EXHIBIT 10.10
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EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered into as of
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_______, 1998 between BP Acquisition Co., Inc., a Delaware corporation (the
"Company") and Xxxxxx Xxxxx (the "Executive").
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R E C I T A L S
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A. This Agreement is entered into in connection with the acquisition
by the Company of Bactolac Pharmaceuticals, Inc., a New York Corporation ("BP")
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pursuant to that certain Agreement and Plan of Merger dated ______, 1998 (the
"Merger Agreement") by and among the Company, its wholly-owned subsidiary BP
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Acquisition Co., Inc., a Delaware corporation, BP, and the shareholder of BP.
B. The Company desires to employ the Executive, and the Executive
desires to be so employed by the Company, on the terms and subject to the
conditions set forth in this Agreement.
AGREEMENT
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NOW, THEREFORE, in consideration of the premises and the mutual
promises set forth in this Agreement, the Company and the Executive hereby agree
as follows:
1. Employment.
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(a) Subject to the terms and conditions contained herein, the Company
employs the Executive, and the Executive accepts such employment, from the date
hereof until the earlier of (i) ________, 2000 or (ii) the date such employment
is terminated pursuant to Section 4 of this Agreement. During the Executive's
employment under this Agreement, the Executive shall perform such duties for the
Company as may from time to time be assigned to the Executive by the Board of
Directors of the Company (the "Board"). The Executive shall have the title of
President and such other titles as from time to time may be assigned to the
Executive by the Board.
(b) The Executive will devote his entire business time, energy,
attention and skill to the services of the Company and its affiliates and to the
promotion of their interests; provided, however, the Executive may from time to
time render some services to Maxus Worldwide, Inc., which will not interfere in
any material respect with his duties to the Company. So long as the Executive
is employed by the Company, the Executive shall not, without the written consent
of the Company:
(i) engage in any other activity for compensation, profit or other
pecuniary advantage, whether received during or after the term of this
Agreement;
(ii) ender or perform services of a business, professional, or
commercial nature other than to or for the Company, either alone or as an
employee, consultant, director, officer, or partner of another business entity,
whether or not for compensation, and whether or not such activity, occupation or
endeavor is similar to, competitive with, or adverse to the business or welfare
of the Company; or
(iii) invest in or become a shareholder of another corporation or
other entity; provided, that the Executive's investment solely as a shareholder
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in another corporation shall not be prohibited hereby so long as such investment
is not in excess of two percent (2%) of any class of shares that are traded on a
national securities exchange or quoted on the NASDAQ National Market; and,
provided further, shareholder may maintain his stock ownership interest in Maxus
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Worldwide, Inc., a company in the business of pharmaceuticals which Executive
represents is not in, nor will it enter, the nutritional supplement business.
2. Location of Employment. The Executive's principal place of
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employment shall be at the executive offices of the Company located in Westbury,
New York or in the same general area; provided, that at the direction of the
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Board, the Executive may from time to time be required to travel to various
domestic and foreign locations.
3. Compensation.
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(a) In exchange for full performance of the Executive's
obligations and duties under this Agreement, the Company shall pay the Executive
a base salary at a monthly rate of $16,666.66, payable in accordance with the
Company's standard payroll practices. In any month in which the Executive shall
be employed for less than the entire number of days in such month, the
compensation payable under this Section 3(a) shall be prorated on the basis of
the number of days during which the Executive was actually employed divided by
the number of days in such month. The base salary described in subsection (a)
hereof is a gross amount, and the Company shall be required to withhold from
such amount deductions with respect to Federal, state and local taxes, FICA,
unemployment compensation taxes and similar taxes, assessments or withholding
requirements.
(b) In addition to the base salary, Executive shall be entitled
to a performance bonus (the "Bonus") at the discretion of the Board.
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(c) During the Executive's employment under this Agreement, the
Executive shall also be reimbursed by the Company for reasonable business
expenses actually incurred or paid by the Executive, consistent with the
policies established by the Board, in rendering to the Company the services
provided for in this Agreement, upon presentation of expense statements or such
other supporting information as is consistent with the policies of the Company.
(d) The Executive shall be entitled to 15 business days vacation
for each full year of employment under this Agreement, which vacation time will
accrue in accordance with the vacation policy of the Company.
(e) The Executive shall be entitled to participate in all benefit
plans (including deferred compensation plans and any medical, dental or life
insurance plans) which shall be available from time to time to the domestic
management employees of the Company generally, except to the extent such
participation in any plan would alter the
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intended tax treatment of such plan; provided, however, that the Executive shall
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have no right under this Agreement to participate in any additional stock
option, stock purchase or other plan relating to shares of capital stock of the
Company or its affiliates. The Executive acknowledges and agrees that the Board
may in its discretion terminate at any time or modify from time to time any such
benefit plans.
(f) The Executive shall be entitled to the continued use of the
car presently leased by Bactolac.
4. Termination.
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(a) The employment of the Executive under this Agreement may be
terminated by the Company immediately upon giving the Executive notice if the
Executive has been unable to discharge his essential job duties by reason of
illness or injury for either (A) a period of ninety (90) consecutive days or (B)
one hundred eighty (180) days in any twelve-month period. In the event of any
dispute regarding the existence of Executive's Disability hereunder, the matter
will be resolved by the determination of a majority of three physicians
qualified to practice medicine in New York, one to be selected by each of
Executive and the Board and the third to be selected by the two designated
physicians. For this purpose, Executive will submit to appropriate medical
examinations.
(b) The employment of the Executive under this Agreement shall
terminate on the date of the Executive's death.
(c) The employment of the Executive under this Agreement may be
terminated by the Company for Cause. For purposes of this Agreement, "Cause"
shall mean (i) the willful failure or refusal by the Executive to perform his
duties hereunder which has not ceased within ten (10) business days after
written demand for substantial performance is delivered to the Executive by the
Company, which demand identifies the manner in which the Company believes that
the Executive has not performed such duties; (ii) the Executive shall
intentionally engage in misconduct toward the Company which is materially
injurious to the Company or its Subsidiaries, monetarily or otherwise
(including, but not limited to, conduct in violation of the confidentiality or
solicitation agreements herein or the non-competition agreement executed with
respect to the merger of Bactolac Pharmaceuticals, Inc. and the Company); or
(iii) the conviction of the Executive of or the entering of a plea of nolo
contendere by the Executive with respect to, a felony or a crime involving moral
turpitude.
(d) The employment of the Executive under this Agreement shall
terminate upon receipt by the Board of a written notice of resignation signed by
the Executive or, if no notice is given, on the date on which the Executive
voluntarily terminates his or her employment relationship with the Company.
(e) In addition to the circumstances described in subsections
(a), (b), (c) and (d) above, the Company may terminate the Executive's
employment for any reason or no reason and with or without cause or prior
notice.
(f) If the Executive's employment is terminated pursuant to this
Section 4 or for any other reason, the Executive shall not be entitled to any
compensation or benefits from the Company, under Section 3 of this Agreement or
otherwise, except for the following:
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(i) base salary and vacation pay accrued, and reasonable business
expenses incurred, under Section 3 of this Agreement through the date of such
termination;
(ii) such benefits, if any, as may be required to be provided by
the Company under the Comprehensive Omnibus Budget Reconciliation Act (COBRA);
and
(iii) if the Executive's employment is terminated pursuant to
subsection (e) above, the Company shall continue to pay to the Executive the
base salary described in Section 3(a) above until the earlier of (A) twelve (12)
months following such termination or (B) the termination date set forth in
Section 1(a)(i) of this Agreement.
(g) Executive may terminate his employment hereunder for "Good Reason"
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(as hereinafter defined).
(i) For purposes of this Agreement, "Good Reason" shall mean: (A)
a reduction in Executive's base salary then in effect; (B) a material reduction
in Executive's positions, duties and responsibilities from those described in
Section 1(a) of this Agreement; or (C) the failure of the Company to obtain the
assumption of this Agreement by any successor to the extent required pursuant to
Section 12(a) of this Agreement.
(ii) Notwithstanding the foregoing, a termination shall not
be treated as a termination for Good Reason (A) if Executive shall have
specifically consented in writing to the occurrence of the event giving rise to
the claim of termination for Good Reason or (B) unless Executive, within 30 days
after receiving written notice from the Company specifying in reasonable detail
the occurrence of one of such events, shall have delivered a written notice to
the Company stating that he intends to terminate his employment for Good Reason
and specifying the factual basis for such termination and such event, if capable
of being cured, shall not have been cured within 30 days of the receipt by the
Company of such notice.
(iii) If Executive shall terminate his employment for Good
Reason pursuant to this subsection (g), the Company shall pay Executive (or, in
the event of his death, his devisee, legatee or, if there is none, his estate) a
lump-sum amount equal to the lesser of (A) the Executive's monthly base salary
in effect on the date of termination, multiplied by a factor of twelve (12), or
(B) the Executive's monthly base salary in effect on the date of termination,
multiplied by the number of months remaining until the termination date set
forth in Section 1(a)(i) of this Agreement. Executive will also be entitled to
any vested benefits under any employee benefit plans.
(h) As a condition to and in consideration of the payments under
subsections (f) and (g) hereof, the Executive shall execute a general release as
to both known and unknown matters occurring prior to the date of termination.
5. Executive's Representations.
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(a) The Executive represents that he has full authority to enter into
this Agreement and that he is free to enter into this Agreement and not under
any contractual restraint which would prohibit the Executive from satisfactorily
performing his duties to the Company under this Agreement.
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(b) The Executive hereby agrees to indemnify and hold harmless the
Company, its officers, directors and stockholders from and against any losses,
liabilities, damages or costs (including reasonable attorney's fees) arising out
of a breach, or claimed breach, of any of the representations, warranties and
covenants of the Executive set forth in this Agreement.
(c) The Executive acknowledges that he is free to seek advice from
independent counsel with respect to this Agreement. The Executive has either
obtained such advice or, after carefully reviewing this Agreement, has decided
to forego such advice. The Executive is not relying on any representation or
advice from the Company or any of its officers, directors, attorneys or other
representatives regarding this Agreement, its content or effect.
6. Confidentiality; Non-Solicitation.
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(a) Disclosure. The Executive acknowledges that, in the
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performance of duties on behalf of the Company, the Executive shall have access
to, receive and be entrusted with confidential information, including but in no
way limited to development, marketing, organizational, financial, management,
administrative, production, distribution and sales information, data,
specifications and processes presently owned or at any time in the future
developed by, the Company or its agents or consultants, or used presently or at
any time in the future in the course of its business that is not otherwise part
of the public domain (collectively, the "Confidential Material"). All such
Confidential Material is considered secret and will be available to the
Executive in confidence. Except in the performance of the Executive's duties on
behalf of the Company, the Executive shall not, directly or indirectly for any
reason whatsoever, disclose or use any such Confidential Material, unless such
Confidential Material ceases (through no fault of Executive's) to be
confidential because it has become part of the public domain. All records,
files, drawings, documents, equipment and other tangible items, wherever
located, relating in any way to the Confidential Material or otherwise to the
Company's business, which the Executive prepares, uses, or encounters, shall be
and remain the Company's sole and exclusive property and shall be included in
the Confidential Material. Upon termination of this Agreement by any means, or
whenever requested by the Company, the Executive shall promptly deliver to the
Company any and all of the Confidential Material not previously delivered to the
Company that may be or at any previous time has been in the Executive's
possession or under the Executive's control.
(b) Unfair Competition. The Executive hereby acknowledges that the
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sale or unauthorized use or disclosure of any of the Company's Confidential
Material by Executive by any means whatsoever at any time before, during or
after the Executive's employment with the Company shall constitute "Unfair
Competition." The Executive agrees that the Executive shall not engage in
Unfair Competition either during the time the Executive is employed by the
Company or at any time thereafter.
(c) Other. In the event of the termination of the Executive's
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employment for any reason, the Executive (and any corporation or entity of which
the Executive is a director, officer, employee or greater than ten percent (10%)
shareholder) shall not, directly or indirectly, for a period of two (2) years:
(i) solicit for employment and/or employ any employee, consultant,
agent or representative (an "employee") of the Company or any of its affiliates
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or subsidiaries (or any such employee who has been "employed" by the Company
during the six (6) month period prior to the termination of this Agreement) or
induce or attempt to induce any customer, supplier, licensee or other business
relation of the Company or any Subsidiary to cease doing business with the
Company or such Subsidiary or interfere in any way with the relationship between
any such customer, supplier, licensee or business relation and the Company or
any Subsidiary; or
(ii) make any public statement concerning the Company, any of its
affiliates or subsidiaries, or the Executive's employment unless previously
approved by the Company, except as may be required by law.
(d) In the event of the breach or a threatened breach by the Executive
of any of the provisions of this Section 6, the Company, in addition and
supplementary to other rights and remedies existing in its favor, may apply to
any court of law or equity of competent jurisdiction for specific performance
and/or injunctive or other relief in order to enforce or prevent any violations
of the provisions thereof (without posting a bond or other security).
(e) Upon termination of this Agreement, the Executive shall be deemed
to have resigned from all offices and directorships then held with the Company
or any affiliate entity.
7. Arbitration. Any controversy or claim arising out of or relating
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to this Agreement or any breach hereof or the Executive's employment by the
Company or termination thereof, shall be settled by arbitration (other than
injunctive relief) by one arbitrator in accordance with the rules of the
American Arbitration Association, and judgment upon such award rendered by the
arbitrator may be entered in any court having jurisdiction thereof. The
arbitration shall be held in New York, New York or such other place as may be
agreed upon at the time by the parties to the arbitration.
8. Mitigation of Damages. In the event of any termination of the
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Executive's employment by the Company, the Executive shall not be required to
seek other employment to mitigate damages.
9. Equitable Relief. The Executive acknowledges that the Company is
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relying for its protection upon the existence and validity of the provisions of
this Agreement, that the services to be rendered by the Executive are of a
special, unique and extraordinary character, and that irreparable injury will
result to the Company from any violation or continuing violation of the
provisions of this Agreement for which damages may not be an adequate remedy.
Accordingly, the Executive hereby agrees that in addition to the remedies
available to the Company by law or under this Agreement, the Company shall be
entitled to obtain such equitable relief (without bond) as may be permitted by
law in a court of competent jurisdiction including, without limitation,
injunctive relief from any violation or continuing violation by the Executive of
any term or provision of this Agreement. In the event of an action pursuant to
this Agreement, the prevailing party shall be entitled to its costs and
expenses, including reasonable attorneys' fees.
10. Governing Law. This Agreement shall be governed by and construed
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and enforced in accordance with the internal substantive laws (and not the laws
of conflicts) of the State of Delaware.
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11. Entire Agreement. This Agreement constitutes the whole agreement
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of the parties hereto in reference to any employment of the Executive by the
Company and in reference to any of the matters or things herein provided for or
hereinabove discussed or mentioned in reference to such employment; all prior
agreements, promises, representations and understandings relative thereto being
herein merged.
12. Assignability.
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(a) In the event the Company shall merge or consolidate with any other
corporation, partnership or business entity, or all or substantially all of the
Company's business or assets shall be transferred in any manner to any other
corporation, partnership or business entity, then such successor to the Company
shall thereupon succeed to, and be subject to, all rights, interests, duties and
obligations of, and shall thereafter be deemed for all purposes hereof to be,
the "Company" under this Agreement. This Agreement shall inure to the benefit of
and be enforceable by Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If
Executive should die, any amounts payable to him hereunder shall be paid in
accordance with the terms of this Agreement to Executive's devisee, legatee, or
other designee or, if there be no such designee, to his estate.
(b) This Agreement is personal in nature and the Executive shall not,
without the written consent of the Company, assign or transfer this Agreement or
any rights or obligations hereunder.
(c) Except as set forth in subsection (a) above, nothing expressed or
implied in this Agreement is intended or shall be construed to confer upon or
give to any person, other than the parties to this Agreement, any right, remedy
or claim under or by reason of this Agreement or of any term, covenant or
condition of this Agreement.
13. Amendments; Waivers. This Agreement may be amended, modified,
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superseded, canceled, renewed or extended and the terms or covenants of this
Agreement may be waived only by a written instrument executed by the parties to
this Agreement or, in the case of a waiver, by the party waiving compliance.
Any such written instrument must be approved by the Board to be effective as
against the Company. The failure of any party at any time or times to require
performance of any provision of this Agreement shall in no manner affect the
right at a later time to enforce the same. No waiver by any party of the breach
of any term or provision contained in this Agreement, whether by conduct or
otherwise, in any one or more instances, shall be deemed to be, or construed as,
a further or continuing waiver of any such breach, or a waiver of the breach of
any other term or covenant contained in this Agreement.
14. Notice. All notices, requests or consents required or permitted
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under this Agreement shall be made in writing and shall be given to the other
parties by personal delivery, overnight air courier (with receipt signature) or
facsimile transmission (with "answerback" confirmation of transmission), sent to
such parties' addresses or telecopy numbers as are set forth below such parties'
signatures to this Agreement, or such other addresses or telecopy numbers of
which the parties have given notice pursuant to this Section 14. Each such
notice, request or consent shall be deemed effective upon the date of actual
receipt, receipt signature or confirmation of transmission, as applicable.
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15. Severability. Any provision of this Agreement that is prohibited
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or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
16. Survival. The representations and agreements of the parties set
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forth in Sections 5, 6, 7, 8 and 9 of this Agreement shall survive the
expiration or termination of this Agreement (irrespective of the reason for such
expiration of termination).
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the parties to this Agreement have executed this
Employment Agreement as of the date first above written.
BP ACQUISITION CO., INC.,
a Delaware corporation
By:_________________________
Name: __________________
Title: __________________
Address for Notices:
0000 Xxxxxxxxxx, Xxxxx 000
Xxxxxxx, Xxxxx 00000
Telecopy: (000) 000-0000
Attention: Xx. Xxxxx Xxxxx
with a copy to:
Paul, Hastings, Xxxxxxxx & Xxxxxx LLP
000 Xx. Xxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxxxxx, XX 00000-0000
Facsimile: (000) 000-0000
Attention: Xxxxx X. Xxxxx
_______________________________
XXXXXX XXXXX
Address for Notices:
_______________________________
_______________________________
_______________________________
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