EXECUTIVE EMPLOYMENT AGREEMENT
Exhibit 10.16
This EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) is effective as of July 22, 2011
(the “Effective Date”), between Myriant Corporation, a Delaware Company (the
“Company”), and Xxxxxxx X. Xxxxx (the “Executive”).
W I T N E S S E T H:
WHEREAS,
the Executive is currently employed as the Senior Vice President, Operations reporting to
the Company’s Chief Operating Officer;
WHEREAS,
the Executive is subject to Confidentiality, Non-Competition, Non-Solicitation and Inventions Agreement attached hereto as
Exhibit A (the “Non-Compete Agreement”); and
WHEREAS, the Executive has agreed to continued employment with the Company on the terms as set
forth below;
NOW THEREFORE, in consideration of the foregoing, of the mutual promises contained herein and
of other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:
1. EMPLOYMENT TERM. The Executive’s term of employment under this Agreement shall be for a
term commencing on the Effective Date and, unless terminated earlier as provided in Section 4
hereof, ending on the third (3rd) anniversary of the Effective Date; provided, however, that the
Employment Term shall automatically renew for successive one year periods following the third (3rd)
anniversary of the Effective Date, unless either party gives written notice to the other party no
less than sixty (60) days prior to the expiration of the Employment Term of the party’s intent not
to renew this Agreement (such term of employment, as it may be extended, is herein referred to as
the “Employment Term”).
2. POSITION & DUTIES.
(a) The
Executive shall serve as the Company’s Senior Vice President,
Engineering and Operations during the
Employment Term. The Executive shall have such duties, authorities and responsibilities
commensurate with the duties, authorities and responsibilities of persons in similar capacities in
similarly sized companies and such other duties and responsibilities as the Company’s Chief
Operating Officer shall designate that are consistent with the Executive’s position as Senior Vice
President, Engineering and Operations.
(b) During the Employment Term, the Executive shall use his reasonable best efforts to perform
faithfully and efficiently the duties and responsibilities assigned to the Executive hereunder and
devote substantially all of the Executive’s business time (excluding periods of vacation and other
approved leaves of absence) to the performance of the Executive’s duties with the Company.
(c) The principal place of employment of the Executive hereunder shall be at the Company’s
headquarters, which are located in Quincy, Massachusetts.
3. COMPENSATION, BENEFITS, AND EXPENSES.
(a) Base Salary. The Company agrees to pay the Executive a base salary (the “Base
Salary”) at an annual rate of not less than $250,000, payable in accordance with the regular
payroll practices of the Company, but not less frequently than bi-weekly. The Executive’s Base
Salary shall be subject to review by the Compensation Committee of the Board of Directors and may
be increased, but not decreased, from time to time. The base salary as determined herein from time
to time shall constitute “Base Salary” for purposes of this Agreement.
(b) Annual Bonus. Executive shall be eligible to participate in the Company’s annual
bonus plan as in effect from time to time (the “Bonus Plan”). Executive’s annual target
bonus shall be fifty percent (50%) of Base Salary (the “Target Bonus”), and shall be
awarded solely as determined by the Compensation Committee. Any Annual Bonus shall be paid in
accordance with the terms of the Bonus Plan.
(c) Equity Awards. Executive shall be entitled to participate in the Myriant
Corporation 2011 Omnibus Incentive Plan, as amended and restated (the “Equity Plan”) at
levels consistent with the Company’s equity granting guidelines, as in effect from time to time,
for executives employed at the Executive’s level, subject to Compensation Committee approval and
the terms and conditions of the Equity Plan and applicable award agreements.
(d) Benefits. Executive shall be entitled to participate in the Company’s employee
benefit programs that may be provided from time to time to other similarly situated executives,
subject to and on a basis consistent with the eligibility requirements, terms, conditions and
overall administration of such programs. The Company expressly reserves its right to modify,
alter, or discontinue entirely any benefit program(s) in its sole discretion.
(e) Vacation. Executive shall be entitled to four (4) weeks paid vacation per year.
Vacation may be taken at such times as the Executive elects with due regard to the needs of the
Company, subject to and to be taken in accordance with, the Company’s written vacation policy.
Executive may not carry over any unused vacation time from year to year and may not receive pay in
lieu of vacation except with the express written consent of the
Compensation Committee.
The Company’s Chief Operating Officer may require, in its discretion, that Executive take vacation
at a time and for a duration specified by the Company’s Chief Operating Officer including, without
limitation, during any period of notice of termination.
(f) Business Expenses. The Company shall pay or reimburse the Executive for all
reasonable and documented expenses actually incurred or paid by the Executive during the Employment
Term in the performance of Executive’s services under this Agreement, upon presentation of expense
statements or vouchers or such other supporting information as it may require. Any payments or
reimbursements under this Section 3(f) shall be made within thirty (30) days after the proper
presentation by the Executive of such expense statements or other supporting information.
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(g) Timing
of Payments and Reimbursements. Any payments or reimbursements
under Section 3(f) shall be made within fifteen
(15) days after the proper presentation by Executive
of such expense statements or other support information. Any such payments or reimbursements or
other reimbursements to which the Executive may become eligible shall (i) be made no later than the
last day of the calendar year following the calendar year in which the expenses were incurred (and
only to the extent that the expense reimbursement was properly submitted as provided for herein),
(ii) not affect any expenses eligible for direct payment or reimbursement in any other calendar
year, and (iii) not be liquidated or exchanged for any other benefit.
4. TERMINATION. The Executive’s employment and the Employment Term shall terminate on the
first of the following to occur:
(a) Disability. Upon written notice by the Company to the Executive of termination
due to Disability, while the Executive remains Disabled.
(b) Death. Automatically on the date of death of the Executive.
(c) Cause. Immediately upon written notice by the Company to the Executive of a
termination for Cause.
(d) Without Cause. Upon written notice by the Company to the Executive of an
involuntary termination without Cause and other than due to death or Disability.
(e) Good Reason. Upon written notice by the Executive to the Company of a termination
for Good Reason, subject to the requirements of Section 4(h)(iv) below.
(f) Without Good Reason. Upon 60 days’ prior written notice by the Executive to the
Company of the Executive’s termination of employment without Good Reason (which the Company may, in
its sole discretion, make effective earlier than any notice date).
(g) Definitions. For purposes of this Agreement,
(i) “Cause” shall be defined as any of the following:
(1) The failure of the Executive to perform any of his or her material duties to the Company,
including, without limitation, a breach of the Company’s code of conduct, conflict of interest or
other material employment policies;
(2) Any act or omission to act by the Executive (other than the Executive’s resignation or
retirement) that would reasonably be likely to have the effect of injuring the reputation, business
or business relationships of the Company;
(3) Acts of theft, embezzlement, fraud, dishonesty, misrepresentation or falsification of
documents or records involving the Company;
(4) A material breach of any term of the Non-Compete Agreement, or any other material
agreement between the Executive and the Company, after giving effect to the notification
provisions, if any, and the mechanisms to remedy or cure a breach, if appropriate, as described in
any such agreement.
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(5) The Executive is convicted of or takes a plea of nolo contendere for a felony or a crime
involving moral turpitude.
In the event the Company determines that it may be necessary to terminate Executive’s employment
for Cause as defined in paragraphs (1) through (4) above, and the Company determines such event of
Cause is capable of being cured, Executive shall have thirty (30) days from the date of receipt of
written notice from the Company to cure such event of Cause. Should Executive fail to cure the
event of Cause in accordance with the written notice, his employment shall be terminated
immediately upon expiration of this thirty (30) day period. In the event the Company determines
that it is necessary to terminate Executive’s employment for Cause as defined in paragraphs (1)
through (4) above and the applicable event of Cause is not capable of being cured, in each case,
the Executive’s employment shall be terminated immediately upon receiving written notice from the
Company.
(ii) “Deemed Liquidation Event” shall be the first to occur of any one of the
following events:
(1) a merger or consolidation in which
(a) the Company is a constituent party, or
(b) a subsidiary of the Company is a constituent party and the Company
issues shares of its capital stock pursuant to such merger or consolidation,
except any such merger or consolidation involving the Company or a subsidiary in which the shares
of capital stock of the Company outstanding immediately prior to such merger or consolidation
continue to represent, or are converted into or exchanged for shares of capital stock that
represent, immediately following such merger or consolidation at least a majority, by voting power,
of the capital stock of (1) the surviving or resulting corporation or (2) if the surviving or
resulting corporation is a wholly owned subsidiary of another corporation immediately following
such merger or consolidation, the parent corporation of such surviving or resulting corporation
(provided that, for the purpose of this definition of “Deemed Liquidation Event”, all Shares (as
defined in the Equity Plan) issuable upon the exercise of Options (as defined in the Equity Plan)
outstanding immediately prior to such merger or consolidation or upon conversion of any other
convertible securities outstanding immediately prior to such merger or consolidation shall be
deemed to be outstanding immediately prior to such merger or consolidation and, if applicable,
converted or exchanged in such merger or consolidation on the same terms as the actual outstanding
Shares are converted or exchanged); or;
(2) the acquisition by any person or group, other than holders of capital stock of the Company
on January 13, 2011, of a majority of the voting power of the outstanding shares of capital stock
of the Company (other than a financing transaction, the proceeds of which are paid to the Company
and not directly or indirectly to any stockholders of the Company including but not limited to an
initial public offering); or
(3) the sale, lease, transfer, or other disposition, in a single transaction or series of
related transactions, by the Company and its subsidiaries of all or
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substantially all the assets of the Company and its subsidiaries taken as a whole or the sale
or disposition (whether by merger or otherwise) of one or more subsidiaries of the Company if
substantially all of the assets of the Company and its subsidiaries taken as a whole are held by
such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or
other disposition is to a wholly owned subsidiary of the Company.
Notwithstanding the foregoing, unless otherwise determined in a specific case by majority vote of
the Board of Directors of the Company (the “Board”), a Deemed Liquidation Event shall not
occur unless as a result of the occurrence of any such events, the stockholders of the Company
receive cash and/or securities; provided, however, that this limitation shall not apply after the
Company’s initial public offering. In addition, unless otherwise determined in a specific case by
majority vote of the Board, a Deemed Liquidation Event shall not be deemed to have occurred solely
because (i) the Company, (ii) a subsidiary, (iii) any one or more members of the executive
management of the Company or their affiliates, (iv) any employee stock ownership plan or any other
employee benefit plan of the Company or any subsidiary or (v) any combination of the persons
referred to in the preceding clauses (i) through (iv) becomes the actual or beneficial owner
(within the meaning of Rule 13d-3 promulgated under the Securities and Exchange Act of 1934, as
amended) of at least 50% of the combined voting power of the voting securities of the Company then
outstanding after giving effect to such acquisition.
(iii) “Disability” means a condition under which the Executive:
(1) Is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or which has
lasted or can be expected to last for a continuous period of not less than 12 months; or
(2) Has, by reason of any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be expected to last for a continuous period
of not less than 12 months, received income replacement benefits for a period of not less than 3
months under an accident or health plan covering the Company’s employees.
The Board shall determine both whether Disability has occurred and the date of its occurrence. For
the purpose of determining Disability, the Board may require the Executive to be examined by a
physician selected or approved by the Board.
(iv) “Good Reason” means the occurrence of one of the following conditions without the
Executive’s consent:
(1) A material adverse change in the nature or scope of the Executive’s responsibilities,
authorities, powers, functions or duties;
(2) A material reduction in the Executive’s Base Salary, except for across-the-board salary
reductions similarly affecting all, or substantially all, similarly-situated employees; or
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(3) The Company requires Executive to relocate to a location outside of a 50 mile radius from
Quincy, Massachusetts.
Notwithstanding the foregoing, the conditions described immediately above in (1)-(3) shall not give
rise to a termination by the Executive for Good Reason, unless the Executive has notified the
Company in writing within thirty (30) days of the initial occurrence of such condition, the Company
has failed to correct the condition within sixty (60) days after the Company’s receipt of such
written notice, and the Executive actually terminates employment with the Company within 90 days of
the initial occurrence of the condition.
Notwithstanding the foregoing, (i) a suspension of the Executive’s title and authority while on
administrative leave due to a reasonable belief that the Executive has engaged in misconduct,
whether or not the suspected misconduct constitutes Cause for employment termination, shall not be
considered “Good Reason.”
(v) “Protected Period” shall mean the period beginning on the effective date of a
Deemed Liquidation Event and ending on the first (1st) anniversary of such Deemed Liquidation
Event.
5. CONSEQUENCES OF TERMINATION. Any termination payments made and benefits provided under
this Agreement to the Executive shall be in lieu of any termination or severance payments or
benefits for which the Executive may be eligible under any of the plans, policies or programs of
the Company or its affiliates as may be in effect from time to time. Except to the extent
otherwise provided in this Agreement, all benefits, including, without limitation, stock options,
stock appreciation rights, restricted stock units and other awards under the Company’s long-term
incentive programs, shall be subject to the terms and conditions of the plan or arrangement under
which such benefits accrue, are granted or are awarded.
(a) Disability or Death. Upon employment termination due to Disability or on account
of Executive’s death, the Company shall pay or provide the Executive or the Executive’s estate (or
to the extent a beneficiary has been designated in accordance with a program, the beneficiary under
such program) the following: (i) any unpaid Base Salary through the date of termination and any
accrued vacation in accordance with Company policy; (ii) reimbursement for any unreimbursed
expenses incurred through the date of termination; (iii) all other payments and benefits to which
the Executive may be entitled under the terms of any applicable compensation arrangement or
benefit, equity or perquisite plan or program or grant or this Agreement, including but not limited
to any applicable insurance benefits (collectively, “Accrued Amounts”).
(b) Termination For Cause Or Without Good Reason. If the Executive’s employment
should be terminated (i) by the Company for Cause, or (ii) by the Executive without Good Reason
other than during the Protected Period, the Company shall pay to the Executive any Accrued Amount;.
(c) Termination Without Cause Or For Good Reason Other than During the Protected
Period. If the Executive’s employment by the Company is terminated by the Company Without
Cause or by the Executive for Good Reason, in each case, other than during the
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Protected Period, then the Company shall pay or provide the Executive with the following
payments and/or benefits, subject to Section 6, Section 16 and Section 17 below, as applicable:
(i) Accrued Amounts;
(ii) A payment equal to the Executive’s then-current annual Base Salary, payable in a single
lump sum on the sixtieth day following the date of Executive’s termination of employment;
(iii) A pro-rata portion of the Executive’s Annual Bonus for the performance year in which the
Executive’s termination occurs, payable at the time that annual bonuses are paid to other senior
executives (determined by multiplying the Target Bonus by a fraction, the numerator of which is the
number of days during the performance year of termination that the Executive is employed by the
Company and the denominator of which is 365); and
(iv) For a period of twelve (12) months following the month in which termination of employment
occurs, medical and dental benefits that are similar in all material respects as those benefits
provided under the Company’s employee benefit plans, policies and programs to senior executives of
Company who have not terminated their employment (collectively, such benefits are referred to
hereinafter as the “Welfare Benefits”), at no greater monthly cost to the Executive than
the cost paid by such other senior executives.
(1) Notwithstanding the foregoing, if the Company cannot provide such benefits under its
employee benefit plans, policies and programs the Company either shall provide such benefits to the
Executive outside such plans, policies and programs at no additional expense or tax liability to
the Executive or shall reimburse the Executive for the Executive’s cost to purchase such benefits
and for any tax liability for any such reimbursement. Benefits otherwise receivable by the
Executive pursuant to this Section 5(c)(iv) shall be reduced to the extent comparable benefits are
actually received by or made available to the Executive (other than benefits available at the
Executive’s sole expense pursuant to COBRA) during the twelve (12) month continuation period
provided in this Section 5(c)(iv) (and any such benefits actually received or made available to the
Executive shall be reported to the Company by the Executive).
(2) To the extent the continuation of the Welfare Benefits under this Section 5(c)(iv) is, or
ever becomes, taxable to the Executive and to the extent the Welfare Benefits continue beyond the
period in which the Executive would be entitled (or would, but for this Agreement, be entitled) to
continuation coverage under a group health plan of the Company under COBRA if the Executive elected
such coverage and paid the applicable premiums, the Company shall administer such continuation of
coverage consistent with the following additional requirements as set forth in Treas. Reg. §
1.409A-3(i)(1)(iv) and in accordance with the terms of Section 3(f) of this Agreement.
(d) Certain Terminations During the Protected Period.
(i) If, at any time during the Protected Period, the Executive terminates his employment with
or without Good Reason or the Company terminates the
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Executive’s employment without Cause, then the Company shall pay or provide the Executive with
the following payments and/or benefits, subject to Section 6, Section 16 and Section 17 below, as
applicable:
(1) Accrued Amounts;
(2) A payment equal to twelve (12) months of the Executive’s then-current annual Base Salary,
payable in a single lump sum on the sixtieth (60th) day following the date of Executive’s
termination of employment;
(3) All of Executive’s then outstanding and unvested stock options and other equity awards
shall become fully vested;
(4) A pro-rata portion of the Executive’s Annual Bonus for the performance year in which the
Executive’s termination occurs, payable at the time that annual bonuses are paid to other senior
executives (determined by multiplying the Target Bonus by a fraction, the numerator of which is the
number of days during the performance year of termination that the Executive is employed by the
Company and the denominator of which is 365); and
(5) The Welfare Benefits, subject to the limitations and conditions described in Section
5(c)(iv) above.
(ii) If, at any time during the Protected Period, the Company (or the Company’s successor)
terminates Executive’s employment without Cause or the Executive terminates his employment for Good
Reason, then in addition to the benefits described under Section 5(d)(i) above, the Company shall
pay or provide to the Executive:
(1) A lump sum payment equal to six (6) months of the Executive’s then-current annual Base
Salary, payable in a single lump sum on the thirtieth (30th) day following the date of Executive’s
termination of employment; and
(2) The Welfare Benefits, subject to the limitations and conditions described in Section
5(c)(iv) above; provided, however the period for providing such Welfare Benefits shall be extended
by an additional six (6) months;
provided, however, that the payment and benefits described in this Section 5(d)(ii) shall be
strictly conditioned upon the Executive agreeing to extend the post-termination obligations under
his Non-Compete Agreement from twelve (12) months to eighteen (18) months.
(e) No Duplication. For avoidance of doubt, in no event shall the Executive be
entitled to compensation, benefits and payments under both Section 5(c) and Section 5(d) of this
Agreement.
6. CONDITIONS. Any payments or benefits made or provided pursuant to Section 5 (other than
Accrued Amounts) are subject to the Executive’s (or, in the event of the Executive’s death, the
beneficiary’s or estate’s):
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(a) Material compliance with Section 20 of this Agreement;
(b) Delivery to the Company of an executed Agreement and General Release (the “General
Release”), in a form acceptable to the Company, within 21 days after employment termination,
and such release not being revoked within seven days after being signed;
(c) Delivery to the Company of a resignation from all offices, directorships and fiduciary
positions with the Company, its affiliates and employee benefit plans.
For avoidance of doubt, no amounts shall be paid (other than the Accrued Amounts) if a General
Release is not timely signed and delivered to the Company or is revoked within such seven day
period. In the event that the Executive dies before all payments pursuant to this Section 6 have
been paid, all remaining payments shall be made to the beneficiary specifically designated by the
Executive in writing prior to his death, or, if no such beneficiary was designated (or the Company
is unable in good faith to determine the beneficiary designated), to his personal representative or
estate.
7. NO ASSIGNMENT.
(a) This Agreement is personal to each of the parties hereto. Except as provided in Section
7(b) below, no party may assign or delegate any rights or obligations hereunder without first
obtaining the written consent of the other party hereto.
(b) The Company may assign this Agreement to any successor to all or substantially all of the
business and/or assets of the Company provided the Company shall require such successor to
expressly assume and agree to perform this Agreement in the same manner and to the same extent that
the Company would be required to perform it if no such succession had taken place and shall deliver
a copy of such assignment to the Executive.
8. NOTICE. For the purpose of this Agreement, notices and all other communications provided
for in this Agreement shall be in writing and shall be deemed to have been duly given (a) on the
date of delivery if delivered by hand, (b) on the date of transmission, if delivered by confirmed
facsimile, (c) on the first business day following the date of deposit if delivered by guaranteed
overnight delivery service, or (d) on the fourth business day following the date delivered or
mailed by United States registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:
If to the Executive: at the address (or to the facsimile number) shown on the records of the
Company.
If to the Company:
Myriant Corporation
0 Xxxx Xxxx Xxxxx
Xxxxxxxxxxxx Xxxx II, Xxxxx 000
Xxxxxx, XX 00000
Attention: Chief Operating Officer
Facsimile No.: 000-000-0000
0 Xxxx Xxxx Xxxxx
Xxxxxxxxxxxx Xxxx II, Xxxxx 000
Xxxxxx, XX 00000
Attention: Chief Operating Officer
Facsimile No.: 000-000-0000
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or to such other address as either party may have furnished to the other in writing in accordance
herewith, except that notices of change of address shall be effective only upon receipt.
9. SECTION HEADINGS; INCONSISTENCY. The section headings used in this Agreement are included
solely for convenience and shall not affect, or be used in connection with, the interpretation of
this Agreement. If there is any inconsistency between this Agreement and any other agreement
(including but not limited to any option, stock, long-term incentive or other equity award
agreement), plan, program, policy or practice (collectively, “Other Provision”) of the
Company the terms of this Agreement shall control over such Other Provision.
10. PRIOR AGREEMENTS. This Agreement supersedes and replaces any and all prior employment
agreements and change in control agreements (collectively, the “Prior Agreements”) between
the Company and the Executive. By signing this Agreement, the Executive acknowledges that the
Prior Agreements are terminated and cancelled, and releases and discharges the Company from any and
all obligations and liabilities heretofore or now existing under or by virtue of such Prior
Agreements, it being the intention of the parties hereto that this Agreement effective immediately
shall supersede and be in lieu of the Prior Agreements. For the
avoidance of doubt, nothing in this Agreement shall supercede or
render inoperative the grant of 75,000 shares of restricted stock
granted by the Company to the Executive on March 23, 2011.
11. SEVERABILITY. The provisions of this Agreement shall be deemed severable and the
invalidity of unenforceability of any provision shall not affect the validity or enforceability of
the other provisions hereof.
12. COUNTERPARTS. This Agreement may be executed in counterparts, each of which shall be
deemed to be an original but all of which together will constitute one and the same instruments.
One or more counterparts of this Agreement may be delivered by facsimile, with the intention that
delivery by such means shall have the same effect as delivery of an original counterpart thereof.
13. ARBITRATION. Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration, conducted before a single arbitrator in
Boston, Massachusetts administered by the American Arbitration Association (“AAA”) in
accordance with its Commercial Arbitration Rules then in effect. The single arbitrator shall be
selected by the mutual agreement of the Company and the Executive, unless the parties are unable to
agree to an arbitrator, in which case, the arbitrator will be selected under the procedures of the
AAA. The arbitrator will have the authority to permit discovery and to follow the procedures that
he/she determines to be appropriate. The arbitrator will have no power to award consequential
(including lost profits), punitive or exemplary damages. The decision of the arbitrator will be
final and binding upon the parties hereto. Judgment may be entered on the arbitrator’s award in
any court having jurisdiction.
14. MISCELLANEOUS. No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing and signed by the Executive
and such officer or director as may be designated by the Board or the Compensation Committee. No
waiver by either party hereto at any time of any breach by the other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or
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conditions at the same or at any prior or subsequent time. This Agreement together with all
exhibits hereto sets forth the entire agreement of the parties hereto in respect of the subject
matter contained herein. No agreements or representations, oral or otherwise, express or implied,
with respect to the subject matter hereof have been made by either party which are not expressly
set forth in this Agreement. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of Massachusetts without regard to its
conflicts of law principles.
15. REPRESENTATIONS. The Executive represents and warrants to the Company that the Executive
has the legal right to enter into this Agreement and to perform all of the obligations on the
Executive’s part to be performed hereunder in accordance with its terms and that the Executive is
not a party to any agreement or understanding, written or oral, which could prevent the Executive
from entering into this Agreement or performing all of the Executive’s obligations hereunder.
16. WITHHOLDING. The Company may withhold from any amounts payable under this Agreement such
Federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or
regulation.
17. CODE SECTION 409A.
(a) Subject to this Section 17, payments or benefits under Section 5 shall begin only upon the
date of the Executive’s “separation from service” (determined as set forth below) which occurs on
or after the termination of the Executive’s employment. It is intended that each installment of
the payments and benefits provided or referenced under Section 5 of this Agreement shall be treated
as a separate “payment” for purposes of Section 409A of the Internal Revenue Code of 1986, as
amended, and the guidance issued thereunder (“Section 409A”). Neither the Company nor the
Executive shall have the right to accelerate or defer the delivery of any such payments or benefits
except to the extent specifically permitted or required by Section 409A.
(b) If, as of the date of the Executive’s “separation from service” from the Company, the
Executive is not a “specified employee” (within the meaning of Section 409A), then each installment
of the payments and benefits shall be made on the dates and terms set forth in this Agreement (or
other applicable agreement).
(c) If, as of the date of the Executive’s “separation from service” from the Company, the
Executive is a “specified employee” (as determined under the Company’s policy for determining
specified employees), then:
(i) Each installment of the payments and benefits due under this Agreement (and other
applicable agreements) that, in accordance with the dates and terms set forth therein, will in all
circumstances, regardless of when the separation from service occurs, be paid within the period of
time permitted under Treasury Regulation Section 1.409A-1(b)(4) shall be treated as a short-term
deferral within the meaning of such Section to the maximum extent possible; and
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(ii) Each installment of the payments and benefits due under this Agreement (and other
applicable agreements) that is not described in this Section 17(b)(iii)(1) above and that would,
absent this subsection, be paid within the six-month period following the Executive’s “separation
from service” from the Company shall not be paid until the date that is six months and one day
after such separation from service (or, if earlier, upon the Executive’s death), with any such
installments that are required to be delayed being accumulated during the six-month period and paid
in a lump sum on the date that is six months and one day following the Executive’s separation from
service and any subsequent installments, if any, being paid in accordance with the dates and terms
set forth in this Agreement (or other applicable agreement); provided, however, that the preceding
provisions of this sentence shall not apply to any installment of payments and benefits if and to
the maximum extent that such installment is deemed to be paid under a separation pay plan that does
not provide for a deferral of compensation by reason of the application of Treasury Regulation
1.409A-1(b)(9)(iii) (relating to separation pay upon an involuntary separation from service). Any
installments that qualify for the exception under Treasury Regulation Section 1.409A-1(b)(9)(iii)
must be paid no later than the last day of your second taxable year following his taxable year in
which the separation from service occurs.
(d) The determination of whether and when the Executive’s separation from service from the
Company has occurred shall be made in a manner consistent with Treasury Regulation Section
1.409A-1(h) after giving effect to the presumptions set forth therein 20 percent (20%) test
contained therein.
18. LIMITATION ON EXCESS PARACHUTE PAYMENTS. Notwithstanding any other provision in this
Agreement to the contrary, any payment or benefit received or to be received by the Executive in
connection with a Deemed Liquidation Event or the termination of Executive’s employment whether
payable under the terms of this Agreement or any other plan, arrangement or agreement with the
Company or an affiliate that would constitute a “parachute payment” within the meaning of Section
280G of the Code, shall be subject to the “Taxes; Limitation on Excess Parachute Payments”
provision set forth in the Executive’s True-Up Restricted Stock Unit Agreement with the Company.
19. COMPENSATION RECOVERY POLICY. The Executive shall be subject to, and comply with, the
Company’s reasonable policies regarding forfeitures of cash and equity incentive awards due to
material financial restatements as may be in effect from time to time.
20. COMPLIANCE WITH NON-COMPETE AGREEMENT. By signing this Agreement, the Executive
specifically acknowledges that the severance benefits payable under Sections 5(c) and 5(d) of this
Agreement (the “Severance Benefits”) are expressly conditioned upon the Executive complying
with the Non-Compete Agreement, including any extension thereof agreed to by the Executive under
Section 5(d)(ii) of this Agreement or as other amended as agreed to the by the parties hereto. If
the Executive materially breaches (or threatens to breach) any obligations under the
Confidentiality Agreement, then, in addition to any other legal or equitable remedies that may be
available to the Company, its subsidiaries or affiliates, under the Non-Compete Agreement or
otherwise:
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(a) the Executive shall forthwith repay to the Company a percentage of the total lump sum cash
payments made by the Company to the Executive equal to X/Y, where “X” equals twelve (12) or, in the
case of benefits paid under Section 5(d)(ii), eighteen (18), less the number of complete and
partial months from employment termination to the date of the Executive’s material breach (or
threatened breach) of the Non-Compete Agreement; and “Y” equals twelve (12) or, in the case of
benefits paid under Section 5(d)(ii), eighteen (18).
(b) the Executive shall not be entitled to receive any further Welfare Benefits at the
Company’s expense as provided for Sections 5(c) and (d); and
(c) all unvested Equity Awards shall forthwith be cancelled and terminated, notwithstanding
the provisions of any agreements to the contrary.
The Executive agrees that should all or any part or application of the Non-Compete Agreement be
held or found invalid or unenforceable for any reason whatsoever by a court of competent
jurisdiction in an action between the Executive and the Company (and/or its subsidiaries), the
Company nevertheless shall be entitled to take the actions described in Section 20(a), (b) and (c)
above, if the Executive breaches or threatens to breach any of the obligations set forth in the
Non-Compete Agreement. The provisions of this Section 20 shall survive termination of this
Agreement.
21. INDEMNIFICATION. The Company shall indemnify the Executive to the same extent that its
directors are entitled to indemnification from time to time for any acts or omissions by reason of
being an officer.
22. SURVIVAL. The respective obligations of, and benefits afforded to, the Company and
Executive which by their express terms or clear intent survive termination of Executive’s
employment with the Company, including, without limitation, the provisions of the Non-Compete
Agreement and Sections 5 through 21, inclusive of this Agreement, will survive termination of
Executive’s employment with the Company, and will remain in full force and effect according to
their terms.
23. AGREEMENT OF THE PARTIES. The language used in this Agreement will be deemed to be the
language chosen by the parties hereto to express their mutual intent, and no rule of strict
construction will be applied against any party hereto. Neither Executive nor the Company shall be
entitled to any presumption in connection with any determination made hereunder in connection with
any arbitration, judicial or administrative proceeding relating to or arising under this Agreement.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.
| MYRIANT CORPORATION |
||||
| By: | /s/ A. Xxxxx Xxxxxxx, Ph.D. | |||
| A. Xxxxx Xxxxxxx, Ph.D. | ||||
| Its: Chief Operating Officer | ||||
| EXECUTIVE |
||||
| /s/ Xxxxxxx X. Xxxxx | ||||
| Xxxxxxx X. Xxxxx | ||||
