts required by applicable law through the termination date.  

	
b.
	
If your employment with the Company is terminated by the Company without Cause (as defined below) or you resign for Good Reason (defined below), then, subject to your delivery to the Company of a release of claims against the Company and its affiliates in a form acceptable to the Company that becomes effective and irrevocable within sixty (60) days following your termination of employment, the Company shall pay you equal monthly installments of the Severance Amount (defined below), in accordance with the Company’s standard payroll practices, with the first such installment to be paid on the payroll date following the date the release is effective and irrevocable (“Severance”).  The “Severance Amount” means an amount, in cash, equal to (i) six months of your annualized base salary plus (ii) one-half of the amount of the annual bonus that you received from the Company in the year preceding the termination date, if any.  No Severance will be paid or provided unless the release of claims becomes effective and irrevocable within sixty (60) days following your termination of employment.  The receipt of any Severance will also be subject to you not violating the provisions set forth above under the headings 

	
c.
	
Non-Disparagement and No Cooperation.  In the vente that you breach any of those provisions, all continuing payment to which you may otherwise be entitled will immediately cease.

	
d.
	
As used herein, “Cause” means (i) your willful failure to perform your material duties as Chief Commercial Officer other than a failure resulting from your complete or partial incapacity due to long-term physical or mental illness or impairment, (ii) your willful act that constitutes gross misconduct and that is injurious to the Company, (iii) your willful breach of a provision of this letter agreement, (iv) your material and willful violation of a federal or state law or regulation applicable to the business of the Company, or (v) your conviction or plea of guilty or no contest to a felony.

	
e.
	
As used herein, “Good Reason” means the occurrence of one or more of the following conditions, without your consent and without remedy by the Company as described herein: (i) a material reduction in your compensation, including but not limited to your level of base salary and annual bonus opportunity, other than reductions approved by the Board that are applicable to all employees of the Company, (ii) a material, non-voluntary, reduction of your authority, duties, or responsibilities or a material, adverse change in your reporting structure or (iii) a material reduction in the kind or level of your benefits to which you were entitled immediately prior to such reduction, other than reductions approved by the Board that are applicable to all employees of the Company.  Notwithstanding the forgoing, in no event will you have Good Reason to resign unless (i) you provide written notice to the Company of the event or condition giving rise to Good Reason within ninety (90) days of its initial occurrence, (ii) the Company fails to remedy the event or condition giving rise to Good Reason within thirty (30) days after receiving your written notice and (iii) your resignation is effective within thirty (30) days after the expiration of the Company’s period to remedy under subclause (ii). 

	
12.
	
Code Section 280G

	
a.
	
In the event it shall be determined that any payment or distribution to you or for your benefit which is in the nature of compensation and is contingent on a change in the ownership or effective control of the Company or the ownership of a substantial portion of the assets of the Company (within the meaning of Section 280G(b)(2) of the Code), whether paid or payable pursuant to this letter agreement or 

 

ViewRay HeadquartersCalifornia Office

 

2 Thermo Fisher Way815 East Middlefield Road

Oakwood Village, OH 44146Mountain View, CA 94043

Phone: +1 440.703.3210Phone: +1 650.252.0920

Fax: +1 800.417.3459Fax: +1 800.417.3459

 

		
otherwise (a “Payment”), would constitute a “parachute payment” under Section 280G(b)(2) of the Code and would be subject to the excise tax imposed by Section 4999 of the Code (together with any interest or penalties imposed with respect to such excise tax, the “Excise Tax”), then the Payments shall be reduced to the extent necessary so that no portion thereof shall be subject to the excise tax imposed by Section 4999 of the Code but only if, by reason of such reduction, the net after-tax benefit received by you shall exceed the net after-tax benefit received by you if no such reduction was made. The specific Payments that shall be reduced and the order of such reduction shall be determined so as to achieve the most favorable economic benefit to you, and to the extent economically equivalent, the Payments shall be reduced pro rata, all as determined by the Company in its sole discretion. For purposes of this section, “net after-tax benefit” shall mean (i) the Payments which you receive or are then entitled to receive from the Company that would constitute “parachute payments” within the meaning of Section 280G of the Code, less (ii) the amount of all federal, state and local income taxes payable with respect to the Payments calculated at the maximum marginal income tax rate for each year in which the Payments shall be paid to you (based on the rate in effect for such year as set forth in the Code as in effect at the time of the first payment of the foregoing), less (iii) the amount of Excise Taxes imposed with respect to the Payments.

	
b.
	
All determinations required to be made under this Section 12 shall be made by such nationally recognized accounting firm as may be selected by the Audit Committee of the Board as constituted immediately prior to the change in control transaction (the “Accounting Firm”), provided, that the Accounting Firm’s determination shall be made based upon “substantial authority” within the meaning of Section 6662 of the Code.  The Accounting Firm shall provide its determination, together with detailed supporting calculations and documentation, to you and the Company within 15 business days following the date of termination of your employment, if applicable, or such other time as requested by you (provided, that you reasonably believe that any of the Payments may be subject to the Excise Tax) or the Company.  All reasonable fees and expenses of the Accounting Firm in reaching such a determination shall be borne solely by the Company.

	
13.
	
Section 409A of the Code.  

To the extent that any payments or benefits under this letter agreement are deemed to be subject to Section 409A of the Code, this letter agreement will be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder in order to (a) preserve the intended tax treatment of the benefits provided with respect to such payments and (b) comply with the requirements of Section 409A of the Code.

	
14.
	
Governing Law; Arbitration

This letter agreement shall be governed by and construed in accordance with the substantive laws of California (without reference to principles of conflicts or choice of law that would cause the application of the internal laws of any other jurisdiction).

In consideration of the Company employing you and the wages and benefits provided under this letter agreement, you and the Company each agree that all claims arising out of or relating to your employment, including its termination, shall be resolved by arbitration.

The dispute will be arbitrated in accordance with the rules of the American Arbitration Association.  The Company agrees to pay the fees and expenses relating to arbitration, except those related to your legal fees and costs.  However, if either party prevails on a statutory claim which affords the prevailing party attorneys’ fees and costs, the arbitrator may award reasonable fees and costs to the prevailing party, under 

 

ViewRay HeadquartersCalifornia Office

 

2 Thermo Fisher Way815 East Middlefield Road

Oakwood Village, OH 44146Mountain View, CA 94043

Phone: +1 440.703.3210Phone: +1 650.252.0920

Fax: +1 800.417.3459Fax: +1 800.417.3459

 

the standards for an award of fees and costs provided by law.  You and the Company agree to file any demand for arbitration within the time limit established by the applicable statute of limitations for the asserted claims or within one year of the conduct that forms the basis of the claim if no statutory limitation is applicable.  Failure to demand arbitration within the prescribed time period shall result in waiver of said claims.

These provisions regarding arbitration will cover all matters directly or indirectly related to your recruitment, employment or termination of employment by the Company, including, but not limited to claims involving laws against any form of discrimination whether brought under federal or state law, and claims involving present and former employees, officers and directors of the Company, but excluding workers’ compensation and unemployment insurance claims.  EACH PARTY TO THIS LETTER AGREEMENT UNDERSTANDS AND AGREES THAT IT IS WAIVING ITS RIGHTS TO BRING SUCH CLAIMS TO COURT, INCLUDING THE RIGHT TO A JURY TRIAL.

	
15.
	
Entire Agreement; Amendment; Severability

This letter agreement (together with the Employee Confidentiality, Inventions and Non-Interference Agreement and the equity awards agreements, including the Option Agreement and, if applicable, the Additional Option agreement) sets forth the sole and entire agreement and understanding between the Company and you with respect to the specific matters contemplated and addressed hereby and thereby.  No prior agreement, whether written or oral, shall be construed to change or affect the operation of this letter agreement in accordance with its terms, and any provision of any such prior agreement which conflicts with or contradicts any provision of this letter agreement is hereby revoked and superseded.  Any prior agreement, if any, you may have with the Company regarding your employment, whether written or oral, is hereby, and without any further action on your part or the Company’s, terminated, revoked and superseded by this letter agreement.  This letter agreement may be amended or terminated only by a written instrument executed both by you and the Company.  In the event that any provision of this letter agreement shall, in whole or in part, be determined to be invalid, unenforceable or void for any reason, such determination shall affect only the portion of such provision determined to be invalid and unenforceable or void and shall not affect in any way the remainder of such provision or any other provision of this letter agreement.

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ViewRay HeadquartersCalifornia Office

 

2 Thermo Fisher Way815 East Middlefield Road

Oakwood Village, OH 44146Mountain View, CA 94043

Phone: +1 440.703.3210Phone: +1 650.252.0920

Fax: +1 800.417.3459Fax: +1 800.417.3459

 

We are excited to have you on board.  Please acknowledge your acceptance of this offer and the terms of this letter agreement by signing below and returning a copy to me.

Sincerely,

VIEWRAY TECHNOLOGIES, INC.

By: /s/ Scott W. Drake________________________________

Scott W. Drake

President & Chief Executive Officer

I hereby acknowledge that I have had a full and adequate opportunity to read, understand and discuss the terms and conditions contained in this letter agreement prior to signing hereunder.

By: /s/ James M. Alecxih_______________________________

James M. Alecxih

Date: _September 10, 2018_____________

Address:____________________________

 

Phone:_____________________________

 

Email:_____________________________

 

ViewRay HeadquartersCalifornia Office

 

2 Thermo Fisher Way815 East Middlefield Road

Oakwood Village, OH 44146Mountain View, CA 94043

Phone: +1 440.703.3210Phone: +1 650.252.0920

Fax: +1 800.417.3459Fax: +1 800.417.3459

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