March 25, 2005 Mr. Bob Richardson
Exhibit 10.36
March 25, 2005
Mr. Xxx Xxxxxxxxxx
0000 Xxxxxxxxxxx Xx.
Huntington Beach, CA 92648
Re: Amended and Restated Side Letter regarding transition assistance and Option Vesting on Change of Control
Dear Xxx:
This letter agreement confirms our agreement to amend and restate that certain Side Letter Agreement dated August 18, 2003 between you and Primal regarding transition assistance and option vesting upon the occurrence of certain events or conditions.
Transition Assistance
As discussed, Primal would provide you with ninety (90) days transition assistance pay upon the occurrence of certain events described hereafter. This would be contingent upon your entering into a standard written separation agreement and release with Primal and would be paid out according to the normal payroll schedule. This agreement will apply only if your employment is involuntarily terminated for other than Cause and will not apply if your employment is terminated for Cause or you voluntarily terminate your employment with Primal.
“Cause” means: (a) your failure to perform (other than by reason of disability) your duties and responsibilities to Primal in any material respect in the good faith determination of the Board of Directors and, after receiving written notice to such effect from Primal, fails to cure the problem within ten (10) days of receipt of such written notice; (b) your gross negligence or willful misconduct in the performance of your duties and responsibilities to Primal, such duties and responsibilities not to be unreasonably imposed; (c) your appropriation (or attempted appropriation) of a material business opportunity of Primal’s, including attempting to secure or securing any personal profit in connection with any transaction entered into on behalf of Primal; (d) your misappropriation (or attempted misappropriation) of any of Primal’s funds or property; or (e) the conviction of, or the entering of a guilty plea or plea of no contest by you with respect to, a felony
Option Vesting on Change of Control
As discussed, to the extent permitted under applicable law, upon the occurrence of (i) a Change of Control, (ii) you are terminated without Cause, or (iii) you terminate your employment for Good Reason, all outstanding unvested stock options granted to you by the Company shall accelerate and vest. Change of Control shall mean a change in the beneficial ownership of 50% or more of the combined voting power of Primal’s then outstanding voting securities, excluding a refinancing unless it causes a change in the control of the board of
directors. Good Reason shall mean any of the following: (a) a material breach by Primal of any agreement between you and Primal concerning your employment with Primal; provided, however, that Primal shall have ten (10) days to remedy the breach after receipt of written notice from you that the breach has occurred if the breach is susceptible of cure; (b) the assignment without your express and voluntary written consent to a title, status, overall position, responsibilities, duties, reporting relationship, or general working environment of a materially lesser status or degree of responsibility than your title, status, overall position, responsibilities, duties, reporting relationship, and general working environment at the effective date of this letter agreement; (c) the requirement by Primal that you relocate your personal residence outside the metropolitan Orange County, California area; (d) the relocation by Primal of your office more than 50 miles from its location as of the effective date of this letter agreement; (e) any failure by Primal to obtain the assumption of any material written agreement between you and Primal concerning your employment by any successor of Primal or assignee of substantially all of the business of Primal; or (f) any material change by Primal in the benefits or incentive compensation offered to you from those in which you are participating on the effective date of this letter agreement, or the taking of any action by Primal which would materially and adversely affect your participation in or reduce your benefits under any of the benefits or incentive compensation plans of Primal or deprive you of any fringe benefit then enjoyed by you; provided, however, that nothing contained in this subparagraph (f) shall be deemed to permit termination by you for Good Reason if Primal offers a range of benefit plans and programs to you which, taken as a whole, are at least comparable to the benefits and incentive compensation in which you are participating on the effective date of this letter agreement.
If this arrangement is acceptable to you, please sign the enclosed copy of this letter and return it to me at your earliest convenience.
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Very truly yours, |
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/s/ Xxxxxx X. Xxxxxxx |
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Xxxxxx X. Xxxxxxx |
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Chief Executive Officer |
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cc: Personnel File |
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I agree to the terms described above: |
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/s/ Xxxxxx Xxxxxxxxxx |
3/25/04 |
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Signature |
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