Employment Agreement - Sequenom Inc. and Steve Zaniboni
SEQUENOM INC.
FIRST AMENDED AND RESTATED EMPLOYMENT AGREEMENT
This Agreement is entered into between Sequenom, Inc. a Delaware
corporation (the "Company") and Steve Zaniboni (the "Employee") on August 1,
2000 (the "Effective Date"). In consideration of, and as a condition of
Employee's employment by Company, and of the compensation to be paid to Employee
by Company, and in recognition of the fact that Employee will have access to the
Company's confidential, proprietary, and trade secret information, Company and
Employee agrees to the terms and conditions set forth in this agreement as
follows:
1. Employment Status. Employee will accept the position of Sr. Vice
President and Chief Financial Officer and will perform for the Company such
duties as may be designated by the Company from time to time. Employee agrees
that Employee's employment with the Company is on an at will basis, is for no
specified term and may be terminated by the Company at any time, with or without
Cause (as defined in Section 10(c) herein) in accordance with section 10 of this
agreement. Similarly, Employee may terminate employment with the Company at any
time, for any reason upon written notice as provided in section 10 of this
agreement. Employee understands and agrees that the at will nature of Employee's
employment relationship with Company cannot be changed or modified, except by a
written agreement signed by the Chairman of the Board of Directors of Company.
2. Duties of Employee. Employee shall report to the President and
Chief Executive Officer and shall have overall responsibility for the
management, direction, and operations of the finance, legal, intellectual
property, human resources, and investor relations functions of the company.
Employee shall perform such other duties and have such other responsibilities as
may be assigned to Employee from time to time by the Chief Executive Officer of
the Company.
3. Loyalty/Covenant not to Compete
3.1 Loyalty. As long as Employee is employed by the Company, Employee
shall devote full time and efforts to the Company and shall not, without the
Company's prior expressed written consent, engage directly or indirectly in any
employment, consulting or business activity other than for the Company. While
employed by the Company, Employee will not engage in other employment without
the Company's consent, or engage in any activities determined by the Company to
be detrimental to the interests of the Company. Employee will refer to the
Company, all corporate opportunities Employee learns of as a result of service
of an employee of the Company.
3.2 Agreement not to Participate in Company's Competitors. During the
Term of this Agreement, and during any period during which Employee is receiving
compensation or any other consideration from the Company, including severance
pay pursuant to Section 10(d) herein, the Employee agrees not to acquire, assume
or participate in, directly or indirectly, any position, investment or interest
known by Employee to be adverse or antagonistic to the Company, its business or
prospects, financial or otherwise or in any company, person or entity that is,
directly or indirectly, in competition with the business of the Company or any
of its affiliates. Ownership by the Employee, as a passive investment, of less
than two percent (2%) of the outstanding shares of capital stock of any
corporation with one or more classes of its capital stock listed on a national
securities exchange or publicly traded on the Nasdaq Stock Market or in the
over-the-counter market shall not constitute a breach of this paragraph.
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4. Compensation and Benefits.
(a) Employee's compensation as Sr. Vice President and Chief Financial
Officer shall have the following components: (i) base salary at the rate of
$250,000 per year, less standard deductions and withholdings, payable in
accordance with the Company's standard payroll policy, and (ii) During each full
year that Employee is employed by Company under this Agreement, Company shall
provide Employee a bonus of $10,000, less standard deductions and withholdings,
in addition to Employee's base salary. Company shall provide Employee an annual
performance bonus as outlined by the Compensation Committee and approved by the
Board of Directors, less standard deductions and withholdings, in addition to
Employee's base salary.
(b) The Company has granted to Employee stock options to purchase up to
346,000 shares of the common stock of the Company (201,458 incentive stock
options, 144,542 non-qualified stock options), $0.001 par value per share. The
exercise price for the stock options granted to Employee shall be at least equal
to the fair market value, as determined by the Board of Director, of the common
stock of the Company on the date of grant of such option. The stock options
shall be vested as described in the individual grant option agreement. Provided,
however, that in the event all, or substantially all, of the assets of Sequenom,
or a majority of the corporate shares of Sequenom, are acquired by another
business or by an individual, then all remaining unexercised stock options
previously granted to Employee shall become 100% vested as of the effective date
of the acquisition.
(c) Employee shall be entitled to participate in such employee benefit
plans and to receive such other fringe benefits as are customarily afforded
Company employees. Employee understands that, except when prohibited by
applicable law, the Company's employee benefit plans and fringe benefits may be
amended, enlarged, diminished or terminated by the Company from time to time, in
its sole discretion.
(d) Upon submission of itemized expense statements in the manner specified
by Company, the Company will pay Employee's reasonable travel and other
reasonable business expenses incurred by Employee in the furtherance of and in
connection with Employee's employment hereunder.
5. Employee's Performance.
(a) Employee shall use best efforts to perform assigned duties
diligently, loyally, conscientiously, and with reasonable skill, and shall
comply with all rules, procedures and standards promulgated from time to time by
the Company. Among such rules, procedures and standards are those governing
ethical and other professional standards for dealing with customers, government
agencies, vendors, competitors, consultants, fellow employees, and the
public-at-large; security provisions designed to protect Company property and
the personal security of Company employees; rules respecting attendance,
punctuality, and hours of work; and, rules and procedures designed to protect
the confidentiality of the Company's proprietary/trade secret information. The
Company agrees to make reasonable efforts to inform Employee of such rules,
standards and procedures as are in effect from time to time.
(b) The employment relationship between the Parties shall be governed
by the policies and practices established by the Company and its Board of
Directors. The Employee will acknowledge in writing that he has read the
Company's Employee Handbook, which will govern the terms and conditions of his
employment with the Company, along with this Agreement. In the event that the
terms of this Agreement differ from or are in conflict with the Company's
policies or practices or the Company's Employee Handbook, this Agreement shall
control.
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(c) Employee hereby represents and warrants (i) that Employee has the
full right to enter into this Agreement and perform the services required of
hereunder, without any restriction whatsoever, (ii) that in the course of
performing services hereunder, Employee will not violate the terms or conditions
of any agreement between Employee and any third party or infringe or wrongfully
appropriate any patents, copyrights, confidential information, trade secrets or
other intellectual property rights of any person or entity anywhere in the
world., (iii) that listed on Exhibit A to this Agreement are the names of all
third parties with whom Employee has entered into employment or employment
confidentiality agreements, and (iv) Employee shall provide a copy of each such
agreement referenced herein to Company. It is the understanding of both the
Company and the Employee that the Employee shall not divulge to the Company
and/or its subsidiaries any confidential information or trade secrets belonging
to others, including the Employee's former employers, nor shall the Company
and/or its affiliates seek to elicit from the Employee any such information.
Consistent with the foregoing, the Employee shall not provide to the Company
and/or its affiliates, and the Company and/or its affiliates shall not request,
any documents or copies of documents containing such information.
6. Company's Management Rights. The Company retains its full
management prerogatives and discretion to manage and direct its business
affairs, including the adoption, amendment or modification of research,
development, production or marketing decisions as it sees fit, notwithstanding
any individual interest in, or expectation, Employee may have regarding a
particular business program or product.
7. Nondisclosure of Confidential, Proprietary or Trade Secret
Information. The Employee agrees to execute and abide by the Proprietary
Information & Inventions Agreement (the "Proprietary Information and Inventions
Agreement") attached hereto as Exhibit B as a condition of employment. The
termination of employment shall not release the Employee from Employee's
obligations under the Employee's Proprietary Information & Inventions Agreement
or as established by applicable laws or Company policies.
8. No Solicitation of Customers or Employees. Employee acknowledges
that the Company has invested substantial time, effort and expense in compiling
its confidential, proprietary and trade secret information and in assembling its
present staff of personnel. In order to protect the business value of the
Company's confidential, proprietary and trade secret information, during
Employee's employment with the Company and for one year immediately following
the termination of that employment with the Company:
(a) Employee agrees that information regarding all customers and all
prospective customers of the Company, of which Employee learns during Employee's
employment with the Company, is Proprietary Information of the Company as
defined in the Proprietary Information & Inventions Agreement.
(b) Employee agrees not to, either directly or indirectly, solicit
business, as to products or services competitive with those of the Company, from
any of the Company's customers or prospective customers with whom Employee had
contact during employment with the Company.
(c) Employee agrees not to, directly or indirectly, induce or solicit
any of the Company's employees to leave their employment with the Company.
9. Return of Property. Upon the termination of Employee's employment
with the Company, or at any other time upon request of the Company, Employee
shall promptly return any and all customer or prospective customer lists, other
customer or prospective customer information or related materials, formulas,
computer data and programs,
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specifications, drawings, blueprints, data storage devices, reproductions,
sketches, notes, memoranda, reports, records, proposals, business plans, or
copies of them, other documents, materials, tools, equipment, and all other
property belonging to the Company or its customers which Employee then
possesses. Employee further agrees, that upon termination of employment,
Employee shall not take any documents or data of any description containing or
pertaining to the Company's Proprietary Information or Inventions, as those
terms are defined in the Proprietary Information & Inventions Agreement. Upon
leaving the Company's employment, Employee agrees to sign a Termination
Certificate confirming that Employee has complied with the requirements of this
Section of the Agreement and that Employee is aware that certain restrictions
imposed by this Agreement continue after termination of Employee's employment.
Employee further understands, however, that Employee's continuing obligations
under the Proprietary Information & Inventions Agreement will continue even if
Employee does not sign a Termination Certificate.
10. Termination. Employee's employment hereunder shall terminate
upon the occurrence of any of the following events:
(a) The death or legal incapacity of Employee.
(b) Written notice of termination from the Company to Employee as a
result of Employee's incapacity or inability to further perform services as
contemplated herein for a period aggregating 90 days or more within any six-
month period, because Employee's physical or mental health has become so
impaired as to make it impossible or impractical for Employee to perform the
duties and responsibilities contemplated hereunder.
(c) Written termination notice from the Company to Employee of
Employee's employment termination by the Company for Cause (as hereafter
defined). The Company shall have "Cause" for termination of Employee's
employment if any of the following occur:
i. Employee is convicted of, or pleaded guilty or nolo contendere
to, any felony, or any lesser crime or offense having as its
predicate element fraud or dishonesty;
ii. Employee misappropriates, steals or converts any of the property
of the Company;
iii. Employee knowingly and willfully perpetrates any act or omission
which submits the Company to criminal liability, or knowingly and
willfully causes the Company to commit a material violation of
local, state or federal laws, rules or regulations;
iv. Employee breaches any provision of this Agreement of the
Proprietary Information & Inventions Agreement;
v. Employee breaches any provision of any other agreement between
Employee and the Company and such breach has a material adverse
effect on the Company or any of its direct or indirect
subsidiaries; or
vi. Employee fails or refuses to perform assigned duties and such
failure or refusal continues for a period of 10 days following
written notice from the Company.
vii. Employee's violation of any material Company policy, including,
but not limited to, the Insider Trading Policy.
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(d) Written notice from the Company to Employee that Employee's
employment is being terminated without Cause; or
(e) Employee's written notice of resignation to the Company. Employee
agrees to provide Company with four weeks notice of Employees' intent to resign
and Employee's resignation shall not become effective until the end of that four
week notice period unless Employee and Company mutually agree otherwise.
11. Payment After Termination. Following termination of Employee's
employment, all payments and benefits provided to Employee under this Agreement
shall cease as of the date of such termination, except that in the event
Employee's employment is terminated by the Company pursuant to Section 10(d),
then for the "Severance Pay Period" (as hereafter defined) upon the Employee's
delivery to the Company of a Release and Waiver of claims in the form attached
hereto as Exhibit C: (i) the Company shall pay Employee severance pay in the
form of continuation of Employee's base salary, less standard deductions and
withholdings, such payments to be made at the same time as Employee's salary
otherwise would have been payable, and (ii) the Employee elects continued
coverage under COBRA, the Company will reimburse Employee for the same portion
of Employee's health insurance premiums for Employee and Employee's family, to
the same extent the Company paid those premiums during Employee's employment.
The term "Severance Pay Period" shall mean the period commencing on the
effective date of the termination of Employee's employment under Section 10 and
ending on the earlier to occur of: i) Employee's commencement of employment for
a competing employer, or ii) six months subsequent to the date of Employee's
termination. During the "Severance Pay Period," Employee will be available to
consult with the Company without the payment of additional compensation by the
Company as provided in Section 12 herein, and Employee will promptly notify the
Company if Employee commences employment with another employer.
12. Consulting. In exchange for the promises and covenants set forth
herein, Employee and the Company agree that during the Severance Pay Period,
Employee shall serve as an independent contractor consultant, subject to the
terms herein.
(a) Consulting Services. During the Severance Pay Period, Employee
shall be available for up to ten (10) hours per month to consult
with the Company in the areas of Employee's expertise, as
requested by the Company's CEO or COO. Employee's consulting
services shall be performed via telephone, computer
communications, or facsimile unless Employee is specifically
requested, with reasonable advance notice, to come to Company
premises; and Employee will not have an office on Company
premises during the Consulting Period.
(b) No Agency or Employment Relationship. During the Severance Pay
Period, Employee will not be considered an agent or an employee
of the Company; Employee will not have authority to make any
representation, contract, or commitment on behalf of the Company
and Employee agrees not to do so; and Employee will not be
entitled to any of the benefits which the Company may make
available to its employees, such as group insurance, profit
sharing, or retirement benefits.
(c) Other Work Activities. During the Severance Pay Period, Employee
may engage in employment, consulting or other work relationships
in addition to Employee's work for the Company, provided that
Employee complies with Section 3.2 herein. The Company agrees to
make reasonable arrangements to enable Employee to perform
Employee's consulting services for the Company at such times and
in such a manner so that it does not
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unreasonably interfere with other work activities in which
Employee may engage.
(d) Consulting Information. Employee agrees to not to use or disclose
any confidential or proprietary information of the Company which
Employee obtains or develops in the course of performing
Employee's consulting services for the Company, without prior
written authorization from a duly authorized representative of
the Company.
13. Termination of Company's Obligation. Notwithstanding any
provisions in this Agreement to the contrary, including any provisions contained
in Section 11 or Section 12, the Company's obligations, and the Employee's
rights, pursuant to Section 11 and Section 12 shall cease and be rendered a
nullity immediately should the Employee violate the provisions of Sections 3.2,
7, 8 and/or 9 herein and/or the Proprietary Information and Inventions
Agreement.
14. Arbitration. The Company and Employee agree that any controversy
or claim arising out of or relating to this Agreement or the Company's
employment of Employee (including, but not limited to claims arising under Title
VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act,
the Americans with Disabilities Act, the California Fair Employment and Housing
Act, the California Labor Code, the California Constitution or any other
federal, state or local statutes or common law) or any dispute arising out of
the interpretation or application of this Agreement, which the Company and
Employee are unable to resolve, shall be finally resolved and settled
exclusively by arbitration in San Diego, California by a single arbitrator who
is mutually selected by the Company and Employee. If the Company and Employee
cannot agree upon an arbitrator, then each party shall choose its own
independent representative and those independent representatives shall in turn
choose the single arbitrator within thirty days of the date of the selection of
the first independent representative.
15. Miscellaneous.
(a) Entire Agreement. This Agreement, including Exhibits A, B, C and
D hereto, represents the Company's and Employee's entire understanding with
respect to the subject matter contained in this Agreement and supersedes all
previous understandings, written or oral between the Company and Employee
concerning the subject matters of this Agreement, including but not limited to
the Employment Agreements dated April 1, 1999, and April 1, 1997. This Agreement
may be amended or modified only with the signed written consent of both the
Company and Employee. No oral waiver, amendment or modification shall be
effective under any circumstances whatsoever.
(b) Survival of Certain Sections. Sections 3.2, 7, 8, 9, 11, 12, 13,
14, 15 of this Agreement and the Proprietary Information & Inventions Agreement
shall remain in effect after the termination of Employee's employment by the
Company, regardless of the reason the employment relationship ends.
(c) Assignment and Binding Effect. This Agreement shall be binding
upon and inure to the benefit of the Executive and the Executive's heirs,
executors, personal representatives, assigns, administrators and legal
representatives. Because of the unique and personal nature of the Executive's
duties under this Agreement, neither this Agreement nor any rights or
obligations under this Agreement shall be assignable by the Executive. This
Agreement shall be binding upon and inure to the benefit of the Company and its
successors, assigns and legal representatives.
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(d) Severability. Should any provisions of this Agreement be held by
a court of law to be illegal, invalid or unenforceable, the legality, validity
and enforceability of the remaining provisions of this Agreement shall not be
affected or impaired thereby.
(e) Injunctive Relief. Employee recognizes that money damages alone
would not adequately compensate the Company in event of any breach by Employee
of Sections 3, 7, 8 and/or the Proprietary Information & Inventions Agreement.
Therefore, Employee agrees that, in addition to all other remedies available to
the Company at law, in equity, or otherwise, the Company shall be entitled to
injunctive relief to restrain any breach of said Sections and to enforce the
provisions hereof, without showing or proving any actual damage to the Company
or posting any bond.
(f) Non-Waiver. No failure by the Company to insist upon strict
compliance with any of the terms, covenants, or conditions hereof, and no delay
or omission by the Company in exercising any right under this Agreement, will
operate as a waiver of such terms, covenants, conditions or rights. A waiver or
consent given by the Company on any one occasion is effective only in that
instance and will not be construed as a bar to or waiver of any right on any
other occasion.
(g) Governing Law/Venue. This Agreement shall be governed in all
respects by the laws of the United States of America and by the laws of the
State of California. The parties agree that the venue for any dispute under this
Agreement will be San Diego California, whether in a court of law or before an
arbitrator, as provided herein. The Company and Employee severally recognize and
consent to the jurisdiction over each of them by the courts of the state of
California.
(h) Notices. Any notice required or permitted by this Agreement
shall be in writing and shall be delivered as follows with notice deemed given
as indicated: (1) by personal delivery when delivered personally; (2) by
overnight courier upon written verification of receipt; (3) by telecopy or
facsimile transmission upon acknowledgment of receipt of electronic
transmission; or (4) by certified or registered mail, return receipt requested,
upon verification of receipt. Notices to the Employee shall be sent to the last
known address in the Company's records or such other address as the Employee may
specify in writing. Notices to the Company shall be sent to the Company's Chief
Executive Officer to such other Company representative as the Company may
specify in writing.
(i) Advertising waiver. The Employee agrees to permit the Company
and/or its affiliates, and persons or other organizations authorized by the
Company and/or its affiliates, to use, publish and distribute advertising or
sales promotional literature concerning the products and/or services of the
Company and/or its affiliates, or the machinery and equipment used in the
provision thereof, in which the Employee's name and/or pictures of the Employee
taken in the course of the Employee's provision of services to the Company
and/or its affiliates, appear. The Employee hereby waives and releases any claim
or right the Employee may otherwise have arising out of such use, publication or
distribution.
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BY PLACING MY SIGNATURE HEREUNDER, I ACKNOWLEDGE THAT I HAVE READ ALL THE
PROVISIONS OF THIS AGREEMENT AND THAT I AGREE TO ALL OF ITS TERMS.
EMPLOYEE:
Date: Nov. 10 , 2000 Steve Zaniboni
---------------
/s/ Steve Zaniboni
-----------------------------------
Employee's Signature
Address:___________________________
_______________________________
Accepted:
Date: __________, 2000 SEQUENOM, INC.
By: /s/ Helmut Schuhsler, Ph.D.
---------------------------------
Title: Chairman, Board of Directors
----------------------------
SEQUENOM, INC.
By: /s/ John E. Lucas
-------------------------------
Title: Member ,Board of Directors
----------------------------
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EXHIBIT A
Prior Employment or Confidentiality Agreements
LIST OF THE NAMES OF ALL THIRD PARTIES WITH WHOM EMPLOYEE HAS ENTERED INTO
EMPLOYMENT OR EMPLOYMENT CONFIDENTIALITY AGREEMENTS, EMPLOYEE PRIOR TO BEGINNING
EMPLOYMENT WITH COMPANY.
A. The following lists all are the names of all third parties with whom
Employee has entered into employment or employment confidentiality
agreements.
Aspect Medical Systems, Inc.-agreement expired
Behring Diagnostics-agreement expired
Boston Scientific Corporation. - agreement expired
Arthur Andersen & Company-agreement expired
Honeywell Information Systems-agreement expired
_____ Additional sheets attached
DATED: 11/10/00
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EMPLOYEE: /s/ Steve Zaniboni
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Exhibit B
Sequenom, Inc.
EMPLOYEE PROPRIETARY INFORMATION
AND INVENTIONS AGREEMENT
In consideration of my employment or continued employment by Sequenom, Inc.
(the "Company"), and the compensation now and hereafter paid to me, I hereby
agree as follows:
1. Nondisclosure
1.1 Recognition of Company's Rights; Nondisclosure. At all times during my
employment and thereafter, I will hold in strictest confidence and will not
disclose, use, lecture upon or publish any of the Company's Proprietary
Information (defined below), except as such disclosure, use or publication may
be required in connection with my work for the Company, or unless an officer of
the Company expressly authorizes such in writing. I will obtain Company's
written approval before publishing or submitting for publication any material
(written, verbal, or otherwise) that relates to my work at Company and/or
incorporates any Proprietary Information. I hereby assign to the Company any
rights I may have or acquire in such Proprietary Information and recognize that
all Proprietary Information shall be the sole property of the Company and its
assigns.
1.2 Proprietary Information. The term "Proprietary Information" shall mean
any and all confidential and/or proprietary knowledge, data or information of
the Company. By way of illustration but not limitation, "Proprietary
Information" includes (a) trade secrets, inventions, mask works, ideas,
processes, formulas, source and object codes, data, programs, other works of
authorship, know-how, improvements, discoveries, developments, designs and
techniques, products, methods, improvements, or parts thereof (including without
limitation all inventions, discoveries, and innovations with regard to physics,
chemistry, enzymology, biology, medicine, biotechnology, genetic engineering or
recombinant DNA), tangible and intangible information relating to antibodies and
other biological materials, cell lines, samples of assay components, media
and/or cell lines and procedures and formulations for producing any such assay
components, media and/or cell lines, formulations, products, processes, know-
how, designs, formulas, methods, developmental or experimental work and clinical
data (hereinafter collectively referred to as "Inventions"); and (b) information
regarding plans for research, development, new products, marketing and selling,
business plans, budgets and unpublished financial statements, licenses, prices
and costs, suppliers and customers; and (c) information regarding the skills and
compensation of other employees of the Company. Notwithstanding the foregoing,
it is understood that, at all such times, I am free to use information which is
generally known in the trade or industry, which is not gained as result of a
breach of this Agreement, and my own, skill, knowledge, know-how and experience
to whatever extent and in whichever way I wish.
1.3 Third Party Information. I understand, in addition, that the Company
has received and in the future will receive from third parties confidential or
proprietary information ("Third Party Information") subject to a duty on the
Company's part to maintain the confidentiality of such information and to use it
only for certain limited purposes. During the term of my employment and
thereafter, I will hold Third Party Information in the strictest confidence and
will not disclose to anyone (other than Company personnel who need to know such
information in connection with their work for the Company) or use, except in
connection with my work for the Company, Third Party Information unless
expressly authorized by an officer of the Company in writing.
1.4 No Improper Use of Information of Prior Employers and Others. During
my employment by the Company I will not improperly use or disclose any
confidential information or trade secrets, if any, of any former employer or any
other person to whom I have an obligation of confidentiality, and I will not
bring onto the premises of the Company any unpublished documents or any property
belonging to any former employer or any other person to whom I have an
obligation of confidentiality unless consented to in writing by that former
employer or person. I will use in the performance of my duties only information
which is generally known and used by persons with training and experience
comparable to my own, which is common knowledge in the industry or otherwise
legally in the public domain, or which is otherwise provided or developed by the
Company.
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2. Assignment of Inventions.
2.1 Proprietary Rights. The term "Proprietary Rights" shall mean all trade
secret, patent, copyright, mask work and other intellectual property rights
throughout the world.
2.2 Prior Inventions. Inventions, if any, patented or unpatented, which I
made prior to the commencement of my employment with the Company are excluded
from the scope of this Agreement. To preclude any possible uncertainty, I have
set forth on Exhibit B (Previous Inventions) attached hereto a complete list of
all Inventions that I have, alone or jointly with others, conceived, developed
or reduced to practice or caused to be conceived, developed or reduced to
practice prior to the commencement of my employment with the Company, that I
consider to be my property or the property of third parties and that I wish to
have excluded from the scope of this Agreement (collectively referred to as
"Prior Inventions"). If disclosure of any such Prior Invention would cause me to
violate any prior confidentiality agreement, I understand that I am not to list
such Prior Inventions in Exhibit B but am only to disclose a cursory name for
each such invention, a listing of the party(ies) to whom it belongs and the fact
that full disclosure as to such inventions has not been made for that reason. A
space is provided on Exhibit B for such purpose. If no such disclosure is
attached, I represent that there are no Prior Inventions. If, in the course of
my employment with the Company, I incorporate a Prior Invention into a Company
product, process or machine, the Company is hereby granted and shall have a
nonexclusive, royalty-free, irrevocable, perpetual, worldwide license (with
rights to sublicense through multiple tiers of sublicensees) to make, have made,
modify, use and sell such Prior Invention. Notwithstanding the foregoing, I
agree that I will not incorporate, or permit to be incorporated, Prior
Inventions in any Company Inventions without the Company's prior written
consent.
2.3 Assignment of Inventions. Subject to Sections 2.4, and 2.6, I hereby
assign and agree to assign in the future (when any such Inventions or
Proprietary Rights are first reduced to practice or first fixed in a tangible
medium, as applicable) to the Company all my right, title and interest in and to
any and all Inventions (and all Proprietary Rights with respect thereto) whether
or not patentable or registrable under copyright or similar statutes, made or
conceived or reduced to practice or learned by me, either alone or jointly with
others, during the period of my employment with the Company. Inventions
assigned to the Company, or to a third party as directed by the Company pursuant
to this Section 2, are hereinafter referred to as "Company Inventions."
2.4 Nonassignable Inventions. This Agreement does not apply to an
Invention which qualifies fully as a nonassignable Invention under Section 2870
of the California Labor Code (hereinafter "Section 2870"). I have reviewed the
notification on Exhibit A (Limited Exclusion Notification) and agree that my
signature acknowledges receipt of the notification.
2.5 Obligation to Keep Company Informed. During the period of my
employment and for six (6) months after termination of my employment with the
Company, I will promptly disclose to the Company fully and in writing all
Inventions authored, conceived or reduced to practice by me, either alone or
jointly with others. In addition, I will promptly disclose to the Company all
patent applications filed by me or on my behalf within a year after termination
of employment. At the time of each such disclosure, I will advise the Company in
writing of any Inventions that I believe fully qualify for protection under
Section 2870; and I will at that time provide to the Company in writing all
evidence necessary to substantiate that belief. The Company will keep in
confidence and will not use for any purpose or disclose to third parties without
my consent any confidential information disclosed in writing to the Company
pursuant to this Agreement relating to Inventions that qualify fully for
protection under the provisions of Section 2870. I will preserve the
confidentiality of any Invention that does not fully qualify for protection
under Section 2870.
2.6 Government or Third Party. I also agree to assign all my right, title
and interest in and to any particular Company Invention to a third party,
including without limitation the United States, as directed by the Company.
2.7 Works for Hire. I acknowledge that all original works of authorship
which are made by me (solely or jointly with others) within the scope of my
employment and which are protectable by copyright are "works made for hire,"
pursuant to United States Copyright Act (17 U.S.C., Section 101).
2.8 Enforcement of Proprietary Rights. I will assist the Company in every
proper way to obtain, and from time to time enforce, United States and foreign
Proprietary Rights relating to Company Inventions in any and all countries. To
that end I will execute, verify and deliver such documents and perform such
other acts (including appearances as a witness) as the Company may
2.
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reasonably request for use in applying for, obtaining, perfecting, evidencing,
sustaining and enforcing such Proprietary Rights and the assignment thereof. In
addition, I will execute, verify and deliver assignments of such Proprietary
Rights to the Company or its designee. My obligation to assist the Company with
respect to Proprietary Rights relating to such Company Inventions in any and all
countries shall continue beyond the termination of my employment, but the
Company shall compensate me at a reasonable rate after my termination for the
time actually spent by me at the Company's request on such assistance.
In the event the Company is unable for any reason, after reasonable effort, to
secure my signature on any document needed in connection with the actions
specified in the preceding paragraph, I hereby irrevocably designate and appoint
the Company and its duly authorized officers and agents as my agent and attorney
in fact, which appointment is coupled with an interest, to act for and in my
behalf to execute, verify and file any such documents and to do all other
lawfully permitted acts to further the purposes of the preceding paragraph with
the same legal force and effect as if executed by me. I hereby waive and
quitclaim to the Company any and all claims, of any nature whatsoever, which I
now or may hereafter have for infringement of any Proprietary Rights assigned
hereunder to the Company.
3. Records. I agree to keep and maintain adequate and current records (in the
form of notes, sketches, drawings and in any other form that may be required by
the Company) of all Proprietary Information developed by me and all Inventions
made by me during the period of my employment at the Company, which records
shall be available to and remain the sole property of the Company at all times.
4. Additional Activities. I agree that during the period of my employment by
the Company I will not, without the Company's express written consent, engage in
any employment or business activity which is competitive with, or would
otherwise conflict with, my employment by the Company. I agree further that for
the period of my employment by the Company and for one (l) year after the date
of termination of my employment by the Company I will not induce any employee of
the Company to leave the employ of the Company.
5. No Conflicting Obligation. I represent that my performance of all the terms
of this Agreement and as an employee of the Company does not and will not breach
any agreement to keep in confidence information acquired by me in confidence or
in trust prior to my employment by the Company. I have not entered into, and I
agree I will not enter into, any agreement either written or oral in conflict
herewith.
6. Return of Company Documents. When I leave the employ of the Company, I will
deliver to the Company any and all drawings, notes, memoranda, specifications,
devices, formulas, and documents, together with all copies thereof, and any
other material containing or disclosing any Company Inventions, Third Party
Information or Proprietary Information of the Company. I further agree that any
property situated on the Company's premises and owned by the Company, including
disks and other storage media, filing cabinets or other work areas, is subject
to inspection by Company personnel at any time with or without notice. Prior to
leaving, I will cooperate with the Company in completing and signing the
Company's termination statement.
7. Legal and Equitable Remedies. Because my services are personal and unique
and because I may have access to and become acquainted with the Proprietary
Information of the Company, the Company shall have the right to enforce this
Agreement and any of its provisions by injunction, specific performance or other
equitable relief, without bond and without prejudice to any other rights and
remedies that the Company may have for a breach of this Agreement.
8. Notices. Any notices required or permitted hereunder shall be given to the
appropriate party at the address specified below or at such other address as the
party shall specify in writing. Such notice shall be deemed given upon personal
delivery to the appropriate address or if sent by certified or registered mail,
three (3) days after the date of mailing.
9. Notification of New Employer. In the event that I leave the employ of the
Company, I hereby consent to the notification of my new employer of my rights
and obligations under this Agreement.
10. General Provisions.
10.1 Governing Law; Consent to Personal Jurisdiction. This Agreement will
be governed by and construed according to the laws of the State of California,
as such laws are applied to agreements entered into and to be performed entirely
within California between California residents. I hereby expressly consent to
the personal jurisdiction of the state and federal courts
3.
<PAGE>
located in San Diego County, California for any lawsuit filed there against me
by Company arising from or related to this Agreement.
10.2 Severability. In case any one or more of the provisions contained in
this Agreement shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect the other provisions of this Agreement, and this Agreement
shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein. If moreover, any one or more of the provisions
contained in this Agreement shall for any reason be held to be excessively broad
as to duration, geographical scope, activity or subject, it shall be construed
by limiting and reducing it, so as to be enforceable to the extent compatible
with the applicable law as it shall then appear.
10.3 Successors and Assigns. This Agreement will be binding upon my heirs,
executors, administrators and other legal representatives and will be for the
benefit of the Company, its successors, and its assigns.
10.4 Survival. The provisions of this Agreement shall survive the
termination of my employment and the assignment of this Agreement by the Company
to any successor in interest or other assignee.
10.5 Employment. I agree and understand that nothing in this Agreement
shall confer any right with respect to continuation of employment by the
Company, nor shall it interfere in any way with my right or the Company's right
to terminate my employment at any time, with or without cause.
10.6 Waiver. No waiver by the Company of any breach of this Agreement
shall be a waiver of any preceding or succeeding breach. No waiver by the
Company of any right under this Agreement shall be construed as a waiver of any
other right. The Company shall not be required to give notice to enforce strict
adherence to all terms of this Agreement.
10.7 Entire Agreement. The obligations pursuant to Sections 1 and 2 of
this Agreement shall apply to any time during which I was previously employed,
or am in the future employed, by the Company as a consultant if no other
agreement governs nondisclosure and assignment of inventions during such period.
This Agreement is the final, complete and exclusive agreement of the parties
with respect to the subject matter hereof and supersedes and merges all prior
discussions between us. No modification of or amendment to this Agreement, nor
any waiver of any rights under this Agreement, will be effective unless in
writing and signed by the party to be charged. Any subsequent change or changes
in my duties, salary or compensation will not affect the validity or scope of
this Agreement.
This Agreement shall be effective as of the first day of my employment with
the Company, namely: April 1, 1997.
I have read this Agreement carefully and understand its terms. I have
completely filled out Exhibit B to this Agreement.
Dated: 11/10/00
------------
/s/ Steve Zaniboni
-------------------------------------------
(Signature)
___________________________________________
(Steve Zaniboni)
Accepted and Agreed To:
Sequenom, Inc.
By:_________________________________________
Title:______________________________________
____________________________________________
(Address)
____________________________________________
Dated: _____________________________________
4.
<PAGE>
Exhibit A
LIMITED EXCLUSION NOTIFICATION
This is to notify you in accordance with Section 2872 of the California
Labor Code that the foregoing Agreement between you and the Company does not
require you to assign or offer to assign to the Company any invention that you
developed entirely on your own time without using the Company's equipment,
supplies, facilities or trade secret information except for those inventions
that either:
1. Relate at the time of conception or reduction to practice of the
invention to the Company's business, or actual or demonstrably
anticipated research or development of the Company;
2. Result from any work performed by you for the Company.
To the extent a provision in the foregoing Agreement purports to
require you to assign an invention otherwise excluded from the preceding
paragraph, the provision is against the public policy of this state and is
unenforceable.
This limited exclusion does not apply to any patent or invention
covered by a contract between the Company and the United States or any of its
agencies requiring full title to such patent or invention to be in the United
States.
I ACKNOWLEDGE RECEIPT of a copy of this notification.
By: /s/ Steve Zaniboni
-------------------------------------
(Steve Zaniboni)
Date: 11/10/00
-----------------------------------
Witnessed by:
___________________________________
(Printed Name of Representative)
5.
<PAGE>
Exhibit B
TO: Sequenom, Inc.
FROM: Steve Zaniboni
DATE: August 1, 2000
SUBJECT: Previous Inventions
1. Except as listed in Section 2 below, the following is a complete list
of all inventions or improvements relevant to the subject matter of my
employment by Sequenom, Inc. (the "Company") that have been made or conceived or
first reduced to practice by me alone or jointly with others prior to my
engagement by the Company:
[X] No inventions or improvements.
[_] See below:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
[_] Additional sheets attached.
2. Due to a prior confidentiality agreement, I cannot complete the
disclosure under Section 1 above with respect to inventions or improvements
generally listed below, the proprietary rights and duty of confidentiality with
respect to which I owe to the following party(ies):
Invention or Improvement Party(ies) Relationship
1. ________________________ __________ ______________________________
2. ________________________ __________ ______________________________
3. ________________________ __________ ______________________________
[_] Additional sheets attached.
6.
<PAGE>
Exhibit C
RELEASE AND WAIVER OF CLAIMS
In consideration of the payments and other benefits set forth in Section 11
of the Employment Agreement dated August 1, 2000, to which this form is
attached, I, Steve Zaniboni, hereby furnish Sequenom (the "Company"), with the
following release and waiver ("Release and Waiver").
I hereby release, and forever discharge the Company, its officers,
directors, agents, employees, stockholders, successors, assigns, affiliates,
parent, subsidiaries, and Benefit Plans, of and from any and all claims,
liabilities, demands, causes of action, costs, expenses, attorneys' fees,
damages, indemnities and obligations of every kind and nature, in law, equity,
or otherwise, known and unknown, suspected and unsuspected, disclosed and
undisclosed, arising at any time prior to and including my employment
Termination Date with respect to any claims relating to my employment and the
termination of my employment, including but not limited to, claims pursuant to
any federal, state or local law relating to employment, including, but not
limited to, discrimination claims, claims under the California Fair Employment
and Housing Act, and the Federal Age Discrimination in Employment Act of 1967,
as amended ("ADEA"), or claims for wrongful termination, breach of the covenant
of good faith, contract claims, tort claims, and wage or benefit claims,
including but not limited to, claims for salary, bonuses, commissions, stock,
stock options, vacation pay, fringe benefits, severance pay or any form of
compensation.
I also acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: "A general release does not extend
to claims which the creditor does not know or suspect to exist in his favor at
the time of executing the release, which if known by him must have materially
affected his settlement with the debtor." I hereby expressly waive and
relinquish all rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to any claims I may have against the
Company.
I acknowledge that, among other rights, I am waiving and releasing any
rights I may have under ADEA, that this Release and Waiver is knowing and
voluntary, and that the consideration given for this Release and Waiver is in
addition to anything of value to which I was already entitled as an executive of
the Company. I further acknowledge that I have been advised, as required by the
Older Workers Benefit Protection Act, that: (a) the Release and Waiver granted
herein does not relate to claims which may arise after this Release and Waiver
is executed; (b) I have the right to consult with an attorney prior to executing
this Release and Waiver (although I may choose voluntarily not to do so); and if
I am over 40 years of age upon execution of this Release and Waiver: (c) I have
twenty-one (21) days from the date of termination of my employment with the
Company in which to consider this Release and Waiver (although I may choose
voluntarily to execute this Release and Waiver earlier); (d) I have seven (7)
days following the execution of this Release and Waiver to revoke my consent to
this Release and Waiver; and (e) this Release and Waiver shall not be effective
until the seven (7) day revocation period has expired.
Date: 11/10/00 By: /s/ Steve Zaniboni
------------------ ----------------------------------
Steve Zaniboni
7.
<PAGE>
Exhibit D
Compensation Proposal
Salary and Option increases
(000's)
Total
Current Proposed % Current Additional Proposed %
Salary Salary Increase Options Options Options Ownership
CSO Charles Cantor $ 240 $ 260 8.3% 396 20 416 1.59%
CFO Steve Zaniboni $ 230 $ 250 8.7% 296 50 346 1.33%
CMO Andi Braun $ 190 $ 220 15.8% 286 50 336 1.29%
COO Del Foit $ 205 $ 220 7.3% 127 20 147 0.56%
Plus agreed to retirement funding. Fully diluted shares 26,100
Cash bonus for mid year 2000 for year to date performance
Charles Cantor $25,000
Steve Zaniboni $25,000
Andi Braun $50,000
Option Vesting
Milestone & std. 4 yr. vesting
Maximum share amount may decrease according to the index.
Goals to be achieved:
1. Meet year 2000 revenue goal.
2. Enter into a significant collaboration with a
leading genomic and a leading pharmaceutical/life
science company.
3. Complete a significant financing/equity event.
<PAGE>
Exhibit D
Compensation Proposal
1/3 of the total shares vest upon achievement of each of the
above goals or under standard terms.
Index: Shareholder value
Establish Evolution Index of SEQUENOM total market cap
relative to comparable/competing companies.
Index: Selected companies as determined by the Compensation
Committee. Calculation of Index Performance: IP = [(sum of
average share prices of Index companies in June 2001) minus
(sum of average share prices of Index companies in June
2000)] divided by [(sum of average share prices of Index
companies in June 2000)]; Calculation of SEQUENOM
Performance: SP = [(market cap based on average share price
in June 2001) minus (market cap based on average share price
in June 2000)] divided by [(market cap based on average
share price in June 2000)]. Evolution Index: EI = [1 + SP]
divided by [1 + IP]
EI not to exceed the value 1.
Total number of options = (sum of number of options as per
achieved goals in 1.) x EI.
Cash bonus for mid year 2001 tied to the stock price
The maximum bonus payment will be calculated as percentage of base
salary.
The actual payout will be based on a sliding scale adjusted stock
price range as determined by the Compensation Committee. Individuals
included:
Charles Cantor
Steve Zaniboni
Andi Braun
Del Foit
<PAGE>
SEQUENOM, INC.
NOTICE OF GRANT OF STOCK OPTION
-------------------------------
Notice is hereby given of the following option grant (the "Option") to purchase
shares of the Common Stock of Sequenom, Inc. (the "Corporation"):
Optionee: Steve Zaniboni
--------
Grant Date: July 31, 2000
----------
Vesting Commencement Date: July 31, 2000
-------------------------
Exercise Price: $28.31 per share
--------------
Number of Option Shares: 50,000 shares
-----------------------
Expiration Date: July 31, 2010
---------------
Type of Option: Incentive Stock Option
--------------- ------
X Non-Statutory Stock Option
------
Vesting Schedule: The Option Shares shall become exercisable as
----------------
follows: In a series of forty-eight (48) successive equal monthly
installments upon Optionee's completion of each additional month of
Service over the forty-eight (48) month period measured from the
Vesting Commencement Date or, if earlier upon completion of
milestones. Upon completion of the milestones, vesting of shares will
occur as follows: (1) 16,666 shares will become exercisable if
Sequenom meets year 2000 revenue goal. (2) 16,667 shares will become
exercisable if Sequenom enters into a significant collaboration with a
leading genomic and a leading pharmaceutical/life science company. (3)
16,667 shares will become exercisable if Sequenom completes a
significant financing/equity event. In no event shall any additional
Option Shares vest after Optionee's cessation of Service.
Above vesting is subject to the Evolution Index of Sequenom's total
market cap relative to comparable/competing companies. The index is
made up of selected companies as determined by the Compensation
Committee. The calculation of the Index Performance (IP) is as
follows: IP = [(sum of average share prices of Index companies in June
2001)] divided by [(sum of average share prices of Index companies in
June 2000)]. The calculation of Sequenom Performance (SP) is: SP =
[(market cap based on average share price in June 2001) minus (market
cap based on average share price in June 2000)] divided by [(market
cap based on average share price in June 2000)]. The Evolution Index
equals [1 + SP] divided by [1 + IP]. EI is not to exceed the value 1.
<PAGE>
Optionee understands and agrees that the Option is granted subject to
and in accordance with the terms of the Sequenom, Inc. 1999 Stock
Incentive Plan (the "Plan"). Optionee further agrees to be bound by
the terms of the Plan and the terms of the Option as set forth in the
Stock Option Agreement as can be viewed on Sequenom's intranet site,
or a hard copy may be requested. Optionee hereby acknowledges access
to a copy of the official prospectus for the Plan in the form
available on Sequenom's intranet site. A copy of the Plan is available
upon request made to the Corporate Secretary at the Corporation's
principal offices.
Employment at Will. Nothing in this Notice or in the attached Stock
------------------
Option Agreement or in the Plan shall confer upon Optionee any right
to continue in Service for any period of specific duration or
interfere with or otherwise restrict in any way the rights of the
Corporation (or any Parent or Subsidiary employing or retaining
Optionee) or of Optionee, which rights are hereby expressly reserved
by each, to terminate Optionee's Service at any time for any reason,
with or without cause.
Definitions. All capitalized terms in this Notice shall have the
-----------
meaning assigned to them in this Notice or in the attached Stock
Option Agreement.
DATED: July 31, 2000
<PAGE>
SEQUENOM, INC.
By: /s/ Steve Zaniboni
---------------------------------------
Title: Chief Financial Officer
/s/ Steve Zaniboni
------------------------------------------
Steve Zaniboni, OPTIONEE
Address: _________________________________
__________________________________________