LETTERHEAD]
[LETTERHEAD]
February 11, 2008
Xxxxxxx Xxxxxx, M.D., Ph.D.
[Address]
[Address]
Dear Xxxxx:
We are pleased to offer you this restated employment agreement, which updates and replaces
your employment agreement of February 8, 2006, as amended on November 13, 2006 and February 6,
2007, in order to address changes in federal tax law. The Board of Directors (the “Board”) and
management team of Memory Pharmaceuticals Corp. (the “Company”) look forward to continuing to work
with you, and are confident that you will continue to contribute significantly to the value of our
organization.
1. Position. Your position will remain Chief Medical Officer, based out of the
Company’s offices currently located in Montvale, New Jersey, and you will continue to report
directly to the Company’s Chief Scientific Officer. As Chief Medical Officer, you will continue
to be part of the Company’s senior management team, and will work closely with this team to
establish strategic, value-building relationships with pharmaceutical companies and contract
research organizations. Your responsibilities shall include, but not be limited to, managing the
Company’s clinical research and development activities. In addition to performing duties and
responsibilities associated with the position of Chief Medical Officer, from time to time the
Company may assign you other duties and responsibilities and/or may assign you to a different
location.
As a full-time employee of the Company, you are expected to devote your full business time
and energies to the business and affairs of the Company. You agree not to engage in any
activities outside of the scope of your employment that would detract from, or interfere with, the
fulfillment of your responsibilities or duties under this letter agreement. You agree that you
will not, without the prior consent of the Company’s Board of Directors, serve as a director or
the equivalent position of any company or entity and you will not render services of a business,
professional or commercial nature to any other person or firm. Your performance will be reviewed
annually at the end of each calendar year. You acknowledge that a performance review does not
guarantee a salary increase.
2. Nature of Relationship. No provision of this letter shall be construed to create
an express or implied employment contract for a specific period of time. Either you or the
Company may terminate the employment relationship at any time and for any reason, by giving at
least thirty (30) days’ prior written notice to the other party. The Company, in its sole
discretion, may elect to terminate your employment immediately or during such thirty (30) day
notice period, but in this event you will continue to receive your base salary, less applicable
deductions, that you otherwise would have received through the remainder of the thirty (30) day
notice period.
3. Compensation.
(a) Your semi-monthly base salary in effect on the date of this letter will remain in effect
unless and until changed by the Company.
(b) You will be eligible to receive an annual bonus dependent on the performance of the
Company and your individual performance, subject to the discretion of the Board of Directors.
Your current target bonus will be equal to thirty percent (30%) of your annualized base salary,
assuming the achievement of such Company and individual performance objectives. The actual amount
paid, if any, shall be determined by the Board of Directors in its sole discretion, or a committee
thereof. The Company will pay any annual bonus payment during the calendar year following the
year in which the Company and individual performance objectives are satisfied. Your target bonus
for future years will be determined by the Board of Directors, in its sole discretion, or a
committee thereof.
MEMORY PHARMACEUTICALS CORP.
X. Xxxxxx
X. Xxxxxx
(c) Upon your “Separation From Service” (as defined in paragraph 3(g)) for any reason, the
Company will pay you within two (2) weeks of such Separation From Service, your current base
salary earned through the Separation From Service date, plus accrued and unused vacation, if any,
and other benefits or payments, if any, to which you are entitled, less applicable deductions.
In the event of your Separation From Service by the Company without “Cause” (as defined below)
or by you for “Good Reason” (as defined below), the Company shall pay you a severance amount equal
to twelve (12) months of your base salary in effect at the time of Separation From Service, less
applicable deductions. The Company shall pay in a lump sum all of your severance amount on the
60th day following your Separation From Service. For a period of twelve (12) months after your
Separation From Service by the Company without Cause or by you for Good Reason, the Company will
provide and pay the Company’s portion of your group health and dental insurance, which shall count
towards the applicable benefit continuation period required by applicable law. You will continue
to be responsible for your portion of the cost of your group health insurance for the twelve (12)
month period. During such period, the Company will reconcile such payments with you quarterly, and
any additional payments owed to you by the Company, and any payments owed to the Company by you,
will be paid respectively within two (2) weeks following such reconciliation period. Thereafter,
should you choose to continue such benefits through the remainder of the continuation period, you
will be responsible for paying for such coverage.
If within three (3) months prior to, or within eighteen (18) months after, the occurrence of a
Change of Control (as defined below), you have a Separation From Service by the Company without
Cause or by you for Good Reason, your unvested stock options will become fully vested.
The Company will not be obligated to continue any payments to you or accelerate vesting of
your stock options under this paragraph 3(c) in the event you materially breach the terms of this
letter agreement or the Confidentiality Agreement (as defined below). Notwithstanding any
Separation From Service for any reason (with or without Cause or for Good Reason), you will
continue to be bound by the provisions of the Confidentiality Agreement.
All payments and benefits provided pursuant to this paragraph 3(c) shall be conditioned upon
your execution and non-revocation of a general release substantially in the form of Exhibit
A attached to this letter agreement at the time of Separation From Service. Your refusal to
execute a general release shall constitute a waiver by you of any and all benefits referenced in
this paragraph 3(c). The Company will not be obligated to continue any such payments to you under
this paragraph 3(c) in the event you materially breach the terms of this letter agreement or the
Confidentiality Agreement.
(d) For the purposes of this paragraph, “Cause” shall include (i) your conviction of a
felony, either in connection with the performance of your obligations to the Company or otherwise,
which adversely affects your ability to perform such obligations or materially adversely affects
the business activities, reputation, goodwill or image of the Company, (ii) your willful
disloyalty, deliberate dishonesty, breach of fiduciary duty, (iii) your breach of the terms of
this letter agreement, or your failure or refusal to carry out any material tasks or
responsibilities assigned to you by the Company in accordance with the terms hereof, which breach
or failure continues for a period of more than thirty (30) days after your receipt of written
notice thereof from the Company, (iv) the commission by you of any act of fraud, embezzlement or
deliberate disregard of a rule or policy of the Company known to you or contained in a policy and
procedure manual provided to you which results in material loss, damage or injury to the Company,
or (v) the material breach by you of any of the provisions of the Confidentiality Agreement.
(e) For the purpose of this paragraph 3, a Separation From Service for “Good Reason” shall
mean a Separation From Service that occurs following submission of your written resignation in
accordance with paragraph 2 and in accordance with this paragraph 3(e). For purposes of a
Separation From Service for Good Reason, the Separation From Service must occur within eighteen
(18) months after a “Change in Control” (as defined below) or the sale of a majority of the
assets, obligations, or business of the Company (whether by merger, sale of stock or otherwise).
Your written resignation for Good Reason must be received:
(i) within ninety (90) calendar days after a material diminution in your responsibilities
(provided that such diminution is not in connection with a Separation From Service for Cause),
MEMORY PHARMACEUTICALS CORP.
X. Xxxxxx
X. Xxxxxx
(ii) within ninety (90) calendar days of your principal work location changing to be more
than fifty (50) miles from the Company’s principal offices,
(iii) within ninety (90) calendar days after any material reduction by the Company of the
amount of your base salary, unless such reduction is pursuant to a plan and as a consequence the
base salaries of the Company’s executives are reduced generally.
Provided, however, that with respect to any of the foregoing events, you shall be
required to provide the Company written notice of the existence of the condition within ninety
(90) calendar days after the initial existence of the condition, and the Company shall have the
opportunity to cure such event if such event is capable of being cured within thirty (30) days
after it receives such notice.
(f) For the purposes of this letter agreement, “Change of Control” shall be deemed to have
occurred if the Company is consolidated with or acquired by another entity in a merger, sale of all
or substantially all of the Company’s assets or shares of stock or otherwise (excluding (A)
transactions solely for the purpose of reincorporating the Company in a different jurisdiction or
recapitalizing or reclassifying the Company’s stock, or (B) any merger or consolidation in which
the shareholders of the Company immediately prior to such merger or consolidation continue to own
at least a majority of the outstanding voting securities of the Company or the surviving entity
after such merger of consolidation).
(g) For purposes of this letter agreement, “Separation From Service” shall mean Separation
From Service with the Company within the meaning of section 409A of the Internal Revenue Code of
1986, as amended. In accordance with section 409A, a Separation From Service will generally occur:
(i) on the day that no further services will be performed by you or that the level of services that
you perform for the Company permanently decreases to no more than twenty percent (20%) of the
average level of bona fide services you performed over the immediately preceding thirty-six (36)
month period (or such shorter period if you have not been employed for thirty-six (36) months);
(ii) on the first day immediately following six (6) months of a bona fide leave of absence period
that is not due to a medically determinable physical or mental impairment that can be expected to
result in death or to last for a continuous period of not less than six months, or (iii) on the
first day immediately following twenty-nine (29) months of a bona fide leave of absence period that
is due to a medically determinable physical or mental impairment that can be expected to result in
death or to last for a continuous period of not less than six (6) months. However, a Separation
From Service does not occur during a leave if you have the right to return under an applicable
statute or by contract.
4. Benefits. You will be entitled as an employee of the Company to receive such
benefits as are generally provided its employees and executives and for which you are eligible in
accordance with Company policy as in effect from time to time. The Company retains the right to
change, add or cease any particular benefit relating to its employees and executives generally.
At this time, the Company is offering a benefit program, consisting of medical, dental, life and
short/long term disability insurance, as well as a 401(k) retirement plan and flexible spending
plan. You will be eligible for eleven (11) paid holidays in addition to Paid Time Off, which
accrues in accordance with Company policy.
5. Confidentiality. The Company considers the protection of its confidential
information and proprietary materials to be very important. Therefore, as a condition of your
employment, you remain subject to the Confidentiality and Noncompetition Agreement substantially
in the form of Exhibit B to this letter (the “Confidentiality Agreement”).
6. General.
(a) This letter agreement, together with the Confidentiality Agreement and any outstanding
Stock Option Agreement(s), when executed, will constitute our entire agreement as to your
employment by the Company and will supersede any prior agreements or understandings, whether in
writing or oral.
(b) This letter agreement shall be governed by the law of the State of New Jersey. In the
event of any legal proceedings relating to this letter agreement and/or the subject matter
thereof, the parties consent to the exclusive jurisdiction of the courts located in the State of
New Jersey. THE PARTIES HEREBY EXPRESSLY WAIVE THEIR RIGHT TO HAVE A JURY TRIAL.
MEMORY PHARMACEUTICALS CORP.
X. Xxxxxx
X. Xxxxxx
You may accept this restated employment agreement and the terms thereof by signing the
enclosed additional copy of this letter agreement, which execution will evidence your agreement
with the terms set forth herein, and returning this letter agreement to the Company.
We look forward to your continued contributions to Memory’s growth and your prompt response
to this letter.
| Sincerely, Memory Pharmaceuticals Corp. |
||||
| By: | /s/ Xxxxx X. Xxxxx | |||
| Name: | Xxxxx X. Xxxxx | |||
| Chief Financial Officer | ||||
| ACCEPTED AND AGREED: |
||||
| /s/ Xxxxxxx Xxxxxx, M.D., Ph.D. | ||||
| Xxxxxxx Xxxxxx, M.D., Ph.D. | ||||
| Date: February 11, 2008 | ||||
MEMORY PHARMACEUTICALS CORP.
X. Xxxxxx
X. Xxxxxx
EXHIBIT A
FORM OF GENERAL RELEASE OF CLAIMS
GENERAL RELEASE OF CLAIMS
For and in consideration of the payments and other benefits described in the letter agreement
dated as of February 11, 2008 (the “Letter Agreement”) by and between Memory Pharmaceuticals Corp.
(the “Company”), and Xxxxxxx Xxxxxx (“Employee”) and for other good and valuable consideration,
Employee hereby releases the Company and its respective divisions, operating companies, affiliates,
subsidiaries, parents, branches, predecessors, successors, assigns, officers, directors, trustees,
employees, agents, shareholders, administrators, representatives, attorneys, insurers and
fiduciaries, past, present and future (the “Released Parties”), from any and all claims of any kind
arising out of or related to Employee’s employment with the Company, Employee’s separation from
employment with the Company or derivative of Employee’s employment, which Employee now has or may
have against the Released Parties, whether known or unknown to Employee, by reason of facts which
have occurred on or prior to the date that Employee has signed this General Release of Claims.
Such released claims include, without limitation, any alleged violation of the Age Discrimination
in Employment Act, as amended, the Older Worker Benefits Protection Act; Title VII of the Civil
Rights of 1964, as amended; Sections 1981 through 1988 of Title 42 of the United States Code; the
Civil Rights Act of 1991; the Equal Pay Act; the Americans with Disabilities Act; the
Rehabilitation Act; the Family and Medical Leave Act; the Fair Labor Standards Act; the Employee
Retirement Income Security Act of 1974, as amended; the Worker Adjustment and Retraining
Notification Act; the National Labor Relations Act; the Fair Credit Reporting Act; the Occupational
Safety and Health Act; the Uniformed Services Employment and Reemployment Act; the Employee
Polygraph Protection Act; the Immigration Reform Control Act; the retaliation provisions of the
Xxxxxxxx-Xxxxx Act of 2002; the Federal False Claims Act; the New Jersey Law Against
Discrimination; the New Jersey Domestic Partnership Act; the New Jersey Conscientious Employee
Protection Act; the New Jersey Family Leave Act; the New Jersey Wage and Hour Law; the New Jersey
Equal Pay Law; the New Jersey Occupational Safety and Health Law; the New Jersey Smokers’ Rights
Law; the New Jersey Genetic Privacy Act; the New Jersey Fair Credit Reporting Act; the retaliation
provisions of the New Jersey Workers’ Compensation Law (and including any and all amendments to the
above) and/or any other alleged violation of any federal, state or local law, regulation or
ordinance, and/or contract or implied contract or tort law or public policy or whistleblower claim,
having any bearing whatsoever on Employee’s employment by and the termination of Employee’s
employment with the Company, including, but not limited to, any claim for wrongful discharge, back
pay, vacation pay, sick pay, wage, commission or bonus payment, money or equitable relief or
damages of any kind, attorneys’ fees, costs, and/or future wage loss.
It is understood that this General Release of Claims is not intended to and does not affect or
release any future rights or any claims arising after the date hereof.
Employee understands that the consideration provided to him under the terms of the Letter
Agreement or otherwise does not constitute an admission by the Company that it has violated any law
or legal obligation.
Employee agrees, to the fullest extent permitted by law, that he will not commence, maintain,
prosecute or participate in any action or proceeding of any kind against the Company based on any
of the claims waived herein occurring up to and including the date of his signature. Employee
represents and warrants that he has not done so as of the effective date of this General Release of
Claims. Notwithstanding the foregoing agreement, representation and warranty, if Employee violates
any of the provisions of this paragraph, Employee agrees to indemnify and hold harmless the Company
from and against any and all costs, attorneys’ fees and other expenses authorized by law which
result from, or are incident to, such violation. This paragraph is not intended to preclude
Employee from (1) enforcing the terms of the Letter Agreement; (2) challenging the validity of this
General Release of Claims; or (3) filing a charge or participating in any investigation or
proceeding conducted by the Equal Employment Opportunity Commission.
MEMORY PHARMACEUTICALS CORP.
X. Xxxxxx
X. Xxxxxx
Employee further agrees to waive his right to any monetary or equitable recovery should any
federal, state or local administrative agency pursue any claims on his behalf arising out of or
related to his employment with and/or separation from employment with the Company and promises not
to seek or accept any award, settlement or other monetary or equitable relief from any source or
proceeding brought by any person or governmental entity or agency on his behalf or on behalf of any
class of which he is a member with respect to any of the claims he has waived.
Employee acknowledges and agrees that Employee has read this General Release of Claims
carefully, and acknowledges that he has been given at least twenty one (21) days from the date of
receipt of this General Release of Claims to consider all of its terms and has been advised to
consult with any attorney and any other advisors of the Employee’s choice prior to executing this
General Release of Claims. Employee fully understands that, by signing below, Employee is
voluntarily giving up any right which Employee may have to sue or bring any other claims against
the Released Parties, including any rights and claims under the Age Discrimination in Employment
Act. The terms of this General Release of Claims shall not become effective or enforceable until
eight (8) days following the date of its execution by Employee, during which time Employee may
revoke the Letter Agreement. Employee may revoke the Letter Agreement by notifying the Company in
writing (to the attention of the President and Chief Executive Officer with a copy to Vice
President of Legal Affairs). For Employee’s revocation to be effective, written notice must be
received by no later than the close of business on the eighth (8th) day after Employee
signs this General Release of Claims. The terms of this offer to provide the payments and other
benefits described in paragraph 3(c) of the Letter Agreement, will expire if not accepted during
the 21 day review period.
Employee agrees to keep confidential all information contained in this General Release of
Claims and relating to this General Release of Claims, except (1) to the extent the Company
consents in writing to such disclosure; (2) if Employee is required by process of law to make such
disclosure and Employee promptly notifies the Company of his receipt of such process; or (3)
because Employee must disclose certain terms on a confidential basis to his financial consultant,
attorney or spouse.
This General Release of Claims shall be construed and enforced in accordance with, and
governed by, the laws of the State of New Jersey, without regard to principles of conflict of laws.
If any clause of this General Release of Claims should ever be determined to be unenforceable, it
is agreed that this will not affect the enforceability of any other clause or the remainder of this
General Release of Claims.
This General Release of Claims is final and binding and may not be changed or modified except
as set forth herein or in a writing signed by both parties. The parties have executed this General
Release of Claims with full knowledge of any and all rights they may have, and they hereby assume
the risk of any mistake in fact in connection with the true facts involved, or with regard to any
facts which are now unknown to them.
By signing this General Release of Claims, Employee acknowledges that: (1) he has read this
General Release of Claims completely; (2) he has had an opportunity to consider the terms of this
General Release of Claims; (3) he has had the opportunity to consult with an attorney of his
choosing prior to executing this General Release of Claims to explain this General Release of
Claims and its consequences; (4) he knows that he is giving up important legal rights by signing
this General Release of Claims; (5) he has not relied on any representation or statement not set
forth in this General Release of Claims; (6) he understands and means everything that he has said
in this General Release of Claims, and he agrees to all its terms; and (7) he has signed this
General Release of Claims voluntarily and entirely of his own free will.
EXHIBIT B
FORM OF CONFIDENTIALITY AGREEMENT
[LETTERHEAD}
CONFIDENTIALITY AND NONCOMPETITION AGREEMENT
February 8, 2006
Dr. Xxxxxxx Xxxxxx
[Address]
[Address]
Dear Xx. Xxxxxx:
This letter is to confirm our understanding with respect to (i) your agreement to protect and
preserve information and property which is confidential and proprietary to Memory Pharmaceuticals
Corp. or its parent, subsidiaries or affiliates, if any, (the “Company”), and (ii) your agreement
not to compete with the Company (the terms and conditions agreed to in this letter shall
hereinafter be referred to as this “Agreement”). In consideration of the mutual promises and
covenants contained in this Agreement, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby mutually acknowledged, we have agreed as follows:
1. Protected Information. You shall at all times, both during and after the
termination of your employment with the Company, by either you or the Company, with or without
cause, maintain in confidence and shall not, without the prior written consent of the Company,
directly or indirectly use, except in the course of performance of your duties for the Company,
directly or indirectly disclose or give to others any fact, information or document (whether
printed, typed, handwritten, electronic or stored on computer disks, tapes, hard drives or any
other tangible medium) which was disclosed to or developed by you during the course of performing
services for, and/or receiving training from, the Company, and is not generally available to the
public, including but not limited to, information, facts and documents concerning business plans,
research and development, customers, suppliers, licensors, licensees, partners, investors,
affiliates or others, training methods and materials, financial information, sales prospects,
client lists, methodologies, formulae, designs, schematics, charts, Inventions (as defined in
Section 2), or any other scientific, technical, trade or business secret or confidential or
proprietary information (“Confidential Information”) of the Company or of any third party provided
to you during the course of your training and/or employment.
In the event you are questioned by anyone not employed by the Company or by an employee of or
a consultant to the Company not authorized to receive such information, in regard to any
Confidential Information or any other secret or confidential work of the Company, or concerning any
fact or circumstance relating thereto, or in the event that you become aware of the unauthorized
use of Confidential Information by any party, whether competitive with the Company or not, you will
promptly notify the President and Chief Executive Officer and Vice President — Legal Affairs of
the Company.
2. Ownership of Ideas, Copyrights and Patents.
(a) Property of the Company. You agree that all ideas, discoveries, creations,
manuscripts and properties, innovations, improvements, know-how, Inventions, designs, developments,
apparatus, techniques, algorithms, software, mask works, methods, and formulae (all of the
foregoing being hereinafter referred to as the “Inventions”) which may be used in the business of
the Company, whether patentable, copyrightable, protectable as mask works or not, which you may
conceive, reduce to practice or develop alone or in conjunction with another, or others, and
whether at the request or upon the suggestion of the Company, or otherwise, during the period in
which you perform services for or at the request of the Company (the “Term”) and, with respect to
Inventions in Field of Interest (as defined below), for a period of one (1) year thereafter, shall
be the sole and exclusive property of the Company, that you shall promptly disclose any such
Inventions to the Company both during and after the Term, and that you shall not publish any such
Inventions without the prior written consent of the Company. You hereby assign to the Company all
of your rights, title and interests in and to all of the foregoing. You further represent and
agree that to the best of your knowledge and belief, none of the Inventions will
MEMORY PHARMACEUTICALS CORP.
Xxxxxxx Xxxxxx, M.D., Ph.D.
Xxxxxxx Xxxxxx, M.D., Ph.D.
violate or infringe upon any right, patent, copyright, trademark or right of privacy, or
constitute libel or slander against or violate any other rights of any person, firm or corporation,
and that you will use your best efforts to prevent any such violation. You also agree that you
will neither disclose to the Company or any of its employees nor use for their benefit any other
person’s or company’s trade secret or proprietary information, or information which you have agreed
not to disclose or use.
(b) Cooperation. At any time during or after the Term, you agree that you will fully
cooperate with the Company, its attorneys and agents in the preparation and filing of all papers
and other documents as may be required to perfect and protect the Company’s rights in and to any of
such Inventions, including, but not limited to, joining in any proceeding to obtain and enforce
letters patent, copyrights, mask work registrations, trademarks or other legal rights of the United
States and of any and all other countries on such Inventions, provided that the Company will bear
the expense of such proceedings, and that any patent, copyright, mask work registration, trademark
or other legal right so issued to you, personally, shall be assigned by you to the Company without
charge by you.
3. Prohibited Competition.
(a) Certain Acknowledgments and Agreements.
(i) We have discussed, and you recognize and acknowledge the competitive and proprietary
aspects of the business of the Company.
(ii) You further acknowledge and agree that, during the course of your performing services for
the Company, the Company will furnish, disclose or make available to you Confidential Information
related to the Company’s business and that the Company may provide you with unique and specialized
training. You also acknowledge that such Confidential Information and such training have been
developed and will be developed by the Company through the expenditure by the Company of
substantial time, effort and money. You acknowledge that such Confidential Information and
training, if used by you to compete with the Company, will cause irreparable harm to the Company.
You also acknowledge that the Company has a legitimate business interest in protecting its
Confidential Information.
(iii) You acknowledge that the Company is engaged in the research, development or
commercialization of agents to affect memory, cognitive abilities or any related neurological or
psychiatric function (the “Field of Interest”) and that any engagement by you, directly or
indirectly, in the Field of Interest will be deemed competitive. You further acknowledge that the
foregoing description is not exclusive and that the Company’s products and services and planned
products and services will change from time to time without notice to you and without formal
amendment of this Agreement.
(b) Covenants Not to Compete. During the Term and for a period of one (1) year
following the expiration or termination of the Term, whether such termination is voluntary or
involuntary, with or without cause, you shall not, without the prior written consent of the
Company:
(i) for yourself or on behalf of any other person or entity, directly or indirectly, either as
principal, agent, employee, consultant, representative or in any other capacity, own, manage,
operate or control, or be connected or employed by, or otherwise associate in any manner with, or
engage in any business which is in the Field of Interest within the United States, Europe or Japan
(the “Restricted Territory”); or
(ii) either individually or on behalf of or through any third party, solicit, divert or
appropriate or attempt to solicit, divert or appropriate, for the purpose or with the effect of
competing
MEMORY PHARMACEUTICALS CORP.
Xxxxxxx Xxxxxx, M.D., Ph.D.
Xxxxxxx Xxxxxx, M.D., Ph.D.
with the Company in the Field of Interest or any present or future parent, subsidiary or other
affiliate of the Company which is engaged in a similar business as the Company, any customers or
patrons of the Company, or any prospective customers or patrons with respect to which the Company
has developed or made a sales presentation (or similar offering of services), located within the
Restricted Territory; or
(iii) either individually or on behalf of or through any third party, directly or indirectly,
solicit, entice or persuade or attempt to solicit, entice or persuade any other employees of or
consultants to the Company or any present or future parent, subsidiary or affiliate of the Company,
to leave the services of the Company or any such parent, subsidiary or affiliate for any reason.
You acknowledge that the Company has invested a substantial amount of time and money in attracting
and retaining its employees and in training its employees in the Company’s particular business.
You acknowledge that the Company has a legitimate interest in protecting this investment.
(c) Reasonableness of Restrictions. You further recognize and acknowledge that (i)
the types of activities and employment which are prohibited by Section 3 are narrow and reasonable
in relation to the skills which represent your principal salable asset both to the Company and to
your other prospective employers, and (ii) the geographical scope of the provisions of Section 3 is
reasonable, legitimate and fair to you in light of the geographic scope of the Company’s business,
and in light of the limited restrictions on the type of employment prohibited herein compared to
the types of employment for which you are qualified to earn your livelihood.
4. Survival of Acknowledgments and Agreements. Your acknowledgments and agreements
set forth in Sections 1, 2 and 3 shall survive the expiration or termination of this Agreement and
the termination of your employment with the Company for any reason.
5. Disclosure to Future Employers. You agree that you will provide, and that the
Company may similarly provide in its discretion, a copy of the covenants contained in Sections 1, 2
and 3 of this Agreement to any business or enterprise which you may directly, or indirectly, own,
manage, operate, finance, join, control or in which you participate in the ownership, management,
operation, financing, or control, or with which you may be connected as an officer, director,
employee, partner, principal, agent, representative, consultant or otherwise.
6. Records. Upon termination of your relationship with the Company, you shall deliver
immediately to the Company any property of the Company which may be in your possession including
products, materials, memoranda, notes, records, reports, or other documents or photocopies of the
same, including, without limitation, any of the foregoing recorded on any computer or any machine
readable medium.
7. No Conflicting Agreements. You have set forth on Exhibit 1 hereto all computer
software and/or Inventions made or conceived by you prior to the date of this Agreement which you
own an interest in and wish to exclude from this Agreement and have listed on Exhibit 1 and
attached copies hereto of any agreements with other parties which may prevent your full compliance
with the terms stated herein. You hereby represent and warrant that, except as set forth on
Exhibit 1, you have no commitments or obligations inconsistent with this Agreement and you hereby
agree to indemnify and hold the Company harmless against loss, damage, liability or expense arising
from any claim based upon circumstances alleged to be inconsistent with such representation and
warranty.
8. General.
(a) Notices. All notices, requests, consents and other communications hereunder shall
be in writing, shall be addressed to the receiving party’s address set forth below or to such other
address as a party may designate by notice hereunder, and shall be either (i) delivered by hand,
(ii) made
MEMORY PHARMACEUTICALS CORP.
Xxxxxxx Xxxxxx, M.D., Ph.D.
Xxxxxxx Xxxxxx, M.D., Ph.D.
by telecopy or facsimile transmission, (iii) sent by overnight courier, or (iv) sent by
registered or certified mail, return receipt requested, postage prepaid.
If to the Company:
|
Memory Pharmaceuticals Corp. | |
| 000 Xxxxxxx Xxxxxxx | ||
| Montvale, New Jersey 07645 | ||
| Attention: President and Chief Executive Officer | ||
With a copy to:
|
Xxxxx Xxxxxx Xxxxxxx & Xxxxx, P.C. | |
| One Riverfront Plaza | ||
| Newark, New Jersey 07102 | ||
| Attention: Xxx X. Xxxxxxxxx, Esq. | ||
If to Employee:
|
Xxxxxxx Xxxxxx, M.D., Ph.D. | |
| [Address] |
All notices, requests, consents and other communications hereunder shall be deemed to have been
given either (i) if by hand, at the time of the delivery thereof to the receiving party at the
address of such party set forth above, (ii) if made by telecopy or facsimile transmission, at the
time that receipt thereof has been acknowledged by electronic confirmation or otherwise, (iii) if
sent by overnight courier, on the next business day following the day such notice is delivered to
the courier service, or (iv) if sent by registered or certified mail, on the fifth business day
following the day such mailing is made.
(b) Entire Agreement. This Agreement embodies the entire agreement and understanding
between the parties hereto with respect to the subject matter hereof and supersedes all prior oral
or written agreements and understandings relating to the subject matter hereof. No statement,
representation, warranty, covenant or agreement of any kind not expressly set forth in this
Agreement shall affect, or be used to interpret, change or restrict, the express terms and
provisions of this Agreement.
(c) Modifications and Amendments. The terms and provisions of this Agreement may be
modified or amended only by written agreement executed by the parties hereto.
(d) Waivers and Consents. The terms and provisions of this Agreement may be waived,
or consent for the departure therefrom granted, only by written document executed by the party
entitled to the benefits of such terms or provisions. No such waiver or consent shall be deemed to
be or shall constitute a waiver or consent with respect to any other terms or provisions of this
Agreement, whether or not similar. Each such waiver or consent shall be effective only in the
specific instance and for the purpose for which it was given, and shall not constitute a continuing
waiver or consent.
(e) Assignment. The Company may assign its rights and obligations hereunder to any
person or entity who succeeds to all or substantially all of the Company’s business or that aspect
of the Company’s business in which you are principally involved. Your rights and obligations under
this Agreement may not be assigned by you without the prior written consent of the Company.
(f) Benefit. All statements, representations, warranties, covenants and agreements in
this Agreement shall be binding on the parties hereto and shall inure to the benefit of the
respective successors and permitted assigns of each party hereto. Nothing in this Agreement shall
be construed to create any rights or obligations except among the parties hereto, and no person or
entity shall be regarded as a third-party beneficiary of this Agreement.
MEMORY PHARMACEUTICALS CORP.
Xxxxxxx Xxxxxx, M.D., Ph.D.
Xxxxxxx Xxxxxx, M.D., Ph.D.
(g) Governing Law. This Agreement and the rights and obligations of the parties
hereunder shall be construed in accordance with and governed by the law of the State of New Jersey,
without giving effect to the conflict of law principles thereof.
(h) Jurisdiction and Service of Process. Any legal action or proceeding with respect
to this Agreement shall be brought in the courts of the State of New Jersey or of the United States
District Court for the District of New Jersey. By execution and delivery of this Agreement, each
of the parties hereto accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts. Each of the parties hereto irrevocably
consents to the service of process of any of the aforementioned courts in any such action or
proceeding by the mailing of copies thereof by certified mail, postage prepaid, to the party at its
address set forth in Section 8(a) hereof.
(i) Severability. The parties intend this Agreement to be enforced as written.
However, (i) if any portion or provision of this Agreement shall to any extent be declared illegal
or unenforceable by a duly authorized court having jurisdiction, then the remainder of this
Agreement, or the application of such portion or provision in circumstances other than those as to
which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion
and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by
law; and (ii) if any provision, or part thereof, is held to be unenforceable because of the
duration of such provision or the geographic area covered thereby, the Company and you agree that
the court making such determination shall have the power to reduce the duration and/or geographic
area of such provision, and/or to delete specific words and phrases (“blue-pencilling”), and in its
reduced or blue-pencilled form such provision shall then be enforceable and shall be enforced.
(j) Interpretation. The parties hereto acknowledge and agree that the terms and
provisions of this Agreement, shall be construed fairly as to all parties hereto and not in favor
of or against a party, regardless of which party was generally responsible for the preparation of
this Agreement.
(k) Headings and Captions. The headings and captions of the various subdivisions of
this Agreement are for convenience of reference only and shall in no way modify, or affect the
meaning or construction of any of the terms or provisions hereof.
(l) Injunctive Relief. You hereby expressly acknowledge that any breach or threatened
breach of any of the terms and/or conditions set forth in Sections 1, 2 or 3 of this Agreement will
result in substantial, continuing and irreparable injury to the Company. Therefore, you hereby
agree that, in addition to any other remedy that may be available to the Company, the Company shall
be entitled to injunctive or other equitable relief by a court of appropriate jurisdiction, without
posting a bond, in the event of any breach or threatened breach of the terms of Sections 1, 2 or 3
of this Agreement.
(m) No Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto
in exercising any right, power or remedy under this Agreement, and no course of dealing between the
parties hereto, shall operate as a waiver of any such right, power or remedy of the party. No
single or partial exercise of any right, power or remedy under this Agreement by a party hereto,
nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, shall
preclude such party from any other or further exercise thereof or the exercise of any other right,
power or remedy hereunder. The election of any remedy by a party hereto shall not constitute a
waiver of the right of such party to pursue other available remedies. No notice to or demand on a
party not expressly required under this Agreement shall entitle the party receiving such notice or
demand to any other or further notice or demand in similar or other circumstances or constitute a
waiver of the rights of the party giving such notice or demand to any other or further action in
any circumstances without such notice or demand.
MEMORY PHARMACEUTICALS CORP.
Xxxxxxx Xxxxxx, M.D., Ph.D.
Xxxxxxx Xxxxxx, M.D., Ph.D.
(n) Expenses. Should any party breach this Agreement, in addition to all other
remedies available at law or in equity, such breaching party shall pay all of any other party’s
costs and expenses resulting therefrom and/or incurred in enforcing this Agreement, including legal
fees and expenses.
9. Counterparts. This Agreement may be executed in one or more counterparts, and by
different parties hereto on separate counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.
If the foregoing accurately sets forth our agreement, please so indicate by signing and
returning to us the enclosed copy of this letter.
| Very truly yours, MEMORY PHARMACEUTICALS CORP. |
||||
| By: | ||||
| Name: | Xxxxx X. Xxxx | |||
| Title: | Chief Scientific Officer | |||
| Accepted and Approved: |
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| Xxxxxxx Xxxxxx, M.D., Ph.D. | ||||
EXHIBIT 1
PRIOR INVENTIONS AND/OR CONFLICTING AGREEMENTS
