Exhibit 10.7
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (the "Agreement") is made effective as of March
3, 2000 (the "Effective Date"), between AUTOLOGOUS WOUND THERAPY, INC., a
Delaware corporation (the "Company"), and XXXXXXXXXXX X. XXXXXXX ("Executive").
WHEREAS, the Company desires to employ Executive on the terms and
conditions hereinafter set forth;
WHEREAS, the Company recognizes that Executive's employment is critical to
the growth and success of the Company and therefore desires to assure the
Company of Executive's continued employment; and
WHEREAS, based on the foregoing, the Company and Executive wish to enter
into this agreement to come into force as of the Effective Date.
NOW, THEREFORE, in consideration of the promises and the mutual covenants
and agreements herein contained, the Company and Executive hereby agree as
follows:
ARTICLE 1. EMPLOYMENT
A. EMPLOYMENT AND DUTIES. The Company shall employ Executive for the Term (as
hereinafter defined) as Vice President of Strategy and Business Development, to
perform such duties as he shall reasonably be directed by the President to
perform. Executive hereby accepts such employment and agrees to render such
services on behalf of the Company. Executive shall perform his duties and carry
out his responsibilities hereunder in a diligent manner, and shall devote his
exclusive and full working time, attention and effort to the affairs of the
Company, shall use all reasonable efforts to promote the interests of the
Company and shall be just and faithful in the performance of his duties and in
carrying out his responsibilities.
B. LOCATION. The principal location for performance of Executive's services
hereunder shall be at the Company's executive offices, which are to be
re-located to north suburban Chicago, Illinois, subject to reasonable travel
requirements during the course of performing such services.
ARTICLE 2. EMPLOYMENT TERM
The term of Executive's employment hereunder (the "Term") shall be deemed
to commence on the Effective Date and shall end on December 31, 2001, unless
sooner terminated in accordance with the terms of this Agreement; provided,
however, that the Term shall be automatically renewed and extended for
additional and successive Terms of two (2) years each at the end of each Term
(and any subsequent renewal Term thereof) unless either party gives Notice of
Termination (as hereinafter defined) to the other party no later than ninety
(90) days before the expiry of the then-current Term.
ARTICLE 3. COMPENSATION AND BENEFITS
In consideration for performing services on behalf of the Company, the
Executive shall receive the following compensation and benefits:
A. CASH COMPENSATION.
i. BASE SALARY. The Company shall pay Executive an annual salary of One
Hundred and Fifty Thousand Dollars ($150,000), payable in bi-weekly
installments, in arrears (the "Base Salary"). The Base Salary shall be
reviewed annually by the Company's Board of Directors and may be
increased, but not decreased (unless mutually agreed upon by Executive and
the Company).
ii. BONUS AND INCENTIVE PLANS. The Company shall establish, and Executive
shall be entitled to participate in, Executive Bonus Compensation and
Long-Term Incentive Programs, which shall be substantially in accordance
with the summary points contained in Part A of Appendix I, attached hereto
and made part hereof.
iii. PARTICIPATION IN BENEFIT PLANS. The Company shall establish, and
Executive shall be entitled to participate in (and to the extent that
Executive's position, title, tenure, salary, age, health, and other
qualifications make him eligible to participate in), employee benefit
plans or programs, which shall be substantially in accordance with the
summary points contained in Part B of Appendix I. The Company does not
guarantee the continuance of any particular employee benefit plan or
program during the Term and Executive's participation in any such plans or
programs shall be subject to all terms, provisions, rules, and regulations
applicable thereto. Executive will be entitled to twenty (20) days of
vacation per year, to be used in accordance with the Company's vacation
policy for senior executives as may be in force from time to time. During
the existence of a Benefit Period, if any, (as hereinafter defined), the
Company will arrange to provide Executive with welfare benefits (including
life and health insurance benefits) of substantially similar design and
cost to Executive as the welfare benefits and other employee benefits
available to Executive prior to Executive's or the Company's, as the case
may be, receipt of Notice of Termination (as hereinafter defined). In the
event that Executive shall obtain full-time employment providing
comparable welfare benefits during the Benefit Period, such benefits as
otherwise receivable hereunder by Executive shall be discontinued.
iv. EXPENSES. The Company will pay or reimburse Executive for all
reasonable and necessary out-of-pocket expenses incurred by him in the
performance of his duties under this Agreement, including first class air
travel and reasonable capital and operating expenses for an office in
Executive's home. Executive shall keep detailed and accurate records of
expenses incurred in connection with the performance of his duties
hereunder
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and reimbursement therefor shall be in accordance with policies and
procedures to be established from time to time by the Company's Board of
Directors.
B. STOCK WARRANTS. As a special incentive to obtain the services of
Executive, Company hereby grants Executive the option to purchase two
hundred thousand (200,000) shares of the common stock of the Company at
$7.00 per share at any time, under either periodic or accelerated exercise
terms as described below.
i. PERIODIC EXERCISE RIGHTS. Executive's option to purchase shares shall
vest and become fully and freely exercisable with respect to the first
sixty-seven thousand (67,000) shares on December 31, 2000; with respect to
the next sixty-seven thousand (67,000) shares on December 31, 2001, and
with respect to the final sixty-six thousand (66,000) shares on December
31, 2002; subject, however, to the provisions of Sub-section (iii), of
this Section (B):
ii. ACCELERATED EXERCISE RIGHTS. Notwithstanding periodic exercise rights,
all of Executive's options that are not already exercisable in accordance
with Sub-section 3(B)(i) shall become immediately exercisable at such time
that the common stock of the Company trades at or above 37 and 5/8ths
dollars per share (the "Target Price") as quoted on the securities
exchange where the Company stock is currently being traded and during
either of the two periods, chosen at the option of the Executive:
a. the closing price for the stock is at or above the Target Price
for fifteen (15) consecutive trading days; or
b. the closing price for the stock is at or above the Target Price
for twenty (20) out of any thirty (30) consecutive trading days.
The determination of the Target Price during either of such periods shall
be conclusive as reported by any independent financial reporting service,
such as Reuters or Bloomberg Financial Markets.
iii. POST-TERMINATION EXERCISE RIGHTS. Notwithstanding any of the
foregoing, Executive shall have the right to exercise options to purchase
any stock warrants or other stock grants given by the Company in
accordance with the following:
(a) if Executive's employment is terminated for Cause (as defined in
Article 4(A)(ii), hereunder), or in the event that Executive
voluntarily resigns his employment with the Company, vesting of all
options shall cease immediately upon the effective date of
termination or resignation;
(b) if Executive's employment is terminated by reason of Death or
Disability (as defined in Article 4(B) hereunder), Executive's legal
representatives, conservators, heirs or assigns shall have the right
to exercise all such options until
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such options expire in accordance with the option plan under which
such options were granted. The rights granted under this
Sub-paragraph (iii)(b) shall apply whether or not the option was
vested at the time of Death or Disability; provided, however, that
(c) Executive was employed by the Company for at least twelve (12)
months after the grant of any option; or
iv. if Executive's employment is terminated for any reason other than
Death or Disability, or in the event that Executive voluntarily resigns,
then Executive shall have the right to exercise all options that have
already vested as of the effective date of termination or resignation (or
that become vested by reason of termination or resignation) during a
period of ninety (90) days following the effective date of termination or
resignation.
iv. ISSUANCE OF REGISTERED SHARES. The Company hereby guarantees that it
will issue registered common stock (the term "registered" as defined in
the Securities and Exchange Act of 1934) to the Executive pursuant to the
exercise of his options under Sub-sections (i) - (iii) of this Section
3(B). In the event that the Company does not have sufficient quantities of
registered shares available to satisfy this obligation, it shall
immediately take all steps necessary to issue a registration statement and
to make sufficient registered shares available in satisfaction of this
Sub-section (iv).
v. DILUTION. In the event that the Company issues new or additional equity
securities, debt securities convertible into equity, declares a stock
dividend, stock split, grants stock rights, or performs any other action
that would reasonably be expected to reduce the value of the warrants, the
Company shall immediately reduce the purchase price, increase number of
the warrants, or both, so that value of the warrants granted to Executive
remains unchanged.
vi. EXPIRATION DATE. The options to purchase shares shall expire ten (10)
years from the date each option becomes exercisable.
ARTICLE 4. TERMINATION OF EMPLOYMENT
A. DEFINITIONS. The following terms shall have the definitions as described
in this Section A:
i. "Benefit Period" shall mean:
a. the twenty-four (24) month period commencing on the Date of
Termination which occurs in connection with a termination of
employment described in the first sentence of Section 4(E)(i); or
b. the period consisting of the remainder, if any, of the then
current Term in which occurs a termination of employment described in
the first sentence of Section 4(E)(ii), plus the immediately
succeeding twenty-four (24) month period.
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ii. "Cause" shall mean any of the following:
a. any act or failure to act (or series or combination thereof) by
Executive done with the intent to harm in any material respect to the
interests of the Company;
b. the commission by Executive of a felony involving moral turpitude;
c. the perpetration by Executive of a dishonest act or common law
fraud against the Company or any subsidiary thereof;
d. a grossly negligent act or failure to act (or series or
combination thereof) by Executive detrimental in any material respect
to the interests of the Company;
e. the material breach by Executive of his agreements or obligations
under this Agreement; or
f. the continued refusal to follow the directives of the President or
Board of Directors that are consistent with Executive's duties and
responsibilities identified in Section 1(A) hereof.
iii. A "Change of Control" shall mean any of the following:
a. a sale of all or substantially all of the assets of the Company;
b. the acquisition of more than eighty percent (80%) of the Common
Stock of the Company (with all classes or series thereof treated as a
single class) by any person or group of persons, except a Permitted
Shareholder (as hereinafter defined), acting in concert. A "Permitted
Shareholder" means a holder, as of the date the Stock Option Plan was
adopted by the Company, of Common Stock;
c. a reorganization of the Company wherein the holders of Common
Stock of the Company receive stock in another company, a merger of
the Company with another company wherein there is an eighty percent
(80%) or greater change in the ownership of the Common Stock of the
Company as a result of such merger, or any other transaction in which
the Company (other than as the parent corporation) is consolidated
for federal income tax purposes or is eligible to be consolidated for
federal income tax purposes with another corporation;
d. in the event that the Common Stock is traded on an established
securities market, a public announcement that any person has acquired
or has the right to acquire beneficial ownership of fifty-one percent
(51%) or more of the then-outstanding Common Stock and for this
purpose the terms "person" and
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"beneficial ownership" shall have the meanings provided in Section
13(d) of the Securities and Exchange Act of 1934 or related rules
promulgated by the Securities and Exchange Commission, or the
commencement of or public announcement of an intention to make a
tender offer or exchange offer for fifty-one percent (51%) or more of
the then outstanding Common Stock;
e. a majority of the Board of Directors is not comprised of
Continuing Directors. A "Continuing Director" means a director
recommended by the Board of Directors of the Company for election as
a director of the Company by the stockholders; or
f. the Board of Directors of the Company, in its sole and absolute
discretion, determines that there has been a sufficient change in the
share ownership of the Company to constitute a change of effective
ownership or control of the Company.
iv. "Good Reason" shall mean the occurrence of any one or more of the
following events during the Term:
a. the assignment to Executive of any duties inconsistent in any
respect with Executive's position (including status, offices, title,
and reporting requirements), authority, duties or other
responsibilities or any other action of the Company that results in a
diminishment in such position, authority, duties or responsibilities,
other than an insubstantial and inadvertent action that is remedied
by the Company promptly after receipt of notice thereof given by
Executive;
b. a reduction by the Company in Executive's Base Salary as in effect
on the Effective Date and as the same shall be increased from time to
time hereafter;
c. the Company's requiring Executive to be based at a location in
excess of fifteen (15) miles from the location of Executive's
principal residence without the consent of Executive;
d. the failure by the Company to: (a) continue in effect any material
compensation or benefit plan, program, policy or practice in which
Executive was participating during the Term of his employment or at
the time of a Change of Control; or (b) provide Executive with
compensation and benefits at least equal (in terms of benefit levels
and/or reward opportunities) to those provided for under each
employee benefit plan, program, policy and practice as in effect
immediately prior to a Change of Control (or as in effect following
the Change of Control, if greater);
e. the failure of the Company to obtain a satisfactory agreement from
any successor to the Company to assume and agree to perform this
Agreement; or
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f. any purported termination by the Company of Executive's employment
that is not effected pursuant to a Notice of Termination (as defined
below).
v. "Date of Termination" shall mean the date specified in the Notice of
Termination (as hereinafter defined) (except in the case of Executive's
death, in which case Date of Termination shall be the date of death);
provided, however, that if Executive's employment is terminated by the
Company other than for Cause, the date specified in the Notice of
Termination shall be at least thirty (30) days from the date the Notice of
Termination is given to Executive and if Executive's employment is
terminated by Executive for Good Reason, the date specified in the Notice
of Termination shall not be more than sixty (60) days from the date the
Notice of Termination is given to the Company.
vi. "Notice of Termination" shall mean a written notice either from the
Company to Executive, or Executive to the Company, that indicates Section
2 or the specific provision of Section 4 of this Agreement relied upon as
the reason for such termination or non-renewal, the Date of Termination,
and, in reasonable detail, the facts and circumstances claimed to provide
a basis for termination or non-renewal pursuant to Section 2 or this
Section 4 of this Agreement.
B. TERMINATION UPON DEATH OR DISABILITY. This Agreement, and Executive's
employment hereunder, shall terminate automatically and without the necessity
of any action on the part of the Company upon the death of Executive. In
addition, if at any time during the Term Executive shall become physically or
mentally disabled, whether totally or partially, so that he is unable
substantially to perform his duties and services hereunder for:
i. a period of six (6) consecutive months; or
ii. for shorter periods aggregating six (6) months during any twelve (12)
month period;
then, the Company may at any time after the last day of the sixth consecutive
month of disability or the day on which the shorter periods of disability shall
have equaled an aggregate of six (6) months, by written notice to Executive
(but before Executive has recovered from such disability), terminate this
Agreement and Executive's employment hereunder.
C. COMPANY'S AND EXECUTIVE'S RIGHT TO TERMINATE PRIOR TO CHANGE OF CONTROL.
Prior to a Change of Control, this Agreement and Executive's employment
hereunder may be terminated at any time by the Company, with or without Cause,
upon thirty (30) days prior written notice to Executive, and by Executive, at
any time, upon thirty (30) days prior written notice to the Company. Any
termination of Executive's employment by the Company without Cause prior to a
Change of Control that occurs at the request or insistence of any person (other
than the
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Company) relating to such Change of Control shall be deemed to have
occurred after the Change of Control for the purposes of this Agreement.
D. COMPANY'S AND EXECUTIVE'S RIGHT TO TERMINATE FOLLOWING A CHANGE OF CONTROL.
Following a Change of Control, this Agreement and Executive's employment
hereunder may be terminated at any time:
i. by the Company, with or without Cause, upon thirty (30) days prior
written notice to Executive, or
ii. by Executive for Good Reason upon thirty (30) days prior written
notice to the Company. Executive's right to terminate his employment
pursuant to this Section 4(D) shall not be affected by incapacity due to
physical or mental illness. Executive's continued employment following a
Change of Control shall not constitute consent to, or a waiver of, rights
with respect to, any circumstance constituting Good Reason hereunder.
E. COMPENSATION UPON TERMINATION.
i. TERMINATION PRIOR TO CHANGE OF CONTROL. In the event the Company
terminates (or elects not to renew) this Agreement without Cause, and such
termination (or non-renewal) without Cause occurs prior to any Change of
Control, Executive shall be entitled to receive his Base Salary through
the Date of Termination, the welfare benefits described in Section
3(A)(iii) for the Benefit Period, and not later than thirty (30) days
after the Date of Termination, a lump sum severance payment equal to the
product of two (2) times the sum of Executive's then-current Base Salary
plus the arithmetic average of payments made to Executive pursuant to the
Company's Executive Bonus Compensation Program with respect to the three
(3) fiscal years immediately preceding the fiscal year in which the Date
of Termination occurs. In addition to the foregoing, to the extent not
otherwise required under the Company's Stock Option Plan or any award
agreement with Executive, any unvested stock option awards theretofore
awarded to Executive shall vest and become exercisable on the Date of
Termination. In the event this Agreement is terminated (or not renewed)
for any reason other than by the Company without Cause, and such
termination (or non-renewal) occurs prior to a Change of Control,
Executive shall not be entitled to the continuation of any compensation,
bonuses or benefits provided hereunder, or any other payments following
the Date of Termination, other than Base Salary earned through such Date
of Termination.
ii. TERMINATION FOLLOWING CHANGE OF CONTROL. If this Agreement is
terminated (or not renewed)
a. by the Company without Cause; or
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b. by the Executive for Good Reason during the twelve (12) month
period immediately following a Change of Control, and such
termination (or non-renewal) occurs following a Change of
Control;
then, the Executive shall be entitled to receive his full Base
Salary through the Date of Termination, the welfare benefits
described in Section 3(A)(iii) for the Benefit Period and, not
later than thirty (30) days after the Date of Termination, a lump
sum severance payment equal to the sum of the Base Salary which
would otherwise have been payable for the remainder (if any) of
the then current Term, plus an amount equal the product of two
(2) times the sum of Executive's then current annual Base Salary
plus the arithmetic average of payments made to Executive
pursuant to the Company's Executive Bonus Compensation Program
with respect to the three (3) fiscal years immediately preceding
the fiscal year in which the Date of Termination occurs.
In addition to the foregoing, to the extent not otherwise
required under the Company's Stock Option Plan or any other award
agreement with Executive, any unvested stock option awards
theretofore awarded to Executive shall vest and become
immediately exercisable in full. In the event this Agreement is
terminated (or not renewed) for any reason other than by the
Company without Cause, or by Executive for Good Reason, and such
termination (or non-renewal) occurs following a Change of
Control, Executive shall not be entitled to the continuation of
any compensation, bonuses or benefits provided hereunder, or any
other payments following the Date of Termination, other than Base
Salary earned through the Date of Termination.
iii. At Executive's option to be exercised by written notice to the
Company, the severance benefits payable under this Section 4(E) shall
be paid in accordance with the Company's normal payroll procedures in
installments over a twenty-four (24) month period corresponding to
the amount of the payments instead of in a lump sum.
iv. Anything to the contrary contained herein notwithstanding, as a
condition to Executive receiving severance benefits to be paid
pursuant to this Section 4(E), Executive shall execute and deliver to
the Company a general release in form and substance reasonably
satisfactory to the Company releasing the Company and its officers,
directors, employees and agents from all liabilities, claims and
obligations of any nature whatsoever, excepting only the Company's
obligations under this Agreement, under any Stock Option Award
Agreements, and under any other employee benefit plans or programs in
which Executive participates under Section 3 hereof, subject to all
terms and conditions of such plans or programs and this Agreement.
ARTICLE 5. EMPLOYMENT COVENANTS
A. TRADE SECRETS AND CONFIDENTIAL INFORMATION. Executive agrees that he shall,
during the course of his employment and for a period of five (5) years
thereafter, hold inviolate and keep secret all documents, materials, knowledge
or other confidential business or technical
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information of any nature whatsoever disclosed to or developed by him or to
which he had access as a result of his employment (hereinafter referred to as
"Confidential Information"). Such Confidential Information shall include
technical and business information, including, but not limited to, inventions,
research and development, engineering, products, designs, manufacture, methods,
systems, improvements, trade secrets, formulas, processes, marketing,
merchandising, selling, licensing, servicing, customer lists, records or
financial information, manuals or Company strategy concerning its business,
strategy or policies. Executive agrees that all Confidential Information shall
remain the sole and absolute property of the Company. During the course of his
employment, Executive shall not use, disclose, disseminate, publish, reproduce
or otherwise make available such Confidential Information to any person, firm,
corporation or other entity, except for the purpose of conducting business on
behalf of the Company. Following the Term, Executive shall not use, disclose,
disseminate, publish, reproduce, or otherwise make available such Confidential
Information to any person, firm, corporation, or other entity. Upon termination
of his employment with the Company, Executive will leave with or deliver to the
Company all records and any compositions, articles, devices, equipment and
other items which disclose or embody Confidential Information including all
copies or specimens thereof, whether prepared by his or by others. The
foregoing restrictions on disclosure of Confidential Information shall apply so
long as the information has not properly come into the public domain through no
action of Executive.
B. TRANSFER OF INVENTIONS. Executive, for himself and his heirs and
representatives, will promptly communicate and disclose to the Company, and
upon request will, without additional compensation, execute all papers
reasonably necessary to assign to the Company or the Company's nominees, free
of encumbrance or restrictions, all inventions, discoveries, improvements,
whether patentable or not, conceived or originated by Executive solely or
jointly with others, at the Company's expense or at the Company's facilities,
or at the Company's request, or in the course of his employment, or based on
knowledge or information obtained through his employment during the Term. All
such assignments shall include the patent rights in this and all foreign
countries. Notwithstanding the foregoing, this Section 5(B) shall not apply to
any invention for which no equipment, supplies, facilities or trade secret
information of the Company was used and which was developed entirely on
Executive's own time; and
i. that does not relate:
a. directly to the business of the Company, or
b. to the Company's actual or demonstrably anticipated research
or development; or
ii. that does not result from any work performed by Executive for the
Company.
C. EXCLUSIVITY OF EMPLOYMENT. During the Term, Executive shall not directly or
indirectly engage in any activity competitive with or adverse to the Company's
business or welfare or render a material level of services of a business,
professional or commercial nature to any other
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person or firm, whether for compensation or otherwise, except for serving as a
director of another firm.
D. COVENANT NOT TO COMPETE. Executive agrees to be bound and abide by the
following covenants not to compete:
i. TERM AND SCOPE. During his employment with the Company and for a
period of two (2) years after the Term, Executive will not render to
any Conflicting Organization (as hereinafter defined), services,
directly or indirectly, anywhere in the world in connection with any
Conflicting Product, except that Executive may accept employment with
a large Conflicting Organization whose business is diversified (and
which has separate and distinct divisions) if Executive first
certifies to the Board of Directors in writing that he has provided a
copy of Section 5 of this Agreement to such prospective employer,
that such prospective employer is a separate and distinct division of
the Conflicting Organization and that Executive will not render
services directly or indirectly in respect of any Conflicting Product
(as hereinafter defined). Such two-year time period shall be tolled
during any period that Executive is engaged in activity in violation
of this covenant.
ii. JUDICIAL ACTION. Executive and the Company agree that, if the
period of time or the scope of the restrictive covenant not to
compete contained in this Section 5(D) shall be adjudged unreasonable
in any court proceeding, then the period of time and/or scope shall
be reduced accordingly, so that this covenant may be enforced in such
scope and during such period of time as is judged by the court to be
reasonable. In the event of a breach or violation of this Section
5(D) by Executive, the parties agree than in addition to all other
remedies, the Company shall be entitled to equitable relief for
specific performance, and Executive hereby agrees and acknowledges
that the Company has no adequate remedy at law for the breach of the
covenants contained herein.
iii. DEFINITIONS. For purposes of the covenants contained in this
Section 5(D), the following terms shall have the following meanings:
a. "Conflicting Product" means any product, method or process,
system or service of any person or organization other than the
Company, in existence or under development at the time
Executive's employment with the Company terminates, that is the
same as or substantially or directly competes with a product,
method or process, system or service of or provided by the
Company or any of its affiliates or about which Executive
acquires Confidential Information.
b. "Conflicting Organization" means any person or organization
which is engaged in or about to become engaged in, research on
or development, production, marketing, licensing, selling or
servicing of a Conflicting Product.
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iv. DISCLOSURE TO PROSPECTIVE EMPLOYERS. Executive will disclose to
any prospective employer, prior to accepting employment, the
existence of Section 5 of this Agreement. The obligation imposed by
this Section 5(D) shall terminate two (2) years after termination of
Executive's employment with the Company; provided, however, the
running of such two-year period shall be tolled to the extent the
covenant not to compete contained in Section 5(D) hereof is tolled.
ARTICLE 6. MISCELLANEOUS
A. NOTICES. Any notice required or permitted to be delivered hereunder shall be
in writing and shall be deemed to be delivered on the earlier of:
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i. the date received; or
ii. the date of delivery, refusal or non-delivery indicated on the
return receipt, if deposited in a United States Postal Service
depository, postage prepaid, sent registered or certified mail,
return receipt requested, addressed to the party to receive the same
at the address of such party set forth below:
If to the Company: If to the Executive:
Autologous Wound Therapy, Inc. Xxxxxxxxxxx X. Xxxxxxx
0000 Xxxxxx Xxxx, Xxxxx X c/o Xxxxxxx X. Xxxxxxx, Esq.
Little Rock, Arkansas Dresser, Xxxxxxx, Xxxxxxx & Xxxx, XX
00000 XXX 000 Xxxxx Xxxxxx Xxxxxx
Xxxxxxx, Xxxxxxxx
00000 XXX
A Party may change its address from time to time by Notice addressed
to the other Party.
B. HEADINGS. The headings of the articles and sections of this Agreement are
inserted for convenience only and shall not be deemed a part of or affect the
construction or interpretation of any provision hereof.
C. MODIFICATIONS & WAIVER. No modification of any provision of this Agreement
or waiver of any right or remedy herein provided shall be effective for any
purpose unless specifically set forth in a writing signed by the party to be
bound thereby. No waiver of any right or remedy in respect of any occurrence or
event on one occasion shall be deemed a waiver of such right or remedy in
respect of such occurrence or event on any other occasion.
D. ENTIRE AGREEMENT. This Agreement contains the entire agreement of the
parties with respect to the subject matter hereof and supersedes all other
agreements; oral or written, heretofore made with respect thereto.
E. SEVERABILITY. Any provision of this Agreement prohibited by or unlawful or
unenforceable under any applicable law of any jurisdiction shall as to such
jurisdiction be ineffective without affecting any other provision hereof. To
the full extent, however, that the provisions of such applicable law may be
waived, they are hereby waived, to the end that this Employment Agreement be
deemed to be a valid and binding agreement enforceable in accordance with its
terms.
F. GOVERNING LAW AND JURISDICTION. This Agreement shall be deemed to have been
entered into by the parties in the State of Illinois and shall be continued and
enforced in accordance with the laws of that State. Any disputes arising under
the terms and conditions of this Agreement shall be resolved in a court of
competent jurisdiction of that State and the parties hereto irrevocably submit
to such jurisdiction.
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G. ASSIGNMENTS. The Company shall have the right to assign this Agreement and
to delegate all rights, duties and obligations hereunder to any entity that
controls the Company, that the Company controls or that may be the result of
the merger, consolidation, acquisition or reorganization of the Company and
another entity. Executive agrees that this Agreement is personal to him and his
rights and interest hereunder may not be assigned, nor may his obligations and
duties hereunder be delegated (except as to delegation in the normal course of
operation of the Company), and any attempted assignment or delegation in
violation of this provision shall be void. Notwithstanding any of the
foregoing, all of Executive's rights and interest hereunder shall be assignable
to Executive's legal representatives, executors or conservators in the event of
Executive's Death or Disability.
H. ATTORNEY FEES. In the event of litigation between the parties, to enforce
their respective rights under this Agreement, the prevailing party shall be
entitled to receive from the non-prevailing party reimbursement of the
prevailing party's reasonable attorney's fees and costs at all levels of trial
and appeal.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
Effective Date.
Executive Autologous Wound Therapy, Inc.
/s/ Xxxxxxxxxxx Xxxxxxx By: /s/ Xxxxxx X. Xxxxxxx
------------------------ --------------------------------
Xxxxxxxxxxx X. Xxxxxxx Title: President/CEO
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APPENDIX I
Part A - Bonus and Incentive Plans
1. ANNUAL BONUS. In addition to Executive's Base Salary, the Company shall
pay to the Executive an annual bonus in an initial amount of Seventy-Five
Thousand Dollars ($75,000). The bonus shall be payable depending on the
achievement of the Executive and the Company of a specified list of
performance and payment criteria to be agreed to between the Executive and
the Company and approved by the Company's Board of Directors. In
accordance with the Executive's annual salary review, the Executive's
annual bonus shall be reviewed and increased by the Company's Board of
Directors as may be appropriate.
2. LONG TERM INCENTIVE PROGRAM. During the Term of Executive's employment by
the Company, Executive shall be entitled to participate in the Company's
Executive Long Term Incentive Program which will be established by the
Company's Board of Director's in accordance with a strategic plan
developed for the Company and on appropriate terms and conditions.
Part B - Employee Benefit Plans and Programs
1. INSURANCE PROGRAM. The Company shall establish for the benefit of the
Executive an insurance program, which shall include, among other things,
life, health, dental and long-term disability coverage. Such insurance
program shall be no less competitive than similar benefit programs that
are established for other health care companies or comparable industries.
2. PENSION OR PROFIT-SHARING PROGRAMS. In addition to the insurance program,
the Company shall establish a suitable pension, (401(k)) or other profit
sharing program, which shall be no less competitive than similar pension
or profit-sharing programs that are established for other health care
companies or comparable industries.
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