Document:

EMPLOYMENT AGREEMENT

Exhibit

10.20

 

 

RESTORAGEN,

INC.

 

EMPLOYMENT AGREEMENT

 

                This EMPLOYMENT AGREEMENT, dated

as of December 20, 2001 between RESTORAGEN, INC., a corporation incorporated

and existing under the laws of Delaware and having its office at 4130 NW 37th

Street in Lincoln, Nebraska (hereinafter referred to as “Company”), and Ashleigh W.

Palmer residing currently at 19 McCatharn Road, Lebanon, New

Jersey  08833  (hereinafter referred to as the “Executive”);

 

                WHEREAS, the Company desires to

employ the Executive as its Chief Executive Officer and, as such, as a member

of its Board of Directors; and the Executive desires to be so employed;

 

                NOW THEREFORE, in consideration

of the foregoing and of the mutual promises hereinafter set forth, the parties

hereto agree as follows:

 

1.  Employment: Powers and Duties.

                The Company hereby employs the

Executive as its Chief Executive Officer, pursuant to the provisions of this

Agreement.  The Executive shall

generally have the responsibilities, duties and functions associated with the

position of Chief Executive Officer of the Company and shall perform services

in such capacity for the Company and for any of its affiliates or

subsidiaries.  He shall have such

authority with such powers and duties as may be prescribed or assigned to him

from time to time by the Board of Directors of the Company. He will be elected

and will serve as a member of the Company’s Board of Directors.

 

2.  Exclusivity.

                With the exception of a prior

consulting commitment which the Executive has disclosed to the Company, during

the term of his employment hereunder, the Executive will devote his best

efforts, energy, skill and resources to his duties hereunder and to the affairs

and interests of the Company and of its affiliates, joint ventures,

collaborations and subsidiaries, as the same may be constituted from time to

time, and will not, without the approval of the Board of Directors of the

Company, actively engage in consulting for, or in the conduct of, any other

business for profit.

 

 

 

3.  Direct Compensation

                During his employment hereunder,

the Executive shall receive salary at the annual rate of Three Hundred Fifty

Thousand Dollars ($350,000).  This

compensation will be paid in equal monthly installments. All required tax and

other deductions will be made from such installments.  At the end of each calendar year under this Agreement, the

performance of the Executive will be reviewed. 

In the event that his performance and contributions to the Company, in

the judgement of the Board of Directors, have been in accordance with or

exceeded objectives and goals agreed upon at the beginning or during such year,

it is anticipated that, assuming the Company’s financial situation permits, the

Executive will receive a target annual bonus of at least 25% of his then annual

salary. Also based upon substantial achievement of such objectives and goals,

the Executive is expected to receive a positive adjustment to his salary level

for the new year over the level during the previous year. In the event the

Board of Directors, for any reason, shall determine to reduce the Executive’s

salary, the Executive shall be entitled, within ten days of receiving notice of

the same, to give written notice of his decision to terminate this Agreement

pursuant to Section 9 hereof, in which event he shall continue in the

employment of the Company for one year at the salary obtaining prior to such

decision to reduce his salary.

 

4.  Additional Benefits.

                (A)  The Executive shall be provided with such health and sickness,

accident, hospitalization, disability, travel, term life and other insurance

benefits as are or may be generally provided under the Company’s group

policies.

 

                (B)  When and if instituted, the Executive shall be provided with such

savings and retirement plan benefits as may be provided in general for

employees under the Company’s plans, as may be adopted or amended from time to

time.  The Company has established a

401(K) Plan for retirement savings for all employees. Company contributions to

this Plan on behalf of employees have been and are expected to be small or

non-existent until funding or profits of the Company permit (as determined in

the sole discretion of the Board of Directors).

 

5.  Long-Term Stock Option Incentives.

                The

Executive shall be granted a stock options under the Company’s 1993 Stock Plan,

as amended, covering a total of four hundred thousand (400,000) shares of the

Company’s Common Stock. These options will be governed by the provisions of two

 

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Option Agreements, to be executed and dated as of

the date of this Agreement, and will vest (and be exercisable thereafter in

accordance with the provisions of those Agreements) in three equal annual

installments at the end of each of the three years beginning after the date of

the Option Agreements, except that the right to exercise options as to 40,000

shares shall vest and be exercisable as of the date of this Agreement. The

options will terminate ten years after the date of the Option Agreements if not

terminated sooner in accordance with the provisions of the Option Agreements.

The exercise price of the options will be $11.33 per share, being the fair

market value of the shares at the time the options are granted under the Option

Agreements, as determined by the Board of Directors.

 

                The Executive will be eligible

for one or more additional stock option awards under stock plans of the Company

if and to the extent that the Board of Directors at the relevant time, in its

sole discretion, shall consider that the work and contributions of the

Executive merit such additional options.

 

6.  Expenses.

                The Company shall reimburse to

the Executive all reasonable travel, hotel, entertainment and other

out-of-pocket expenses which he may from time to time incur in the course of

carrying out his duties for the Company and for any of its affiliates, joint

ventures, collaborations or subsidiaries (referred to hereinafter as “Related

Entities”).

 

                It is understood that,

particularly during the early months of his employment hereunder, the Executive

will be required to spend several days during most weeks in the Lincoln offices

of the Company and in the Nebraska area. During these periods the Company shall

either provide appropriate accommodations in Lincoln for the Executive or shall

reimburse the Executive for out-of-pocket costs incurred by him to obtain such

accommodations. The Executive shall be provided or reimbursed for his

out-of-pocket costs for meals and transportation, in the form of a rental car,

during these periods in Nebraska. The Company shall also provide for

appropriate air travel and shall reimburse the Executive for all other costs of

travel from his home in New Jersey to Nebraska and back during these periods.

 

                The Company shall promptly

reimburse the Executive for such expenses after the Executive submits expense

reimbursement forms along with appropriate receipts.

 

7.  Non-Competition.

                (A)          During the term of his employment hereunder, and for a

two-year period 

 

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thereafter

(but only in the event that during such two-year period the Company shall in

its sole discretion continue to pay compensation to the Executive after

termination of his employment at a rate per month equal to at least one half of

the monthly salary rate enjoyed by the Executive prior to the termination of

his employment hereunder), the Executive agrees that, unless he obtains written

consent from the Company covering a particular planned competitive activity,

the Executive shall not directly or indirectly engage or participate in,

consult for, be employed by or finance or secure funding for any business

activity that is competitive with the businesses which are being conducted or

are planned to be conducted by the Company, any of its Related Entities, or any

client or customer of the Company at the particular time. The foregoing

notwithstanding, the Company shall have no obligation, in the event of

termination of the employment of the Executive for any reason, to pay any

continuing compensation under this Section 7(A) to the Executive or, in the

event such continuing compensation is paid for one or more months, to continue

to pay such compensation. In the event any such continuing compensation is not

paid to the Executive, or is terminated after one or more monthly payments, the

foregoing restrictions on competitive activity on the part of the Executive

shall not apply thereafter.

 

                (B)           In no event, without receiving the Company’s prior written

consent, will the Executive, at any time during his employment hereunder or

within a period which is two years after termination for any reason of his

employment hereunder, directly or indirectly:

 

                                                (i)  preempt, divert, disrupt or otherwise

interfere with any business of the Company or of any of the Related Entities or

with any business relationship of the Company or of any of its Related Entities

with any client, customer or business contact of the same; or

 

                                                (ii) employ or

solicit for employment for his own or another’s benefit, as employee, partner,

consultant, independent contractor or otherwise, or  suggest to others to employ or to solicit for employment any

person or contractor employed at the time by the Company or by any of its

Related Entities or any client or customer or business contact of the same.

 

8.  Intellectual Property Rights.

                (A)  As between the Company or any of its affiliates, joint ventures,

collaborations or subsidiaries, as the case may be, and the Executive, all

products, know-how, methods, formulas, processes, discoveries, data, source

codes, materials, written or oral texts including articles, papers and books,

ideas, strategies, creations, inventions, medical or clinical conceptions or

results, innovations and properties, tangible or intangible, pertaining 

 

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or

relating in any way to the businesses or potential businesses of the Company,

or of any affiliate, joint venture, collaboration or subsidiary of the Company

(referred to below as “Proprietary Concepts and Properties”), which the

Executive may conceive, invent, discover, create or develop by himself or with

others, or to which he may become exposed, whether or not conceived, invented

or developed by the Executive, and whether or not conceived, invented,

developed or exposed by or to him during regular working hours or on or outside

the premises of the Company or of any of the Related Entities, shall be the

sole and absolute property of the Company or the particular one or more of the

Related Entities, as the case may be, for any and all purposes. The Executive

shall not claim to have, under this Agreement or otherwise, any right, title or

interest of any kind or nature in any of the Proprietary Concepts and

Properties, shall hold the same in trust for the sole right and benefit of the

Company or the particular one or more of the Related Entities, as the case may

be, and shall promptly disclose and deliver to the Company or one or more of

the Related Entities, as the case may be, all information relating to the same

including all relevant papers, drawings, electronic records and software,

formulas, designs, charts schematics, specifications, descriptions and source

codes.  The Executive agrees to execute

and deliver to the Company such oaths; specifications; licenses; contracts or

agreements; patent, copyright and other applications; consents; releases;

assignments; or other instruments as the Company may reasonably request in

order to vest title to Proprietary Concepts and Properties in the Company, or

in any of the Related Entities, as the case may be, and to permit the Company

and any of the foregoing entities to establish, protect and defend its

proprietary rights therein by way of patent, copyright, or otherwise. The

Executive hereby irrevocably designates the Company as his attorney in fact and

authorizes and empowers the Company, by and through its duly elected and acting

officers, to act for and on his behalf to execute, file and deliver in his

place and stead, to the maximum extent permitted by law, any and all oaths, specifications,

licenses, consents, agreements, contracts, assignments, applications, releases

or other instruments that may be necessary or appropriate, in the opinion of

Company counsel, to convey Proprietary Concepts and Properties to, or vest the

entire right, title and interest in Proprietary Concepts and Properties in, the

Company or any of the Related Entities, as the case may be, and to enable the

Company or any of the Related Entities to establish, or perfect and defend its

proprietary rights in Proprietary Concepts and Properties by way of patent,

copyright, or otherwise; it being the express intent of the Executive that this

power of attorney shall continue in full force and effect, notwithstanding his

mental or physical incapacity, or termination of his employment hereunder. The

Executive agrees that, during the term of this Agreement and at any time

thereafter whenever reasonably necessary, the Employee will cooperate with the

Company and its counsel and take all such action as may be reasonably requested

in 

 

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connection

with the efforts of the Company, or of any of its Related Entities, to

establish, perfect and defend any and all patents, copyrights or other

proprietary rights in the Proprietary Concepts and Properties and in connection

with prosecution or defense in  any

litigation which may arise in connection with the same. All out-of-pocket costs

incurred by the Executive as a result of such cooperation and efforts on behalf

of the Company pursuant to this Section 8(A) shall be reimbursed by the Company

to the Executive.

 

                (B)  The Executive acknowledges that in the course of his employment

hereunder he will make use of, be exposed to, acquire and add to confidential

materials and information of the Company and of Related Entities as well as of

its customers, clients, contract providers and other persons and entities

having a business relationship with the Company (all such other entities being

referred to collectively for purposes of this Section 8(B) as “Other Entities”)

relating (but not limited) to trade secrets, products, formulas, data,

technical systems, processes and procedures, medical or clinical concepts and

results, ideas, results or innovations, know-how, conceptions, inventions, manuals,

documents and reports on paper and in electronically stored form, plans, source

codes, properties and strategies which are of material importance to the

respective businesses of the Company or the Other Entities (referred to as

“Confidential Information”); and that such Confidential Information will have a

special and unique nature and value for the Company and the Other

Entities.  The Executive agrees that

with respect to any and all Confidential Information, during and following the

term of this Agreement and for so long as the same remains confidential (and

beyond this time should loss of confidentiality be caused directly or

indirectly by the Executive), he will not, for any purpose (unless otherwise

agreed to by the Company in writing), divulge or disclose to persons, other

than those authorized by the Company (or by the Other Entities, as the case may

be) to receive the same, directly or indirectly use or otherwise exploit any of

such Confidential Information or let or suffer others to use or otherwise

exploit such Confidential Information for any purpose other than for the

benefit of the Company or the Other Entities, as the case may be.

 

9.  Term of Employment.

                The Executive’s employment shall

begin on December 20, 2001 and continue indefinitely hereunder, unless and

until terminated by either party upon delivery of one year’s prior written

notice of termination to the other party.

 

                Notwithstanding the foregoing,

the Company shall be entitled by notice in writing to the Executive to

terminate forthwith his employment with the Company under this Agreement if he

shall have engaged in any willful misconduct or serious misconduct 

 

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involving

negligence or gross negligence or shall have committed any material breach of

his obligations or duties to the Company, to any of the Related Entities or to

the Company’s employees hereunder, except that in the event of serious

misconduct involving negligence (but not gross negligence) the Executive, after

receiving notice of termination for cause for such reason, shall have twenty

days to take steps to remedy the course of misconduct which had been cited as

involving negligence, thereby deactivating such notice of termination.

 

10.  Vacation.

                The Executive shall be entitled

to four weeks of paid vacation in each calendar year.

 

 

11.  Return of Documents in Hard Copy or

Electronically Stored.

                Upon the termination of his

employment with the Company hereunder, the Executive shall promptly deliver and

transfer over to the Company all copies, both in hard copy and electronically

created, of reports, memoranda, accounts, laboratory, clinical and other

notebooks, records, correspondence, data, source code and e-mail (referred to

as “Company Documents”) which may have been prepared by him or have come into

his possession or control in the course of his employment and the discharge of

his duties hereunder.  Unless otherwise

agreed to in writing by the Company, or unless the particular item has been

published in its entirety in the public domain, the Executive, after any such

termination, shall not retain any of copies of Company Documents either in the

form of hard copy or in electronically stored form.

 

12.  Notices.

                All notices hereunder shall be

in writing and delivered personally or by registered or certified mail,

addressed to the Company at its principal office and marked to the attention of

the Chairman of the Board and the Chief Financial Officer, and to the Executive

at the address stated in the first paragraph of this Agreement, or in either

case at such other address as shall have previously been designated in writing

by the party, to whom the notice is to be sent, to the other party.  Any such communication so sent by mail shall

be deemed made or given upon mailing.

 

13.  Miscellaneous.

                The Restoragen Employee Handbook

(the “Handbook”) has been furnished to the Executive and shall form part of

this Agreement.  The Executive agrees to

comply with operational rules of the Company as adopted from time to time and

set forth in the  Handbook, with the

exception that, in the event that there is a conflict between the 

 

7

 

provisions

of the Handbook and the provisions of this Agreement, the provisions of this

Agreement shall be controlling. This Agreement constitutes the entire agreement

of the parties hereto relating to the subject matter hereof and there are no

written or oral terms or representations made by either party relative to the

subject matter hereof other than those contained herein.  All of the terms and provisions of this

Agreement shall be binding upon, and shall inure to the benefit of and be

enforceable by and against, the parties to this Agreement and their respective

heirs, executors, and successors in interest. 

The provisions of Sections 7, 8, 11, 12, 13 and 14 hereunder shall

survive the termination of this Agreement to the extent necessary to accomplish

the purposes of the provisions in such Sections.

 

14.  Governing Law.

                This Agreement shall be governed

by, and construed in accordance with, the laws of Nebraska.

 

                IN WITNESS WHEREOF, the Company

has caused this Agreement to be executed by its duly authorized officer and the

Executive has executed this Agreement, as of the date first written above.

 

 

	

   

  	

  RESTORAGEN, INC.

  
	

   

  
	

   

  
	

   

  
	

   

  	

  By

  	

  /s/ Thomas R. Coolidge

  
	

   

  	

   

  	

  Thomas R. Coolidge

  
	

   

  	

   

  	

  Chairman of the Board

  
	

   

  
	

   

  
	

   

  
	

  /s/

  Ashleigh W. Palmer

  	

   

  
	

  Ashleigh W. Palmer

  	

   

  
	

       (the

  Executive)

  	

   

  
				

 

 

8Exhibit 10.10

EX 10.10

                                  Agreement of
   Jiaozuo Yi Wan Maple Leaf High Technology Agriculture Development Ltd., Co.
                        on the Transfer of Equity Shares

Jiaozuo Yi Wan Maple Leaf High Technology Agriculture Development Ltd., Co.
(hereinafter called Joint Venture) is a Sino-Foreign Joint Venture formed by
Shun'ao Industry and Commerce Company (hereinafter called Party A) and Canadian
Maple Leaf International Inc. (hereinafter called Party B).

However, after the original establishment of the Joint Venture, Party B did not
invest in the Joint Venture as scheduled, thus blocking the normal business of
the enterprise. Party A and Party B, through friendly consultation, have agreed
to transfer their respective equity shares to Yi Wan Group, Inc. (hereinafter
called Party C). And Party A, Party B and Party C through negotiation, have
reached agreement as follows:

1.    Party A shall transfer part of its equity shares of the Joint Venture,
      value at 16,900,000 Yuan (RMB) (accounting for 41% of the registered
      capital), to Party C.
2.    Party B, because of its change of business direction, shall transfer to
      Party C its cooperation terms and conditions, that is, its duty to invest
      20,000,000 Yuan (RMB) (accounting for 49% of the registered capital of the
      Joint Venture). Due to the fact that Party B has never invested any money
      after the establishment of the Joint Venture, Party C shall be responsible
      for the contribution of 20,000,000 Yuan (RMB) as the registered capital to
      the Joint Venture within one year after the issuance date of the business
      license.
3.    Party A and Party C shall establish a Sino-foreign Joint Venture by
      jointly investing in and running a high technology agriculture development
      project. The business period of the Joint Venture shall be 30 years and
      the new Joint Venture shall continue to use the name "Jiaozuo Yi Wan Maple
      Leaf High Technology Agriculture Development Ltd., Co."
4.    Party C shall invest 16,900,000 Yuan (RMB) as the terms to accept the
      transfer of Party A. Party C shall assume and enjoy its corresponding
      responsibilities, duties, rights and benefits in the Joint Venture.
5.    Party C shall invest 20,000,000 Yuan (RMB) as the term to accept the
      transfer of Party B. Party C shall assume and enjoy its corresponding
      responsibilities, duties, rights and benefits in the Joint Venture.

6.    The total amount of the investment of Sino-Foreign Joint Venture is
      82,000,000 Yuan (RMB), with 41,000,000 Yuan (RMB) as its registered
      capital. Party C shall invest U.S. dollars that shall be equal to
      36,900,000 Yuan (RMB), which will account for 90% of the said registered
      capital. Party A shall invest 4,100,000 Yuan (RMB), which will account for
      10% of the said registered capital. The difference between the total
      investment and the registered capital shall be split between Party A and
      Party C in proportion to their investments. Party A and Party C shall pay
      their respective contribution to the registered capital within one year
      after the issuance date of the business license.
7.    Both Party A and Party C shall jointly take all of the creditor's rights
      and liabilities in the legal sense. None of the above rights and
      liabilities shall remain in connection with Party B.
8.    Applicable Law and Dispute Resolution: In the event disputes arise, they
      shall be settled by arbitration in accordance with the laws and
      regulations of China.
9.    This agreement shall come into force as of the date when the three parties
      sign it.
10.   This agreement is in six duplicates, each party of the three holds two
      copies. All of the six copies shall have equal legal effect.
11.   Other matters not dealt with here in this agreement shall be solved
      through consultation by the three parties.

In a friendly atmosphere, the three parties are satisfied with the transfer and
they sign this agreement for such purpose.

Party A: Shun'ao Industry and Commerce Company
Authorized Representative:

/s/  Li Zhihua

Party B: Canadian Maple Leaf International Inc.
Authorized Representative:

/s/  Qin Zhengrong

Party C: Yi Wan Group, Inc.
Authorized Representative:

/s/  He Lei

Signing Date: November 26th, 1999
Signing Place: Jiaozuo City, Henan Province, China

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