Sample Business Contracts

Employment Agreement - Nanogen Inc. and James P. O'Connell, Ph.D.

Employment Forms

  • Employment Agreement. Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
  • Consulting Agreement. Answer simple questions to build a contract with a consultant. Specify the services rendered, when payment is due, as well as IP rights.
  • Commission Agreement. Employers who compensate their sales employees based on commissions can prepare an agreement to reduce misunderstandings by specifying the base salary and how commissions are calculated.
  • Executive Employment Agreement. Companies may offer their business executives a contract that is different from the one provided to their regular employees. Executive employment agreements may be more complex because the compensation structure may include a combination of salary and commissions, provide for bonuses based on sales, stock or other financial targets, and include non-compete, confidentiality and severance provisions.
  • Sales Representative Contract. Independent sales representatives offer companies the potential to increase the sale of products or services without the burden of increasing headcount. Both parties should understand how commissions are calculated, when commissions will be paid, as well as how the representative will treat confidential information from the company and whether the representative may also sell a competing line of products or services.
  • More Employment Agreements

Sponsored Links

                              [NANOGEN LETTERHEAD]

November 15, 1994

                            PERSONAL AND CONFIDENTIAL

James P. O'Connell, Ph.D.
9 Laurelton Trail
Flemington, NJ 08822

Dear Jim:

Nanogen Incorporated ("Nanogen") is pleased to offer you the position of Vice
President of Research and Product Development, and the following terms encompass
our proposed offer. The effective date of your employment is December 15, 1994.

You will be located in our San Diego offices, and report to Nanogen's President
and Chief Operating Officer, Dr. Tina Nova. As Vice President of Research and
Product Development, your responsibilities will be as described in the attached
Exhibit A. You will be expected to devote your full-time efforts to these
responsibilities, and you will be compensated at an annual base rate of $196,000
per annum payable in equal, semi-monthly increments. On the effective date of
your employment with Nanogen, you will receive a bonus of $30,000. In addition,
you will be guaranteed a bonus of at least $30,000 for the first two years of
your employment at Nanogen.

Upon your acceptance of this proposal, you will be entitled to purchase 100,000
shares of Nanogen common stock at fair market value as determined by Nanogen's
Board. The purchase will be made through the signing of Nanogen's current form
of Stock Issuance Agreement. Purchased shares will vest on a monthly basis over
a four year period, except that you will not be vested in the initial 25% of the
shares until the first anniversary of your employment. Notwithstanding the
foregoing, you will automatically be vested in 50% of any remaining unvested
shares if you are terminated without cause or if you terminate your employment
for good reason (even if such termination occurs before the first anniversary of
your employment). You will automatically be

<PAGE>   2
Dr. James P. O'Connell                -2-                      November 15, 1994

vested in 100% of any remaining unvested shares upon the transfer or sale of all
or substantially all of Nanogen's business or a merger with an unaffiliated
company. Upon the next financing of Nanogen after the commencement of your
employment which will result in a dilution of your ownership interest in
Nanogen, I will agree to make available for purchase by you 50,000 shares of
Nanogen common stock at the then fair market price. These shares will vest from
the time of purchase at the same rate as described above.

You will be eligible for relocation benefits consistent with your employment
level at Nanogen as specified by Nanogen's current 1994 Relocation Guidelines, a
copy of which will be provided to you. Additionally, Nanogen will work with you
to expedite the sale of your house in New Jersey. As we discussed, you will
provide Nanogen with two appraisals on the house and based on the appraisals we
will calculate your current equity. If, to sell the house in a timely fashion,
you significantly reduce the selling price, Nanogen will cover a reasonable
portion of equity loss. Nanogen will also cover the cost of the two appraisals
mentioned above.

You shall be eligible to participate in health insurance coverage and Nanogen
employee benefits and policies provided from time to time to Nanogen senior
management officers. Summaries of these plans and policies will be provided for
your review.

In addition, if, prior to the time that shares of Nanogen stock have been sold
in an initial public offering, Nanogen terminates your employment without cause
(or you terminate your employment for good reason), then the Company will
guarantee to pay you as severance a one time payment equal to one (1) year of
your then-current base level salary. If, after the time that shares of Nanogen
stock have been sold in an initial public offering, Nanogen terminates your
employment without cause (or you terminate your employment for good reason),
then the Company will guarantee to pay you as severance a one time payment equal
to six (6) months of your then-current base level salary.

For purposes of this letter, the phrase "termination without cause" shall mean a
termination of your employment by Nanogen for any reason other than: (1) the
repeated and willful failure by you to perform your reasonably assigned duties
on behalf of Nanogen; (2) the repeated gross negligence by you in carrying out
your duties; (3) illegal conduct by you in carrying out your duties; (4) the
repeated refusal by you to comply with the reasonable and lawful instructions of
the Board; or (5) repeated and willful actions by you contrary to Nanogen's best
interests. For purposes of this letter "termination for good reason" shall mean
a termination by you of your employment with Nanogen on account of the
occurrence of any of the

<PAGE>   3
Dr. James P. O'Connell                   -3-                  November 15, 1994

following without your consent which must be considered in good faith by you:
(1) a change in your status, title, position or responsibilities that
represents a material and adverse change in the status, title, position or
responsibilities described in this letter; (2) Nanogen's requiring you to be
based at any place outside metropolitan San Diego, California; (3) a reduction
in your base salary or material reduction of other compensation and benefits;
or (4) the insolvency or the filing of a petition for bankruptcy by Nanogen.

Employment with Nanogen will not be for a specific term and can be terminated
by you or by the Company at any time for any reason, with or without cause. Any
contrary representations which may have been made or which may be made to you
are/will be superseded by this offer. We request that all Nanogen executives,
to the extent possible, give advance notice if they intend to resign. If you
accept the offer, the terms described in this letter will be the terms of your
employment. Any additions or modifications of these terms must be in writing
and signed by you and the Nanogen's Chief Executive Officer.

As an obligation consistent with the offer of employment, you will be required
to sign the enclosed Proprietary Information and Inventions Agreement. The
terms and conditions regarding this letter and the offer of employment shall be
governed by the laws of the State of California.

In compliance with the federal Immigration Reform Act, your employment pursuant
to this offer is contingent on your providing the legally required proof of
your identity and authorization to work in the United States.

Assuming this letter is acceptable to you, please sign a copy and return it to
me. This offer will terminate unless accepted by November 17, 1994. We are very
excited that you will be joining Nanogen. Myself, Tina and our Board members
and employees look forward to announcing your appointment.

Very kind regards,

Howard C. Birndorf
Chairman and Chief Executive Officer


James P. O'Connell, Ph.D.

<PAGE>   4

                          CONSENT TO TAKE BLOOD SAMPLES

I, James O'Connell, am over the age of 18 years. I am applying for employment
with Nanogen Incorporated (the "Company"). I understand that if I am offered
employment with the Company, my employment may bring me into contact with
certain pathogens which may be present in serum, blood, tissue, and/or other
samples being held or tested by the Company. I further understand that the
Company has designed biosafety policies intended to minimize the risks of
infection. To prevent unfounded claims against the Company requires, as a
condition of employment, that I provide the Company with a sample of my blood at
this time and on my last day of work at the Company (or as soon afterward as the
Company requests).

I understand that samples will be taken by an independent laboratory and frozen
and maintained by an independent laboratory for such period of time as the
Company deems reasonable and necessary. I understand that neither the Company
nor its agents can guarantee that the integrity of my sample will be maintained
over time.

In consideration for my employment and continued employment with the Company, I
hereby irrevocably and voluntarily consent and authorize the Company to draw
from me the blood sample(s) described above and to maintain my blood sample(s).

I further acknowledge and agree that if any part of this Consent to Take Blood
Samples is deemed to be unenforceable for any reason, the remainder shall be
enforceable to the greatest extent permissible by law.



---------------------------------       -------------------------
Signature                               Date

Name (please print)