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Change of Control Agreement

 

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Title:

Change of Control Agreement

Entities:

EDEN Bioscience Corp.; Perkins Coie LLP; Bradley S. Powell

Date:

2000

Size:

Preview shows 7KB of 42KB total

Price:

$42

ID:

#228962

 

 

► Employment ► Change of Control Agreements
► Commodities ► Chemical Manufacturing
► Services ► Legal

 

 

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                           CHANGE OF CONTROL AGREEMENT


(BRADLEY S. POWELL)


This Change of Control Agreement (this "Agreement"), dated as of
August 16, 2000, is between Eden Bioscience Corporation, a Washington
corporation (the "Company"), and Bradley S. Powell (the "Employee").

The Board of Directors of the Company (the "Board") has determined that
it is in the best interests of the Company and its stockholders to ensure that
the Company will have the continued dedication of the Employee, notwithstanding
the possibility, threat or occurrence of a Change of Control (as defined in
Appendix A to this Agreement, which is incorporated herein by this reference) of
the Company. The Board believes it is imperative to diminish the inevitable
distraction of the Employee arising from the personal uncertainties and risks
created by a pending or threatened Change of Control, to encourage the
Employee's full attention and dedication to the Company currently and in the
event of any threatened or pending Change of Control, to encourage the
Employee's willingness to serve a successor in an equivalent capacity, and to
provide the Employee with reasonable compensation and benefits arrangements in
the event that a Change of Control results in the Employee's loss of equivalent
employment.

In order to accomplish these objectives, the Board has caused the
Company to enter into this Agreement.

1. EMPLOYMENT

1.1 CERTAIN DEFINITIONS

(a) "Effective Date" shall mean the first date during the Change of
Control Period (as defined in Section 1.1(b)) on which a Change of Control
occurs.

(b) "Change of Control Period" shall mean the period commencing on
the date of this Agreement and ending on the second anniversary of the date the
Company gives notice to the Employee that the Change of Control Period shall be
terminated.

1.2 EMPLOYMENT PERIOD

The Company hereby agrees to continue the Employee in its employ or in
the employ of its affiliated companies, and the Employee hereby agrees to remain
in the employ of the Company or its affiliated companies, in accordance with the
terms and provisions of this Agreement, for the period commencing on the
Effective Date and ending on the second anniversary of such date (the
"Employment Period").


{PAGE} 2

1.3 POSITION AND DUTIES

During the Employment Period, the Employee's position, authority, duties
and responsibilities shall be at least reasonably commensurate in all material
respects with the most significant of those held, exercised and assigned at any
time during the 90-day period immediately preceding the Effective Date.

1.4 EMPLOYMENT AT WILL

The Employee and the Company acknowledge that, except as may otherwise
be expressly provided under any other written employment agreement between the
Employee and the Company, the employment of the Employee by the Company or its
affiliated companies is "at will" and may be terminated by either the Employee
or the Company or its affiliated companies at any time. Moreover, if prior to
the Effective Date the Employee's employment with the Company or its affiliated
companies terminates, then the Employee shall have no further rights under this
Agreement.

1.5 BOARD OF DIRECTORS

The Employee is either currently or at some future time may become a
member of the Board. His continuation as such shall be subject to the will of
the Company's stockholders and the Board, as provided in the Company's by-laws
and certificate of incorporation. Removal of the Employee from, or nonelection
of the Employee to, the Board by the Company's stockholders or the Board, as
provided in the Company's by-laws and articles of incorporation, shall in no
event be deemed a breach of this Agreement by the Company.

2. ATTENTION AND EFFORT

During the Employment Period, and excluding any periods of vacation and
sick leave to which the Employee is entitled, the Employee will devote all of
his professional productive time, ability, attention and effort to the business
and affairs of the Company and the discharge of the responsibilities assigned to
him hereunder, and will use his best efforts to perform faithfully and
efficiently such responsibilities.

3. COMPENSATION

During the Employment Period, the Company agrees to pay or cause to be
paid to the Employee, and the Employee agrees to accept in exchange for the
services rendered hereunder by him, the following compensation:

3.1 SALARY

The Employee shall receive an annual base salary (the "Annual Base
Salary"), at least equal to the annual salary established by the Board or the
Compensation Committee of the Board (the "Compensation Committee") prior to the
Effective Date for the fiscal year in which the Effective Date occurs. The
Annual Base Salary shall be paid in substantially equal



-2-
{PAGE} 3

installments and at the same intervals as the salaries of other officers of the
Company are paid.

3.2 BONUS

Employee may be entitled to receive, in addition to the Annual Base
Salary, an annual bonus in an amount to be determined by the Board of Directors
of the Company in its sole discretion.

3.3 BENEFITS

During the Employment Period, the Employee shall be entitled to
participate, subject to and in accordance with applicable eligibility
requirements, in such fringe benefit programs as shall be provided to other
employees of the Company and its affiliated companies from time to time during
the Employment Period by action of the Board (or any person or committee
appointed by the Board to determine fringe benefit programs and other
emoluments).

3.4 EXPENSES

During the Employment Period, the Employee shall be entitled to receive
prompt reimbursement for all reasonable employment expenses incurred by him in
accordance with the policies, practices and procedures of the Company and its
affiliated companies in effect for the employees of the Company and its
affiliated companies during the Employment Period or pursuant to an applicable
travel policy.

4. TERMINATION

Employment of the Employee during the Employment Period may be
terminated as follows but, in any case, the nondisclosure and noncompetition
provisions set forth in Sections 7, 8, 9, 10 and 11 shall survive the
termination of this Agreement and the termination of the Employee's employment
with the Company:

4.1 BY THE COMPANY OR THE EMPLOYEE

Upon giving Notice of Termination (as defined below), the Company may

 

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