Source: https://contracts.onecle.com/gpc-biotech/scherer.emp.2003.09.01.shtml
Timestamp: 2019-04-24 12:23:41
Document Index: 62893598

Matched Legal Cases: ['§ 13', '§ 3', '§ 4', '§ 10', '§ 8', '§ 3']

Service Agreement - GPC Biotech AG and Mirko Scherer - Sample Contracts and Business Forms
Service Agreement - GPC Biotech AG and Mirko Scherer
GPC Biotech Aktiengesellschaft
Tegelberg Straße 34
1. Through the resolution adopted by the Supervisory Board on July 7, 2003, the Management Board Member was appointed to the Management Board to serve as chief financial officer of the Company for a period of 48 months, effective September 1, 2003.
2. In conjunction with the other appointed members of the Management Board, the Management Board Member shall conduct the affairs of the Company with the due care and diligence of a prudent and conscientious business manager pursuant to the provisions of law, the Articles of Incorporation, the Rules of Internal Procedure for the Management Board as issued by the Supervisory Board, a plan for the allocation of duties, and this
agreement. In particular, the Management Board Member shall comply with the instructions of the Supervisory Board.
1. This Agreement commences on September 1, 2003. It is entered into for a fixed term running to August 31, 2007. The right to termination for cause (§ 13) remains unaffected thereby. This agreement supersedes the existing Service Agreement, which is hereby rescinded without replacement.
3. If the Supervisory Board resolves not to appoint the Management Board Member to a new term in office under comparable terms and conditions, the Management Board Member shall receive a settlement corresponding to the base salary for the previous 12 months. This amount shall be paid out on September 1, 2007.
265,623 euros
3. At the earliest possible time following the signing of this Agreement, the Management Board Member shall receive a one-time amount of 50,000 stock options with a strike price corresponding to the average closing price of the GPC Biotech stock over the previous 5 days, including the date of issue of the stock options to the Management Board Member. This presupposes that the new contingent capital necessary therefor has
been created by the GPC Biotech 2004 General Meeting of Shareholders. Said options shall vest in 4 annual tranches of 12,500 options each. If the Supervisory Board resolves not to appoint the Management Board Member to a new term in office under comparable terms and conditions, all 50,000 of these options shall vest on an accelerated basis as of August 31, 2007. The structure of the options shall be based on the applicable options plan. The Supervisory Board reserves the right to issue further options to the Management Board Member during the term of the Service Agreement as additional performance-based compensation. Further options shall be issued at the recommendation of the chief executive officer (CEO) and are at the absolute discretion of the Supervisory Board.
4. The Company is obligated to obtain appropriate directors & officers insurance during the term of the Service Agreement. The coverage as of September 1, 2003 comes to EUR 10 million.
2. Any payments made by third parties, such as those resulting from liability claims or health insurance coverage, shall be credited to payments paid by the Company insofar as the total of such payments and the payments by the Company exceeds the net
emoluments that the Management Board Member would receive pursuant to § 3, Paragraph 1 if he were not unable to work.
4. A Management Board Member who has made a free invention (§ 4 ArbNErfG) during the employment relationship must promptly inform the Company thereof in writing. Before the Management Board Member exploits a free invention elsewhere during the term of the employment relationship, he must first offer the Company a nonexclusive right to use the invention under reasonable terms and conditions if the invention falls
within the existing or agreed working field of the Companys operations at the time of the offer. The Companys privilege expires if the Company fails to accept the free invention within 3 months.
1. For each instance of contravention of the restraint of competition within the meaning of § 10 or of the secrecy obligation pursuant to § 8, the Management Board Member shall pay a contractual penalty in an amount corresponding to the average monthly remuneration received over the 12 months preceding his departure pursuant to § 3, Paragraph 1 of this Agreement.
In the event of a Change of Control, the Addendum to Service Agreement approved by the Supervisory Board and signed on May 1, 2003 by the Supervisory Board chairman and the Management Board Member and the payments associated therewith enter into force. The definition of Change of Control and the associated payments are set forth in detail therein. The Addendum to Service Agreement is attached hereto as an appendix. With regard to other financial legal claims under this new Service Agreement of September 1, 2003 (upon early termination of this Service Agreement as a result of a Change of Control), and the claims under the Addendum to Service Agreement of May 1, 2003 upon a Change of Control, in each case the better set of terms and conditions enters into force, but not both (i.e., the claims under the two agreements are not combined). The other obligations of the Company toward the Management Board Member arising from this Agreement remain unaffected by such a Change of Control. The option period remains the same. The other obligations of the Company toward the Management Board Member arising from this Agreement remain unaffected by such a Change of Control.
Planegg/Martinsried, September 1, 2003
/s/ Dr. Mirko Scherer