Document:

ex1019.htm

Exhibit 10.19

ADVISORY AGREEMENT (“Agreement”) dated as of March 29, 2010 between Oxis International, Inc., a Delaware corporation (the “Company”), and Gary M. Post (“Post”).

The Company desires to retain Post to provide advisory services to the Company and act as a member of its Board of Directors and participate on certain committees of the Board of Directors, and Post desires to perform such services for the Company, in each case, upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the mutual covenants and obligations hereinafter set forth, the parties agree as follows:

1.           Retention of Advisor. The Company hereby retains Post, and Post hereby accepts such retention by the Company, upon the terms and conditions hereinafter set forth.

2.           Term. The retention of Post hereunder shall be for a period that commences as of the effective date of this agreement (March 29, 2010) through the first anniversary thereof (the “Initial Term”). The Initial Term shall automatically renew for additional one-year periods subject to Section 3 of this agreement (each an “Additional Term,” together with the Initial Term, the “Term”).

3.           Termination. This Agreement shall automatically terminate at such date upon the first to occur of (i) the death or disability of  Post, (ii) the resignation by Post following the delivery by him to the Company of ten days’ advance written notice of such resignation or (iii) termination by the Company of his role as Secretary or any other function that is available to the Company following the delivery to Post of 10 days’ advance written notice from the Company’s Board of Directors, or its designated representative of its intention to terminate the Agreement with respect to his role as Secretary of the Corporation. Notwithstanding the foregoing, the Company shall notify Post in writing for the specific services for which Post is being terminated.  Post shall be entitled to continuing compensation as outlined herein for services for which he has not been terminated.

However, the Company may not terminate Post from his position on the Board and he shall remain entitled to the compensation allocated to Board work as described in Section 6 until he ceases to be a member of the Board.

4.           Services. During the Term, Post shall act as the Secretary of the Company (the “Corporate Secretary”) and perform the roles and duties of a Corporate Secretary for a public company of Oxis’ size and type. These Corporate Secretary activities are listed on Schedule A to this agreement. In addition, Post shall also perform or participate in special projects as mutually agreed to by Post and the Company’s CEO. These special projects may or may not result in additional compensation to Post as mutually agreed, depending on size and scope. Post shall also be a member of the Board of Directors during the Initial Term and participate on committees of the Board, including acting as Chairman of one or more committees.   Post shall continue to serve on the Company’s Board of Directors until the Company’s next annual shareholders’ meeting at which time Post may be re-elected to serve. Post shall report directly to, and shall reasonably update, the CEO on his activities for Oxis and shall reasonably coordinate his efforts with members of management, the Board of Directors and other advisors and consultants to the Company.

5.           Time to be Devoted to Services. During the Term, Post agrees to allocate sufficient time to fulfill the responsibilities of his duties as described above and may pursue other business activities or opportunities that are not competitive to the Company’s interests.

  

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6.           Compensation.

	
  

	
a.

	
Advisory Fee. The Company shall pay Post an Advisory Fee in cash a total of $5,250 per month for the Services rendered. The Advisory Fee shall pertain to each service with (i) $2,500 being the monthly fee for being the Company’s Secretary; (ii) $1,500 per month for participating on the Company’s Board of Directors; and (iii) $1,250 per month for serving on one or more Committees of the Board (it being understood that Post currently serves as Chairman of the Company’s Audit Committee and the Company’s Nominating Committee).  Following the Initial Term, the Board shall in accordance with its customary review of executive management and consultants’ compensation, review Post’s annual advisory fee and make adjustments the Board (or its Compensation Committee) feels are appropriate.

	
  

	
b.

	
Other Compensation.

	
  

	
i.

	
Stock Options. Oxis shall grant Post an incentive stock option (to the extent that Oxis is able to grant incentive stock options, and non-qualified options for the balance) (the “Option”) under Oxis’ 2003 Stock Incentive Plan (the “Plan”), and/or a similar successor plan to purchase a number of shares of Oxis common stock equal to One-Half Percent of the Company’s equity.  For the purposes of this Agreement, the term “One-Half Percent” shall mean one-half percent (1/2%) of the sum of (i) the total number of shares of Oxis’ common stock outstanding on  the effective  date, plus (ii) the number of shares issuable on such date pursuant to currently outstanding, fully vested and exercisable stock options, plus (iii) the number of shares issuable on such date upon the conversion of convertible securities issued by Oxis (other than convertible debt which may, at Oxis’ option, be repaid prior to conversion).  For the purpose of this Agreement, One-Half Percent is further agreed to be 1,110,227 shares.  The Option shall vest and become exercisable in eight equal quarterly installments provided this Agreement is still in effect.  The Option shall (a) have strike price of $0.17,  (b) have a term of ten years, and (c) be on such other terms as shall be determined by Oxis’ Board of Directors (or the Compensation Committee of the Board) and set forth in a normal and customary form of stock option agreement under the Plan evidencing the Option. The vesting period for the above Options is confirmed to have begun on August 17, 2009.

	
  

	
c.

	
Future Compensation.  Oxis will also grant to Post a second tranche of 1,110,227 Options with the same features and characteristics as the first tranche of Options discussed above on the first anniversary of the effective date of this Agreement (March 29, 2011). The strike price for this second tranche of Options shall be as determined by the Board of Directors at the time of this award and shall also vest in eight quarterly installments beginning on March 29, 2011.

	
  

	
d.

	
If for any reason the Company is legally unable to issue and or all of the Stock Options described in Section 6(b) and Section 6(c) it will issue Warrants instead and agree to register the underlying shares under an S-8 or another available registration approach such that Post will be able to exercise his Warrants as he would have been able to do if Options were duly issued pursuant to the 2003 Plan and/or any successor plan with similar features.

  

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7.            Termination Payments.

	
  

	
a.

	
If the Company terminates this Agreement pursuant to Section 3 without Cause after the six month anniversary of the date of this Agreement, Post shall receive an amount equal to the advisory fee for the amount due for the remaining Initial Term in a lump sum payment (payable in stock or cash at the Company’s election), and all stock options and warrants granted during the Initial Term shall become fully vested as of the date of termination and the stock options and warrants shall remain exercisable through their respective expiration dates. If the Company terminates this Agreement pursuant to Section 3 without Cause prior the six month anniversary of the date of this Consulting Agreement, Post shall be paid any expenses due to him and all vested stock options and warrants shall remain exercisable through their respective expiration dates. “Cause” shall mean (i) willful malfeasance or willful misconduct by Post in connection with the performance of his duties hereunder; (ii) Post’s gross negligence in performing any of his duties under this Agreement; (iii) Post’s conviction of, or entry of a plea of guilty to, or entry of a plea of nolo contendere with respect to, any felony; (iv) Post’s habitual drunkenness or use or possession of illegal drugs while performing his duties under this Agreement or excessive absenteeism not related to illness; (v) the Post’s material breach of any written policy applicable to all employees and consultants and advisors adopted by the Corporation; or (vi) material breach by Post of any of his agreements in this Agreement having a material detrimental impact on the Corporation after written notice and a reasonable opportunity to cure of not less than 30 days.

	
  

	
b.

	
If the Company terminates this Agreement pursuant to Section 3 for Cause (other than pursuant to Section 7(a) (vi), for which the notice requirement is 30 days), the Company will only be required to give ten (10) days’ prior notice, and in such event the Post shall not be entitled to any further payments of his advisory fee hereunder, and any unexercised stock options shall expire.

	
  

	
i.

	
If Post resigns pursuant to Section 3 for whatever reason, or dies or becomes disabled, Post (or his estate) shall not be entitled to any further payments of his advisory fee hereunder, all unvested stock options and warrants shall expire, and all vested stock options and warrants shall remain exercisable until their respective expiration dates. “Disability” shall mean Post’s incapacity due to physical or mental illness that results in his being unable to substantially perform his duties hereunder for six consecutive months (or for six months out of any nine-month period).

8.          Business Expenses: Benefits. The Company shall reimburse Post in cash, in accordance with its practice from time to time, for all reasonable and necessary travel, entertainment and other expenses and other disbursements incurred by Post for or on behalf of the Company in the performance of Post’s duties hereunder. All travel outside of Southern California and all expenditures of over $500 must be pre-approved by the CEO.

9.          Indemnification; Insurance. The Company will indemnify Post for his actions in his capacities hereunder (other than resulting from Post’s gross negligence or willful misconduct) for his actions as provided for in the Company’s Certificate of Incorporation and by-laws. The Company also will include Post on its Directors and Officers liability insurance policy, which the Company represents, is for a customary amount for similar public companies in its industry.

  

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10.

	
Corporate Opportunities; Intellectual Property.

	
  

	
a.

	
Post acknowledges that by virtue of its efforts as a advisor hereunder to the Company and of Post’s serving as a director, Post may become aware of confidential information identified as such in writing by the Company relating to the Company’s business opportunities and potential acquisitions of companies and or technologies/compounds (“Confidential Information”), and that Post will not, during the Term and for a period of five (5) years thereafter (the “Restricted Period”), directly or indirectly use any such Confidential Information for its own benefit or for the benefit of any third person other than the Company or its affiliates or enter into or negotiate a transaction with any person that was the subject of the Company’s business opportunity or potential acquisition without the prior written approval of the Company or following an express decision by the CEO or the Board not to pursue the specific business opportunity or potential acquisition. The restrictions set forth in this Section 9 are in addition to any of the fiduciary obligations of Post to the Company by virtue of his being a director of the Company.

	
  

	
b.

	
Notwithstanding the foregoing, the Company acknowledges that Post may pursue his own independent business interests and activities, including those relating to life sciences and medical technologies, which Post represents are not in conflict with the Company, and may be pursued by Post on his own or in association with others independently of the Company. Post is under no obligation hereunder to identify specific potential business opportunities or acquisitions for the Company. However, once Post informs the Company of a potential opportunity during the Term, he may not independently pursue that opportunity without the prior written approval of the Company or following an express decision by the CEO or the Board not to pursue the specific business opportunity or potential acquisition.

	
  

	
c.

	
Any material or other work which may be subject to copyright or patent, and which is conceived, derived, made or written by Post in connection with the Confidential Information shall be deemed a “work for hire,” (and is herein referred to as a “Development”). As between Post and the Company, Post acknowledges that all Developments will be the sole and exclusive property of the Company and shall also be deemed Confidential Information under this Agreement. Post further acknowledges the Company may in turn negotiate with any third party regarding their respective ownership rights to such Developments. Post shall execute such documents as may be necessary to vest in the Company or any third party, if applicable, all right, title and interest in and to the Developments. The Company (or a third party, if applicable) will pay all costs and expenses associated with any applications and the transfer of title to Developments, including paying Post’s reasonable attorneys’ fees for reviewing such documents and instruments presented for execution.

	
  

	
d.

	
Notwithstanding the foregoing, the assignment by Post to the Company (or a third party, if applicable) of Developments, as well as the right to apply for and obtain patents and/or registered copyrights on the same, shall be expressly limited to those specifically involving the Confidential Information relating to such projects as mutually agreed upon by the parties hereto, and shall specifically not include (i) any right, license or interest of the Company to general concepts, formats, methods, testing techniques, study designs, computer software or other procedures utilized or designed by Post in performing its duties hereunder, or any general inventions, discoveries, improvements, or copyrightable materials relating thereto, nor (ii) any patentable or copyrightable materials which can be shown by competent proof not to concern the subject matter of the Confidential Information, or, which predate this Agreement or Post’s receipt of the Confidential Information, or (iii) any intellectual property relating to Post’s current activities.

  

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e.

	
Post will work to advance all of the proprietary products of the Company but will retain the right to pursue other scientific opportunities including developing new products and new indications for new and existing products independently as long as these new products and indications do not depend directly on the Company's proprietary information that is not in the public domain.

	
  

	
f.

	
Post agrees that this Section 9 may be enforced by the Company by injunction, or other equitable relief, without prejudice to any other rights and remedies that the Company may have under this Agreement and without the posting of any bond.

11.          Legal Expenses.  Each party shall bear its own costs with respect to the negotiation, preparation and review of this Agreement.

12.          Notices. All notices, claims, certificates, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given and delivered if personally delivered or if sent by nationally-recognized overnight courier, by telecopy, or by registered or certified mail, return receipt requested and postage prepaid, addressed as follows:

 If to the Company, to:

           OXIS International, Inc.

468 Camden Drive

2nd Floor

Beverly Hills, CA 902010

Attention: Chairman of the Board

If to Post, to:

Gary Post

Los Angeles, CA 90024

or to such other address as the party to whom notice is to be given may have furnished to the other party or parties in writing in accordance herewith. Any such notice or communication shall be deemed to have been received in the case of personal delivery, on the date of such delivery, in the case of nationally-recognized overnight courier, on the next business day after the date when sent, in the case of telecopy transmission, when received, and in the case of mailing, on the third business day following that on which the piece of mail containing such communication is posted.

13.          Binding Agreement; Benefit. Subject to Section 17, the provisions of this Agreement will be binding upon, and will inure to the benefit of, the respective heirs, legal representatives, successors and assigns of the parties.

14.           Governing Law. This Agreement will be governed by, and construed and enforced in accordance with, the laws of the State of California (without giving effect to principles of conflicts of laws).

15.          Waiver of Breach. The waiver by either party of a breach of any provision of this Agreement must be in writing and shall not operate or be construed as a waiver of any other breach.

16.          Entire Agreement; Amendments. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements or understandings between the parties with respect thereto. This Agreement may be amended only by an agreement in writing signed by the parties.

  

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

18.          Assignment. This Agreement is personal in its nature and the parties shall not, without the consent of the other, assign or transfer this Agreement or any rights or obligations hereunder; provided , however , that the Company may assign this Agreement to any of its subsidiaries.

19.          Counterparts. This Agreement may be executed in counterparts, and each such counterpart shall be deemed to be an original instrument, but both such counterparts together shall constitute but one agreement.

  

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

 

                                         OXIS INTERNATIONAL, INC.

                                   By:  /s/ Anthony J. Cataldo 

                                      Name: Anthony J. Cataldo

                                      Title: Chairman and CEO

                                         

                                   By:  /s/ Gary M. Post 

                                      Gary M. Post

                                    

  

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SCHEDULE A – ADVISORY AGREEMENT OF GARY POST FOR

 OXIS INTERNATIONAL INC – MARCH 29, 2010

	
  

	
1.

	
Board and Committee Meetings

	
  

	
A.

	
Help plan agendas.

	
  

	
B.

	
Take notes and prepare and obtain approval of meeting minutes.

	
  

	
C.

	
Assist in setting up Board and Committee Meetings, including sending out email announcements.

	
  

	
2.

	
Annual Meeting of Shareholders

	
  

	
A.

	
Assist counsel, the CEO, CFO in preparation and distribution of the proxy statement and notice of meeting

	
  

	
B.

	
Coordinate with counsel the preparation of the directors' and officers' questionnaires needed to prepare the proxy statement.

	
  

	
C.

	
Negotiate with shareholders regarding shareholder proposals.

	
  

	
D.

	
Coordinate with counsel and other board members in preparing the script and agenda for the annual meeting.

	
  

	
E.

	
Assist the Board, management and counsel in identifying key potential questions from shareholders and possible responses.

	
  

	
F.

	
Assist in the proxy solicitation process along with the CFO and CEO.

	
  

	
G.

	
Ensure that the vote is properly and impartially tabulated, and that results are duly reported in the minutes of the meeting.

	
  

	
3.

	
Corporate Records

	
  

	
A.

	
Assist in the development of rules and approaches for maintain proper corporate records, including security and redundant systems.

	
  

	
B.

	
Certify officer signatures, affix the corporate seal to various corporate documents, and attest to their legitimacy.

	
  

	
4.

	
Stock Transfer

	
  

	
A.

	
Work with the Transfer Agent and the CFO to maintain shareholder records, and provide for the transfer or replacement of stock certificates.

	
  

	
B.

	
Act generally as the primary liaison with the Transfer agent.

	
  

	
5.

	
Securities Markets

	
  

	
A.

	
Work as the primarily liaison with the various securities markets on which the company's shares are listed.

	
  

	
B.

	
Coordinate compliance with these markets with counsel and the Board.

	
  

	
6.

	
Directors

	
  

	
A.

	
Coordinate the flow of information to Directors.

	
  

	
B.

	
Assist counsel in obtaining information from Directors required for legal and regulatory compliance.

	
  

	
7.

	
Compliance

	
  

	
A.

	
Provide for detailed review of registration statements.

	
  

	
B.

	
Help to coordinate the review and filing of 10Ks, 10Qs. and Proxy Statements.

	
  

	
C.

	
Act as administrator of any existing or future retirement type accounts as required by law.

8ex1020.htm

Exhibit 10.20

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (this “Agreement”) is made and entered into as of March 1, 2010 (the “Effective Date”) by and between Oxis International, Inc., a Delaware corporation (“Employer”), and Bernard Landes, an individual and resident of the State of California (“Executive”). Employer and Executive are each referred to hereinafter as a “Party” and collectively as the “Parties”.

 

WHEREAS, Employer desires to employ Executive, and Executive is willing to be employed by Employer, on the terms set forth in this Agreement.

 

NOW, THEREFORE, upon the above premises, and in consideration of the mutual covenants and agreements hereinafter contained, the parties hereto agree as follows.

 

1.           Employment.  Effective as of the Effective Date, Employer shall employ Executive, and Executive shall serve, as Employer’s President on the terms set forth herein.

 

2.           Duties; Place of Employment.  Executive shall perform in a professional and business-like manner, and to the best of his ability, the duties of a President usually associated with such corporate office, and such other duties as are assigned to him from time to time by Employer’s Chief Executive Officer.  The duties of Executive shall include serving as the principal executive officer of Employer’s Nutraceutical Division.  Executive understands and agrees that his duties may be changed from time to time in the discretion of Employer’s Chief Executive Officer.  Subject to the next succeeding sentence, Executive’s services hereunder shall be rendered at Employer’s corporate offices in Los Angeles, California, except for travel when and as required in the performance of Executive’s duties hereunder.  Executive may, however, from time to time with the approval of the Chief Executive Officer, render his services hereunder remotely from his home or other location in California.  Executive and Employer shall consult with each other from time to time regarding the optimal scheduling of Executive’s time at Employer’s corporate offices.  When not present at Employer’s corporate offices, Executive shall make himself readily accessible to Employer by telephone, via the Internet or other remote access, as Employer deems reasonably necessary for the performance of Executive’s services hereunder.

 

3.           Time and Efforts.  Executive shall devote the necessary amount of his time, efforts, attention and energies to Employer’s business to discharge his duties hereunder. Employer understands and approves of the fact that Executive is engaged in other business activities of a non-competitive nature and will continue some or all of these activities during the time frame of this Agreement.  Notwithstanding the foregoing, Employer and Executive agree that the responsibilities and duties contemplated in this agreement shall be Executive’s foremost priority.

 

  

  

  

4.           Term.  The term of Executive’s employment hereunder shall commence on the Effective Date and shall expire on February 28, 2011 (the “Initial Term”).  Thereafter, the term of this Agreement will automatically renew on each March 1, incorporating any changes in terms that shall be mutually agreed upon no less than 30 days prior to the end of the Employment Period and extend under the same parameters for up to four additional consecutive one-year periods (each, a “Renewal Term”) unless one of the parties hereto shall deliver a notice of termination at least 30 days prior to the expiration of the Initial Term or the Renewal Term, as applicable.  The Initial Term and any Renewal Terms are referred to as the “Employment Period.”  Notwithstanding anything to the contrary contained herein, the Employment Period is subject to termination pursuant to Section 6 below.

 

5.           Compensation.  As the total consideration for Executive’s services rendered hereunder, Employer shall pay or provide Executive the following compensation and benefits during the Initial Term:

 

5.1.           Salary.  Executive shall be entitled to receive an annual salary of One Hundred Thousand Dollars ($100,000), payable in accordance with Employer’s normal payroll policies and procedures.

 

5.2.           Discretionary Bonus.  Executive shall be entitled to a bonus from time to time for his services during the Employment Period.  Executive’s eligibility to receive a bonus, any determination to award Executive such a bonus and, if awarded, the amount thereof, shall be made by Employer’s Board of Directors, at its sole discretion. The Employer’s Board or its designated committee shall meet at least sixty days prior to the end of the Initial Term to determine the amount of any bonus payable to the Executive.  Such bonus shall be payable within thirty days of the end of the term.

 

5.3.           Stock Options.

 

5.3.1.           Employer shall grant Executive, as of the Effective Date, an incentive stock option (to the extent that Employer is able to grant incentive stock options, and non-qualified options for the balance) (the “Option”) under Employer’s 2003 Stock Incentive Plan (the “Plan”) to purchase a number of shares of Employer’s common stock equal to One Percent.  For the purposes of this Agreement, the term “One Percent” shall mean, as of the referenced date, one percent (1%) of the sum of (i) the total number of shares of Employer’s common stock outstanding on such date, plus (ii) the number of shares issuable on such date pursuant to currently outstanding, fully vested and exercisable stock options, plus (iii) the number of shares issuable on such date upon the conversion of convertible securities issued by Employer (other than convertible debt which may, at the Employer’s option, be repaid prior to conversion).  As of the Effective Date, One Percent shall represent 2,220,453shares.  The Option shall vest and become exercisable in four equal quarterly (25%) installments on the 90th day after the Effective Date and continuing on the 180th, 270th and 365th day after the Effective Date, at which time the Option shall have become fully vested; provided, in each case, that Executive remains in the continuous employ of Employer through such quarterly vesting dates.  The

 

  

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Option shall (a) be exercisable at an exercise price equal to the closing price of Employer’s common stock on the Effective Date, (b) have a term of ten years, and (c) be on such other terms as shall be determined by Employer’s Board of Directors (or the Compensation Committee of the Board) and set forth in a customary form of stock option agreement under the Plan evidencing the Option.

 

5.3.2.           On the first day of each Renewal Term during the Employment Period (assuming the Agreement is renewed), Employer shall grant to Executive another stock option to purchase One Percent (calculated as of the first date of each such Renewal Term).  The exercise price shall be based on the closing price of Employer’s common stock as of the first date of each such Renewal Term, and the vesting provisions of each such additional option shall commence from the first date of each Renewal Term.  All other terms and provisions of such subsequently granted stock option shall be the same as those of the Option.

 

5.4.           Expense Reimbursement.  Employer shall reimburse Executive for reasonable and necessary business expenses incurred by Executive in connection with the performance of Executive’s duties in accordance with Employer’s usual practices and policies in effect from time to time.

 

5.5.           Vacation.  Executive shall be entitled to ten (10) business days of vacation each year during the Employment Period in accordance with Employer’s vacation policy in effect from time to time.

 

5.6.           Executive Benefits.  Executive shall be eligible to participate in any medical insurance and other employee benefits hereafter established and made available generally by Employer to all of its employees under its group plans and employment policies in effect during the Employment Period.  Executive acknowledges and agrees that, any such plans or policies hereafter in effect may be modified or terminated by Employer at any time in its discretion.

 

5.7.           Payroll Taxes.  Employer shall have the right to deduct from the compensation and benefits due to Executive hereunder any and all sums required for social security and withholding taxes and for any other federal, state, or local tax or charge which may be in effect or hereafter enacted or required as a charge on the compensation or benefits of Executive.

 

6.           Termination.  This Agreement may be terminated as set forth in this Section 6.

 

6.1.           Termination by Employer for Cause.  Employer may terminate Executive’s employment hereunder for “Cause” upon notice to Executive.  “Cause” for this purpose shall mean any of the following:

 

  

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(a)           Executive’s breach of any material term of this Agreement; provided that the first occasion of any particular breach shall not constitute such Cause unless Executive shall have previously received written notice from Employer stating the nature of such breach and affording Executive at least thirty days to correct such breach;

 

(b)           Executive’s conviction of, or plea of guilty or nolo contendere to, any misdemeanor, felony or other crime of moral turpitude;

 

(c)           Executive’s act of fraud or dishonesty injurious to Employer or its reputation;

 

(d)           Executive’s continual failure or refusal to perform his material duties as required under this Agreement after written notice from Employer stating the nature of such failure or refusal and affording Executive at least thirty days to correct the same; or

 

(e)           Executive’s act or omission that, in the reasonable determination of Employer’s Board of Directors (or a Committee of the Board), indicates alcohol or drug abuse by Executive.

 

Upon termination of Executive’s employment by Employer for Cause, all compensation and benefits to Executive hereunder shall cease and Executive shall be entitled only to payment, not later than one business day after the date of termination, of any accrued but unpaid salary and unused vacation as provided in Sections 5.1 and 5.6 as of the date of such termination and any unpaid bonus that may have been earned or awarded Executive as provided in Section 5.2 prior to such date.

 

6.2.           Termination by Employer without Cause.  Employer may also terminate Executive’s employment without Cause upon fifteen days notice to Executive.  Upon termination of Executive’s employment by Employer without Cause, all compensation and benefits to Executive hereunder shall cease and Executive shall be entitled to (a) payment of (1) any accrued but unpaid salary and unused vacation as of the date of such termination as required by California law, which shall be due and payable upon the effective date of such termination, and (2) an amount, which shall be due and payable within fifteen days following the effective date of such termination, equal to the greater of Executive’s salary (at the rate specified in Section 5.1) due for the balance of the Initial Term or the Renewal Term then in effect, or nine months’ salary, and (b) continued participation, at Employer’s cost and expense in any Employer-sponsored group benefit plans in which Executive was participating as of the date of termination, for a period ending on the (x) the first anniversary following such termination or (y) the date of Executive’s re-employment with another employer, whichever is earlier.  Notwithstanding the foregoing, Executive agrees that, as a condition to Employer’s obligations under clauses (a)(2) and (b) of this Section 6.2, Executive shall have executed and delivered to Employer a General Release in the form attached hereto as Exhibit A.

 

  

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6.3.           Death or Disability.  Executive’s employment will terminate automatically in the event of Executive’s death or upon notice from Employer in event of his permanent disability.  Executive’s “permanent disability” shall have the meaning ascribed to such term in any policy of disability insurance maintained by Employer (or by Executive, as the case may be) with respect to Executive or, if no such policy is then in effect, shall mean Executive’s inability to fully perform his duties hereunder for any period of at least 75 consecutive days or for a total of 90 days, whether or not consecutive.  Upon termination of Executive’s employment as aforesaid, all compensation and benefits to Executive hereunder shall cease and Employer shall pay to the Executive’s heirs or personal representatives, not later than ten days after the date of termination, any accrued but unpaid salary and unused vacation as of the date of such termination as required by California law.

 

7.           Confidentiality.  While this Agreement is in effect and for a period of five years thereafter, Executive shall hold and keep secret and confidential all “trade secrets” (within the meaning of applicable law) and other confidential or proprietary information of Employer and shall use such information only in the course of performing Executive’s duties hereunder; provided, however, that with respect to trade secrets, Executive shall hold and keep secret and confidential such trade secrets for so long as they remain trade secrets under applicable law.  Executive shall maintain in trust all such trade secrets or other confidential or proprietary information, as Employer’s property, including, but not limited to, all documents concerning Employer’s business, including Executive’s work papers, telephone directories, customer information and notes, and any and all copies thereof in Executive’s possession or under Executive’s control.  Upon the expiration or earlier termination of Executive’s employment with Employer, or upon request by Employer, Executive shall deliver to Employer all such documents belonging to Employer, including any and all copies in Executive’s possession or under Executive’s control.

 

8.           Equitable Remedies; Injunctive Relief.  Executive hereby acknowledges and agrees that monetary damages are inadequate to fully compensate Employer for the damages that would result from a breach or threatened breach of Section 7 of this Agreement and, accordingly, that Employer shall be entitled to seek equitable remedies, including, without limitation, specific performance, temporary restraining orders, and preliminary injunctions and permanent injunctions, to enforce such Section without the necessity of proving actual damages in connection therewith.  This provision shall not, however, diminish Employer’s right to claim and recover damages or enforce any other of its legal or equitable rights or defenses.

 

9.           Indemnification; Insurance.  Employer and Executive acknowledge that, as the President of Employer, Executive shall be an executive officer and agent of Employer and, as such, Executive shall be entitled to indemnification to the full extent provided by Employer to its officers, directors and agents under the Employer’s Articles of Incorporation and Bylaws as in effect as of the date of this Agreement.  Subject to his insurability thereunder, Employer shall add Executive as an additional insured under any policy of directors and officers liability insurance Employer may, from time to time, have in effect or may hereafter acquire, during the Employment Period.

 

  

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10.           Severable Provisions.  The provisions of this Agreement are severable and if any one or more provisions is determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions, and any partially unenforceable provisions to the extent enforceable, shall nevertheless be binding and enforceable.

 

11.           Successors and Assigns.  This Agreement shall inure to the benefit of and shall be binding upon Employer, its successors and assigns and Executive and his heirs and representatives; provided, however, that neither party may assign this Agreement without the prior written consent of the other party.

 

12.           Entire Agreement.  This Agreement contains the entire agreement of the parties relating to the subject matter hereof, and the parties hereto have made no agreements, representations or warranties relating to the subject matter of this Agreement that are not set forth otherwise herein.  This Agreement supersedes any and all prior or contemporaneous agreements, written or oral, between Executive and Employer relating to the subject matter hereof.  Any such prior or contemporaneous agreements are hereby terminated and of no further effect, and Executive, by the execution hereof, agrees that any compensation provided for under any such agreements is specifically superseded and replaced by the provisions of this Agreement.

 

13.           Amendment.  No modification of this Agreement shall be valid unless made in writing and signed by the parties hereto and unless such writing is made by an executive officer of Employer (other than Executive).  The parties hereto agree that in no event shall an oral modification of this Agreement be enforceable or valid.

 

14.           Governing Law.  This Agreement is and shall be governed and construed in accordance with the laws of the State of California without giving effect to California’s choice-of-law rules.

 

15.           Notice.  All notices and other communications under this Agreement shall be in writing and mailed, sent by facsimile or email with the signed document attached in PDF format (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party), or delivered by hand or by a nationally recognized courier service guaranteeing overnight delivery to a party at the following address (or to such other address as such party may have specified by notice given to the other party pursuant to this provision):

 

  

6

  

	
If to Employer:

 

Oxis International, Inc.

468 N. Camden Drive, 2nd Floor

Beverly Hills, California  90210

Facsimile: (310) 551-4021

E-mail:  tcataldo@oxis.com

Attention:   Chief Executive Officer

	
If to Executive:

 

 

16.           Survival.  Sections 7 and 8 shall survive the expiration or termination of this Agreement.

 

17.           Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same agreement.  A counterpart executed and transmitted by facsimile shall have the same force and effect as an originally executed counterpart.

 

18.           Attorney’s Fees.  In any action or proceeding to construe or enforce any provision of this Agreement the prevailing party shall be entitled to recover its or his reasonable attorneys’ fees and other costs of suit in addition to any other recoveries.

 

19.           WAIVER OF JURY TRIAL.  IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

  

7

  

 

IN WITNESS WHEREOF, this Agreement is executed as of the day and year first above written.

 

	  	
“EMPLOYER”

 

Oxis International, Inc.

 

 

By:     /s/ Anthony J. Cataldo                                                         

Anthony J. Cataldo

Chief Executive Officer

	  	
“EMPLOYEE”

 

 

/s/ Bernard Landes            

Bernard Landes

 

  

8

  

EXHIBIT A

 

GENERAL RELEASE OF ALL CLAIMS

 

This General Release of All Claims is made as of _________, 20__ (“General Release”), by and between Bernard Landes (“Executive”) and Oxis International, Inc., a Delaware corporation (the “Company”), with reference to the following facts:

 

WHEREAS, this General Release is provided for in, and is in furtherance of, the Employment Agreement, dated as of March 1, 2010, between the Company and Executive (the “Employment Agreement”);

 

WHEREAS, Executive desires to execute and deliver to the Company this General Release in consideration of the Company’s providing Executive with certain severance benefits pursuant to Section 6.2 of the Employment Agreement; and

 

WHEREAS, Executive and the Company intend that this General Release shall be in full satisfaction of any and all obligations described in this General Release owed to Executive by the Company, except as expressly provided in this General Release.

 

NOW, THEREFORE, in consideration of the promises and the mutual covenants and agreements herein contained, Executive and the Company agree as follows:

 

1.           Executive, for himself, his spouse, heirs, administrators, children, representatives, executors, successors, assigns, and all other persons claiming through Executive, if any (collectively, “Releasers”), does hereby release, waive, and forever discharge the Company and each of its agents, subsidiaries, parents, affiliates, related organizations, employees, officers, directors, attorneys, successors, and assigns (collectively, the “Releasees”) from, and does fully waive any obligations of Releasees to Releasers for, any and all liability, actions, charges, causes of action, obligations, demands, damages, or claims for relief, remuneration, sums of money, accounts or expenses (including attorneys’ fees and costs) of any kind whatsoever, whether known or unknown or contingent or absolute, which heretofore has been or which hereafter may be suffered or sustained, directly or indirectly, by Releasers in consequence of, arising out of, or in any way relating to: (a) Executive’s employment with and services to the Company or any of its affiliates; (b) the termination of Executive’s employment with and services to the Company and any of its affiliates; or (c) any event whatsoever occurring on or prior to the date of this General Release.  The foregoing release and discharge, waiver and covenant not to sue includes, but is not limited to, all claims and any obligations or causes of action arising from such claims, under common law including, but not limited to, wrongful or retaliatory discharge, breach of contract (including but not limited to any claims under any employment agreement between Executive, on the one hand, and the Company or its affiliates, on the other hand) and any action arising in tort including, but not limited to, libel, slander, defamation or intentional infliction of emotional distress, and claims under any federal, state or local statute including the Age Discrimination in Employment Act (“ADEA”), Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866 and 1871 (42 U.S.C. § 1981), the National Labor Relations Act, the Fair Labor Standards Act, the Executive Retirement Income Security Act, the Americans with Disabilities Act of 1990, the Rehabilitation Act of 1973, the California Fair Employment and

 

  

  

  

Housing Act, the Family and Medical Leave Act, the California Family Rights Act or the discrimination or employment laws of any state or municipality, and any claims under any express or implied contract which Releasers may claim existed with Releasees.  This also includes, but is not limited to, a release of any claims for wrongful discharge and all claims for alleged physical or personal injury, emotional distress relating to or arising out of Executive’s employment with or services to the Company or any of its affiliates or the termination of that employment or those services; and any claims under the Worker Adjustment and Retraining Notification Act, California Labor Code Section 1400 et seq. or any similar law, which requires, among other things, that advance notice be given of certain work force reductions.  This release and waiver does not apply to: (i) the Executive’s rights to receive the compensation and benefits provided for in Section 6.2 of the Employment Agreement: or (ii) Executive’s rights under any stock option agreement between Executive and the Company.

 

2.           Executive understands and agrees that he is expressly waiving all rights afforded by Section 1542 of the Civil Code of the State of California (“Section 1542”) with respect to the Releasees.  Section 1542 states as follows:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

 

Notwithstanding the provisions of Section 1542, and for the purpose of implementing a full and complete release, Executive understands and agrees that this General Release is intended to include all claims, if any, which Executive may have and which he does not now know or suspect to exist in his favor against the Releasees and Executive understands and agrees that this Agreement extinguishes those claims.

 

3.           Excluded from this General Release and waiver are any claims which cannot be waived by law, including but not limited to the right to participate in an investigation conducted by certain government agencies.  Executive, however, waives Executive’s right to any monetary recovery should any agency (such as the Equal Employment Opportunity Commission or the California Department of Fair Employment and Housing) pursue any claims on Executive’s behalf.  Executive represents and warrants that Executive has not filed any complaint, charge or lawsuit against the Releasees with any government agency or any court.

 

4.           Executive agrees never to seek personal recovery from Releasees in any forum for any claim covered by the above waiver and release language, except that Executive may bring a claim under the ADEA to challenge this General Release.  Nothing in this General Release is intended to reflect any party’s belief that Executive’s waiver of claims under ADEA is invalid or unenforceable, it being the intent of the parties that such claims are waived.

 

5.           Executive acknowledges and recites that:

 

(a)           Executive has executed this General Release knowingly and voluntarily;

 

 

  

A-2  

  

 

(b)           Executive has read and understands this General Release in its entirety;

 

(c)           Executive acknowledges that he has been advised by his own legal counsel and has sought such other advice as he wishes with respect to the terms of this General Release before executing it;

 

(d)           Executive’s execution of this General Release has not been forced by any employee or agent of the Company, and Executive has had an opportunity to negotiate about the terms of this General Release; and

 

(e)           Executive has not sold, assigned, transferred or conveyed any claim, demand, right, action, suit, cause of action or other interest that is the subject matter of this General Release.

 

6.           This General Release shall be governed by the internal laws (and not the choice of laws) of the State of California, except for the application of preemptive Federal law.

 

7.           Executive acknowledges that he is waiving his rights under the ADEA and the Older Worker's Benefit Protection Act and therefore, in compliance with those statutes, acknowledges the following:

 

(a)           Executive acknowledges that he has been provided a minimum of twenty-one (21) calendar days after receipt of this Agreement to consider whether to sign it;

 

(b)           Executive acknowledges that he shall have seven days from the date he executes this General Release to revoke his waiver and release of any ADEA claims only (but not his waiver or release hereunder of other claims) by providing written notice of the revocation to the Company, and that, in the event of such revocation, the provisions of clauses (a)(2) and (b) of Section 6.2 of the Employment Agreement shall thereupon become null and void and the Company shall be entitled to a return from Executive of all payments to Executive pursuant to such clauses;

 

(c)           Executive acknowledges that this waiver and release does not apply to any rights or claims that may arise under ADEA after the effective date of this Agreement; and

 

(d)           Executive acknowledges that the consideration given in exchange for this waiver and release Agreement is in addition to anything of value to which he was already entitled.

 

PLEASE READ THIS AGREEMENT CAREFULLY.  IT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

	
Dated:               ___________________, 20__

	
 

Bernard Landes

 

 

A-3

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