Exhibit 10.25
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into on January 3,
2000, by and between Xxxxxxx X. Xxxxxxx, M.D., a resident of Georgia
("Xxxxxxx"), and VaxGen, Inc., a Delaware corporation (the "Company").
W I T N E S S E T H:
WHEREAS, the Company desires to employ Xxxxxxx as Vice President,
International Clinical Research, and Xxxxxxx desires to be so employed;
WHEREAS, the Company and Xxxxxxx desire to set forth in writing the terms
of their agreement with respect to Xxxxxxx'x employment with the Company;
NOW, THEREFORE, in consideration of the premises and of the mutual
covenants contained herein, the parties agree as follows:
1. Employment. The Company hereby employs Xxxxxxx as its Vice President,
International Clinical Research, and Xxxxxxx hereby accepts such employment upon
the terms and conditions set forth in this Agreement.
2. Term. Xxxxxxx'x employment will begin on January 3, 2000, and will continue
for an initial term of four years ending December 31, 2003. Thereafter,
Xxxxxxx'x employment will be automatically renewed for successive one-year
terms, unless notice of termination is given by either party to the other at
least thirty days before the expiration of the then current term.
3. Duties. Xxxxxxx will perform such executive and administrative duties
consistent with his position as Vice President, International Clinical Research,
of the Company as are reasonably assigned to him by the Board and will be given
such executive and administrative powers and authority as may be needed to carry
out those duties. Xxxxxxx shall report directly to Xxxx X. Xxxx, M.D., Senior
Vice President, Medical Affairs and Regulatory. Xxxxxxx will be responsible for:
the medical and scientific supervision of the Thailand vaccine studies working
in partnership with the VaxGen clinical operations personnel in Thailand to
influence and/or supervise personnel as needed; establishing collaborative
relationships with appropriate researchers and institutions to conduct vaccine
studies in other developing countries according the Company's business plan;
maintaining communication with appropriate national and international public
health organizations, which will include arranging appropriate meetings,
presenting at appropriate national and international symposia, and participating
in international meetings where AIDS vaccines will be discussed; and working
closely with the Company in estimating market size, and developing delivery
strategies and funding mechanisms for HIV vaccines for the less developed world.
The Company will make reasonable accommodation to provide Xxxxxxx the
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necessary equipment to support a home office in his Georgia home as are required
for the performance of these duties.
4. Compensation. The Company will pay Xxxxxxx an annual base salary of $175,000
for the first year of employment. Xxxxxxx'x annual base salary will be payable
semi-monthly. Xxxxxxx will have the opportunity for an annual bonus of up to 20%
of annual salary, such bonus to be determined solely by the Board of Directors.
Xxxxxxx'x salary and bonus will be considered annually for potential increase by
the Compensation Committee of the Board of Directors. As further compensation,
the Company will pay Xxxxxxx a signing bonus of $15,000 upon the first day of
his employment.
5. Stock Options.
(a) Initial Stock Option Grant: Xxxxxxx shall receive incentive and
non-qualified options to purchase a total of 50,000 shares of Common Stock
of VaxGen (with as many shares allocated to an incentive stock option as is
permissible under applicable laws). The exercise price will be determined
at the first Board of Directors meeting in the year 2000. The stock options
will be administered according to the VaxGen Stock Option Plan and shall
vest over time as indicated in the Stock Option Plan. Xxxxxxx will be
eligible to receive an option to purchase an additional 25,000 shares of
Common Stock of VaxGen upon completion of the enrollment phase in the
Thailand study program (VAX003). The options shall accelerate in full
immediately upon occurrence of any of the following events: (i) Change of
Control (as defined below) of VaxGen, or (ii) termination of Xxxxxxx'x
employment without cause or by Xxxxxxx for Good Reason (as defined below).
Upon an occurrence of event described in (ii) above, the right to exercise
all nonqualified stock options shall be extended to one year from the date
of termination.
(b) Change of Control. In the event the Company undergoes a change of
control (a "Change of Control") by virtue of (a) its sale or exchange of
stock (resulting in a shareholder of the Company holding less than 50% or
more of its outstanding equity and underlying options and warrants) in a
transaction or series of transactions occurring in any 12 month period,
and/or (b) Genentech increases its holding in the Company to a level of 50%
or more of the Company's outstanding equity, underlying options and
warrants in a transaction or series of transactions, Xxxxxxx shall receive
a one time bonus of 12,500 shares of common stock.
6. Expenses. The Company will reimburse Xxxxxxx for travel, entertainment and
other expenses reasonably incurred by him in connection with his employment
under this Agreement upon presentation of appropriate vouchers or receipts.
7. Benefits. Xxxxxxx shall have the right, on the same basis as other members of
senior management of Company, to participate in and to receive benefits under
any of
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Company's employee benefit plans, in effect from time to time. In addition,
Xxxxxxx shall be entitled to the benefits afforded to other members of senior
management under Company's paid time off, holiday and business expense
reimbursement policies.
8. Early Termination of Employment. Employment under this Agreement will
terminate prior to expiration of the term upon any of the following:
(a) Death. Xxxxxxx'x employment hereunder shall terminate upon his death.
(b) Disability. The Company may terminate Xxxxxxx'x employment hereunder
if he has been unable to perform his duties hereunder for a period of
six consecutive months and if he has not resumed on a full-time basis
the performance of such duties within thirty days after written notice
from the Company of its intent to terminate his employment due to
disability.
(c) Cause. The Company may terminate Xxxxxxx'x employment hereunder for
Cause. For purposes of this Agreement, the term "Cause" means (i)
willful and repeated failure by Xxxxxxx to perform his duties
hereunder which is not remedied within thirty days after written
notice from the Company, (ii) conviction of Xxxxxxx for a felony, or
(iii) Xxxxxxx'x dishonesty that is demonstrably and materially
injurious to the Company.
(d) Termination by Xxxxxxx. Xxxxxxx may terminate his employment hereunder
for Good Reason. For purposes of this Agreement, the term "Good
Reason" shall mean (i) the Company substantially reducing Xxxxxxx'x
duties, position, authority or responsibility hereunder and not
reinstating the same within thirty days after written notice from
Xxxxxxx, or (ii) breach by the Company of its obligations this
Agreement if not remedied within thirty days after written notice from
Xxxxxxx.
9. Benefits Upon Termination.
(a) Voluntary Termination, Termination for Cause for Due to Death or
Disability. In the event Xxxxxxx'x voluntary termination from
employment with Company or termination of Xxxxxxx'x employment as a
result of his death or disability or for Cause, Xxxxxxx shall be
entitled to no compensation or benefits from Company other than those
earned under paragraph 5 above through the date of his termination or
in the case of any stock options, vested through the date of his
termination.
(b) Termination Without Cause or for Good Reason. If Xxxxxxx'x employment
is terminated by Company for any reason other than for cause or by
Xxxxxxx for Good Reason, Xxxxxxx shall be entitled to the following
separation benefits:
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(i) all accrued compensation (including pro-rated target bonus) and
benefits through the date of termination;
(ii) continued payment of Xxxxxxx'x salary at his Base Salary rate,
less applicable withholding, for twelve (12) months following his
termination; and
(iii) acceleration of vesting of his options as provided in paragraph
5 above.
10. Restrictive Covenants.
(a) Confidential Information. Xxxxxxx acknowledges that, during the course
of his employment with the Company, he will have access to
confidential information and biological materials not generally known
outside the Company (whether conceived or developed by Xxxxxxx or
others) and confidential information and biological materials
entrusted to the Company by third parties, including, without
limitation, trade secrets, techniques, formulae, biological materials,
marketing and other business plans, data, strategies and forecasts
(collectively, "Confidential Information"). Any Confidential
Information conceived or developed by Xxxxxxx during employment will
be the exclusive property of the Company. Except as may be necessary
in connection with the Company's business, Xxxxxxx will not (during or
after his employment with the Company) disclose Confidential
Information to any third person, firm or entity or use Confidential
Information for his own purposes or for the benefit or any third
person, firm or entity. In his work for the Company, Xxxxxxx will
refrain from unauthorized use or disclosure of information and
biological materials owned by former employers or other third parties.
(b) Inventions. Xxxxxxx will promptly disclose to the Company any
discoveries, inventions, formulae and techniques, whether or not
patentable, made, conceived or first reduced to practice by him,
either alone or together with others, during his employment with the
Company (collectively, the "Inventions"). Xxxxxxx hereby assigns to
the Company all of his right, title and interest in and to any
Inventions. Xxxxxxx will execute such documents and take such other
actions as may be reasonably requested by the Company (at the
Company's expense) to enable the Company to apply for, obtain,
maintain and enforce patents on any of the Inventions or to facilitate
the transfer or assignment of any of the Company's rights with respect
to the Inventions and patents.
(c) Company Documents. Upon the termination of his employment, Xxxxxxx
will deliver to the Company all documents and other tangible property
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containing Confidential Information which are then in his possession
or control.
(d) Covenant Not to Compete. Xxxxxxx acknowledges that his duties
hereunder and the services he will provide to the Company are of a
special, unique, unusual and extraordinary character, which gives this
Agreement particular value to the Company, and that it would be
difficult to employ any individual or individuals to replace Xxxxxxx
in the performance of such duties and services. Therefore, during
employment and for a period of one year after the termination of his
employment with the Company, Xxxxxxx will not, directly or indirectly,
enter into, organize, control, engage in, be employed by, serve as a
consultant to, be an officer or director of or have any direct or
indirect investment in any business, person, partnership, association,
firm or corporation engaged in any business activity (including, but
not limited to, research, development, manufacturing, selling,
leasing, licensing or providing services) which is competitive with
the business and/or scientific activities that the Company is
developing or exploiting during Xxxxxxx'x employment with the Company.
Nothing contained in this Agreement shall be construed to prevent
Xxxxxxx from owning at any time, directly or indirectly, as much as 5%
of any class of equity securities issued by any corporation or other
entity which are publicly traded and registered under the Securities
and Exchange Act of 1934, as amended.
11. Indemnification. The Company will indemnify Xxxxxxx to the fullest extent
permitted by law and will hold harmless from and against any claim, liability or
expense (including reasonable attorneys' fees) made against or incurred by
Xxxxxxx in connection with his relationship with the Company. This obligation
will include, without limitation, prompt payment in advance of any and all costs
of defending the same, including attorney fees.
12. No Impediment to Agreement. Except as otherwise disclosed herein, Xxxxxxx
hereby represents to the Company that he is not, as of the date hereof, and will
not be, during employment with the Company, employed under contract, oral or
written, by any other person, firm or entity and is not and will not be bound by
the provisions of any restrictive covenant or confidentiality agreement which
would constitute an impediment to, or restriction upon, his ability to enter
into this Agreement and to perform the duties of his employment.
13. Notices. Any notice under this Agreement must be in writing and will be
deemed to have been given when personally delivered or mailed by first-class or
express mail to the recipient at the following address (or such other address as
shall be specified by prior written notice):
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To the Company: Xxxxxx X. Xxxxxxx, M.D., X.Xx.
President
VaxGen, Inc.
0000 Xxxxxx Xxxx., Xxxxx 000
Xxxxxxxx, XX 00000
Copy to: Xxxxx Xxxx, Esq.
Fenwick & West LLP
Xxx Xxxx Xxxx Xxxxxx
Xxxx Xxxx, XX 00000
To Xxxxxxx: Xxxxxxx X. Xxxxxxx, M.D.
0000 Xxxxx Xxxx
Xxxxxx, XX 00000
14. Severability. Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law. If
any provision of this Agreement is held to be invalid, illegal or unenforceable
in any respect under any applicable law in any jurisdiction, such invalidity,
illegality or unenforceability will not affect any other provision or the
interpretation of this Agreement in any other jurisdiction.
15. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, without regard to the law of
conflicts.
16. Successors and Assigns. The services and duties to be performed by Xxxxxxx
hereunder are personal and may not be assigned. This Agreement shall be binding
upon and inure to the benefit of the Company, its successors and assigns, and
Xxxxxxx, his heirs and representatives.
17. Complete Agreement. This Agreement constitutes the entire agreement between
the parties concerning the subject matter hereof and supersedes all prior
agreements between the parties concerning the subject matter hereof.
18. Waiver. Failure by either party to insist upon strict adherence to any one
or more of the provisions of this Agreement on one or more occasions shall not
be construed as a waiver, nor shall it deprive that party of the right to
require strict compliance thereafter.
19. Survival. The obligations set forth in paragraph 10 shall survive
termination of this Agreement.
20. Amendments. No amendment hereto, or waivers or releases of obligations or
liabilities hereunder, shall be effective unless agreed to in writing by the
parties hereto.
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21. Withholding. The Company may deduct and withhold from the payments to be
made to Xxxxxxx hereunder any amounts required to be deducted and withheld by
the Company under the provisions of any statute, law, regulation or ordinance
now or hereafter enacted.
22. Pending Agreement from the Centers for Disease Control. The Company
understands that you are awaiting a formal letter outlining detailed
restrictions regarding your future employment that could conceivably conflict
with your prior employment with the Centers for Disease Control. When those
restrictions are received and appended to this agreement, they will be honored
in full by VaxGen or your Employment Agreement will be amended.
IN WITNESS WHEREOF, the parties have executed this Agreement effective as
of the date first above written.
For VaxGen, Inc.:
By:
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Its:
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Xxxxxxx:
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Xxxxxxx X. Xxxxxxx, M.D.
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