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Exhibit 10.7(g)
COMPENSATION RELEASE AGREEMENT
THIS COMPENSATION RELEASE AGREEMENT (this "Agreement") is made as of this
nineteenth day of September, 1997 by and between Demeter BioTechnologies, Ltd.,
a Colorado corporation ("Demeter") and the undersigned employee of Demeter (the
"Employee").
Preamble
As of August 31, 1997, the Employee has claims against Demeter for certain
amounts relating to (i) compensation for past services, (ii) amounts expended
on behalf of Demeter, (iii) loans and notes made to Demeter by the Employee,
and (iv) interests on the foregoing amounts (collectively, the "Claims").
Demeter and the Employee have reached an agreement pursuant to which Demeter
will, among other things, pay certain amounts to the Employee in exchange for a
complete waiver and release of the Claims. Now, therefore, intending to be
legally bound, and based upon the mutual covenants and agreements set forth in
this Agreement, Demeter and the Employee agree as follows:
1. Release. In consideration of Demeter's obligations set forth in this
Agreement and in full and final settlement of the Claims, the Employee, for
himself, his representatives, successors and assigns, hereby agrees to release
Demeter, including its officers and directors, from any and all liabilities
relating in any way to the Claims.
2. Consideration to Employee. In consideration of the Employee's release
of Claims set forth in Section 1, Demeter hereby agrees as follows:
A. Promptly after Demeter shall receive an aggregate amount of cash
payments from Mycogen Corporation of at least One Million Dollars, Demeter shall
make a cash payment to the Employee of $75,000.
B. On January 15 of the year following the fiscal year in which
Demeter shall have received an aggregate amount of at least Three Million
Dollars in the form of license and/or royalty fees, Demeter shall make a cash
payment to the Employee of $25,000 (the "Fee Related Payment"). Demeter agrees
that the Employee shall have the right to convert all or any portion of the Fee
Related Payment to restricted shares of Demeter's common stock at a conversion
rate of $1.00 per share.
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X. Xxxxxxx agrees to pay Employee $3,500 per month for 48 months,
beginning 30 days after Employee is no longer a full time employee of Demeter.
Employee has option to convert any unpaid amounts to restricted shares of
Demeter's common stock at a conversion rate of $1.00 per share.
D. Any deferred salary which occurs after August 31, 1997 will be paid
on the same basis as in Section 2.C. above and will begin when Section 2.C. has
been completed. Employee has option to convert any unpaid deferred salary
amounts to restricted shares of Demeter's common stock at a conversion rate of
$1.00 per share.
3. Board Approval. This Agreement is subject to, and conditioned upon,
approval by Demeter's Board of Directors.
4. Miscellaneous. This Agreement is binding upon, and shall inure to the
benefit of, the parties hereto and their respective heirs, personal
representatives, successors and assigns. This Agreement shall be construed and
interpreted by the laws of the State of North Carolina.
5. Death of Employee. In the event of Employee's death before all portions
of amounts described in Section 2 are paid, any balances will be paid to
Employee's spouse or heirs on the same basis as described in Section 2.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first written above.
DEMETER BIOTECHNOLOGIES LTD.
By: /s/ Xxxxxxx X. Xxxxxxx
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President
EMPLOYEE
/s/ Xxxxx X. Xxxxxxxx
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Xxxxx X. Xxxxxxxx
