EX-10.4
5
d57466exv10w4.htm
EMPLOYMENT AGREEMENT- XXXXXX XXXXXXXXX
EXHIBIT 10.4
EMPLOYMENT AGREEMENT
THIS AGREEMENT is made effective the 3rd day of June, 2008, between APOTHECARYRX, LLC, an
Oklahoma limited liability company (the “Company”) and XXXXX XXXXXXXXX, an individual (the
“Pharmacist”).
W I T N E S S E T H :
WHEREAS, the Company desires to retain the services of the Pharmacist and the Pharmacist
desires to make the Pharmacist’s services available to the Company.
NOW THEREFORE, in consideration of the mutual promises herein contained, the Company and the
Pharmacist agree as follows:
1. Employment. The Company hereby employs the Pharmacist and the Pharmacist hereby accepts
employment subject to the terms and conditions contained in this Agreement. The Pharmacist is
engaged as an employee of the Company, and the Pharmacist and the Company do not intend to create a
joint venture, partnership or other relationship which might impose a fiduciary obligation on the
Pharmacist or the Company in the performance of this Agreement.
2. Pharmacist’s Duties. The Pharmacist is employed on a full-time basis. The Pharmacist
will use the Pharmacist’s best efforts and due diligence to achieve the most profitable operation
of the Company and the Company’s subsidiary corporations, partnerships and entities which is
consistent with developing and maintaining a quality business operation.
| | 2.1. | | Specific Duties. Initially, the Pharmacist will serve as Pharmacist in
Charge of the Company’s pharmacy in Glencoe, Illinois, known as “Parkway Drugs.” The
Pharmacist will perform all of the services required to fully and faithfully execute
the positions to which the Pharmacist is appointed and such other services as may be
reasonably directed by the Pharmacist’s supervisor. |
| |
| | 2.2. | | Supervision. The services of the Pharmacist will be requested and
directed by Xx. Xxxxx X. Xxx, RPh, or such person as Xx. Xxx or the President of the
Company may direct. |
3. Other Activities. While employed by the Company pursuant to this Agreement, unless the
Pharmacist has obtained the prior written approval of the President of the Company, the Pharmacist
will not: (a) engage in business independent of the Pharmacist’s employment by the Company; (b)
serve as an officer, director, general partner or member in any corporation, partnership, limited
liability company or firm; or (c) directly, indirectly or through any Affiliate (as hereinafter
defined), invest in, participate in or acquire an interest in any Pharmacy Business (as hereinafter
defined). For purposes of this Agreement, the terms: (x) “Pharmacy Business” means owning,
managing, operating, controlling, engaging in or being connected as a partner, investor,
stockholder, creditor, guarantor, advisor, employee, independent contractor or consultant in the
business of selling pharmaceutical and over-the-counter drugs and related merchandise; (y)
“Affiliate” means as to any Person (as hereinafter defined), each other person
that directly or indirectly (through one [1] or more intermediaries) controls, is controlled by or
is under common control with such person; and (z) “Person” means an individual, corporation,
partnership, association, joint stock company, trust, associate (as defined in regulations
promulgated by the Securities Exchange Commission) or other legally recognizable entity. The
limitation in this paragraph 3 will not prohibit any investment by the Pharmacist in securities
which are listed on a public exchange or the National Association of Securities Dealers Automated
Quotation System and issued by a company, firm, corporation, partnership, trust or other entity
involved in the Pharmacy Business, provided that the Pharmacist, the Pharmacist’s family and
Affiliates own in the aggregate not more than five percent (5%) of the outstanding voting
securities of the entity.
4. Pharmacist’s Compensation. The Company agrees to compensate the Pharmacist as follows:
| | 4.1. | | Base Salary. The Company will pay a salary (the “Salary”) to the
Pharmacist at the rate of $3,653.85 per bi-weekly pay period on the Company’s regular
pay days. This position is considered exempt from the overtime provisions of the Fair
Labor Standards Act. |
| |
| | 4.2. | | Benefits. The Company will provide the Pharmacist such paid vacation,
retirement benefits, reimbursement of reasonable expenditures for dues, travel and
entertainment and such other benefits as are customarily provided by the Company as set
forth in the Company’s benefits enrollment materials. The Company will also provide
the Pharmacist the opportunity to apply for coverage under the Company’s medical, life
and disability plans, if any. If the Pharmacist is accepted for coverage under such
plans, the Company will provide such coverage on the same terms as is customarily
provided by the Company to the plan participants as modified from time to time. |
| |
| | 4.3. | | Compensation Review. The compensation of the Pharmacist will be
reviewed not less frequently than annually by the Managers of the Company. The
compensation of the Pharmacist prescribed by paragraph 4 of this Agreement may be
increased, but not decreased, at the discretion of the Managers of the Company. |
| |
| | 4.4. | | Professional Liability Insurance. During the term of this Agreement,
the Company will provide and maintain pharmacist professional liability coverage
insuring Pharmacist at the Company’s expense in amounts and of the type customarily
maintained for pharmacists of the Company. |
5. Term. The employment relationship evidenced by this Agreement is an at-will employment
relationship and each of the parties may terminate this Agreement at any time as provided below.
Unless earlier terminated pursuant to this paragraph 5, this Agreement will extend for a term of
one (1) year commencing on the date hereof. This Agreement will be automatically renewed for
successive one (1) year periods unless the Company or the Pharmacist
gives written notice of non-renewal at least thirty (30) days prior to the anniversary date of this
Agreement.
| | 5.1. | | Termination by Company. The Company will have the following rights to
terminate this Agreement: |
| | 5.1.1. | | Termination without Cause. The Company may terminate this Agreement
without cause at any time by the service of written notice of termination to
the Pharmacist specifying an effective date of such termination not earlier
than thirty (30) days after the date of such notice. In the event the
Pharmacist is terminated without cause, the Company will not have any
obligation to provide any further payments or benefits to the Pharmacist after
the effective date of such termination except for payments and benefits earned
on or prior to such effective date of termination. |
| |
| | 5.1.2. | | Termination for Cause. The Company may terminate this Agreement for
cause if the Pharmacist commits malfeasance including, without limitation: (a)
misappropriating the property of the Company or committing any other act of
dishonesty; (b) engaging in personal misconduct which injures or could injure
the Company; (c) willfully violating any law or regulation relating to the
business of the Company; (d) willfully and repeatedly failing to perform the
Pharmacist’s duties hereunder; (e) willfully violating this Agreement; (f)
willfully violating the Goodwill Protection Agreement between the Company and
the Pharmacist of even date herewith (the “Goodwill Protection Agreement”); (g)
failing to maintain a valid and current license to practice as a pharmacist in
the State of Illinois; and (h) failing to maintain the ability to participate
as a Medicare/Medicaid Provider. In the event this Agreement is terminated for
cause, the Company will not have any obligation to provide any further payments
or benefits to the Pharmacist after the effective date of such termination
except for payments and benefits earned on or prior to such effective date of
termination. |
| | 5.2. | | Termination by Pharmacist. The Pharmacist may voluntarily terminate
this Agreement with or without cause by serving written notice of such termination to
the Company specifying an effective date of such termination not less than thirty (30)
days after the date of such notice. In the event this Agreement is terminated by the
Pharmacist, the Company will not have any obligation to provide any further payments or
benefits to the Pharmacist after the effective date of such termination except for
payments and benefits earned on or prior to such effective date of termination. |
| |
| | 5.3. | | Incapacity of Pharmacist. If the Pharmacist suffers from a physical or
mental condition which in the reasonable judgment of the Company’s Managers prevents
the Pharmacist from performing the duties specified herein for a period of three (3)
consecutive months, the Pharmacist may be terminated. Although the termination will be
deemed to be a termination with cause, the Pharmacist will
receive as termination compensation: (a) any benefits payable under any disability
plans under paragraph 4.2 of this Agreement; and (b) the benefits described in
paragraph 4.2 of this Agreement accrued through the effective date of such |
| | | | termination, as well as payments earned on or prior to such effective date of
termination. |
| |
| | 5.4. | | Death of Pharmacist. If the Pharmacist dies during the term of this
Agreement, this Agreement will automatically terminate on the day after death without
compensation to the Pharmacist’s estate except for payments earned through such
termination and the benefits described in paragraph 4.2 of this Agreement accrued
through the effective date of such termination. |
| |
| | 5.5. | | Effect of Termination. The termination of this Agreement will
terminate all obligations of the Pharmacist to render services on behalf of the Company
under this Agreement, provided that: (a) the Pharmacist will maintain the
confidentiality of all information acquired by the Pharmacist during the term of this
Agreement; and (b) the Pharmacist’s obligations under and the provisions of paragraphs
6, 7 and 8 of this Agreement will survive termination. The termination of this
Agreement will have no effect on the obligations of the Pharmacist under any other
agreement. Except as otherwise provided in paragraph 5 of this Agreement, no accrued
bonus, severance pay or other form of compensation will be payable by the Company to
the Pharmacist by reason of the termination of this Agreement. All keys, credit cards,
files, records, financial information, furniture, furnishings, equipment, supplies and
other items relating to the Company will remain the property of the Company. The
Pharmacist will have the right to retain and remove all personal property and effects
which are owned by the Pharmacist and located in the offices of the Company. All such
personal items will be removed from such offices no later than fourteen (14) days after
the effective date of termination, and the Company is hereby authorized to discard any
items remaining. Prior to the effective date of termination, the Pharmacist will
render such services to the Company as might be reasonably required to provide for the
orderly termination of the Pharmacist’s employment. |
6. Confidentiality. The Pharmacist recognizes that the nature of the Pharmacist’s services
are such that the Pharmacist will have access to information which constitutes trade secrets, is of
a confidential nature, is of great value to the Company or is the foundation on which the business
of the Company is predicated. During the term of this Agreement and for a period of three (3)
years after the termination or expiration of this Agreement, the Pharmacist agrees not to disclose
to any person other than the Company’s Pharmacists or the Company’s legal counsel nor use for any
purpose, other than the performance of this Agreement, any information, data or material
(regardless of form) which is (the “Confidential Information”): (a) a trade secret; (b) provided,
disclosed or delivered to the Pharmacist by the Company, any officer, director, Pharmacist, agent,
attorney, accountant, consultant or other person or entity employed by the Company in any capacity,
any customer, borrower or business associate of the Company or any public authority having
jurisdiction over the Company of any business activity conducted by the Company; or (c) produced,
developed, obtained or prepared by or on behalf of the Pharmacist or the Company (whether or not
such information was developed in the performance of this
Agreement) with respect to the Company or any assets, Pharmacy Business prospects, business
activities, officers, directors, Pharmacists, borrowers or customers of the foregoing.
Confidential Information does not, however, include information which: (a) was in the public
domain, as
evidenced by a printed publication of a date earlier than the date of disclosure, (b)
becomes available to a party on a non-confidential basis from a source which is not prohibited from
disclosing such information by an agreement with the disclosing party or by a legal, contractual,
or fiduciary obligation to the disclosing party, or (c) a party can show is already in the
possession of, or known to, that party prior to the time of any such disclosure. On request by the
Company, the Company will be entitled to a copy of the Confidential Information in the possession
of the Pharmacist. The Pharmacist also agrees that the provisions of this paragraph 6 will survive
the termination, expiration or cancellation of this Agreement and that on termination, expiration
or cancellation of this Agreement, the Pharmacist will deliver to the Company all originals and
copies of the information, data and material containing such information. For purposes of
paragraphs 6 and 7 of this Agreement, the term Company expressly includes any of the Company’s
affiliated corporations, partnerships or entities.
7. Proprietary Matters. The Pharmacist expressly understands and agrees that any and all
improvements, inventions, discoveries, processes or know-how that are generated or conceived by the
Pharmacist during the term of this Agreement, whether generated or conceived during the
Pharmacist’s regular working hours or otherwise, will be the sole and exclusive property of the
Company. Whenever requested by the Company (either during the term of this Agreement or
thereafter), the Pharmacist will assign or execute any and all applications, assignments and or
other instruments and do all things which the Company deems necessary or appropriate in order to
permit the Company to: (a) assign and convey or otherwise make available to the Company the sole
and exclusive right, title and interest in and to said improvements, inventions, discoveries,
processes, know-how, applications, patents, copyrights, trade names or trademarks; or (b) apply
for, obtain, maintain, enforce and defend patents, copyrights, trade names or trademarks of the
United States or of foreign countries for said improvements, inventions, discoveries, processes or
know-how. The Pharmacist further agrees that the provisions of this paragraph 7 will survive
termination, expiration or cancellation of this Agreement.
8. Non-Compete. For the period commencing on the effective date of this Agreement and
ending on the date which is one (1) year after the termination of the Pharmacist’s employment under
this Agreement for any reason, the Pharmacist will not directly or indirectly (as an individual,
Pharmacist, owner, director, consultant, agent or in any other capacity whatsoever):
| | 8.1. | | In connection with any aspect of a Pharmacy Business, recruit, hire, assist
others in recruiting or hiring, discuss employment with or refer to others for
employment any person who at such time is or, during the twelve (12) months prior to
the termination of the Pharmacist’s employment, was an employee of the Company or any
of the Company’s Affiliates; or |
| |
| | 8.2. | | In connection with any aspect of a Pharmacy Business, solicit the customers,
acquisition prospects, suppliers, dealers, or independent salespersons of the Company
or any of the Company’s Affiliates or induce or attempt to induce any such customer,
acquisition prospect, supplier, dealer or independent salesperson
to discontinue their relationship with the Company or any of the Company’s
Affiliates. |
It is understood and agreed that the scope of each of the covenants contained in this paragraph 8
is reasonable as to time, area and persons and is necessary to protect the legitimate business
interests of the Company. It is further agreed that such covenants will be regarded as divisible
and will be operative as to time, area and persons to the extent such provisions may be operative
under applicable law.
| 9. | | Miscellaneous. The parties further agree as follows: |
| | 9.1. | | Time. Time is of the essence of each provision of this Agreement. |
| |
| | 9.2. | | Notices. Any notice, payment, demand or communication required or
permitted to be given by any provision of this Agreement will be in writing and will be
deemed to have been given when delivered personally or by telefacsimile to the party
designated to receive such notice, or on the date following the day sent by overnight
courier, or on the third (3rd) business day after the same is sent by certified mail,
postage and charges prepaid, directed to the following address or to such other or
additional addresses as any party might designate by written notice to the other party: |
| | | | | |
|
| | To the Company:
| | ApothecaryRx, LLC |
|
| | | | C/o Xx. Xxxxx X. Xxxxxxx, President |
|
| | | | 0000 Xxxxxxx Xxxxxxxxx, Xxxxx 000 |
|
| | | | Xxxxxx Xxxxxx, Xxxxxxxxx 00000 |
|
| | | | Fax: (000) 000-0000 |
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| | | | |
|
| | To the Pharmacist:
| | Xxxxx Xxxxxxxxx |
|
| | | | 000 Xxxxxxxxxx |
|
| | | | Xxxxxxxx Xxxx, Xxxxxxxx 00000 |
| | 9.3. | | Assignment. Neither this Agreement nor any of the parties’ rights or
obligations hereunder can be transferred or assigned without the prior written consent
of the other parties to this Agreement. |
| | |
| | 9.4. | | Construction. If any provision of this Agreement or the application
thereof to any Person or circumstances is determined, to any extent, to be invalid or
unenforceable, the remainder of this Agreement, or the application of such provision to
Persons or circumstances other than those as to which the same is held invalid or
unenforceable, will not be affected thereby, and each term and provision of this
Agreement will be valid and enforceable to the fullest extent permitted by law. |
| | |
| | 9.5. | | Entire Agreement. This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter herein contained, and no
modification hereof will be effective unless made by a supplemental written
agreement executed by all of the parties hereto. |
| | 9.6. | | Binding Effect. This Agreement will be binding on the parties and
their respective successors, legal representatives and permitted assigns. |
| |
| | 9.7. | | Attorneys’ Fees. If any party institutes an action or proceeding
against any other party relating to the provisions of this Agreement or any default
hereunder, the unsuccessful party to such action or proceeding will reimburse the
successful party therein for the reasonable expenses of attorneys’ fees and
disbursements and litigation expenses incurred by the successful party, as determined
by order of court. |
| |
| | 9.8. | | Governing Law. This Agreement will be interpreted and enforced in
accordance with the laws of the State of Illinois, regardless of any applicable
principal of conflicts of law. |
| |
| | 9.9. | | Consent to Jurisdiction. Any suit, action or other proceeding seeking
to enforce any provision of, or based on any matter arising out of or in connection
with, this Agreement or the transactions contemplated hereby may be brought in any
court of competent jurisdiction in Chicago, Illinois, or the United States District
Court sitting in Chicago, Illinois, and each of the parties hereby consents to the
jurisdiction of such courts (and of the related appellate courts) in any such suit,
action or proceeding and irrevocably waives, to the full extent permitted by law, any
objection which it may now or hereafter have to the laying of the venue of any such
suit, action or proceeding in any such court or that any such suit, action or
proceeding which is brought in any such court has been brought in an inconvenient
forum. Process in any such suit, action or proceeding may be served on any party
anywhere in the world, whether within or without the jurisdiction of any such court. |
[Signature Pages Follow]
SIGNATURE PAGE TO
EMPLOYMENT AGREEMENT
IN WITNESS WHEREOF, this Agreement has been executed by the parties effective the date first
above written.
| | | | | |
| | | |
| | | /S/ XXXXXX XXXXXXXXX
| |
| | | XXXXX XXXXXXXXX, individually
| |
| | | (the “Pharmacist”) | |
| |
| | |
| | | |
| Employment Agreement | | |
| - Xxxxx Xxxxxxxxx
| | Page 8 of 9 Pages |
SIGNATURE PAGE TO EMPLOYMENT AGREEMENT
IN WITNESS WHEREOF, this Agreement has been executed by the parties effective the date first
above written.
| | | | | |
| | APOTHECARYRX, LLC, an Oklahoma limited
liability company
| |
| | By | /S/ XXXXX X. XXXXXXX
| |
| | | Xxxxx X. Xxxxxxx, President
| |
| | | (the “Company”) | |
| |
| | |
| | | |
| Employment Agreement | | |
| - Xxxxx Xxxxxxxxx
| | Page 9 of 9 Pages |
