your Separation from Service date, and allow the Separation Agreement to become effective according to its terms (by not invoking any legal right to revoke it) within any applicable time period set forth therein.
Notwithstanding anything to the contrary herein, upon the consummation of a change in control of the Company, you shall be entitled to receive the cash Severance described above, payable in accordance with the payment timing set forth herein.
For the purposes of this offer letter only, “Cause” shall mean: (i) your continued failure to materially perform your assigned duties; (ii) your material breach of any agreement between the Company and you, including this offer letter or the Proprietary Rights Agreement; (iii) your failure or refusal to comply with the policies, standards, employee expectations, and regulations established by the Company from time to time, including to cooperate in good faith with any governmental or internal investigation of the Company or its directors, officers or employees, if the Company has requested your cooperation; (iv) any act of personal dishonesty, fraud, embezzlement, misrepresentation, or other unlawful act committed by you that benefits you at the expense of the Company; (v) your violation of, or a plea of nob contendere or guilty to, a federal or state law or regulation applicable to the Company’s business or a felony under the laws of the United States or any state; (vi) your gross negligence or willful misconduct that was or is likely to be materially injurious to the Company or its affiliates; (vii) the Company’s severe financial distress, whereby the Company is in the process of winding down its business and your employment is terminated in connection with such winding down; or (viii) your failure to fulfill all of your employment contingencies, including starting your employment by the Start Date, signing and returning the Confidentiality Agreement, and proving you are authorized to work in the United States.
For the purposes of this letter agreement “Good Reason” means any of the following actions taken by the Company: (1) a material reduction in your base salary, which the parties agree is a reduction of at least 10% of your base salary (unless pursuant to a salary reduction program applicable generally to the Company’s similarly situated employees); (2) a material diminution in your authority, duties, responsibilities or reporting relationship, provided, however, that a change in job position shall not be deemed a “material reduction” in and of itself unless your new duties are materially reduced from the prior duties; or (3) relocation of your principal place of employment to a place that increases your one-way commute by more than thirty (30) miles as compared to your then-current principal place of employment immediately prior to such relocation. In order to resign for Good Reason, you must provide written notice of the event giving rise to Good Reason to the Board within ninety (90) days after the condition first arises, allow the Company thirty (30) days to cure such condition, and if the Company fails to cure the condition within such period, your resignation from all positions you then hold with the Company must be effective not later than ninety (90) days after the end of the Company’s cure period.
The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. The Company and you agree to work together in good faith to consider amendments to this offer letter and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to you under Section 409A.
Work Eligibility
You have provided to the Company sufficient documentation to demonstrate your eligibility to work in the United States and, at the request of the Company, shall provide any additional documentation requested by the Company to demonstrate your eligibility to work in the United States.