Blueprint





  Exhibit 10.8








EMPLOYMENT AGREEMENT


 


 


This
Employment Agreement ("AGREEMENT") is made by and between Patricia
B. Prichep ("EMPLOYEE") and CEL-SCI Corporation ("CEL-SCI" or
“the Company”) as of August 31, 2019 (the "Effective
Date").


 


RECITALS


 


EMPLOYEE has been
an EMPLOYEE of CEL-SCI since December 1, 1992. CEL-SCI and EMPLOYEE
wish to set forth in this AGREEMENT the terms and conditions under
which EMPLOYEE is to be employed by CEL-SCI from the date of
execution forward.


 


In
consideration of EMPLOYEE's agreement to continue providing
services to CEL-SCI, CEL-SCI's agreement to employ EMPLOYEE on the
terms and conditions set forth herein and the mutual agreements set
forth herein, the parties hereto agree as follows:


 




1.


Term And Nature Of Employment






 


CEL-SCI
hereby employs EMPLOYEE as Senior Vice President of Operations of
CEL-SCI commencing on the Effective Date of this AGREEMENT and
ending on August 31, 2023, unless said period of employment (the
"Employment Period") is terminated earlier in accordance with the
terms of this AGREEMENT. Thereafter, EMPLOYEE shall be employed on
an at-will basis and may terminate and may be terminated from her
employment with or without cause. EMPLOYEE hereby accepts such
employment and agrees to devote her full business time and
attention, best efforts, energy and skills to the business and
affairs of CEL-SCI. EMPLOYEE agrees to perform such other duties as
may from time to time be assigned to her by the Chief Executive
Officer or the Board of Directors of CEL-SCI and shall act at all
times in accordance with the best interests of CEL-SCI. EMPLOYEE
agrees that she shall comply with all applicable governmental laws,
rules and regulations and with all of CEL-SCI's policies, rules
and/or regulations applicable to the employees of
CEL-SCI.


 




2.


Wage Compensation






 


2.1           EMPLOYEE
shall be compensated on the basis of an annual salary of $245,804,
less applicable withholding taxes. Increases in salary, if any,
shall be made at the sole discretion of the Board of Directors of
CEL-SCI. Nothing in this paragraph 2.1 shall be construed to limit
CEL-SCI's right to terminate this AGREEMENT in accordance with the
terms hereof.


 



2.2 

Salary
Payment.






 


Salary
payments will normally be made to EMPLOYEE semi-monthly or
otherwise in accordance with CEL-SCI's pay period practices
applicable to executive officers.


 




3.

Other Benefits.






 

3.1  
During the Employment Period, EMPLOYEE shall be entitled to receive
any other benefits which are provided to CEL-SCI's executive
officers or other full time Employees, in accordance with CEL-SCI's
policies and practices and subject to EMPLOYEE’s satisfaction
of any applicable condition of eligibility.


 


3.2  
Reimbursement of Expenses. CEL-SCI shall reimburse EMPLOYEE for all
reasonable business expenses incurred by EMPLOYEE on behalf of
CEL-SCI provided that: (i) such reasonable expenses are ordinary
and necessary business expenses incurred on behalf of CEL-SCI, and
(ii) EMPLOYEE provides CEL-SCI with itemized accounts, receipts and
other documentation for such reasonable expenses as are reasonably
required by CEL-SCI. Any expenses found not to be reasonable
business expenses by the auditors or the IRS will be reimbursed to
the Company by the EMPLOYEE.


 




4.


Former Employment






 


No
Conflict. EMPLOYEE represents and warrants that the execution and
delivery by her of this AGREEMENT, her employment by CEL-SCI and
her performance of duties under this AGREEMENT will not conflict
with and will not be constrained by any prior employment or
consulting agreement or relationship, or any other contractual
obligations.


 



 

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5.            


Termination






 

5.1           
a         Termination of
AGREEMENT Due to Death or Disability. EMPLOYEE's employment and
this AGREEMENT shall terminate upon EMPLOYEE's death. In the event
that EMPLOYEE's employment ends due to her death, CEL-SCI's
obligations under this AGREEMENT shall immediately cease, except
that the EMPLOYEE’s legal representatives shall be entitled
to receive all compensation otherwise payable to EMPLOYEE through
the last day of the month in which the EMPLOYEE’s death
occurred. If EMPLOYEE dies while employed by CEL-SCI, any options
or stock of the Company then owned by EMPLOYEE shall automatically
accelerate and become fully vested. This provision shall not
otherwise limit any benefits available under CEL-SCI's benefit
plans. The exercise period of any stock options held by EMPLOYEE at
her death will be extended to a date which is four years after the
effective date of the EMPLOYEE’s
death, unless the expiration date is after such four-year period,
in which case the original expiration date will
control  


 

b.    
If EMPLOYEE becomes mentally or physically incapacitated or
disabled so as to be unable to perform EMPLOYEE’s duties
under this agreement, the AGREEMENT shall terminate as well.
EMPLOYEE’s inability to adequately perform services under
this AGREEMENT for a period of ninety (90) consecutive days will be
conclusive evidence of such mental or physical incapacity or
disability, unless such inability to adequately perform such
services under this AGREEMENT is pursuant to a mental or physical
incapacity or disability covered by the Family Medical Leave Act
(“FMLA”). If EMPLOYEE becomes incapacitated or disabled
while employed by CEL-SCI, any options or stock of the Company then
owned by EMPLOYEE shall automatically accelerate and become fully
vested. This provision shall not otherwise limit any benefits
available under CEL-SCI's benefit plans. CEL-SCI shall also extend
the period of exercisability of those stock options to four years,
or the natural expiration of the stock options, whichever is
later.


 


5.2           “Termination
for Cause”. Notwithstanding anything to the contrary herein,
EMPLOYEE's employment and this AGREEMENT may be terminated by
CEL-SCI upon written notification upon the occurrence of any of the
following:


 


a.  Willful
misconduct that has a material adverse effect on CEL-SCI’s
operations, prospects, and business.


 


b.   Acts
of fraud against CEL-SCI.


 

c.  
EMPLOYEE breaches any of the terms or conditions set forth in this
AGREEMENT and EMPLOYEE fails to cure such breach within 30 days
after EMPLOYEE’s receipt from CEL-SCI of written notice of
such breach, which notice shall describe in reasonable detail
CEL-SCI’s belief that EMPLOYEE is in breach hereof
(notwithstanding the following, no cure period shall be applicable
to breaches by EMPLOYEE of paragraphs 6 and 7 or to the extent
CEL-SCI has provided EMPLOYEE more than 2 notices of substantially
the same breach within any 12 month period).


 


In the
event that EMPLOYEE's employment is terminated with cause by
CEL-SCI pursuant to this paragraph 5.2 of this AGREEMENT, CEL-SCI
obligations under this AGREEMENT shall immediately
cease.


 


Termination of
EMPLOYEE pursuant to this section 5.2 shall be in addition to and
without prejudice to any other right or remedy to which CEL-SCI may
be entitled at law, in equity, or under this
AGREEMENT.


 



5.3            

Constructive
Termination.






 


If
(i) during the period ending on the date that is 48 months
following a Change in Control, the EMPLOYEE terminates her
employment with the Company (ii) the Company terminates
EMPLOYEE’s employment, other than pursuant to Sections 5.1 or
5.2 of this Agreement; or (iii) the EMPLOYEE terminates her
employment for Good Reason (all of the above a “Constructive
Termination”), then;


 




●

all stock options
which EMPLOYEE holds at the time of such Constructive Termination
shall become fully vested;





 




●

the Company will
extend the expiration date of the stock options referred to above
to a date which is four years after the effective date of the
EMPLOYEE’s resignation or termination, unless the expiration
date is after such four-year period, in which case the original
expiration date will control;





 




●

all outstanding
restricted stock, which is the subject of an Award Agreement
pursuant to the Company’s 2014 Incentive Stock Bonus Plan;
shall vest;





 




●

all
restrictions pertaining to any award made pursuant to the
Company’s 2014 Incentive Stock Bonus Plan shall lapse and
have no further force or effect, including the failure to meet the
Performance Criteria set forth in the Award Agreement pursuant to
the Company’s 2014 Incentive Stock Bonus Plan;
and






 




●

all
other shares of restricted stock then held by the EMPLOYEE shall
immediately vest and all restrictions pertaining to any such shares
of restricted stock will lapse and have no further force or
effect.






 



 

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For
purposes of the above:


 


“Change of
Control” shall mean a change in ownership or control of the
Company affected through any of the following
transactions:


 


a.   a
merger, consolidation or reorganization approved by the
Company’s stockholders, unless securities representing more
than 50% of the total combined voting power of the voting
securities of the successor corporation are immediately thereafter
beneficially owned, directly or indirectly, and in substantially
the same proportion, by the persons who beneficially owned the
company’s outstanding voting securities immediately prior to
such transaction, or


 


b.   
any stockholder-approved transfer or other disposition of all or
substantially all of the Company’s assets, or


 


c.   
The acquisition by any individual, entity or group of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the
Securities Exchange Act of 1934, as amended) of 20% or more of the
Company’s either (1) the then outstanding shares of common
stock of the Company or (2) the combined voting power of the then
outstanding voting securities of the Company entitled to vote in
the election of directors, or


 


d.   
a change in the composition of the Board over a period of
thirty-six (36) months or less such that a majority of the Board
members ceases, by reason of one or more contested elections for
Board membership, to be comprised of individuals who either (A)
have been Board members continuously since the beginning of such
period or (B) have been elected or nominated for election as Board
members during such period by at least a majority of Board members
described in clause (A) who were still in office at the time the
Board approved such election or nomination.


 


Good
Reason means: (a) a breach of any provisions of this Agreement by
the Company; a reduction in the EMPLOYEE’s benefits; or (b)
the EMPLOYEE being assigned any duties which are materially
inconsistent with the duties of the EMPLOYEE immediately prior to
the date of such new assignment; or (c) the office at which the
EMPLOYEE is required to perform her duties is more than 10 miles
from the office at which the EMPLOYEE was then performing her
duties.


 


In the
event a Constructive Termination has occurred (other than the
EMPLOYEE’S employment being terminated by the Company),
EMPLOYEE may, in her sole discretion, provide Company with her
written notice of resignation to be effective not less than 30 days
after receipt by Company, whereupon EMPLOYEE shall cease to be
employed by the Company and both parties shall be relieved of
further responsibility or liability to the other under this
Agreement, other than as provided in this AGREEMENT. Upon receipt
of such notice of resignation, or in the event the Company
terminates the employment of EMPLOYEE other than pursuant to
Section 5.1 or 5.2 of this Agreement, Company shall promptly pay to
EMPLOYEE by certified check, wire transfer funds, or other form of
payment reasonably acceptable to EMPLOYEE, a lump sum amount equal
to 18 months’ salary of the EMPLOYEE at such compensation
rate as is then in effect under the terms of this Agreement and any
extension or renewal thereof (the "Payment"), or the value of the
remaining employment contract, whichever is greater. The Payment
shall not have deducted from it any charges, expenses, debts,
set-offs or other deductions of any kind whatsoever except for
required taxes.


 


5.4           In
the event of a Constructive Termination, the Company shall also
provide the following benefits to EMPLOYEE:


 


a.            The
EMPLOYEE’s existing coverage under the Company’s group
health plan (and, if applicable, the existing group health coverage
for eligible dependents) will end on the last day of the month in
which the eligible EMPLOYEE’s employment terminates. The
eligible EMPLOYEE and her eligible dependents may then be eligible
to elect temporary continuation coverage under the Company’s
group health plan in accordance with the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended
(“COBRA”). The eligible EMPLOYEE (and, if applicable,
her eligible dependents) will be provided with a COBRA election
form and notice which describe her rights to continuation coverage
under COBRA. If an eligible EMPLOYEE elects COBRA continuation
coverage, then the Company will pay for COBRA coverage (such
payments shall not include COBRA coverage with respect to the
Company’s Section 125 health care reimbursement plan) for (i)
eighteen (18) months, or (ii) the maximum period permitted under
COBRA. If EMPLOYEE does exhaust the applicable COBRA period, the
Company will reimburse EMPLOYEE for the cost of an individual
health insurance policy in an amount not to exceed the amount of
the monthly COBRA premium previously paid by the Company pursuant
to this paragraph for the remainder of the two year period
following EMPLOYEE’s termination of employment. After such
period of Company-paid coverage, the eligible EMPLOYEE (and, if
applicable, her eligible dependents) may continue coverage at her
own expense in accordance with COBRA or other applicable laws. No
provision of this agreement will affect the continuation coverage
rules under COBRA. Therefore, the period during which the eligible
EMPLOYEE must elect to continue the Company’s health plan
coverage under COBRA, the length of time during which COBRA
coverage will be made available to the eligible EMPLOYEE, and all
the eligible EMPLOYEE’s other rights and obligation under
COBRA will be applied in the same manner that such rules would
apply in the absence of the Plan. In the event, however, an
EMPLOYEE becomes eligible for benefits under another plan prior to
the expiration of the period in which the Company is paying benefit
premiums, the Company shall no longer be obligated to pay such
benefit premiums. The EMPLOYEE is required to notify the Company of
eligibility for benefits under another plan and is expected to
enroll in the new group plan at the first eligible opportunity
unless EMPLOYEE chooses, at EMPLOYEE’s sole expense, to
continue COBRA benefits through the Company. If EMPLOYEE fails to
notify the Company of EMPLOYEE’s eligibility for alterative
benefits, the Company shall have the right to discontinue payment
of COBRA premiums upon thirty (30) days’ notice to EMPLOYEE.
In no event shall a cash payment be made to EMPLOYEE in lieu of the
payment of COBRA premiums. The payment of COBRA premiums by the
Company shall not extend the maximum eligible COBRA coverage
period.


 


b.           The
Company will make available to EMPLOYEE, upon her request,
outplacement services provided by a reputable outplacement
counselor selected by the Company for a period of nine months
following termination. The Company will assume the cost of all such
outplacement services. In no event will a cash payment be made in
lieu of outplacement benefits.


 



 

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6.            


Confidentiality






 


6.1 In
view of the fact that the EMPLOYEE's work for the Company will
bring her into close contact with many confidential affairs of the
Company not readily available to the public, the EMPLOYEE
agrees:


 


6.1.1
To keep secret and retain in the strictest confidence, all
confidential matters of the Company, including, without limitation,
inventions and related proprietary information, trade secrets,
patents, customer lists, methods, scientific results and related
documentation in connection with any research and development
undertaken by, or at the direction of, the Company, confidential
pricing policies, confidential utilization review protocols and
screens, confidential and proprietary operational methods and other
confidential and proprietary business affairs and plans of the
Company and its affiliates, learned by her heretofore or hereafter;
and not to disclose them to anyone outside the Company, except in
the course of performing her duties hereunder or with the Company's
express written consent; and


 


6.1.2
To promptly deliver to the Company upon the termination of her
employment with the Company, or at any time the Company may so
request, all memoranda, notes, records, reports, manuals, and other
documents (and all copies thereof) relating to the Company's
business and all property associated therewith, which she may then
possess or have under her control.


 


6.2 If
the EMPLOYEE commits a breach, or threatens to commit a breach, of
any of the provisions of Section 6.1 hereof, the Company shall have
the following rights and remedies:


 


6.2.1
The rights and remedy to have the provisions of this Agreement
specifically enforced by any court of competent jurisdiction, it
being acknowledged that any such breach or threatened breach shall
cause irreparable injury to the Company, and that money damages
shall not provide a complete and adequate remedy to the
Company;


 


Each of
the rights and remedies enumerated above shall be independent of
the other and shall be severally enforceable, and all of such
rights and remedies shall be in addition to, and not in lieu of,
any other rights and remedies available to the Company under law or
in equity.


 



7.            


Non-Competition and Non-Solicitation of Employees/Inventions,
Patents and Copyrights






 


7.1
EMPLOYEE agrees and promises that if her employment is terminated,
then, for the period of time described below, she will not be
engaged in any other business or as a consultant to or general
partner, employee, officer or director of any partnership, firm,
corporation, or other entity, or as an agent for any person, or
otherwise, if: (1) such other business, partnership, firm,
corporation, entity or person is engaged in for-profit activity in
the pharmaceutical industry within the United States and competes
with the Company in the field of natural cytokine mixtures for the
treatment of any cancer indication the Company is pursuing in
clinical trials; and (2) EMPLOYEE either (a) is a senior officer of
such other business, partnership, firm, corporation, entity or
person; or (b) participates in or directs the development of drugs
for the treatment of cancer for such other business, partnership,
firm, corporation, entity or person. This agreement to refrain from
engaging in competitive activities shall continue for the period
during which the Company is required by the terms of paragraphs 5.2
or 5.3 of this Agreement to make salary payments to EMPLOYEE
following her termination (i.e., eighteen (18) months in the case
of Constructive Termination under paragraph 5.3), or for 2 years in
the case of the EMPLOYEE’s resignation or termination
pursuant to Section 5.2.


 


7.2 The
EMPLOYEE further agrees and represents that during the
EMPLOYEE’s employment by the Company and during the period in
which EMPLOYEE is subject to the Non-Competition provisions of this
AGREEMENT, the EMPLOYEE will not, directly or indirectly, on the
EMPLOYEE’s own behalf or in the service of, or on behalf of
any other individual or entity, divert, or attempt to divert,
solicit or hire away, to or for any individual or entity which is
engaged in providing business services, any person employed by the
Company, whether or not such EMPLOYEE is employed pursuant to a
written agreement and whether or not such EMPLOYEE is employed for
a determined period or at-will.


 


7.3 All
inventions made by the EMPLOYEE during the employment term, which
inventions apply to the Company’s business, including any
improvements to any invention in existence as of the date of this
Agreement, will be assigned to the Company. In the event any of
such inventions are of a patentable nature, EMPLOYEE agrees to
apply for a patent on the invention and assign any patent rights
relating to the invention to the Company. The Company will bear the
costs of any such patent applications.


 

7.4 EMPLOYEE
understands that the Company’s duties may involve writing or
drafting various documents, for the Company. EMPLOYEE hereby
assigns any and all rights to such documents to the Company,
together with the right to secure copyright therefor and all
extensions and renewals of copyright throughout the entire world.
The Company shall have the right to make any and all versions,
omissions, additions, changes, specifications and adaptions, in
whole or in part, with respect to such documents, brochures or
publications.


 



 

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8.            

Notices.






 


All
notices, requests, consents and other communications, required or
permitted to be given hereunder, shall be in writing and shall be
deemed to have been duly given if delivered personally or sent by
prepaid electronic transmission or mailed first-class, postage
prepaid, by registered or certified mail or delivered by an
overnight courier service (notices sent by electronic transmission,
mail or courier service shall be deemed to have been given on the
date sent, or to such other address as either party shall designate
by notice in writing to the other in accordance
herewith).


 




9.


Arbitration







 


The
parties agree that any and all disputes that they have with one
another which arise out of EMPLOYEE’s employment or under the
terms of this AGREEMENT shall be resolved through final and binding
arbitration, as specified herein. This shall include, without
limitation, disputes relating to this AGREEMENT, EMPLOYEE’s
employment by the Company or the termination thereof, claims for
breach of contract or breach of the covenant of good faith and fair
dealing, and any claims of discrimination or other claims under any
federal, state or local law or regulation now in existence or
hereinafter enacted and as amended from time to time concerning in
any way the subject of EMPLOYEE’s employment with the Company
or its termination. The only claims not covered by this paragraph 9
are claims for benefits under the workers' compensation laws or
claims for unemployment insurance benefits, which will be resolved
pursuant to those laws, or the Company’s rights pursuant to
Section 6.2.1, which may be enforced by any court of competent
jurisdiction. Binding arbitration will be conducted in the
Washington, D.C. metropolitan area, in accordance with the rules
and regulations of the American Arbitration Association. Each party
will bear one half of the cost of the arbitration filing and
hearing fees, and the cost of the arbitrator. Each party will bear
its own attorneys' fees, unless otherwise decided by the
arbitrator. EMPLOYEE understands and agrees that the arbitration
shall be instead of any civil litigation and that the arbitrator's
decision shall be final and binding to the fullest extent permitted
by law and enforceable by any court having jurisdiction
thereof.


 



10.            

General.






 

10.1  This
Agreement shall be governed by, and enforced in accordance with,
the laws of the Commonwealth of Virginia.


 

10.2  
The article and section headings in this Agreement are for
reference only and shall not in any way affect the interpretation
of this Agreement.


 

10.3    
This Agreement sets forth the entire agreement and understanding of
the parties relating to the subject matter hereof and supersedes
all prior agreements, arrangements and understandings, written or
oral, relating to the subject matter hereof.


 

10.4     
This Agreement, and the EMPLOYEE’S rights and obligations
hereunder, may not be assigned by the EMPLOYEE. The Company may
assign this Agreement and its rights, together with its
obligations, hereunder in connection with any sale, transfer or
other disposition of all or substantially all of its business or
assets subject to Section 5.3 hereof; in any event, the obligations
of the Company hereunder shall be binding on its successors or
assigns, whether by merger, consolidation of acquisition of all or
substantially all of its business or assets.


 

10.5     
This Agreement may be amended, modified, superseded, cancelled,
renewed or extended, and the terms hereof may be waived, only by a
written instrument executed by both of the parties hereto or, in
the case of a waiver, by the party waiving compliance. The failure
of either party at any time or times to require performance of any
provision hereof shall in no manner affect the right at a later
time to enforce the same. No waiver by either party of the breach
of any term or covenant 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 in
this Agreement.


 



11.            

Subsidiaries and
Affiliates.






 


As used
herein, the term "subsidiary" shall mean any corporation or other
business entity controlled by the Company; and the term "affiliate"
shall mean and include any corporation or other business entity
controlling, controlled by, or under common control with the
corporation in question.


 



12.            

Survival.






 


Sections 6 and 7 of
this Agreement shall survive termination of this Agreement for any
reason.


 


IN WITNESS WHEREOF, the parties have
executed this Agreement as of August 31, 2019.


 


 


	CEL-SCI
CORPORATION	

 


	

 

	

 

	

 


	
By:  

	
/s/ Geert
Kersten

	

 


	

 

	
Geert
Kersten	

 


	

 

	Chief Executive
Officer	

 







 


	
EMPLOYEE

	

 


	

 

	

 

	

 


	
By:  

	
/s/ Patricia B.
Prichep

	

 


	

 

	
Patricia B.
Prichep