Document:

Exhibit 10.1

 

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into this 1st day of August, 2011 (the “Effective Date”) by and between Repros Therapeutics Inc., a Delaware corporation (the “Company”), and Katherine A. Anderson (the “Employee”).

 

WITNESSETH

 

WHEREAS, the Company desires to employ the Employee as its Chief Financial Officer on the terms and subject to the conditions set forth herein, and the Employee desires to accept such employment.

 

NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

	
  

	
1.

	
Employment.

 

(a)           The Company hereby employs the Employee and the Employee hereby accepts employment as the Chief Financial Officer of the Company, subject to the direction of the Chief Executive Officer and the Board of Directors of the Company.  Employee agrees that she shall perform and discharge well and faithfully the duties and responsibilities that are assigned to her by the Chief Executive Officer and the Board of Directors of the Company, which shall include, but are not limited to: (i) overseeing the finance, accounting and administrative functions of the Company; (ii) assisting the CEO in developing comprehensive management strategies for the Company; (iii) assisting the CEO in the general management of the Company's operations; and (iv) performing such other duties as may be reasonably assigned to Employee from time to time.  The Employee agrees to devote such of her time, attention and energy to the business of the Company, and any of its subsidiaries or affiliates, as may be required to perform the duties and responsibilities assigned to her by the Chief Executive Officer and the Board of Directors of the Company to the best of her ability and with requisite diligence.

 

(b)           The Employee agrees to comply in all material respects, at all times during the Term (as defined in Section 2 hereof), with all applicable policies, rules and regulations of the Company.

 

2.           Term.  Subject to the terms hereof, this Agreement shall commence on the Effective Date hereof and shall terminate on the first anniversary of the Effective Date (the “Initial Term”); provided, that this Agreement will automatically renew for successive one-year periods after the Initial Term (each an “Additional Term”) unless terminated in accordance with Section 6.  The Initial Term together with any Additional Term shall be referred to herein as the “Term.”

 

  

  

  

 

3.           Compensation.

 

(a)           The Company agrees to pay to Employee during the Initial Term a base monthly salary of $225,000, payable in equal semi-monthly installments or on any other periodic basis consistent with the Company's payroll procedures, subject only to such payroll and withholding deductions as are required by applicable federal and state laws.  The base monthly salary for each Additional Term shall be reviewed on an annual basis by the Board of Directors and recommendations for a salary adjustment shall be made based on both individual and corporate performance; provided, however, that there is no assurance that the base monthly salary will be increased for any subsequent Additional Term, such decision to be within the discretion of the Board of Directors.

 

(b)           The Company has issued, to Employee, an incentive stock option (the “Option”) to purchase 125,000 shares of the Company’s Common Stock under the Company’s Stock Option Plan, at an exercise price equal to the closing price of the Company’s Common Stock on the Nasdaq Global Market on the date of approval by the Company's Compensation Committee (August 1, 2011), subject to commencement of employment.  Such shares shall vest and be exercisable at a rate of 1/12th of the total thereof for each quarter of Employee’s employment following the Effective Date, provided that all shares shall vest and be exercisable in the event of a Change of Control (as defined below).

 

(c)           The Employee shall be eligible to receive an annual bonus, in amounts to be determined from time to time by the Board of Directors of the Company provided, however, that there is no assurance that the Employee will be paid a bonus for each given year.

 

	
  

	
4.

	
Fringe Benefits; Expenses.

 

(a)           So long as the Employee is employed by the Company, the Employee shall participate in all employee benefit plans sponsored by the Company for its executive employees, including, but not limited to, vacation policy, health insurance, dental insurance and retirement plans; provided, however, that the nature, amount and limitations of such plans shall be determined from time to time by the Board of Directors of the Company.

 

(b)           The Company agrees to reimburse the Employee for all reasonable out-of-pocket expenses incurred by her in the performance of her duties, subject to the submission of appropriate documentation in accordance with the Company's expense reimbursement policy as in existence from time to time.

 

5.           Confidential Information and Non-Competition.  The Employee has executed and agrees to comply with the Confidentiality, Proprietary Information and Inventions and Non-Competition Agreement, a copy of which is attached as Exhibit A hereto and incorporated herein by reference.

 

  

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6.

	
Termination.

 

(a)           At any time during the Term, the Company may, at its sole discretion, discharge the Employee, with or without “Cause”.  Such termination shall be effective on delivery of written notice to the Employee of the Company's election to terminate this Agreement under this Section 6.  For purposes of this Agreement, the following events shall constitute “Cause”:  (i) the conviction of the Employee by a court of competent jurisdiction of a crime involving moral turpitude; (ii) the commission, or attempted commission, by the Employee of an act of fraud on the Company; (iii) the misappropriation, or attempted misappropriation, by the Employee of any funds or property of the Company; (iv) the continued and unreasonable failure by the Employee to perform in any material respect her obligations under the terms of this Agreement; (v) the knowing engagement by the Employee, without the written approval of the Board of Directors, in any direct, material conflict of interest with the Company without compliance with the Company's conflict of interest policy; (vi) the knowing engagement by the Employee, without the written approval of the Board of Directors, in any activity which competes with the business of the Company or which would result in a material injury to the Company; or (vii) the knowing engagement by the Employee in any activity that would constitute a material violation of the provisions of the Company's Insider Trading Policy or Business Ethics Policy, if any, then in effect.

 

If the Company terminates the Employee's employment under this Agreement for reasons other than Cause or if Employee terminates her employment for Good Reason (as defined below), then the Company shall, subject to the terms of this Section 6, pay to the Employee (or her estate or representative, as appropriate) an amount equal to six (6) months compensation at her then current salary, payable semi-monthly or in accordance with the Company's payroll procedures, and shall continue to provide benefits in the kind and amounts provided up through the date of termination for the six (6) month period, including, without limitation, continuation of any Company-paid benefits as described in Section 4 of this Agreement for the Employee and her family.  Under no circumstances shall the Employee be entitled to any compensation or continuation of benefits for any period of time following her termination if her termination is for Cause.  If the Company terminates the Employee's employment under this Agreement for reasons other than Cause, the Employee agrees to accept, in full settlement of any and all claims, losses, damages and other demands that the Employee may have arising out of such termination as liquidated damages and not as a penalty, the six (6) month salary payments and continuation of Company-paid benefits as set forth above.  The Employee hereby waives any and all rights that she may have to bring any cause of action or proceeding, as a result of such termination, except to enforce the Company's obligation to pay amounts owing pursuant to this Section 6.

 

(b)           This Agreement will terminate automatically on the earliest to occur of:  (i) the death or disability of the Employee; or (ii) the voluntary retirement of the Employee.

 

(c)           If at any time during the Term of this Agreement, the Employee is unable to perform effectively her duties hereunder because of physical or mental disability, the Company shall continue payment of compensation as provided in Section 3 hereof during the first twelve (12) month period of such disability to the extent not covered by the Company's disability insurance policies.  On the expiration of such twelve (12) month period, the Company, at its sole discretion, may continue payment of the Employee's salary for such additional periods as the Company elects or may terminate this Agreement without any further obligations thereunder.  If the Employee should die during the Term of this Agreement, the Employee's employment and the Company's obligations hereunder shall terminate as of the last day of the month in which the Employee's death occurs.

 

  

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(d)           As used in this Agreement, “Good Reason” shall mean a material diminution in the title, powers, duties, responsibilities or functions of the Employee as described in Section 1 above within one year following the occurrence of a Change of Control.

 

As used in this Agreement, a “Change of Control” shall mean:

 

(i)           the acquisition after the Effective Date by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended) (a “Person”) of beneficial ownership of 30% or more of either (x) the then outstanding shares of common stock of the Company (the “Outstanding Common Stock”) or (y) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Voting Securities”), provided that for purposes of this subsection (i), the following acquisitions shall not constitute a Change of Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (D) any acquisition by any corporation pursuant to a transaction which complies with clauses (A), (B) and (C) of subsection (ii) hereof; or

 

(ii)           consummation after the Effective Date of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Corporate Transaction”) in each case, unless, following such Corporate Transaction, (A) (1) all or substantially all of the persons who were the beneficial owners of the Outstanding Common Stock immediately prior to such Corporate Transaction beneficially own, directly or indirectly, more than 30% of the then outstanding shares of common stock of the corporation resulting from such Corporate Transaction, and (2) all or substantially all of the persons who were the beneficial owners of the Outstanding Voting Securities immediately prior to such Corporate Transaction beneficially own, directly or indirectly, more than 30% of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership of the Outstanding Common Stock and the Outstanding Voting Securities immediately prior to such Corporate Transaction, as the case may be, (B) no Person (excluding (1) any corporation resulting from such Corporate Transaction or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Corporate Transaction and (2) any Person approved by the members of the Board in office immediately prior to such Corporate Transaction) beneficially owns, directly or indirectly, 30% or more of the then outstanding shares of common stock of the corporation resulting from such Corporate Transaction or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to such Corporate Transaction and (C) at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction were members of the Board at the time of the execution of the initial agreement or of the action of the Board providing for such Corporate Transaction.

 

  

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(e)           At any time during the Term of this Agreement, the Employee may terminate this Agreement by giving at least thirty (30) days written notice to the Company of her intent to terminate this Agreement, with the date of termination to be specified in such notice.

 

(f)           If this Agreement is terminated by the Employee pursuant to Section 6(e) hereof, then the Company will have no obligation to pay any amount to the Employee other than amounts earned or accrued pursuant to Section 3 hereof, but which have not yet been paid, as of the date of termination.

 

7.           Assignment by Employee.  Except as otherwise expressly provided herein, the Employee agrees for herself, and on behalf of her executors and administrators, heirs, legatees, distributees and any other person or persons claiming any benefits under her by virtue of this Agreement, that this Agreement and the rights, interests and benefits hereunder shall not be assigned, transferred, pledged or hypothecated in any way by the Employee or any executor, administrator, heir, legatee, distributee or person claiming under the Employee by virtue of this Agreement and shall not be subject to execution, attachment or similar process.  Any attempt at assignment, transfer, pledge or hypothecation or other disposition of this Agreement or of such rights, interests and benefits contrary to the foregoing provision, or the levy of any attachment or similar process thereupon, shall be null and void and without effect.

 

8.           Successors of the Company.  This Agreement shall be binding on and inure to the benefit of any Successor (as hereinafter defined) of the Company and any such Successor shall be deemed substituted for the Company under the terms of this Agreement.  As used in this Agreement, the term “Successor” shall include any person, firm, corporation or other business entity which at any time, whether by merger, purchase or otherwise, acquires all or substantially all of the assets or businesses of the Company; but no such substitution shall relieve such companies of their original obligations hereunder.  This Agreement may not otherwise be assigned by the Company without the Employee's consent to any person, firm, corporation, limited liability company, trust or other entity.

 

  

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9.           Notices.  All notices or other communications that are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given when delivered in person, transmitted by telecopier or mailed by registered or certified first class mail, postage prepaid, return receipt requested, to the parties hereto at the address set forth below (as the same may be changed from time to time by notice similarly given) or the last known business or residence address of such other person as may be designated by either party hereto in writing.

 

If to the Company:

 

Repros Therapeutics Inc.

2408 Timberloch Place, Suite B-7

The Woodlands, Texas 77380

Attn:  Joseph S. Podolski

 

If to the Employee:

Katherine A. Anderson

1830 Pembrook Circle

Conroe, Texas 77301

 

10.           Waiver of Breach.  A waiver by the Company or the Employee of a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any other breach by the other party.

 

11.           Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Texas.

 

12.           Severability.  If any provision of this Agreement shall, for any reason, be held to violate any applicable law, and so much of said Agreement is held to be unenforceable, then the invalidity of such specific provision herein shall not be held to invalidate any other provision herein which shall remain in full force and effect.

 

13.           Amendment.  This Agreement constitutes and contains the entire agreement of the parties and supersedes any and all prior negotiations, correspondence, understandings and agreements between the parties respecting the subject matter hereof.  This Agreement may be modified only by an agreement in writing executed by all the parties hereto.

 

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

 

15.           Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together shall constitute one instrument.

 

16.           Cumulative Remedies.  All rights and remedies hereunder are cumulative and are in addition to all other rights and remedies provided by law, agreement or otherwise.

 

  

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

 

 

	 	 
COMPANY:

	 
	 	 	 
	 	 
REPROS THERAPEUTICS INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Joseph S. Podolski	 
	 	 	 
Joseph S. Podolski, President and CEO

	 
	 	 	 	 
	 	 	 	 

 

 

	 	 
 
EMPLOYEE:

	 
	 	 	 	 
	
 

	
By: 

	/s/ Katherine A. Anderson	 
	 	 	 
 
Katherine A. Anderson

	 
	 	 	 	 
	 	 	 	 

 

 

  

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Exhibit A

 

Proprietary Information and Inventions and Non-Competition Agreement between the Company and Employee

 

(See attached)

 

  

8Unassociated Document

 

EXHIBIT 10.1

 

August 3, 2011

 

Eric Rowinsky, MD

5 Robin Road

Warren, NJ 07059

Dear Eric:

This letter is to confirm our mutual understanding with respect to the terms and conditions under which you agree to provide Neoprobe Corporation (hereinafter referred to as “Neoprobe”) with Consulting Services during the period from August 3, 2011 through July 31, 2012 (the “Consulting Period”).

As used herein, the term “Consulting Services” shall mean carrying out the following job duties, which shall include, but shall not be limited to:

	
  

	
1.

	
Medical, clinical development, strategic support to business development objectives focusing on new product assessments for in-licensing, M&A prospects and territory deals pertaining to existing products;

	
  

	
2.

	
Clinical development support with a particular focus Lymphoseek development (Europe/ROW, current usage of sentinel node mapping/product in melanoma and breast cancer; expansion of studies into head and neck, GI, other tumor types), RIGS development and new products;

	
  

	
3.

	
Assisting with formation of the company's Scientific/Medical Advisory Board and ad hoc medical advisory groups (e.g. Key Opinion Leader cultivation); and

	
  

	
4.

	
Assisting with investor relations, roadshows, presentations and financings.

 

In performing Consulting Services for Neoprobe, you will report directly to Mark Pykett. You agree that the Consulting Services will be performed in a workmanlike manner, with professional diligence and skill, and in accordance with reasonable commercial or professional standards.

In exchange for performing the Consulting Services, Neoprobe agrees to pay you at a rate of fifteen thousand dollars ($15,000.00) per month for performing the Consulting Services.  This billing rate is intended to represent payment for approximately one third (1/3) of the equivalent of a full-time commitment.  Consulting Services rendered in excess of these projected amounts must be pre-approved by the Company prior to undertaking said services.  Payment for Consulting Services will be made within 30 days following receipt of itemized invoices from you showing the amount of time spent by you per day on project(s) on behalf of Neoprobe.

In addition, Neoprobe agrees to grant you, on the effective date of this agreement, a total of sixty thousand (60,000) restricted shares of common stock of the company.  Such grant will be subject to the terms and conditions of a separate grant agreement to be provided to you; however, in summary, thirty thousand (30,000) shares will vest each on the completion of the following two milestones:  1) completion of a transaction for anew pipeline technology and 2) the start of a new clinical trial or the filing of a new regulatory document (i.e., an IND or clinical protocol) by the Company.

  

  

  

 

Eric Rowinsky

August 3, 2011

Page 2 of 4

 

In addition, Neoprobe agrees to grant to you, on the effective date of this agreement, sixty thousand (60,000) options to purchase common stock of the Company, such options to vest at the rate of one fourth on each of October 31, 2011, January 31, 2012, April 30, 2012 and July 31, 2012.

 

It is understood and agreed that Neoprobe will stipulate the places and locations where you will provide Consulting Services and, where this requires you to travel away from the metropolitan area of your regular place of residence or business, Neoprobe will reimburse you for the reasonable travel and living expenses actually incurred by you, upon submission by you and approval by Neoprobe of an itemized account of the expenses for which reimbursement is sought, along with receipts for expenses greater than $25.  However, travel time will not be considered to be time spent in the service of Neoprobe in a Consulting capacity.

During the Consulting Period, either through the performance of Consulting Services or otherwise, you may acquire proprietary and confidential information (herein “Information”) with respect to the business and research activities of Neoprobe.  You agree to keep confidential such Information and not to divulge any such Information to others.  Specifically, you agree that you will not directly or indirectly, publish or disclose to others, except with the written consent of Neoprobe, any Information, data or methods of manufacture received or obtained from Neoprobe, nor use such Information in any way, commercially or otherwise, except in performing the Consulting Services.  This obligation of confidentiality and non-use shall continue until two (2) years after the expiration of this Agreement, but shall not apply to Information which (i) becomes a matter of public knowledge through no fault of yours; (ii) is rightfully received by you from a third party without restriction on disclosure; (iii) is independently developed by you without the use of Information; or (iv) is rightfully in your possession prior to its disclosure to you by the Neoprobe.

 

You hereby irrevocably transfer and assign to Neoprobe without further compensation, any and all of your right, title and interest in and to all designs, ideas, discoveries, inventions, products, computer programs, source code, procedures, improvements, documents, information and materials made, conceived or developed by you alone or with others, which result from or relate to the Consulting Services (“Work Product”), including, but not limited to, all copyrightable works and copyrights, patent rights, trade secrets and trademarks, any right to claim authorship of Work Product, or any right to object to any distortion or other modification of Work Product by Neoprobe. Notwithstanding this assignment and transfer, if any Work Product incorporates or relies upon works developed by you prior to the effective date of this Agreement, you shall continue to retain ownership of thereof, but you hereby license Neoprobe to use, or have third parties use on Neoprobe’s behalf, such preexisting works as is reasonably required to fully exploit the Consulting Services performed hereunder. You agree, during and for one year following the term of the Agreement to: (i) disclose promptly in writing to Neoprobe all Work Product; and (ii) to sign and provide any and all documents and render any assistance that is reasonably necessary for Neoprobe to obtain any patent, copyright, trademark or other protection for Work Product. In case any invention is described in a patent application or is disclosed to third parties by you within one (1) year after the Consulting Services have been completed, it shall be presumed that the invention was conceived or made during the period in which the Consulting Services were rendered, and the invention will be assigned to Neoprobe as set forth in this Agreement, provided that the invention results from or relates to the Consulting Services. If the invention was made by you prior to any association with Neoprobe or was made without the Information or resources of Neoprobe, then you need not assign the invention to the Company as set forth herein.

  

  

  

 

Eric Rowinsky

August 3, 2011

Page 3 of 4

 

At the expiration of this Agreement, you agree to promptly deliver to Neoprobe all documents, notes, or other papers supplied to you by Neoprobe in connection with your Consulting Services, which were in your possession and under your control during the time you provided your Consulting Services to Neoprobe.  You agree that you will not make or retain or give away any copies of such documents.

Either party may terminate this Agreement with thirty (30) business days’ prior written notice to the other.  Early termination of this Agreement by Neoprobe shall not relieve Neoprobe of any liability for payment of consulting fees that accrued prior to the date of termination of the Agreement, nor relieve you of any obligations with respect to the confidentiality and non-use of Information, the transfer of rights in any Work Product, or the return to Neoprobe of any documents, notes or other papers.

It is understood and agreed that your status shall be that of an independent contractor and not that of an employee of Neoprobe, and you will not, therefore, be entitled to any of the benefits available to employees of Neoprobe.  It is further understood and agreed that no representations have been made to you by Neoprobe that satisfactory performance of the Consulting Services described herein will lead to an offer of permanent employment with Neoprobe.

This Agreement shall be construed and governed by the laws of the State of Ohio and adjudicated within the exclusive jurisdiction of the courts having jurisdiction over Franklin County, Ohio.

If the foregoing terms and conditions meet with your understanding and approval, please show your acceptance and agreement by executing this letter in duplicate at the place indicated below and returning one of the executed duplicates to us, whereupon this letter shall constitute the agreement between you and Neoprobe with respect to your services in a consulting capacity.

  

  

  

 

Eric Rowinsky

August 3, 2011

Page 4 of 4

 

Very truly yours,

 

 

	By:	/s/ Mark J. Pykett	 
	 	Mark J. Pykett	 
	 	President and Chief Executive Officer	 

 

 

Accepted and agreed to:

 

 

	By:	/s/ Eric K. Rowinsky, M.D.	 
	 	 	 

 

	Date: 	August 3, 2011

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