Exhibit 10.1


 


EMPLOYMENT AGREEMENT


 


 


THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”)
dated as of July 5th, 2005, is by and between Isolagen, Inc., a
Delaware corporation (together with its subsidiaries, the “Company” or “Isolagen”),
and Marie Lindner, an individual residing in Radnor, Pennsylvania (the “Executive”).


 


 


W I T N E
S S E T H:


 


 


WHEREAS, the Executive desires to serve the Company as
its Senior Vice President of Medical and Business Affairs; and


 


WHEREAS, the Company desires to employ Executive as
its Senior Vice President;


 


NOW THEREFORE in consideration of the mutual benefits
to be derived from this Agreement, the Company and the Executive hereby agree
as follows:


 


1.             Term of Employment; Office and
Duties.


 


(a)           Commencing on July 5, 2005 (the “Employment
Date”), and for an initial term ending July 4, 2007 the Company shall employ
the Executive as a senior executive of the Company with the title of Senior
Vice President and Chief Financial Officer, with the duties and
responsibilities prescribed for such offices in the Bylaws of the Company and
such additional duties and responsibilities consistent with such positions as
may from time to time be assigned to the Executive by the Board of Directors.  Executive agrees to perform such duties and
discharge such responsibilities in accordance with the terms of this
Agreement.  This Agreement shall be
renewed for an additional one (1) year term, by the mutual written agreement of
the Executive and the Company at least one hundred-twenty (120) days prior to
its expiration.  In addition, the Company
shall pay to Executive a one-time signing bonus upon her six month anniversary
with the Company.


 


(b)           The
Executive shall devote substantially all of her working time to the business
and affairs of the Company other than during vacations of four weeks per year
and periods of illness or incapacity; provided, however, that
nothing in this Agreement shall preclude the Executive from devoting time
required:  (i) for serving as a director,
advisor or officer of any organization or entity not in a competing business
with the Company, and any other businesses in which the Company becomes
involved; (ii) delivering lectures or fulfilling speaking engagements;  or (iii) engaging in charitable and community
activities provided that such activities do not interfere with the
performance of his duties hereunder.


 


2.             Compensation and Benefits.


 


For all services rendered
by the Executive in any capacity during the period of Executive’s employment by
the Company, including without limitation, services as an 


 





















 


executive officer
or member of any committee of the Board of Directors or any subsidiary,
affiliate or division thereof, from and after the Effective Date, the Executive
shall be compensated as follows:


 


(a)           Base
Salary.       The Company shall pay the Executive
a fixed salary (“Base Salary”) at a rate of Two Hundred Seventy-five Thousand
Dollars ($275,000) per year.  The Board
of Directors may periodically review the Executive’s Base Salary and may
determine to increase (but not decrease) the Executive’s salary, in accordance
with such policies as the Company may hereafter adopt from time to time, if it
deems appropriate.  Base Salary will be
payable in accordance with the customary payroll practices of the Company.


 


(b)           Executive will also be entitled to
receive an annual bonus (“the “Annual Bonus”), payable each year subsequent to
the issuance of final audited financial statements, but in no case later than
120 days after the end of the Company’s most recently completed fiscal year. The
initial target bonus for Executive will be 30% of the base salary.  The final determination on the amount of the
Annual Bonus will be made by the Compensation Committee of the Board of
Directors, based primarily on the Executive’s performance . The Compensation
Committee may also consider other more subjective factors in making its
determination.


 


(c)           A one time signing bonus of  fifteen thousand dollars ($15,000)


 


(d)           Fringe Benefits, Option Grants and
Miscellaneous Employment Matters.  


 


(i)            The
Executive shall be entitled to participate in such disability, health and life
insurance and other fringe benefit plans or programs, including a Section
401(k) retirement plan, of the Company established from time to time by the
Board of Directors, if any, to the extent that her position, tenure, salary,
age, health and other qualifications make him eligible to participate, subject
to the rules and regulations applicable thereto.  In addition, the Executive shall be entitled
to the following benefits:


 


(ii)           Contemporaneous
with the execution of this Agreement, the Executive will be granted  a non-qualified stock option  (the “Employment Option”) to purchase 60,000
shares of the Company’s Common Stock, par value $.001 per share (the “Common
Stock”) with an exercise price per share equal to the closing price of Isolagen
on the date of the grant. The term of the Employment Option will be for a
period of five (5) years from the date of grant and governed by the terms of an
Option Agreement  between the Executive
and the Company.  The shares eligible for
purchase under the Employment Option grant vest ratably, annually, over the two
years following the Employment Date.  In
the event the Executive is terminated without cause or due to a material
diminution in responsibilities as described below in Paragraph 4(b), the
Employment Option will vest immediately upon such termination.  Nothing in this paragraph shall limit the
board of directors or the compensation committee from making any additional
grant of options.


 


2





















 


(d)           Withholding
and Employment Tax.       Payment of all
compensation hereunder shall be subject to withholding tax and other employment
taxes as may be required with respect to compensation paid by an
employer/corporation to an employee.


 


(e)           Disability.
      The Company shall, to the extent such benefits
can be obtained at a reasonable cost, provide the Executive with disability
insurance benefits.


 


(f)            Death.
      The Company shall, to the extent such benefits
can be obtained at a reasonable cost, provide the Executive with life insurance
benefits in the amount of at least One Million Dollars ($1,000,000).


 


(g)           Vacation.
      Executive shall receive four (4) weeks of
vacation annually, administered in accordance with the Company’s existing
vacation policy.


 


3.             Business Expenses.


 


The Company shall pay or
reimburse all reasonable travel and entertainment expenses incurred by the
Executive in connection with the performance of his duties under this
Agreement, including travel between Executive’s current domicile to the Company’s
various offices (other than his primary assigned office in Exton, PA) and
facilities in the United States and abroad, for attending out-of-town meetings
of the Board of Directors, and such other travel as may be required or
appropriate to fulfill the responsibilities of her office, all in accordance
with such policies and procedures as the Company may from time to time
establish for senior officers and as required to preserve any deductions for
federal income taxation purposes to which the Company may be entitled and
subject to the Company’s normal requirements with respect to reporting and
documentation of such expenses.


 


4.             Termination of Employment.


 


Notwithstanding any other
provision of this Agreement, Executive’s employment with the Company may be
terminated upon written notice to the other party as follows:


 


(a)           By the Company, in the event of the
Executive’s death or Disability (as hereinafter defined) or for Cause (as
hereinafter defined). For purposes of this Agreement, “Cause” shall mean
either: (i) the indictment of, or the bringing of formal charges against,
Executive by a governmental authority of competent jurisdiction for charges
involving criminal fraud or embezzlement; (ii) the conviction of Executive of a
crime involving an act or acts of dishonesty, fraud or moral turpitude by the
Executive, which act or acts constitute a felony; (iii) Executive having
willfully caused the Company, without the approval of the Board of Directors,
to fail to abide by either a valid contract to which the Company is a party or
the Company’s Bylaws or; (iv) Executive having committed acts or omissions
constituting gross negligence or willful misconduct with respect to the Company;
(v) Executive having committed acts or omissions constituting a material breach
of Executive’s duty of loyalty or fiduciary duty to the Company or any material
act of dishonesty or fraud with respect to the Company which are not cured in a
reasonable time, which time shall be 30 days from receipt


 


 


3





















 


of written notice
from the Company of such material breach; or (vi) Executive having committed
acts or omissions constituting a material breach of this Agreement, including
any failure of the Executive to follow a directive from the Board of Directors
and/or its Audit Committee, which are not cured in a reasonable time, which
time shall be 30 days from receipt of written notice from the Company of such
material breach (vii) Executive having failed to meet agreed upon minimum
performance criteria.  A determination
that Cause exists as defined in clauses (iv), (v), (vi) or (vii) (as to this
Agreement) of the preceding sentence shall be made in good faith and by at least
a majority of the members of the Board of Directors.  For purposes of this Agreement, “Disability”
shall mean the inability of Executive, in the reasonable judgment of a
physician appointed by the Board of Directors, to perform his duties of
employment for the Company or any of its subsidiaries because of any physical
or mental disability or incapacity, where such disability shall exist for an
aggregate period of more than 120 days in any 365-day period or for any period
of 90 consecutive days.  The Company
shall by written notice to the Executive specify the event relied upon for
termination pursuant to this Section 4(a), and Executive’s employment hereunder
shall be deemed terminated as of the date of such notice.  In the event of any termination under this
Subsection 4(a), the Company shall pay all amounts then due to the Executive
under Section 2(a) of this Agreement for any portion of the payroll period
worked but for which payment had not yet been made up to the date of
termination, and, if such termination was for Cause, the Company shall have no
further obligations to Executive under this Agreement, and any and all options
granted hereunder shall terminate according to their terms.  In the event of a termination due to
Executive’s Disability or death, the Company shall comply with its obligations
under Sections 2(e) and 2(f).


 


(b)           By
the Company, in the absence of Cause, for any reason and in its sole and
absolute discretion, provided that in such event the Company shall, as
liquidated damages or severance pay, or both, continue to pay to Executive the
Base Salary (at a monthly rate equal to the rate in effect immediately prior to
such termination) for the lesser of the remaining term as defined above or one
year from the date of termination (the “Termination Payments”), when, as and if
such payments would have been made in the absence of Executive’s termination
subject to the following limitation:  if
the Executive becomes employed following termination, all Termination Payments
shall cease except that Executive shall receive at least six months of
Termination Payments notwithstanding reemployment.  In addition, if upon the retention of a new
chief executive officer the duties and responsibilities of the Executive are
materially diminished or changed without the Executive’s consent and the
Executive raises a timely objection (within 30 days) to such change in her
duties and responsibilities, Executive may resign her position and shall be
entitled to six months of Termination Payments as if she were terminated
without Cause.


 


(c)           By
the Executive, for any reason, upon providing 14 days (2 weeks) written
notice.  The Executive will be entitled
to only such compensation as due through that period, including unpaid
vacation, but shall not be entitled to any other remuneration, unless agreed to
by the Company.


 


4





















 


5.             Non-Competition.


 


During the period of
Executive’s employment hereunder and during the period, if any, during which
payments are required to be made to the Executive by the Company pursuant to
Sections 4(a) or 4(b), the Executive shall not, within any state or foreign
jurisdiction in which the Company or any subsidiary of the Company is then
providing services or products or marketing its services or products (or
engaged in active discussions to provide such services), or within a one
hundred (100) mile radius of any such state, directly or indirectly own any
interest in, manage, control, participate in, consult with, render services
for, or in any manner engage in any business engaged in competition with the Company
(unless the Board of Directors shall have authorized such activity and the
Company shall have consented thereto in writing).  By way of further clarification, a business
would be deemed to be in competition with the Company if it utilized cellular
therapies for aesthetic or therapeutic treatment. Investments of less than five
percent of the outstanding securities of any class of a corporation subject to
the reporting requirements of Section 13 or Section 15(d) of the Securities
Exchange Act of 1934, as amended, shall not be prohibited by this Section 5.
Executive’s obligations under this Section 5 arising after the termination of
Executive shall be suspended during any period in which the Company fails to
pay to him Termination Payments required to be paid to him pursuant to this
Agreement.  The provisions of this
Section 5 are subject to the provisions of Section 14 of this Agreement.


 


6.             Inventions and Confidential Information.


 


The parties hereto
recognize that a major need of the Company is to preserve its specialized
knowledge, trade secrets, and confidential information.  The strength and good will of the Company is
derived from the specialized knowledge, trade secrets, and confidential
information generated from experience with the activities undertaken by the
Company and its subsidiaries.  The
disclosure of this information and knowledge to competitors would be beneficial
to them and detrimental to the Company, as would the disclosure of information
about the marketing practices, pricing practices, costs, profit margins, design
specifications, analytical techniques, and similar items of the Company and its
subsidiaries.  The Executive acknowledges
that the proprietary information, observations and data obtained by him while
employed by the Company concerning the business or affairs of the Company are
the property of the Company.  The
Executive also agrees to execute a separate agreement relating to the ownership
of intellectual property of the Company upon the commencement of her
employment.  By reason of her being a
senior executive of the Company, the Executive has or will have access to, and
has obtained or will obtain, specialized knowledge, trade secrets and
confidential information about the Company’s operations and the operations of
its subsidiaries, which operations extend throughout the United States.  [For purposes of this Section 6, “Company”
shall mean the Company and each of its controlled subsidiaries.]  Therefore, subject to the provisions of
Section 14 hereof, the Executive hereby agrees as follows, recognizing that the
Company is relying on these agreements in entering into this Agreement:


 


5





















 


(i)            During the period of Executive’s
employment with the Company and for ten  (10)
years thereafter, the Executive will not use, disclose to others, or publish or
otherwise make available to any other party any inventions or any confidential
business information about the affairs of the Company, including but not
limited to confidential information concerning the Company’s products, methods,
engineering designs and standards, analytical techniques, technical
information, customer information, employee information, and other confidential
information acquired by him in the course of her past or future services for
the Company.  Executive agrees to hold as
the Company’s property all books, papers, letters, formulas, memoranda, notes,
plans, records, reports, computer tapes, printouts, software and other
documents, and all copies thereof and therefrom, in any way relating to the
Company’s business and affairs, whether made by him or otherwise coming into her
possession, and on termination of her employment, or on demand of the Company,
at any time, to deliver the same to the Company within seventy-two (72) hours
of such termination or demand.


 


(ii)           During the period of Executive’s
employment with the Company and for eighteen (18) months thereafter, (a) the
Executive will not directly or indirectly through another entity induce or
otherwise attempt to influence any employee of the Company to leave the Company’s
employ and (b) the Executive will not directly hire or cause to be hired or
induce a third party to hire, any such employee (unless the Board of Directors
shall have authorized such employment and the Company shall have consented
thereto in writing) or in any way interfere with the relationship between the
Company and any employee thereof and (c) induce or attempt to induce any
customer, supplier, licensee, licensor or other business relation of the
Company to cease doing business with the Company or in any way interfere with
the relationship between any such customer, supplier, licensee or business
relation of the Company.


 


7.             Indemnification.


 


The Company will indemnify (and advance the costs of
defense of) the Executive (and her legal representatives) to the fullest extent
required by the laws of the state in which the Company is incorporated, as in
effect at the time of the subject act or omission, or by the Certificate of
Incorporation and Bylaws of the Company, as in effect at such time or on the
date of this Agreement, whichever affords greater protection to the Executive,
and the Executive shall be entitled to the protection of any insurance policies
the Company may elect to maintain generally for the benefit of its executive
officers, against all judgments, damages, liabilities, costs, charges and
expenses whatsoever incurred or sustained by her or her legal representative in
connection with any action, suit or proceeding to which he (or  legal representatives or other successors)
may be made a party by reason of her being or having been an officer of the
Company or any of its subsidiaries except that the Company shall have no
obligation to indemnify Executive for liabilities resulting from conduct of the
Executive with respect to which a court of competent jurisdiction has made a
final determination that Executive committed gross negligence or willful
misconduct.


 


6





















 


8.             Litigation Expenses.


 


In the event of any litigation or other proceeding
between the Company and the Executive with respect to the subject matter of
this Agreement and the enforcement of the rights hereunder and such litigation
or proceeding results in final judgment or order in favor of the Executive,
which judgment or order is substantially inconsistent with the positions
asserted by the Company in such litigation or proceeding, the losing party
shall reimburse the prevailing party for all of her/its reasonable costs and
expenses relating to such litigation or other proceeding, including, without
limitation, her/its reasonable attorneys’ fees and expenses.


 


9.             Consolidation; Merger; Sale of Assets; Change of
Control.


 


Nothing
in this Agreement shall preclude the Company from combining, consolidating or
merging with or into, transferring all or substantially all of its assets to,
or entering into a partnership or joint venture with, another corporation or
other entity, or effecting any other kind of corporate combination provided
that the corporation resulting from or surviving such combination,
consolidation or merger, or to which such assets are transferred, or such
partnership or joint venture assumes this Agreement and all obligations and
undertakings of the Company hereunder. Upon such a consolidation, merger,
transfer of assets or formation of such partnership or joint venture, this
Agreement shall inure to the benefit of, be assumed by, and be binding upon
such resulting or surviving transferee corporation or such partnership or joint
venture, and the term “Company,” as used in this Agreement, shall mean such
corporation, partnership or joint venture or other entity, and this Agreement
shall continue in full force and effect and shall entitle the Executive and his
heirs, beneficiaries and representatives to exactly the same compensation,
benefits, perquisites, payments and other rights as would have been their
entitlement had such combination, consolidation, merger, transfer of assets or
formation of such partnership or joint venture not occurred.


 


10.           Survival of Obligations.


 


Sections 4, 5, 6, 7, 8, 9, 11, 12 and 14 shall survive
the termination for any reason of this Agreement (whether such termination is
by the Company, by the Executive, upon the expiration of this Agreement or
otherwise).


 


11.           Executive’s Representations.


 


The Executive hereby
represents and warrants to the Company that (i) the execution, delivery and
performance of this Agreement by the Executive do not and shall not conflict
with, breach, violate or cause a default under any contract, agreement,
instrument, order, judgment or decree to which the Executive is a party or by
which he is bound, (ii) the Executive is not a party to or bound by any
employment agreement, non-compete agreement or confidentiality agreement with
any other person or entity and (iii) upon the execution and delivery of this
Agreement by the Company, this Agreement shall be the valid and binding
obligation of the Executive, enforceable in accordance with its terms.  The Executive hereby


 


7





















 


acknowledges and
represents that he has consulted with legal counsel regarding her rights and
obligations under this Agreement and that he fully understands the terms and
conditions contained herein.


 


12.           Company’s Representations.


 


The
Company hereby represents and warrants to the Executive that (i) the execution,
delivery and performance of this Agreement by the Company do not and shall not
conflict with, breach, violate or cause a default under any contract,
agreement, instrument, order, judgment or decree to which the Company is a
party or by which it is bound and (ii) upon the execution and delivery of this
Agreement by the Executive, this Agreement shall be the valid and binding
obligation of the Company, enforceable in accordance with its terms.


 


13.           Enforcement.


 


Because the Executive’s
services are unique and because the Executive has access to confidential
information concerning the Company, the parties hereto agree that money damages
would not be an adequate remedy for any breach of this Agreement.  Therefore, in the event of a breach or
threatened breach of this Agreement, the Company may, in addition to other
rights and remedies existing in its favor, apply to any court of competent
jurisdiction for specific performance and/or injunctive or other relief in
order to enforce, or prevent any violations of, the provisions hereof (without
posting a bond or other security).


 


14.           Severability.


 


In case any one or more
of the provisions or part of a provision contained in this Agreement shall for
any reason be held to be invalid, illegal or unenforceable in any respect in
any jurisdiction, such invalidity, illegality or unenforceability shall be
deemed not to affect any other jurisdiction or any other provision or part of a
provision of this Agreement, nor shall such invalidity, illegality or
unenforceability affect the validity, legality or enforceability of this
Agreement or any provision or provisions hereof in any other jurisdiction; and
this Agreement shall be reformed and construed in such jurisdiction as if such
provision or part of a provision held to be invalid or illegal or unenforceable
had never been contained herein and such provision or part reformed so that it
would be valid, legal and enforceable in such jurisdiction to the maximum
extent possible.  In furtherance and not
in limitation of the foregoing, the Company and the Executive each intend that
the covenants contained in Sections 5 and 6 shall be deemed to be a series of
separate covenants, one for each county of the Commonwealth of Pennsylvania and
one for each and every other state, territory or jurisdiction of the United
States and any foreign country set forth therein.  If, in any judicial proceeding, a court shall
refuse to enforce any of such separate covenants, then such unenforceable
covenants shall be deemed eliminated from the provisions hereof for the purpose
of such proceedings to the extent necessary to permit the remaining separate
covenants to be enforced in such proceedings. 
If, in any judicial proceeding, a court shall refuse to enforce any one
or more of such separate covenants because the total time, scope or area
thereof is deemed to be excessive or unreasonable, then it is the intent of the
parties


 


8





















 


hereto that such
covenants, which would otherwise be unenforceable due to such excessive or
unreasonable period of time, scope or area, be enforced for such lesser period
of time, scope or area as shall be deemed reasonable and not excessive by such
court.


 


15.           Entire Agreement; Amendment.


 


Except as
otherwise set forth in this Agreement, this Agreement contains the entire
agreement between the Company and the Executive with respect to the subject
matter hereof and thereof.  This
Agreement may not be amended, waived, changed, modified or discharged except by
an instrument in writing executed by or on behalf of the party against whom enforcement
of any amendment, waiver, change, modification or discharge is sought.  No course of conduct or dealing shall be
construed to modify, amend or otherwise affect any of the provisions hereof.


 


16.           Notices.


 


All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if physically delivered, delivered by express mail or other
expedited service or upon receipt if mailed, postage prepaid, via registered
mail, return receipt requested, addressed as follows:


 


	
  (a)

  	
   

  	
  To the Company:

  	
   

  	
  (b)

  	
   

  	
  To the Executive:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Isolagen, Inc.

  	
   

  	
   

  	
   

  	
  Dr. Marie Lindner

  
	
   

  	
   

  	
  405 Eagleview Blvd.

  	
   

  	
   

  	
   

  	
  631 Hollow Road

  
	
   

  	
   

  	
  Exton, PA

  	
   

  	
   

  	
   

  	
  Radnor, PA 19087

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attn:

  	
   

  	
  Susan Ciallella, Esq.

  	
   

  	
   

  	
   

  	
   

  



 


and/or to such other persons and addresses as any party shall have
specified in writing to the other.


 


17.           Assignability.


 


This Agreement shall not be assignable by either party
and shall be binding upon, and shall inure to the benefit of, the heirs,
executors, administrators, legal representatives, successors and assigns of the
parties.  In the event that all or
substantially all of the business of the Company is sold or transferred, then
this Agreement shall be binding on the transferee of the business of the
Company whether or not this Agreement is expressly assigned to the transferee.


 


18.           Governing Law.


 


This Agreement shall be
governed by and construed under the laws of the Commonwealth of Pennsylvania.


 


9





















 


19.           Waiver
and Further Agreement.


 


Any waiver of any
breach of any terms or conditions of this Agreement shall not operate as a
waiver of any other breach of such terms or conditions or any other term or
condition, nor shall any failure to enforce any provision hereof operate as a
waiver of such provision or of any other provision hereof.  Each of the parties hereto agrees to execute
all such further instruments and documents and to take all such further action
as the other party may reasonably require in order to effectuate the terms and
purposes of this Agreement.


 


20.           Headings of No
Effect.


 


The paragraph
headings contained in this Agreement are for reference purposes only and shall
not in any way affect the meaning or interpretation of this Agreement.


 


IN WITNESS WHEREOF, the parties hereto have executed
this Employment Agreement as of the date first above written.


 


	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
  ISOLAGEN, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Susan Ciallella, Executive Vice President

  
	
   

  	
   

  	
  General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE :

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Marie Lindner, M.D.

  



 


 


10