LADD GREENO EMPLOYMENT AGREEMENT
QUICK-MED
TECHNOLOGIES, INC.
XXXX
XXXXXX EMPLOYMENT AGREEMENT
This
Employment Agreement (the “Agreement”) is entered into as of
August 6, 2007 (the “Effective Date”) by and between Quick-Med
Technologies, Inc. (the “Company”) and J. Xxxx Xxxxxx
(“Executive”).
1.
Duties and Scope of Employment.
(a) Positions
and Duties. Executive began employment with the Company on June
11, 2007 (the “Start Date”). As of the Effective
Date, Executive will serve as the Company’s Chief Executive Officer (the “CEO”)
and will report to the Company’s Board of Directors (the
“Board”). Executive will render such business and
professional services in the performance of his duties, consistent with
Executive’s position as the CEO of the Company, as will reasonably be assigned
to him by the Board. The period Executive is employed by the Company
under this Agreement is referred to herein as the “Employment
Term”.
(b) Board
Membership. Executive will be appointed to serve as a member of
the Board, subject to any required Board and/or stockholder
approval.
(c) Obligations.
(i) From
the Start Date and through the Employment Term, Executive will perform his
duties faithfully and to the best of his ability and will devote his full
business efforts and time to the Company. From the Start Date and
through the Employment Term, Executive agrees that he will not engage in any
other employment, occupation, consulting or other business activity directly
related to the business in which the Company is now involved or becomes involved
during Executive’s employment with the Company, nor will Executive engage in any
other business activities that conflict with Executive’s obligations to the
Company. Executive agrees that he will not serve on the board of
directors of any other Company without the prior approval of the
Board.
(ii) Executive
hereby represents and warrants to the Company that Executive is not party to
any
contract, understanding, agreement or policy, written or otherwise, that would
be breached by Executive’s entering into, or performing services under, this
Agreement. Executive further represents that he has disclosed to the
Company in writing all threatened, pending, or actual claims that are unresolved
and still outstanding, in each case, against Executive of which he is aware,
if
any, as a result of his employment with his previous employer (or any other
previous employer) or his membership on any boards of directors.
2.
At-Will Employment. Executive and the
Company agree that Executive’s employment with the Company constitutes “at-will”
employment. Executive and the Company acknowledge that this
employment relationship may be terminated at any time, upon written notice
to
the other party, with or without cause, at the option either of the Company
or
Executive. However, as described in this Agreement, Executive may be
entitled to severance benefits depending upon the circumstances of Executive’s
termination of employment.
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3.
Compensation.
(a) Base
Salary. During the Employment Term, the Company will pay
Executive an annual salary of Two Hundred Fifty Thousand Dollars ($250,000)
as
compensation for his services (such annual salary, as is then effective, to
be
referred to herein as “Base Salary”). The Base
Salary will be paid periodically in accordance with the Company’s normal payroll
practices and will be subject to the usual, required
withholdings. The Base Salary will be reviewed by the Board on an
annual basis and will be subject to increase in the Company’s
discretion.
(b) Bonus. Executive
will be eligible to receive an annual bonus (the “Annual Bonus” of up to fifty
percent (50%) of the Base Salary, less applicable tax withholdings, upon the
achievement of performance objectives that will be reasonably determined by
the
Board or the Board’s Compensation Committee in consultation with Executive
within forty-five (45) days after the Effective Date, and annually thereafter
as
part of the Company’s annual planning process. However, in no event shall
Executive’s performance objectives be established until the plans and
performance objectives of the Company and all other managers that are to be
established or approved by the Board or the Compensation Committee have been
established, approved, and aligned with Executive’s performance objectives. The
Annual Bonus will be due and payable to the Executive no later than two months
after the close of each fiscal year for which the Annual Bonus is
payable. The Annual Bonus shall be made by the Company in the form of
cash unless the Board, in good faith, determines that the Company has
insufficient funds to pay the Annual Bonus in cash, in which case the bonus
shall be paid in the form of fully-vested equity. Nothing in this
paragraph limits the Board in its discretion from providing additional
equity-based compensation greater than what is described herein.
(c) Equity
Awards.
(i) Executive
will be eligible to receive awards of stock options, restricted stock or other
equity awards pursuant to any plans or arrangements the Company may have in
effect from time to time. The Board or its committee will determine
in its discretion whether Executive will be granted any such equity awards
and
the terms of any such award in accordance with the terms of any applicable
plan
or arrangement that may be in effect from time to time.
(ii) Subject
to Board approval, the Company will grant Executive two options (each, an
“Option”, and together, the “Options”) to
purchase that number of shares of the Company’s common stock equal to five
percent (5%) of the Company’s outstanding equity on the date of grant,
calculated on a fully diluted basis and taking into account any equity
commitments to other employees that were made as of the Start Date and which
remain outstanding as of the grant date (the “Share
Number”). The first Option will be granted, subject to Board
approval, on the Effective Date with respect to twenty-five percent (25%) of
the
Share Number at an exercise price of $0.75 per share and will be fully vested
and immediately exercisable on the date of grant. The second Option
will be granted, subject to Board approval, at a date determined by the Board,
but no later than October 1, 2007, and will be granted with respect to
seventy-five percent (75%) of the Share Number. The second Option
will vest and become exercisable as to 1/16th of the
shares
subject to the Option on each three (3)-month anniversary of the Start Date,
subject to Executive’s continued service with the Company through each such
date. Each Option will have a maximum term of five
(5)-years. The second Option will have an exercise price equal to the
fair market value of the underlying shares as of the date of grant of the
relevant Option, calculated in a manner to comply with Section 409A (as defined
below). Each Option will be subject to the terms and conditions of
the equity award grant agreements set out at Exhibit A and B, respectively.
Notwithstanding the foregoing or anything in the Agreement to the contrary,
except in the event of a Change in Control, if before the one (1) year
anniversary of the Start Date (A) the Company terminates Executive’s employment
for Cause (as defined below) or (B) Executive voluntary resigns from his
employment with the Company for any or no reason except Good Reason (as defined
below), the vested shares subject to the Options will be forfeited and Executive
will have no further rights thereunder. The shares subject to the
Options will be held in escrow until the one (1) year anniversary of the Start
Date. The Company agrees to use its best efforts to file a Form S-8
to register the Shares to be issued under the Options as soon as
practicable.
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4.
Employee Benefits. During the
Employment Term, Executive will be eligible to participate in accordance with
the terms of all Company employee benefit plans, policies and arrangements
that
are applicable to other senior executive officers of the Company, as such plans,
policies and arrangements may exist from time to time. The
Company reserves the right to cancel or change the benefit plans and programs
it
offers to its employees at any time.
5.
Vacation. During the Employment Term, Executive will be
entitled to paid vacation of four (4) weeks per year in accordance with the
Company’s vacation policy, prorated for calendar year 2007. The
timing and duration of specific vacations will be mutually and reasonably agreed
to by the parties hereto.
6.
Expenses. The Company will reimburse
Executive for reasonable travel, entertainment and other expenses incurred
by
Executive in the furtherance of the performance of Executive’s duties hereunder,
in accordance with the Company’s expense reimbursement policy as in effect from
time to time.
7.
Location/Relocation. As of the
Effective Date, Executive will work from home; however, Executive may be asked
to develop a Company office in the Boston area. If during the
Employment Term the Company and Executive mutually agree to relocate Executive’s
principal place of employment to Florida or another area, the Company will
reimburse Executive for: (a) reasonable moving and travel expenses incurred
by
Executive and his family during any relocation in connection with his employment
with the Company, (b) insurance for Executive’s possessions during such
relocation, and (c) certain reasonable real estate and legal fees incurred
in
connection with the relocation. The Company will reimburse Executive
for the relocation expenses detailed in this paragraph with the intent of cash
neutrality up to an aggregate amount to be mutually agreed by the Executive
and
the Company.
8.
Temporary Accommodations. During the
Employment Term, if Executive is required to meet with Company employees and
consultants for an extended period of time, the Company will provide Executive
with temporary accommodations in close proximity to the Company’s office in
either Gainesville or Boca Raton, Florida, or such other
location. The Company will provide Executive similar temporary
accommodations in the event of an interim relocation.
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9. Tax
Filing/Legal Assistance. The Company will reimburse Executive for
reasonable fees incurred for tax and/or legal professional assistance in
connection with the negotiation, review, preparation and execution of this
Agreement. Such fees must be pre-approved by the
Company.
10. Tax
Gross Up. To the extent that the Company’s reimbursement of
payments to or provision of temporary accommodations for the Executive as is
provided for in this Agreement is considered taxable income to the Executive,
the Company shall pay the Executive an amount such that the net after-tax
payment shall be at least equal to all tax liabilities associated with any
payments made or accommodations provided to the Executive by the Company
pursuant to this Agreement.
11. Termination
of Employment. In the event Executive’s employment with the
Company terminates for any reason, Executive will be entitled to any
(a) unpaid Base Salary accrued up to the effective date of termination;
(b) unpaid, but earned and accrued Annual Bonus for any completed fiscal
year as of his termination of employment, provided that CEO was not terminated
for Cause that was attributable to conduct during the performance period;
(c) pay for accrued but unused vacation; (d) benefits or compensation
as provided under the terms of any employee benefit and compensation agreements
or plans applicable to Executive; (e) unreimbursed expenses required to be
reimbursed to Executive; and (f) rights to indemnification Executive may
have under the Company’s Articles of Incorporation, Bylaws, the Agreement, or
separate indemnification agreement, as applicable. In addition,
depending on the reason for termination, Executive may be entitled to the
amounts and benefits specified in Section 12.
12. Severance.
(a) Termination
without Cause; Resignation for Good Reason; Resignation In Connection with
a
Change of Control. If (i) the Company terminates Executive’s
employment without Cause, (ii) Executive resigns from his employment with the
Company for Good Reason (as defined below), or (iii) Executive resigns from
his
employment with the Company for any or no reason within one hundred eighty
(180)
days following a Change of Control (as defined below), then, subject to Section
16, Executive will receive:
(i) Subject
to Section 14, continuing payments of severance pay at a rate equal to his
Base
Salary as then in effect (less applicable tax withholdings) for twelve (12)
months from the date of such termination, payable in accordance with the
Company’s normal payroll policies; and
(ii) Subject
to Section 14, the Company shall pay to the Executive the Executive’s Annual
Bonus for the fiscal year in which the Executive’s employment under this
Agreement terminated, which shall be pro-rated to reflect the number of days
of
the fiscal year during which the Executive was employed by the
Company. For purposes of this Section 12(a)(ii), the Company’s Board
of Directors shall determine, in good faith, the amount of the Annual
Bonus.
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(iii) Executive
will be eligible to receive the same level of health (i.e., medical, vision
and
dental) coverage and other benefits as in effect for Executive, and, if
applicable, Executive’s dependents, on the day immediately preceding Executive’s
termination at the same cost to him as was in effect on the day prior to his
separation from service; provided, however, that (1) Executive
constitutes a qualified beneficiary, as defined in Section 4980B(g)(1) of the
Internal Revenue Code of 1986, as amended (the “Code”); and (2)
Executive elects continuation coverage pursuant to the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended (“COBRA”), within
the time period prescribed pursuant to COBRA. The Company will
reimburse Executive’s COBRA premiums until the earlier of (A) twelve (12) months
from Executive’s termination, or (B) until Executive obtains substantially
similar coverage under another employer’s group insurance plan.
(b) Termination
for Cause, Death or Disability; Resignation without Good Reason or Not In
Connection with a Change of Control. If (i) the Company
terminates Executive’s employment for Cause, (ii) Executive’s employment
terminates due to death or Disability (as defined below), or (ii) Executive
resigns his employment with the Company without Good Reason (other than a
resignation that is within one hundred eighty (180) days following a Change
of
Control), then (1) all vesting will terminate immediately with respect to
Executive’s outstanding equity awards; (2) all payments of compensation by the
Company to Executive hereunder will terminate immediately (except as to amounts
already earned, including unused and accrued vacation); and (3) Executive
will not be eligible for severance or other benefits, except in
accordance with any generally applicable Company plans or policies as are then
in effect.
13. Change
of Control.
(a) If
the Company undergoes a Change of Control before the one (1) year anniversary
of
the Start Date, fifty percent (50%) of the unvested shares subject to
Executive’s outstanding equity awards will immediately vest and become
exercisable or released from the Company’s repurchase or reacquisition
right.
(b) If
the Company undergoes a Change of Control on or after the one (1) year
anniversary of the Start Date, one hundred percent (100%) of the unvested shares
subject to Executive’s outstanding equity awards will immediately vest and
become exercisable or released from the Company’s repurchase or reacquisition
right.
14. Code
Section 409A. Notwithstanding anything to the contrary in this
Agreement, if Executive is a “specified employee” within the meaning of Section
409A of the Code and any final regulations and guidance promulgated thereunder
(“Section 409A”) at the time of Executive’s separation from
service, then any severance payments payable pursuant to this Agreement and
any
other severance payments or separation benefits which may be considered deferred
compensation under Section 409A (together, the “Deferred Compensation Separation
Benefits”) otherwise due to Executive on or within the six (6) month period
following Executive’s separation from service will accrue during such six (6)
month period and will become payable in a lump sum payment on the date six
(6)
months and one (1) day following the date of Executive’s separation from
service. On or before the date of the Executive’s separation from
service, the Company shall place the Deferred Compensation Separation Benefits
into an escrow account which shall earn interest at the short-term applicable
federal rate pending payout to the Executive as provided for in this
Section. All subsequent payments, if any, will be payable in
accordance with the payment schedule applicable to each payment or
benefit. It is the intent of this Agreement 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.
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15. Additional
Limitation.
(a) Anything
in this Agreement to the contrary notwithstanding, in the event that any
compensation, payment or distribution by the Company to or for the benefit
of
the Executive, whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement or otherwise (the “Severance Payments”), would be
subject to the excise tax imposed by Section 4999 of the Code, the following
provisions shall apply:
(i) If
the Severance Payments, reduced by the sum of (1) the Excise Tax and (2) the
total of the federal, state, and local income and employment taxes payable
by
the Executive on the amount of the Severance Payments which are in excess of
the
Threshold Amount, are greater than or equal to the Threshold Amount, the
Executive shall be entitled to the full benefits payable under this
Agreement.
(ii) If
the Threshold Amount is less than (x) the Severance Payments, but greater than
(y) the Severance Payments reduced by the sum of (1) the Excise Tax and (2)
the
total of the federal, state, and local income and employment taxes on the amount
of the Severance Payments which are in excess of the Threshold Amount, then
the
benefits payable under this Agreement shall be reduced (but not below zero)
to
the extent necessary so that the maximum Severance Payments shall not exceed
the
Threshold Amount. To the extent that there is more than one method of
reducing the payments to bring them within the Threshold Amount, the Executive
shall determine which method shall be followed; provided that if the Executive
fails to make such determination within 15 business days after the Company
has
sent the Executive written notice of the need for such reduction, the Company
may determine the amount of such reduction in its sole discretion.
(b) For
the purposes of Section 15(a), “Threshold Amount” shall mean three times the
Executive’s “base amount” within the meaning of Section 280G(b)(3) of the Code
and the regulations promulgated thereunder less one dollar ($1.00); and “Excise
Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any
interest or penalties incurred by the Executive with respect to such excise
tax.
(c) The
determination as to which of the alternative provisions of Section 15(a)(i)
above shall apply to the Executive shall be made by a nationally recognized
accounting firm selected by the Company (the “Accounting Firm”), which shall
provide detailed supporting calculations both to the Company and the Executive
within 15 business days of the Date of Termination, if applicable, or at such
earlier time as is reasonably requested by the Company or the
Executive. For purposes of determining which of the alternative
provisions of Section 15(a)(i) above shall apply, the Executive shall be deemed
to pay federal income taxes at the highest marginal rate of federal income
taxation applicable to individuals for the calendar year in which the
determination is to be made, and state and local income taxes at the highest
marginal rates of individual taxation in the state and locality of the
Executive’s residence on the Date of Termination, net of the maximum reduction
in federal income taxes which could be obtained from deduction of such state
and
local taxes. Any determination by the Accounting Firm shall be
binding upon the Company and the Executive.
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16. Conditions
to Receipt of Severance; No Duty to Mitigate.
(a) Separation
Agreement and Release of Claims. The receipt of any severance or
other benefits pursuant to Section 12 will be subject to Executive signing
and
not revoking a separation agreement and release of claims in the form set out
at
Exhibit C. No severance or other benefits will be paid or provided
until the separation agreement and release agreement becomes
effective.
(b) Non-solicitation
and non-compete. The receipt of any severance or other benefits
pursuant to Section 12 will be subject to Executive agreeing that during
the Employment Term and Continuance Period (as defined below), Executive will
not (i) solicit any employee of the Company (other than Executive’s personal
assistant) for employment other than at the Company, or (ii) directly or
indirectly engage in, have any ownership interest in or participate in any
entity that as of the date of termination, competes with the Company in any
substantial business of the Company or any business reasonably expected to
become a substantial business of the Company. Executive’s passive
ownership of not more than 1% of any publicly traded company and/or 5% ownership
of any privately held company will not constitute a breach of this Section
8(b).
(c) Non-disparagement. During
the Employment Term and Continuance Period (as defined below), (i) Executive
will not knowingly and materially disparage, criticize, or otherwise make any
derogatory statements regarding the Company; and (ii) the Company and its
officers and directors will not knowingly and materially disparage, criticize,
or otherwise make any derogatory statements regarding the
Executive. Notwithstanding the foregoing, nothing contained in this
agreement will be deemed to restrict the Executive, the Company or any of the
Company’s current or former officers and/or directors from providing information
to any governmental or regulatory agency (or in any way limit the content of
any
such information) to the extent they are requested or required to provide such
information pursuant to applicable law or regulation.
(d) Other
Requirements. Executive’s receipt of continued severance payments
will be subject to Executive continuing to comply with the terms of this Section
16 as well as Sections 17 and 18 below.
(e) No
Duty to Mitigate. Executive will not be required to mitigate the
amount of any payment contemplated by this Agreement, nor will any earnings
that
Executive may receive from any other source reduce any such
payment.
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17. Confidential
Information.
(a) Company
Information. The Executive agrees at all times during the term of
his employment and thereafter, to hold in strictest confidence, and not to
use,
except for the benefit of the Company, or to disclose to any person, firm or
corporation without written authorization of the Board of Directors of the
Company, any Confidential Information of the Company. The Executive
understands that “Confidential Information” means any Company proprietary
information, technical data, trade secrets or know-how, including, but not
limited to, research, product plans, products, services, databases, customer
lists and customers (including, but not limited to, customers of the Company
on
whom the Executive called or with whom the Executive became acquainted during
the term of his employment), markets, software, developments, inventions,
processes, formulas, technology, designs, drawings, engineering, hardware
configuration information, marketing, finances or other business information
disclosed to the Executive by the Company either directly or indirectly, in
writing, orally, by drawings, or by observation of parts or equipment to the
extent that the Company maintained such information as confidential during
the
Executive’s employment. The Executive further understands that
Confidential Information does not include any of the foregoing items which
has
become publicly known and made generally available through no wrongful act
of
the Executive or of others who were under confidentiality obligations as to
the
item or items involved.
(b) Former
Employer Information. The Executive agrees that he will not,
during his employment with the Company, improperly use or disclose any
proprietary information or trade secrets of any former or concurrent employer
or
other person or entity and that he will not bring onto the premises of the
Company any unpublished document or proprietary information belonging to any
such employer, person or entity unless consented to in writing by such employer,
person or entity.
(c) Third
Party Information. The Executive recognizes that the Company has
received and in the future will receive from third parties their confidential
or
proprietary information subject to a duty on the Company’s part to maintain the
confidentiality of such information and to use it only for certain limited
purposes. The Executive agrees to hold all such confidential or
proprietary information in the strictest confidence and not to disclose it
to
any person, firm or corporation or to use it except as necessary in carrying
out
his work for the Company consistent with the Company’s agreement with such third
party.
(d) Returning
Company Documents. The Executive agrees that, at the time of his
separation of service from the Company, he will deliver to the Company (and
will
not keep in his possession, recreate or deliver to anyone else) any and all
devices, records, data, notes, reports, proposals, lists, correspondence,
specifications, drawings, blueprints, sketches, materials, equipment, other
documents or property, or reproductions of any aforementioned items developed
by
him pursuant to his employment with the Company or otherwise belonging to the
Company, its successors or assigns.
18. Inventions.
(a) Inventions
Retained and Licensed. Executive has attached as
Exhibit D, a list describing all inventions, original works of
authorship, developments, improvements, and trade secrets which were made by
him
prior to his employment with the Company, which belong to him, which relate
to
the Company’s proposed business, products or research and development, and which
are not assigned to the Company hereunder (collectively referred to as “Prior
Inventions”); or, if no such list is attached, the Executive represents that
there are no such Prior Inventions. If in the course of the
Executive’s employment with the Company, he incorporates into any invention,
improvement, development, product, copyrightable material or trade secret any
invention, improvement, development, concept, discovery or other proprietary
information owned by him or in which he has an interest, the Company is hereby
granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual,
worldwide license to make, have made, modify, use and sell such item as part
of
or in connection with such product, process or machine.
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(b) Assignment
of Inventions. The Executive agrees that he will promptly make full written
disclosure to the Company, will hold in trust for the sole right and benefit
of
the Company, and hereby assign to the Company, or its designee, all his right,
title, and interest in and to any and all inventions, original works of
authorship, developments, concepts, improvements or trade secrets, whether
or
not patentable or registrable under copyright or similar laws, which the
Executive may solely or jointly conceive or develop or reduce to practice,
or
cause to be conceived or developed or reduced to practice, during the period
of
time the Executive is in the employ of the Company (collectively referred to
as
"Inventions"). The Executive further acknowledges
that all original works of authorship which are made by him (solely or jointly
with others) within the scope of and during the period of his employment with
the Company and which are protectible by copyright are “works made for hire,” as
that term is defined in the United States Copyright Act.
(c) Inventions
Assigned to the United States. The Executive agrees to assign to
the United States government all his right, title, and interest in and to any
and all Inventions whenever such full title is required to be in the United
States by a contract between the Company and the United States or any of its
agencies.
(d) Maintenance
of Records. The Executive agrees to keep and maintain adequate
and current written records of all Inventions made by him (solely or jointly
with others) during the term of his employment with the Company. The
records will be in the form of notes, sketches, drawings, and any other format
that may be specified by the Company. The records will be available
to and remain the sole property of the Company at all times.
(e) Patent
and Copyright Registrations. The Executive agrees to assist the
Company, or its designee, at the Company’s expense, in every proper way to
secure the Company’s rights in the Inventions and any copyrights, patents, mask
work rights or other intellectual property rights relating thereto in any and
all countries, including the disclosure to the Company of all pertinent
information and data with respect thereto, the execution of all applications,
specifications, oaths, assignments and all other instruments which the Company
shall deem necessary in order to apply for and obtain such rights and in order
to assign and convey to the Company, its successors, assigns and nominees the
sole and exclusive rights, title and interest in and to such Inventions, and
any
copyrights, patents, mask work rights or other intellectual property rights
relating thereto. The Executive further agrees that his obligation to
execute or cause to be executed, when it is in his power to do so, any such
instrument or papers shall continue after the termination of this
Agreement. If the Company is unable because of the Executive’s mental
or physical incapacity or for any other reason to secure his signature to apply
for or to pursue any application for any United States or foreign patents or
copyright registrations covering Inventions or original works of authorship
assigned to the Company as above, then the Executive hereby irrevocably
designates and appoint the Company and its duly authorized officers and agents
as his agent and attorney in fact, to act for and in his behalf and stead to
execute and file any such applications and to do all other lawfully permitted
acts to further the prosecution and issuance of letters patent or copyright
registrations thereon with the same legal force and effect as if executed by
the
Executive.
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19. Definitions.
(a) Cause. For
purposes of this Agreement, “Cause” shall mean the
Executive’s:
(i)
Willful and fraudulent misrepresentation as to Executive’s qualifications
to be CEO of the Company;
(ii) Indictment
for, conviction of or plea of nolo contendre to any crime of fraud or
theft;
(iii) Willful
misconduct or gross negligence on the part of the Executive in the performance
of his duties under this Agreement resulting in material adverse effect on
the
finances or reputation of the Company;
(iv) Conflict
of interest or breach of fiduciary duty owed by the Executive to the
Company;
(v) Willful
breach or habitual neglect of significant and material duties Executive is
required to perform under this Agreement;
(vi) Breach
of a material covenant in this Agreement; or
(vii) Material
or repeated violations or material or repeated non-observance of any term of
this Agreement;
Provided
that the conduct described in Sections 19(a)(iv) – (vii) shall not constitute
Cause unless such conduct has continued for a period of at least 30 days after
the Executive has received written notice from the Company’s Board of Directors
of its belief that such conduct may give rise to a termination for Cause under
this Agreement and Executive has nevertheless failed to remedy such conduct
to
the good faith satisfaction of the Board of Directors.
(b) Change
of Control. For purposes of this Agreement, “Change of
Control” will mean the occurrence of any of the following
events:
(i)
A sale of all or substantially all of the Company’s
assets; or
(ii) Any
merger, consolidation or other transaction of the Company with or into another
corporation, entity or person, other than a transaction in which the holders
of
at least a majority of the voting securities of the Company outstanding
immediately prior to such transaction continue to hold (either by the voting
securities remaining outstanding or by their being converted into voting
securities of the surviving entity) a majority of the total voting power
represented by the voting securities of the Company, or such surviving entity,
outstanding immediately after such transaction.
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(c) Good
Reason. For purposes of this Agreement, “Good
Reason” means the occurrence of any of the following, without
Executive’s express written consent:
(i) A
material reduction in Executive’s base salary;
(ii) A
material reduction in Executive’s authority, duties or
responsibilities;
(iii) A
requirement that the Executive report to a corporate officer of employee, as
opposed to the Company’s Board of Directors;
(iv) A
material relocation of Executive’s primary place of employment, provided
however, that in no instance will such a relocation be deemed material if it
is
less than fifty (50) miles from the Company’s location at which Executive
performs most of his services immediately prior to such relocation;
or
(v) A
material breach by the Company of any of its obligations under this
Agreement;
provided
that Executive notifies the Company in writing of such event within 30 days
of
its occurrence and further provides the Company thirty (30) days to remedy
the
situation before terminating his employment no more than ninety (90) days after
such occurrence.
(d) Continuance
Period. For purposes of this Agreement, “Continuance
Period” will mean the period of time beginning on the date of the
termination of Executive’s employment and ending on the date on which Executive
is no longer receiving Base Salary payments under Section 12.
(e) Disability. For
purposes of this Agreement, “Disability” will mean Executive’s
absence from his responsibilities with the Company on a full-time basis for
one
hundred twenty (120) calendar days in any consecutive one hundred eighty (180)
day period as a result of Executive’s mental or physical illness or
injury. The Company plans to, but has not yet implemented a Long Term
Disability Policy. During the Employment Term, Executive will be
eligible to participate in the Company’s Long Term Disability benefits as
applicable to other senior executive officers of the Company to the extent
that
such Long Term Disability Policy exists.
20. Indemnification. Subject
to applicable law, Executive will be provided indemnification to the maximum
extent permitted by the Company’s Articles of Incorporation or Bylaws,
including, if applicable, any directors and officers insurance policies, with
such indemnification to be on terms determined by the Board or any of its
committees, but on terms no less favorable than provided to any other Company
executive officer or director and subject to the terms of any separate written
indemnification agreement.
-11-
21. Assignment. This
Agreement will be binding upon and inure to the benefit of (a) the heirs,
executors and legal representatives of Executive upon Executive’s death, and
(b) any successor of the Company. Any such successor of the
Company will be deemed substituted for the Company under the terms of this
Agreement for all purposes. For this purpose,
“successor” means any person, firm, corporation, or other
business entity which at any time, whether by purchase, merger, or otherwise,
directly or indirectly acquires all or substantially all of the assets or
business of the Company. None of the rights of Executive to receive
any form of compensation payable pursuant to this Agreement may be assigned
or
transferred except by will or the laws of descent and
distribution. Any other attempted assignment, transfer, conveyance,
or other disposition of Executive’s right to compensation or other benefits will
be null and void.
22. Notices. All
notices, requests, demands and other communications called for hereunder will
be
in writing and will be deemed given (a) on the date of delivery if
delivered personally; (b) one (1) day after being sent overnight by a
well-established commercial overnight service, or (c) four (4) days after
being mailed by registered or certified mail, return receipt requested, prepaid
and addressed to the parties or their successors at the following addresses,
or
at such other addresses as the parties may later designate in
writing:
|
If
to the Company:
|
|
Attn:
Chairman of the Compensation
Committee
|
|
c/o
Corporate Secretary
|
|
0000
XX 00xx
Xxx
|
|
Xxxxxxxxxxx,
XX 00000
|
|
If
to Executive:
|
|
at
the last residential address known by the Company with a copy to
the
Executive’s counsel:
|
|
Xxxxx
Xxxxxxxxx Xxxxxxxx
|
|
Xxxxxxx
Procter LLP
|
|
Xxxxxxxx
Xxxxx
|
|
Xxxxxx,
XX 00000
|
23. Severability. If
any provision hereof becomes or is declared by a court of competent jurisdiction
to be illegal, unenforceable, or void, this Agreement will continue in full
force and effect without said provision.
24. Arbitration. The
Parties agree that any and all disputes arising out of the terms of this
Agreement and the interpretation of its terms, or any disputes arising out
of
Executive’s employment by the Company, Executive’s service as an officer or
director of the Company, or Executive’s compensation and benefits, and any of
the matters herein released will be subject to binding
arbitration. In the event of a dispute, the parties (or their legal
representatives) will promptly confer to select a Single Arbitrator mutually
acceptable to both parties. If the Parties cannot agree on an
Arbitrator, then the moving party may file a Demand for Arbitration with JAMS
in
Boston, Massachusetts who will be selected and appointed consistent with the
its Employment Arbitration Rules & Procedures (the “JAMS RULES”),
except that such Arbitrator must have the qualifications set forth in this
paragraph. Any arbitration will be conducted in a manner consistent
with the JAMS Rules, supplemented by the Massachusetts Rules of Civil
Procedure. The Parties further agree that the prevailing party in any
arbitration will be entitled to injunctive relief in any court of competent
jurisdiction to enforce the arbitration award. The Parties
hereby agree to waive their right to have any dispute between them resolved
in a
court of law by a judge or jury. This paragraph will not
prevent either party from seeking injunctive relief (or any other provisional
remedy) from any court having jurisdiction over the Parties and the subject
matter of their dispute relating to Executive’s obligations under this Agreement
and the Employee Agreement. If the Executive is the prevailing party
in any court action concerning either the Employer’s or the Executive’s rights
or obligations under this Agreement, the Employer shall reimburse the Executive
for all of the reasonable attorney’s fees and costs that the Executive incurs in
connection with such proceeding and shall make a further payment to compensate
the Executive for all tax liabilities associated with such reimbursement and
with such supplemental payment.
-12-
25. Integration. This
Agreement , together with the equity award grant agreements that describe
Executive’s outstanding equity awards, represents the entire agreement and
understanding between the parties as to the subject matter herein and supersedes
all prior or contemporaneous agreements whether written or oral. No
waiver, alteration, or modification of any of the provisions of this Agreement
will be binding unless in a writing and signed by duly authorized
representatives of the parties hereto. In entering into this
Agreement, no party has relied on or made any representation, warranty,
inducement, promise, or understanding that is not in this
Agreement. To the extent that any provisions of this Agreement
conflict with those of any other agreement to be signed upon Executive’s hire,
the terms in this Agreement will prevail.
26. Waiver
of Breach. The waiver of a breach of any term or provision of
this Agreement, which must be in writing, will not operate as or be construed
to
be a waiver of any other previous or subsequent breach of this
Agreement.
27. Survival. The
Company’s and Executive’s responsibilities under Sections 12, 16, 17 and 18 will
survive the termination of this Agreement.
28. Headings. All
captions and Section headings used in this Agreement are for convenient
reference only and do not form a part of this Agreement.
29. Tax
Withholding. All payments made pursuant to this Agreement will be
subject to withholding of applicable taxes.
-13-
30. Governing
Law. This Agreement will be governed by the laws of the state of
Massachusetts without regard to its conflict of laws provisions.
31. Acknowledgment. Executive
acknowledges that he has had the opportunity to discuss this matter with and
obtain advice from his private attorney, has had sufficient time to, and has
carefully read and fully understands all the provisions of this Agreement,
and
is knowingly and voluntarily entering into this Agreement.
32. Counterparts. This
Agreement may be executed in counterparts, and each counterpart will have the
same force and effect as an original and will constitute an effective, binding
agreement on the part of each of the undersigned.
-14-
IN
WITNESS WHEREOF, each of the parties has executed this Agreement, in the case
of
the Company by a duly authorized officer, as of the day and year written
below.
COMPANY:
QUICK-MED
TECHNOLOGIES, INC.
/s/
Xxxxxxx X. Xxxxxxx
|
Date:
AUGUST 6, 2007
|
|
XXXXXXX
X. XXXXXXX
|
||
CHAIRMAN
|
||
EXECUTIVE:
|
||
/s/
J. Xxxx Xxxxxx
|
Date:
AUGUST 6, 2007
|
|
J.
XXXX XXXXXX
|
[SIGNATURE
PAGE TO XXXX XXXXXX EMPLOYMENT AGREEMENT]
-15-
Exhibit
A
(First
Option)
This
Stock Option Agreement (this "Agreement") is made and
entered into as of the Date of Grant set forth below (the "Date of
Grant") by and between Quick-Med Technologies, Inc., a Nevada
corporation (the "Company"), and the Optionee named
below. ("Optionee"). Capitalized terms not
defined herein shall have the meanings ascribed to them in the Employment
Agreement dated July __, 2007 between the Optionee and the Company (the
"Employment Agreement").
Optionee:
Social
Security Number:
Optionee's
Address:
Total
Option Shares:
Exercise
Price per Share:
Date
of Grant:
Vesting
Start Date:
Expiration
Date:
(unless
earlier terminated under Section 3 hereof)
Type
of Stock Option: Nonqualified Stock
Option
1.
Grant of Option. The Company hereby grants to Optionee
an option (this "Option") to purchase up to the total
number of shares of common stock of the Company set forth above as Total Option
Shares (collectively, the "Shares") at the Exercise
Price Per Share set forth above (the "Exercise
Price"), subject to all of the terms and conditions of this
Agreement.
2.
Vesting; Exercise
Period.
2.1 Vesting
of Shares. This Option shall be immediately and fully
exercisable.
2.2 Expiration.
This Option shall expire on the Expiration Date set forth above and must be
exercised, if at all, on or before the earlier of the Expiration Date or the
date on which this Option is earlier terminated in accordance with the
provisions of Section 3 hereof.
3.
Termination.
3.1 Termination
for Any Reason Except for Cause. If Optionee is terminated for any reason
including Optionee's death, Disability but excluding Cause, then this Option
may
be exercised by Optionee no later than one (1) year following such Termination
Date, but in any event no later than the Expiration Date.
-16-
3.2 Termination
for Cause. If Optionee is terminated for Cause, this Option will expire on
the Optionee’s date of Termination.
3.3 No
Obligation to Employ. Nothing in this Agreement shall confer on Optionee any
right to continue in the employ of, or other relationship with, the Company
or
any Parent or Subsidiary of the Company, or limit in any way the right of the
Company or any Parent or Subsidiary of the Company to terminate Optionee's
employment or other relationship at any time, with or without
Cause.
3.4 Leave
of Absence. Military, sick or bona fide leave shall not be deemed a
termination of employment or other association, provided that it does not exceed
the longer of ninety (90) days or the period during which the absent Optionee’s
reemployment rights, if any, are guaranteed by statute or by
contract.
4.
Manner of Exercise.
4.1 Stock
Option Exercise Agreement. To exercise this Option, Optionee (or in the case
of exercise after Optionee's death, Optionee's executor, administrator, heir
or
legatee, as the case may be) must deliver to the Company an executed stock
option exercise agreement in the such other form as may be approved by the
Company from time to time (the "Exercise Agreement"),
which shall set forth, inter alia, Optionee's election to exercise this Option,
the number of Shares being purchased, any restrictions imposed on the Shares
and
any representations, warranties and agreements regarding Optionee's investment
intent and access to information as may be required by the Company to comply
with applicable securities laws. If someone other than Optionee exercises this
Option, then such person must submit documentation reasonably acceptable to
the
Company that such person has the right to exercise this Option.
4.2 Limitations
on Exercise. This Option may not be exercised unless such exercise is in
compliance with all applicable federal and state securities laws, as they are
in
effect on the date of exercise. This Option may not be exercised as to fewer
than 100 Shares unless it is exercised as to all Shares as to which this Option
is then exercisable.
4.3 Payment.
The Exercise Agreement shall be accompanied by full payment of the Exercise
Price for the Shares being purchased in cash (by check), or where permitted
by
law:
(a) by
cancellation of indebtedness of the Company to the Optionee;
(b) by
surrender of shares of the Company's common stock that either: (1) have been
owned by Optionee for more than six (6) months and have been paid for within
the
meaning of SEC Rule 144 (and, if such shares were purchased from the Company
by
use of a promissory note, such note has been fully paid with respect to such
shares); or (2) were obtained by Optionee in the open public market; and (3)
are
clear of all liens, claims, encumbrances or security interests;
(c) by
waiver of compensation due or accrued to Optionee for services
rendered;
(d) provided
that a public market for the Company's stock exists: (1) through a "same day
sale" commitment from Optionee and a broker-dealer that is a member of the
National Association of Securities Dealers or a member firm of the Swiss Stock
Exchange (a "Qualified Dealer") whereby Optionee
irrevocably elects to exercise this Option and to sell a portion of the Shares
so purchased to pay for the Exercise Price and whereby the Qualified Dealer
irrevocably commits upon receipt of such Shares to forward the exercise price
directly to the Company; or (2) through a "margin" commitment from Optionee
and
a Qualified Dealer whereby Optionee irrevocably elects to exercise this Option
and to pledge the Shares so purchased to the Qualified Dealer in a margin
account as security for a loan from the Qualified Dealer in the amount of the
Exercise Price, and whereby the Qualified Dealer irrevocably commits upon
receipt of such Shares to forward the Exercise Price directly to the Company;
or
-17-
(e) by
any combination of the foregoing.
4.4 Tax
Withholding. Prior to the issuance of the Shares upon exercise of this
Option, Optionee must pay or provide for any applicable federal or state
withholding obligations of the Company. If the Committee permits, Optionee
may
provide for payment of withholding taxes upon exercise of this Option by
requesting that the Company retain Shares with a Fair Market Value equal to
the
minimum amount of taxes required to be withheld. In such case, the Company
shall
issue the net number of Shares to the Optionee by deducting the Shares retained
from the Shares issuable upon exercise.
4.5 Issuance
of Shares. Provided that the Exercise Agreement and payment are in form and
substance reasonably satisfactory to counsel for the Company, the Company shall
issue the Shares registered in the name of Optionee, Optionee's authorized
assignee, or Optionee's legal representative, and shall deliver certificates
representing the Shares with the appropriate legends affixed
thereto.
5.
Compliance with Laws and Regulations.
The exercise of this Option and the issuance and transfer
of Shares
shall be subject to compliance by the Company and Optionee with all applicable
requirements of federal and state securities laws and with all applicable
requirements of any stock exchange on which the Company's Common Stock may
be
listed at the time of such issuance or transfer.
6.
Nontransferability of
Option. This Option may not be transferred in any
manner other than by will or by the laws of descent and distribution and may
be
exercised during the lifetime of Optionee only by Optionee. The terms of this
Option shall be binding upon the executors, administrators, successors and
assigns of Optionee.
7.
Privileges of Stock
Ownership. Optionee shall not have any of the
rights of a stockholder with respect to any Shares until the Shares are issued
to Optionee.
8.
Interpretation.
Any dispute regarding the interpretation
of this Agreement shall be
submitted by Optionee or the Company to the Compensation Committee for
review.
9.
Entire
Agreement. This Agreement and the Employment
Agreement constitute the entire agreement and understanding of the parties
hereto with respect to the subject matter hereof and supersede all prior
understandings and agreements with respect to such subject matter. If
there is a conflict between this Agreement and the Employment Agreement, the
Employment Agreement shall control.
-18-
10. Notices.
Any notice required to be given or delivered to the Company under
the
terms of this Agreement shall be in writing and addressed to the Corporate
Secretary of the Company at its principal corporate offices. Any notice required
to be given or delivered to Optionee shall be in writing and addressed to
Optionee at the address indicated above or to such other address as such party
may designate in writing from time to time to the Company. All notices shall
be
deemed to have been given or delivered upon: personal delivery; three (3) days
after deposit in the United States mail by certified or registered mail (return
receipt requested); one (1) business day after deposit with any return receipt
express courier (prepaid); or one (1) business day after transmission by
facsimile.
11. Successors
and Assigns. The Company may assign any of its
rights under this Agreement. This Agreement shall be binding upon and inure
to
the benefit of the successors and assigns of the Company. Subject to the
restrictions on transfer set forth herein, this Agreement shall be binding
upon
Optionee and Optionee's heirs, executors, administrators, legal representatives,
successors and assigns.
12. Governing
Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Nevada, without
regard to that body of law pertaining to choice of law or conflict of
law.
13. Acceptance.
Optionee hereby acknowledges receipt of a copy of this Agreement.
Optionee has read and understands the terms and provisions thereof, and accepts
this Option subject to all the terms and conditions of this Agreement. Optionee
acknowledges that there may be adverse tax consequences upon exercise of this
Option or disposition of the Shares and that the Company has advised Optionee
to
consult a tax advisor prior to such exercise or disposition.
IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed
in duplicate by its duly authorized representative and Optionee has executed
this Agreement in duplicate as of the Date of Grant.
QUICK-MED
TECHNOLOGIES, INC.
|
OPTIONEE
|
|||
QUICK-MED
TECHNOLOGIES, INC.
|
J.
XXXX XXXXXX
|
|||
By:
|
||||
Name:
|
(Signature)
|
|||
Title:
|
-19-
Exhibit
B
(Second
Option)
This
Stock Option Agreement (this "Agreement") is made and
entered into as of the Date of Grant set forth below (the "Date of
Grant") by and between Quick-Med Technologies, Inc., a Nevada
corporation (the "Company"), and the Optionee named
below. ("Optionee"). Capitalized terms not
defined herein shall have the meanings ascribed to them in the Employment
Agreement dated July __, 2007 between the Optionee and the Company (the
"Employment Agreement").
Optionee:
Social
Security Number:
Optionee's
Address:
Total
Option Shares:
Exercise
Price per Share:
Date
of Grant:
Vesting
Start Date:
Expiration
Date:
(unless
earlier terminated under Section 3 hereof)
Type
of Stock Option: Nonqualified Stock
Option
1.
Grant of Option. The Company hereby grants
to Optionee an option (this "Option") to purchase up
to the total number of shares of common stock of the Company set forth above
as
Total Option Shares (collectively, the "Shares") at
the Exercise Price Per Share set forth above (the "Exercise
Price"), subject to all of the terms and conditions of this
Agreement.
2.
Vesting; Exercise
Period.
2.1 Vesting
of Shares. This Option shall be exercisable as it vests.
(a) Subject
to the terms and conditions of this Agreement, this Option shall become
exercisable as to portions of the Shares as follows: (a) this Option shall
not
be exercisable with respect to any of the Shares until the 3-month anniversary
of the Date of Grant (the “First Vesting Date”); (b)
if Optionee has continuously provided services to the Company, or any parent
or
subsidiary of the Company, at all times during the time period beginning on
the
Date of Grant and ending on the First Vesting Date, then on the First Vesting
Date, this Option shall become exercisable as to 1/16th of the Shares; and (c)
thereafter this Option shall become exercisable as to an additional 1/16th of the Shares upon each
3-month anniversary of the First Vesting Date; provided that Optionee has
continuously provided services to the Company, or any parent or subsidiary
of
the Company, during the relevant year; and provided further that this Option
shall cease to vest upon Optionee’s termination of employment with the Company.
However, if the Company undergoes a Change of Control (i) before the one (1)
year anniversary of the Start Date, fifty percent (50%) of the unvested Shares
subject to this Option will immediately vest and become exercisable or released
from the Company’s repurchase or reacquisition right, and (ii) if the Company
undergoes a Change of Control on or after the one (1) year anniversary of the
Start Date, one hundred percent (100%) of the unvested Shares subject to this
Option will immediately vest and become exercisable or released from the
Company’s repurchase or reacquisition right. The Optionee shall in no event be
entitled under this Option to purchase a number of shares of the Company’s
Common Stock greater than the “Total Option Shares.”
-20-
2.2 Vesting
of Options. Shares that are vested pursuant to the schedule set forth in
Section 2.1 hereof are “Vested Shares.” Shares that
are not vested pursuant to the schedule set forth in Section 2.1 hereof are
“Unvested Shares.”
2.3 Expiration.
This Option shall expire on the Expiration Date set forth above and must be
exercised, if at all, on or before the earlier of the Expiration Date or the
date on which this Option is earlier terminated in accordance with the
provisions of Section 3 hereof.
3.
Termination.
3.1 Termination
for Any Reason Except for Cause. If Optionee is Terminated for any reason
including Optionee's death, Disability but excluding Cause, then this Option
to
the extent (and only to the extent) that it is vested in accordance with the
schedule set forth in Section 2.1 hereof on the Termination Date, may be
exercised by Optionee no later than one (1) year following such Termination
Date, but in any event no later than the Expiration Date.
3.2 Termination
for Cause. If Optionee is Terminated for Cause, this Option will expire on
the Optionee’s date of Termination.
3.3 No
Obligation to Employ. Nothing in this Agreement shall confer on Optionee any
right to continue in the employ of, or other relationship with, the Company
or
any Parent or Subsidiary of the Company, or limit in any way the right of the
Company or any Parent or Subsidiary of the Company to terminate Optionee's
employment or other relationship at any time, with or without
Cause.
3.4 Leave
of Absence. Military, sick or bona fide leave shall not be deemed a
termination of employment or other association, provided that it does not exceed
the longer of ninety (90) days or the period during which the absent Optionee’s
reemployment rights, if any, are guaranteed by statute or by
contract.
4.
Manner of Exercise.
4.1 Stock
Option Exercise Agreement. To exercise this Option, Optionee (or in the case
of exercise after Optionee's death, Optionee's executor, administrator, heir
or
legatee, as the case may be) must deliver to the Company an executed stock
option exercise agreement in the such other form as may be approved by the
Company from time to time (the "Exercise Agreement"),
which shall set forth, inter alia, Optionee's election to exercise this Option,
the number of Shares being purchased, any restrictions imposed on the Shares
and
any representations, warranties and agreements regarding Optionee's investment
intent and access to information as may be required by the Company to comply
with applicable securities laws. If someone other than Optionee exercises this
Option, then such person must submit documentation reasonably acceptable to
the
Company that such person has the right to exercise this Option.
-21-
4.2 Limitations
on Exercise. This Option may not be exercised unless such exercise is in
compliance with all applicable federal and state securities laws, as they are
in
effect on the date of exercise. This Option may not be exercised as to fewer
than 100 Shares unless it is exercised as to all Shares as to which this Option
is then exercisable.
4.3 Payment.
The Exercise Agreement shall be accompanied by full payment of the Exercise
Price for the Shares being purchased in cash (by check), or where permitted
by
law:
(a) by
cancellation of indebtedness of the Company to the Optionee;
(b) by
surrender of shares of the Company's common stock that either: (1) have been
owned by Optionee for more than six (6) months and have been paid for within
the
meaning of SEC Rule 144 (and, if such shares were purchased from the Company
by
use of a promissory note, such note has been fully paid with respect to such
shares); or (2) were obtained by Optionee in the open public market; and (3)
are
clear of all liens, claims, encumbrances or security interests;
(c) by
waiver of compensation due or accrued to Optionee for services
rendered;
(d) provided
that a public market for the Company's stock exists: (1) through a "same day
sale" commitment from Optionee and a broker-dealer that is a member of the
National Association of Securities Dealers or a member firm of the Swiss Stock
Exchange (a "Qualified Dealer") whereby Optionee
irrevocably elects to exercise this Option and to sell a portion of the Shares
so purchased to pay for the Exercise Price and whereby the Qualified Dealer
irrevocably commits upon receipt of such Shares to forward the exercise price
directly to the Company; or (2) through a "margin" commitment from Optionee
and
a Qualified Dealer whereby Optionee irrevocably elects to exercise this Option
and to pledge the Shares so purchased to the Qualified Dealer in a margin
account as security for a loan from the Qualified Dealer in the amount of the
Exercise Price, and whereby the Qualified Dealer irrevocably commits upon
receipt of such Shares to forward the Exercise Price directly to the Company;
or
(e) by
any combination of the foregoing.
4.4 Tax
Withholding. Prior to the issuance of the Shares upon exercise of this
Option, Optionee must pay or provide for any applicable federal or state
withholding obligations of the Company. If the Committee permits, Optionee
may
provide for payment of withholding taxes upon exercise of this Option by
requesting that the Company retain Shares with a Fair Market Value equal to
the
minimum amount of taxes required to be withheld. In such case, the Company
shall
issue the net number of Shares to the Optionee by deducting the Shares retained
from the Shares issuable upon exercise.
4.5 Issuance
of Shares. Provided that the Exercise Agreement and payment are in form and
substance reasonably satisfactory to counsel for the Company, the Company shall
issue the Shares registered in the name of Optionee, Optionee's authorized
assignee, or Optionee's legal representative, and shall deliver certificates
representing the Shares with the appropriate legends affixed
thereto.
-22-
5.
Compliance with Laws and
Regulations. The exercise of this Option and the
issuance and transfer of Shares shall be subject to compliance by the Company
and Optionee with all applicable requirements of federal and state securities
laws and with all applicable requirements of any stock exchange on which the
Company's Common Stock may be listed at the time of such issuance or
transfer.
6.
Nontransferability of Option.
This Option may not be transferred
in any manner other than by will or
by the laws of descent and distribution and may be exercised during the lifetime
of Optionee only by Optionee. The terms of this Option shall be binding upon
the
executors, administrators, successors and assigns of Optionee.
7.
Privileges of Stock
Ownership. Optionee shall not have any of the
rights of a stockholder with respect to any Shares until the Shares are issued
to Optionee.
8.
Interpretation.
Any dispute regarding the interpretation
of this Agreement shall be
submitted by Optionee or the Company to the Compensation Committee for
review.
9.
Entire Agreement.
This Agreement and the Employment
Agreement constitute the entire
agreement and understanding of the parties hereto with respect to the subject
matter hereof and supersede all prior understandings and agreements with respect
to such subject matter. If there is a conflict between this Agreement
and the Employment Agreement, the Employment Agreement shall
control.
10. Notices.
Any notice required to be given or delivered to the Company under
the
terms of this Agreement shall be in writing and addressed to the Corporate
Secretary of the Company at its principal corporate offices. Any notice required
to be given or delivered to Optionee shall be in writing and addressed to
Optionee at the address indicated above or to such other address as such party
may designate in writing from time to time to the Company. All notices shall
be
deemed to have been given or delivered upon: personal delivery; three (3) days
after deposit in the United States mail by certified or registered mail (return
receipt requested); one (1) business day after deposit with any return receipt
express courier (prepaid); or one (1) business day after transmission by
facsimile.
11. Successors
and Assigns. The Company may assign any of its
rights under this Agreement. This Agreement shall be binding upon and inure
to
the benefit of the successors and assigns of the Company. Subject to the
restrictions on transfer set forth herein, this Agreement shall be binding
upon
Optionee and Optionee's heirs, executors, administrators, legal representatives,
successors and assigns.
12. Governing
Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Nevada, without
regard to that body of law pertaining to choice of law or conflict of
law.
-23-
13. Acceptance.
Optionee hereby acknowledges receipt of a copy of this Agreement.
Optionee has read and understands the terms and provisions thereof, and accepts
this Option subject to all the terms and conditions of this Agreement. Optionee
acknowledges that there may be adverse tax consequences upon exercise of this
Option or disposition of the Shares and that the Company has advised Optionee
to
consult a tax advisor prior to such exercise or disposition.
IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed
in duplicate by its duly authorized representative and Optionee has executed
this Agreement in duplicate as of the Date of Grant.
QUICK-MED
TECHNOLOGIES, INC.
|
OPTIONEE
|
|||
QUICK-MED
TECHNOLOGIES, INC.
|
J.
XXXX XXXXXX
|
|||
By:
|
||||
Name:
|
(Signature)
|
|||
Title:
|
-24-
Exhibit
C
Release
Agreement
For
and
in consideration of the payments and other benefits described in the Employment
Agreement dated as of July __, 2007 (the “Agreement”) by and by
and between Quick-Med Technologies, Inc. (the “Company”) and J.
Xxxx Xxxxxx (the “Executive”), and for other good and valuable
consideration, Executive on his own behalf and on behalf of his respective
heirs, family members, executors, agents, and assigns, hereby releases the
Company and its current and former officers, directors, employees, agents,
investors, attorneys, shareholders, administrators, affiliates, divisions,
and
subsidiaries, and predecessor and successor corporations and assigns
(collectively, the “Releasees”) from any and all claims,
whether known or unknown, suspected or unsuspected, that Executive may possess
against any of the Releasees arising from any omissions, acts, facts, or damages
that have occurred up until and including the Effective Date of this Agreement,
including, without limitation:
a.
any and all claims relating to or arising from Executive’s
employment relationship with the Company and the termination of that
relationship;
b.
any and all claims relating to, or arising from,
Executive’s right to purchase, or actual purchase of shares of stock of the
Company, including, without limitation, any claims for fraud, misrepresentation,
breach of fiduciary duty, breach of duty under applicable state corporate law,
and securities fraud under any state or federal law;
c.
any and all claims for wrongful discharge of
employment; termination in violation of public policy; discrimination;
harassment; retaliation; breach of contract, both express and implied; breach
of
covenant of good faith and fair dealing, both express and implied; promissory
estoppel; negligent or intentional infliction of emotional distress; fraud;
negligent or intentional misrepresentation; negligent or intentional
interference with contract or prospective economic advantage; unfair business
practices; defamation; libel; slander; negligence; personal injury; assault;
battery; invasion of privacy; false imprisonment; conversion; and disability
benefits;
d.
any and all claims for violation of any federal,
state, or municipal statute, including, but not limited to, Title VII of
the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation
Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act;
the
Fair Labor Standards Act, except as prohibited by law; the Fair Credit Reporting
Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit
Protection Act; the Employee Retirement Income Security
Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family
and Medical Leave Act, except as prohibited by law; the Xxxxxxxx-Xxxxx Act
of
2002; the Uniformed Services Employment and Reemployment Rights Act; and the
Massachusetts Fair Employment Practice Act;
e.
any and all claims for violation of the federal or any state
constitution;
f.
any and all claims arising out of any other
laws and regulations relating to employment or employment
discrimination;
-25-
g.
any claim for any loss, cost, damage, or expense arising out
of any dispute over the non-withholding or other tax treatment of any of the
proceeds received by the Executive as a result of this Agreement;
and
h.
any and all claims for attorneys’ fees and
costs.
Executive
agrees that the release set forth in this section shall be and remain in effect
in all respects as a complete general release as to the matters
released. Notwithstanding anything else herein to the contrary, this
Release shall not affect: (i) the obligations of the Company set
forth in the Agreement or other obligations that, in each case, by their terms,
are to be performed after the date hereof by the Company (including, without
limitation, obligations to Executive under any stock option, stock award or
agreements or obligations under any pension plan or other benefit or deferred
compensation plan, all of which shall remain in effect in accordance with their
terms); (ii) obligations to indemnify Executive respecting acts or omissions
in
connection with Executive’s service as a director, officer or employee of the
Company; (iii) any right Executive may have as a shareholder of the Company;
(iv) any right Executive may have to obtain contribution in the event of the
entry of judgment against Executive as a result of any act or failure to act
for
which both Executive and the Company are jointly responsible; (v) claims that
cannot be released as a matter of law; or (vi) any rights or claims that may
arise after the Effective Date of this Agreement.
Executive
acknowledges that he is waiving and releasing any rights he may have under
the
Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and
release is knowing and voluntary. Executive acknowledges that he has
been advised by this writing that: (a) he should consult with an attorney
prior to executing this Release; (b) he has twenty-one (21) days within
which to consider this Release; (c) he has seven (7) days following his
execution of this Release to revoke this Release; (d) this Release shall not
be
effective until after the revocation period has expired; and (e) nothing in
this
Release prevents or precludes Executive from challenging or seeking a
determination in good faith of the validity of this waiver under the ADEA,
nor
does it impose any condition precedent, penalties, or costs for doing so, unless
specifically authorized by federal law. In the event Executive signs
this Agreement and returns it to the Company in less than the 21-day period
identified above, Executive hereby acknowledges that he has freely and
voluntarily chosen to waive the time period allotted for considering this
Agreement.
This
Release is final and binding and may not be changed or modified except in a
writing signed by both parties.
-26-
IN
WITNESS WHEREOF, the Parties have executed this Agreement on the respective
dates set forth below.
J.
Xxxx Xxxxxx, an individual
|
|||||
Dated:
|
|||||
J.
Xxxx Xxxxxx
|
|||||
QUICK-MED
TECHNOLOGIES
|
|||||
Dated:
|
By
|
||||
[OFFICER
NAME]
|
|||||
[OFFICER
TITLE]
|
-27-
EXHIBIT
D
|
To:
|
Quick-Med
Technologies, Inc.
|
|
From:
|
J.
Xxxx Xxxxxx
|
|
Date:
|
August
6, 2007
|
|
SUBJECT:
|
Prior
Inventions
|
The
following is a complete list of all inventions or improvements relevant to
the
subject matter of my employment by the Company that have been made or conceived
or first reduced to practice by me alone or jointly with others prior to my
engagement by the Company:
|
o
|
No
inventions or improvements
|
|
☑
|
See
below:
|
|
See
attached list of
publications.
|
|
_______________________________________________________________
|
|
_______________________________________________________________
|
|
☑
|
Additional
sheets attached
|
-28-
J.
Lxxx Xxxxxx
Selected
Publications
Mxxxx-Xxxxxx,
Xxxx, J. Lxxx Xxxxxx, and Jxxxxxxx B Shopley.. “Profits with Principles—the
Transformation of Royal Dutch/Shell.” Prism. Fourth Quarter,
1998.
Gxxxxx,
J. Xxxx, Gxxxxxx X. Xxxxxxxx, and Jxxxxxxx Shopley. “The Sustainable
Development Challenge: Using EH&S to Create Business Value and
Strategic Advantage” in Corporate Environmental Strategy. Volume 5,
Number 3, Elsevier Science, 1998.
Rxxx,
Xxxxxxxxxxx E.H., J. Lxxx Xxxxxx, and Axxxxx Xxxxxxx. “Scenario Thinking:
Planning for Futures You Want and the Futures You Just Might Get).”
Prism. Xxxxx Xxxxxxx, 0000.
Gxxxxx,
J. Xxxx. “Managing the Environmental Challenge for Business Success:
Implications for the Oil and Gas Industry.” Paper presented to the World Forum
on Energy and the Environment—Strategies for a Sustainable World. Centro
International de Educación y Desarrollo (CIED). Caracas, Venezuela. November,
1997.
Gxxxxx,
J. Xxxx and Jxxx X. Xxxxxxx. “New Frontiers in Environmental Management” in
Kxxxxxx, Rxx V., et al., editors. Risk Assessment and Management
Handbook. New York: MxXxxx-Xxxx, Inc., 1996.
Gxxxxx,
J. Xxxx, Kxxxx Xxxxxxxxxx, and S. Nxxxx Xxx. “Rethinking the Environment for
Business Advantage.” Prism. First Quarter, 1996.
Gxxxxx,
J. Xxxx (individual contributor, along with eleven other experts) “Perspectives:
The Challenge of Going Green.” Harvard Business Review. Volume 72, Number
4. July- August 1994.
Gxxxxx,
J. Xxxx, “Corporate Environmental Excellence and Stewardship: Five Critical
Tasks of Top Management” in Total Quality Environmental Management,
Volume 3, Number 4, 1994.
Wxxxxxx,
Xxxx X. and J. Lxxx Xxxxxx. “Doing More With Less: Improving Environmental
Productivity” Prism. Xxxxx Xxxxxxx, 0000.
Gxxxxx,
J. Xxxx. “Corporate Environmental Excellence and Stewardship” in Kxxxxxx, Rxx
V., editor. Environmental Strategies Handbook. New York: MxXxxx-Xxxx,
Inc., 1993.
Gxxxxx,
J. Xxxx. “The Director as Environmental Sxxxxxx.” Directors & Boards
Volume 18, Number 1. Fall 1993.
Wxxxxxx,
Xxxx X. and J. Lxxx Xxxxxx. “Business and the Environment: The Shape of Things
to Come.” Prism. Xxxxx Xxxxxxx, 0000.
Gxxxxx
Publications
1
Gxxxxx,
J. Xxxx and S. Nxxxx Xxxxxxxx. “Rethinking Corporate Environmental Management.”
Columbia Journal of World Business, Volume XXVII, Nos. III & IV,
1992.
Gxxxxx,
J. Xxxx, Gxxxxxx X. Xxxxxxxx, and Wxxxxxx X. Xxxxxxx. “The View from Rio.”
Prism. Third Quarter, 1992.
Gxxxxx,
Xxx X., J. Xxxx Gxxxxx, Xxxxxxx S. Xxxxxxxx, Pxxxxxxx X Xxxxx, Sxxxxxx
Xxxxxxxxxxx, S. Nxxxx Xxxxxxxx, and Jxxx X. Xxxxxxx. Managing the Global
Environmental Challenge. New York: Business International/The Economist
Group, 1992.
DxXxxxx,
Xxxxxxxx, J. Xxxx Gxxxxx, Xxxxxxx S. Xxxxxxxx, Rxxxx X. Xxxxxx, Axx X. Xxxxx,
and Wxxxxxx X. Xxxxx. ICC Guide to Effective Environmental Auditing.
Paris: ICC Publishing XX, 0000. (Also published as Guía CCI para un Proceso
de Auditoría Medioambiental Eficaz. Paris: CCI, 1991.)
Gxxxxx,
J. Xxxx. “Environmental Excellence: Meeting the Challenge.” Prism. Third
Quarter, 1991.
Gxxxxx,
J. Xxxx, Bxxxxxxx Xxxxxxx, and Kxxxx Xxxxxxxxxx. “The Environmental Leadership
Strategy: A New Imperative for Management.” Paper presented to The Second Annual
Jxxxxx X. Xxxxxx Institute Conference, The Wxxxxxx School of the University
of
Pennsylvania. February, 1991.
Gxxxxx,
J. Xxxx. “Corporate Environmental Excellence: Why–Who–What–When– Where.” Paper
based on featured presentation at the Corporate Environmental Excellence
Conference. February, 1991.
Gxxxxx,
J. Xxxx. “Environment on Business’s Agenda.” Los Angeles Times. January
9, 1991.
Gxxxxx,
J. Lxxx, Xxxxxx A. N. MxXxxx, and Fxxxx Xxxxxxxxxx. “The New Environmental
Stewardship.” Prism. Second Quarter, 1990.
Stricoff,
R. Xxxxx, Lxxx X. Benedixen, J. Lxxx Xxxxxx, Txxxxx XxXxxxxx, Hxxxx Xxxx,
Sxxxxxx Xxxxxxxxxxx, and R. Pxxxx Xxxxxxxx. Guidelines for the Technical
Management of Chemical Process Safety. New York: American Institute of
Chemical Engineers, Center for Chemical Process Safety, 1989.
Gxxxxx,
J. Xxxx, Gxxxxxx X. Xxxxxxxx, and Mxxxxxxx XxXxxxx. The Environmental,
Health, and Safety Auditor’s Handbook. Cambridge: Axxxxx X. Xxxxxx, Inc.
1988.
Gxxxxx,
J. Xxxx, Gxxxxxx X. Xxxxxxxx, and Mxxxxxxx XxXxxxx. Environmental Auditing:
Fundamentals and Techniques. New York: Jxxx Wiley & Sons, 1985. (Also
published in Japanese by Japan Management Association, 1993.)
Gxxxxx
Publications
2
Fxxxxxxxxx,
Xxxx X. and J. Lxxx Xxxxxx, “The Growth and Evolution of Environmental Auditing”
in Hxxxxxxx, L. Xxx, editor. Environmental Auditing Handbook. New York:
MxXxxx-Xxxx, 1984.
Gxxxxx,
J. Xxxx and Gxxxxxx X. Xxxxxxxx. “Alternative Approaches to Environmental
Auditing” in Hxxxxxxx, L. Xxx, editor. Environmental Auditing Handbook.
New York: MxXxxx-Xxxx, 1984.
Gxxxxx,
J. Xxxx and Gxxxxxx X. Xxxxxxxx. “How To Size Up Your Auditing Program” in
Hxxxxxxx, L. Xxx, editor. Environmental Auditing Handbook. New York:
MxXxxx-Xxxx, 1984.
Gxxxxx,
J. Xxxx. “Look Beyond Compliance in Assessing Risks.” The Wall Street
Journal, Manager’s Journal. December 17, 1984.
Gxxxxx
Publications
3