EXHIBIT 10.37
AMENDMENT TO EMPLOYMENT AGREEMENT
THIS AMENDMENT TO EMPLOYMENT AGREEMENT (this "Amendment") is made and
entered into as of July 9, 1997, by and between GENE LOGIC INC., a Delaware
Corporation (the "Company"), and XXXX X. XXXXXXX ("Executive").
WHEREAS, the Company and Executive previously entered into an Employment
Agreement dated September 7, 1996 (the "Employment Agreement") which, among
other things, provides for the automatic vesting of all outstanding options
to purchase the Company's Common Stock held by the Executive upon a change of
control of the Company (the "Vesting Provision"); and
WHEREAS, the Company and Executive desire to amend the Employment
Agreement to amend and restate the Vesting Provision.
NOW, THEREFORE, the parties hereto, in consideration of the mutual
promises and agreements set forth below, hereby agree to amend the Employment
Agreement as follows:
1. RESTATEMENT OF VESTING PROVISION. Section 3.1 of the Employment
Agreement shall be amended and restated to read in its entirety as follows:
"3.1 INCENTIVE STOCK OPTIONS. Upon commencement of the term of
employment engaged by this Agreement, the Company shall grant to Xxxxxxx
incentive stock options to purchase 75,000 shares of the Company's Common
Stock at a purchase price per share of $0.15 per share. While this
Agreement remains in force, such options shall become exercisable according
to the following schedule: twenty-five percent (25%) upon the date of
commencement and thereafter at the rate of 1/36th each month for 36 months
beginning upon the first anniversary of such date. In the event of: (i) a
merger or consolidation of the Company with another corporation, not
including any merger or consolidation if immediately thereafter the
stockholders of the Company immediately before such transaction own shares
representing more than 50% of the outstanding voting securities of the
surviving corporation, (ii) a sale of shares by the stockholders of the
Company if immediately thereafter the stockholders of the Company
immediately before such sale own shares representing less than 50% of the
outstanding voting securities of the surviving corporation, or (iii) a sale
of all or substantially all of the Company's assets, all options to
purchase Common Stock of the Company held by Eastman that have not
previously vested under the terms of the applicable Option Agreements shall
vest immediately upon the closing of such transaction. In the event of an
underwritten initial public offering of the Company's Common Stock, to the
extent at least 80% of the aggregate of the
1.
shares subject to outstanding options to purchase Common Stock of the
Company held by Xxxxxxx (other than any such options granted immediately
prior to and in contemplation of such initial public offering) have not
previously vested under the terms of the applicable Option Agreements,
then the vesting of such options shall be accelerated such that 80% of
the shares subject to each such option shall be vested as of the closing
of such initial public offering and the remaining 20% of the shares
subject to each such option shall vest 180 days from the closing of such
initial public offering. If, in the event of an underwritten initial
public offering of the Company's Common Stock, 80% or more of the
aggregate of the shares subject to outstanding options to purchase
Common Stock of the Company held by Xxxxxxx (other than any such options
granted immediately prior to and in contemplation of such initial public
offering) have previously vested, then any remaining unvested shares
subject to such options shall vest 180 days from the closing of such
initial public offering.
2. EFFECTIVE DATE. This Amendment shall be effective as of the date of
the Employment Agreement. Except as amended herein, or as otherwise agreed to
in writing by the Company and Executive, all terms of the Employment Agreement
shall remain in full force and effect.
2.
IN WITNESS WHEREOF, the parties have executed this Amendment to Employment
Agreement as of the date first above written.
THE COMPANY: EXECUTIVE:
GENE LOGIC INC.
a Delaware Corporation
By: /s/ XXXXXXX X. XXXXXXX /s/ XXXX X. XXXXXXX
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Title: President & CEO Xxxx X. Xxxxxxx
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3.
