Document:

Exhibit 10.11

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

THIS EXECUTIVE
EMPLOYMENT AGREEMENT (the “Agreement”) entered into as of the 23rd day of January,
2006, by and between WORLDWATER & POWER CORP. a Delaware corporation
(the “Company”), and JAMES S. FARRIN, with an
address of 57 N. Tulane Street, Princeton, New Jersey 08542 (the “Executive”).

 

Background

 

The Company
desires to obtain the services of the Executive, and the Executive is willing
to render such services, in accordance with the terms hereinafter set forth.

 

The Company, by
appropriate action, has authorized the employment of the Executive as provided
for in this Agreement.

 

NOW THEREFORE,
in consideration of the respective agreements of the parties contained herein,
it is agreed as follows:

 

1. Term.
The initial term (the “Initial Term”) of this Agreement shall commence as of
the date hereof and shall terminate on January 23, 2007. Unless terminated
as hereinafter provided, this Agreement shall continue from month to month
(each such period, a “Renewal Term”) on the same terms and conditions as in the
Initial Term, subject to adjustments as herein provided (the “Employment Term”).
Notwithstanding the foregoing, the Company may terminate Executive
immediately upon the hiring of a Replacement CEO (as defined in Section 2(b) below)
or upon a change in control of the Company.

 

2. Employment.

 

(a)          The
Executive will be employed as a President and Chief Executive Officer of the
Company and will perform the duties, undertake the responsibilities and
exercise the authority customarily performed, undertaken and exercised by persons
situated in a similar executive capacity, and as directed by the Company.

 

(b)         Executive
acknowledges that he will serve on an interim basis and that it is the
intention of the Company during the term of this Agreement to identify and hire
a President and Chief Executive Officer to serve on a long term basis (“Replacement CEO”).

 

(c)          Excluding
periods of a vacation and sick leave to which the Executive is entitled, the
Executive agrees during the Employment Term to devote substantially all of his
business time to the business and affairs of the Company and to the duties and
responsibilities assigned to the Executive hereunder by the Company. The
Executive may (i) serve on civic or charitable boards or committees; and
(ii) manage

 

 

personal
investments and non-competing family businesses; so long as any such activities
do not interfere with the performance of the Executive’s responsibilities
hereunder. Executive shall use his best efforts to discharge the
responsibilities of his office and position as set forth herein.

 

3.             Compensation.

 

(a)           The
Company agrees to pay or cause to be paid to the Executive during the
Employment Term a base salary at the initial monthly rate of Eight Thousand Dollars
($8,000.00) commencing March 23, 2006 and continuing on the 23rd
day of each of the following ten months (hereinafter referred to as the “Base
Salary”). Such Base Salary shall be payable in accordance with the Company’s
standard payroll schedule. Such rate of salary, or increased rate of salary, as
the case may be, shall be reviewed at least annually by the Company. In
the event of the termination of this Agreement by the Company other than for
Cause (as defined in Section 8 below) prior to January 23, 2007,
Executive will be entitled to the Base Salary through the term of this
Agreement.

 

(b)           Provided
Executive continues his employment with the Company through January 23, 2007
and the conditions described in this subsection are achieved, Executive will
be entitled to receive a bonus in the amount of $100,000 (the “Bonus”). The Bonus will be conditioned upon achievement by
the Company of gross revenues equal to or exceeding $20,000,000 in fiscal year
2006 with a gross profit margin of at least 20% (collectively, the “Bonus Conditions”). If either or both of the Bonus
Conditions are missed by less than 20%, the Bonus will be prorated. For
example, if gross revenues for 2006 are $19,500,000 and the gross profit margin
exceeds 20%, the Bonus will be $97,500. If the Bonus Conditions are missed by
more than 20%, the Bonus will be determined by the Board of Directors in its
discretion. In the event this Agreement is terminated by the Company other than
for Cause prior to January 23, 2007 and the Company achieves the gross
revenue and gross margin conditions described in this subparagraph, Executive
will be entitled to the Bonus as if the Executive would have completed the term
of this Agreement.

 

(c)           Executive
will be entitled to receive options to purchase up to 1,000,000 shares of the
Company’s common stock under the terms of the Company’s 1999 Incentive Stock
Option Plan. Options to purchase 200,000 shares of the Company’s common stock
will be issued upon the full execution of this Agreement, and the balance will
be issued in twelve equal monthly installments commencing January 23, 2006
and continuing on the twenty-third day of each of the succeeding eleven months.

 

4.             Employee
Benefits. The Executive shall be entitled to participate in all employee
benefit plans, practices and programs maintained by the Company and made
available to employees generally including, without limitation, all pension,
retirement, profit sharing, savings, medical, hospitalization, disability,
dental, life or travel accident insurance benefit plans. The Executive’s
participation in such plans, practices and programs shall be on the same basis
and terms as are applicable to employees of the Company generally.

 

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5.             Executive
Benefits. The Executive shall be entitled to participate in all executive
benefit or incentive compensation plans now maintained or hereafter established
by the Company for the purpose of providing compensation and/or benefits to
executives of the Company and any supplemental retirement, salary continuation,
stock option, deferred compensation, supplemental medical or life insurance or
other bonus or incentive compensation plans. Unless otherwise provided herein,
the Executive’s participation in such plans shall be on the same basis and
terms as other similarly situated executives of the Company. No additional
compensation provided under any of such plans shall be deemed to modify or
otherwise affect the terms of this Agreement or any of the Executive’s
entitlements hereunder.

 

6.             Reimbursement
of Expenses. The Executive is authorized to incur expenses reasonably necessary
(consistent with a policy to be established by the Company) to carry out his
duties under this Agreement. The Company will reimburse the Executive for all
such expenses upon receipt of an itemized account of such expenditures, which
shall be in accordance with the usual practices of the Company and in
accordance with the annual budget prepared from time to time by the Company.

 

7.             Termination
of Employment. In the event of the death of the Executive or if the
Executive is permanently disabled or incapacitated and as a result thereof is
and continues to be for a period of ninety (90) days unable to perform his
duties hereunder as determined by mutual agreement of the Executive and the
Company but if no such agreement is reached, as determined (i) by a
mutually selected Person who is an expert in the type of disability claimed
whose determination shall be final and binding or (ii) if no such Person
is selected, by an arbitrator selected pursuant to the commercial arbitration rules of
the American Arbitration Association the Executive or, in the event of the
Executive’s death, the Executive’s estate, shall be entitled to receive:

 

all amounts
earned or accrued hereunder through the date of termination (the “Termination
Date”), but not paid as of the Termination Date, including

 

(i)            Base
Salary (reduced by the amount of payments received by Executive pursuant to the
Company’s disability insurance program, if any);

 

(ii)           reimbursement
for any and all monies advanced or expenses incurred in connection with the
Executive’s employment for reasonable and necessary expenses incurred by the
Executive on behalf of the Company for the period ending on the Termination Date;

 

(iii)          accrued
and unpaid vacation pay;

 

(iv)          any
bonuses or incentive compensation earned through the

 

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Termination
Date, or to which Executive is entitled in connection with his employment
through the Termination Date; and

 

(v)           any
previous compensation which the Executive has previously deferred (including
any interest earned or credited thereon) (collectively, “Accrued Compensation”).

 

8.             Termination
for Cause, Voluntary Termination or Buy-Sell Event. If the Executive’s
employment is terminated by the Company for Cause (as herein defined), by the
Executive or as a result of the sale of his equity interests in the Company,
the Executive shall be entitled to receive Accrued Compensation and all other
obligations of the Company under this Agreement shall cease. For purposes of
this Agreement, the term “Cause” shall mean that the Employee shall have (i) committed
any act of fraud, embezzlement or theft in connection with his duties
hereunder, (ii) committed any intentional act that has a material adverse
impact on the Company or its affiliates, (iii) engaged in any gross
misconduct, or (iv) breached in any material respect the material
provisions of paragraph 9 or 1 0 of this Agreement.

 

9.             Non-Competition;
Confidentiality.

 

(a)           In
the event Executive is terminated for “Cause” or Executive voluntarily
terminates this Agreement, for a period expiring the later of two (2) years
after the termination of this Agreement, Executive shall not engage in any of
the following activities:

 

(i)            Engage
in Competitive Activities. Own, manage, operate, engage in, serve as an
advisor or consultant for, control, or otherwise participate in any business
that is or shall be competitive with any of those business activities that have
constituted part of the Company’s business at any time during the past 12
months from the date hereof, nor shall Executive assist any Person that shall
be engaged in any such business activities, including making available any
information or funding to any such Person, or be involved as a stockholder,
partner, member, guarantor, or other holder of an interest in any Person
engaging in any such activities;

 

(ii)           Solicit
Employees. Solicit to employ any employee of the Company or any affiliate
thereof while such Person is employed by any of them;

 

(iii)          Interfere
with Contracts. Either on its own account or for any other Person, solicit,
induce, attempt to induce with, or endeavor to cause any Person (including
without limitation any broker, customer, governmental authority, subcontractor,
or supplier) to modify, amend, terminate, or otherwise alter any contract or
arrangement that such Person has with the Company or any affiliate thereof with
respect to the business of the Company; and

 

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(iv)          Assist
Competitors. Make any statement or perform any act intended to advance
an interest of any existing or prospective competitor of the Company, any
affiliate thereof with respect to the business of the Company, or encourage any
other Person to make any such statement or to perform any such act.

 

(c)           For
a period expiring two (2) years after the termination of this Agreement
for any reason, Executive agrees to keep confidential any and all confidential
and non-public Company documents, trade secrets and other information
including, but not limited to, patent work, engineering drawings, product
designs, research and development results, client lists, pricing strategy,
product cost data, proprietary technical information, corporate policies and
procedures, and corporate marketing and financial plans and strategies. In the
event of the termination of Executive’s employment for any reason, all
documents in Executive’s possession related to any of the items described in
this paragraph shall be returned to the Company.

 

(b)           If
a court of competent jurisdiction determines that the provisions of this
Paragraph 9 are partially or wholly inoperative, invalid or unenforceable in a
particular case because of their duration, geographical scope, restricted
activity, or other parameter, such court may reform such duration,
geographical scope, restricted activity or other parameter with respect to such
case to permit enforcement of such reformed provision to the greatest extent
allowable.

 

10.           Company
Property. Executive agrees that any and all development techniques or other
products or processes relating to the Company’s business which the Executive may create,
make, discover, introduce or invent while retained by the Company hereunder,
shall belong to and be the sole property of the Company. Executive agrees
promptly and fully to disclose the same to the Company and to assign all rights
thereto to the Company immediately.

 

11 .          Injunctive
Relief. The Employee agrees that the remedy at law for any breach of the provisions
of Paragraphs 9 and 10 hereof will be inadequate and that the Company shall be
entitled to injunctive relief in addition to any other remedy it may have.

 

12.           Survival.
The parties hereby agree that the provisions of Paragraphs 6, 7, 8, 9, 10 and
11 hereof and of this Paragraph 12 shall survive the termination of this
Agreement. Any compensation, bonuses and benefits that have been earned prior
to the termination date of this Agreement in accordance with the provision of
this Agreement or any compensation or benefit plan shall be payable or provided
thereafter in accordance with the original terms for payment of such
compensation or bonus or provision of such benefits in accordance with the
provision of this Agreement or any such compensation or benefit plan.

 

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13.           Successors
and Assigns.

 

(a)           This
Agreement shall be binding upon and shall inure to the benefit of the Company,
its successors and assigns and the Company shall require any successor or
assign to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it
if no such succession or assignment had taken place. The term “Company” as used
herein shall include such successors and assigns. The term “successors and
assigns” as used herein shall mean a corporation or other entity acquiring all
or substantially all the assets and business of the Company (including this
Agreement) whether by operation of law or otherwise.

 

(b)           Neither
this Agreement nor any right or interest hereunder shall be assignable or
transferable by the Executive, his beneficiaries or legal representatives,
except by will or by the laws of descent and distribution. This Agreement shall
inure to the benefit of and be enforceable by the Executive’s legal personal
representative.

 

14.           Notice.
For the purposes of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have
been duly given when personally delivered or sent by certified mail, return
receipt requested, postage prepaid, addressed to the respective addresses last
given by each party to the other, provided that all notices to the Company shall
be directed to the attention of the Board with a copy to the Secretary of the
Company. All notices and communications shall be deemed to have been received
on the date of delivery thereof or on the third business day after the mailing
thereof, except that notice of change of address shall be effective only upon
receipt.

 

15.           Non-exclusivity
of Rights. Nothing in this Agreement shall prevent or limit the Executive’s
continuing or future participation in any benefit, bonus, incentive or other
plan or program provided by the Company or any of its subsidiaries and for
which the Executive may qualify, nor shall anything herein limit or reduce
such rights as the Executive may have under any other agreements with the
Company or any of its subsidiaries. Amounts which are vested benefits or which
the Executive is otherwise entitled to receive under any plan or program of the
Company or any of its subsidiaries shall be payable in accordance with such
plan or program, except as explicitly modified by this Agreement.

 

16.           Miscellaneous.
No provision of this Agreement may be modified, waived or discharged
unless such wavier, modification or discharge is agreed to in writing and
signed by the Executive and the Company after authorization of the Board. No
waiver by either party hereto at any time of any breach by the other party
hereto of, or compliance with, any condition or provision of this Agreement to
be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent
time. No agreement or representation, oral or otherwise, express or implied,
with respect to the subject matter hereof has been made by either party which is
not expressly set forth in this Agreement.

 

17.           Person.
For purposes of this Agreement, “Person” shall mean any

 

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individual,
partnership, limited liability company, corporation, joint venture, trust,
business trust, cooperative or association or any foreign trust or foreign
business organization, and the heirs, executors, administrators, legal
representatives, successors, and assigns of such Person where the context so
permits or requires.

 

18.           Governing
Law. This Agreement shall be governed by and construed and enforced in
accordance with the law of the State of New Jersey without giving effect to the
conflict of law principles thereof.

 

19.           Severability.
The provisions of this Agreement shall be deemed severable and the invalidity
or unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof.

 

20.           Entire
Agreement. This Agreement constitutes the entire agreement between the
parties hereto and supersedes all prior agreements, if any, understandings and
arrangements, oral or written, between the parties hereto with respect to the
subject matter hereof, including, without limitation, the Employment Agreement
between the Company and Executive, dated March 6, 2002, and the Agreement
between the Company and Executive, dated April 30, 2002, which are hereby
terminated in their entirety.

 

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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 day and year first above written.

 

 

	
   

  	
  /s/ James S. Farrin

  	
   

  
	
   

  	
  James S. Farrin

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WORLDWATER CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Quentin T. Kelly

  	
   

  
	
   

  	
   

  	
  Quentin T. Kelly

  
	
   

  	
   

  	
  Title:
  Chairman

  
				

 

8Exhibit 10.1

 
April 13, 2006
 
Charles R. Carelli, Jr.
Vice President Finance
EXACT Sciences Corporation
100 Campus Drive
Marlborough, MA  01752
 
EXECUTIVE AGREEMENT

 

Dear Charles:
 
This letter agreement (“Agreement”) will confirm the terms of severance payments due to you by EXACT Sciences Corporation (“EXACT” or the “Company”) in the event your employment is terminated pursuant to Section 1 herein.
 
1.     Subject to the conditions set forth below, you will be entitled to receive “Severance Payments” (as set forth below in Section 2) for a period of twelve (12) months following the occurrence of any one of the events set forth in (i), (ii) or (iii) below within one year following the closing of (A) the sale by the Company of all or substantially all of its assets, or (B) the merger or consolidation of the Company with or into another entity in a transaction where the shares of the Company’s capital stock outstanding immediately prior to the closing of such merger or consolidation represent or are converted into or exchanged for shares that represent less than a majority of the shares of capital stock of the resulting or surviving entity outstanding immediately after the closing of such merger or consolidation (each of the foregoing being referred to as “Business Event”):
 
(i)  the termination of your employment for any reason other than Cause, for purposes of this Agreement, “Cause” shall mean termination for any one of the following reasons: (i) your gross negligence in the performance  of your duties as an employee and officer of the Company (as determined by a majority of the directors of the Company other than, if applicable, you) or (ii) criminal misconduct by you in connection with the performance of your duties as an employee and officer of the Company; or
 
(ii) you suffer a diminution in job responsibility or a reduction in compensation; or
 
(iii) the Company moves your place of employment more than 35 miles from Company’s current office location in Marlborough, Massachusetts.
 
Notwithstanding, this Paragraph 1, the issuance by the Company of its capital stock in an equity financing, either in a private or public transaction, shall not constitute a Business Event.
 
2. The Severance Payments will equal to salary continuation at a rate equal to your base salary at the time of your termination of employment from EXACT. The Severance Payments will be paid in accordance with EXACT’s then existing payroll practices as such practices may be established or modified from time to time. The Severance Payments shall be subject to

 

 

applicable federal, state and local withholding and payroll taxes. You will only be entitled to Severance Payments upon the occurrence of the events specified in Section 1 of this Agreement. You will not be entitled to any Severance Payments or other benefits if you voluntarily resign from EXACT or if your employment is terminated by EXACT for Cause.
 
3. Prior to, and as a condition of, receiving the Severance Payments set forth in this Agreement, you agree to sign a full and comprehensive release in a form and of a scope acceptable to the Company and you at the time of your termination of employment. EXACT shall have no obligation to pay you any Severance Payments unless and until it receives this release executed by you.
 
4. If you breach your obligations under the Employee Non-Disclosure and Developments Agreement and Non Competition Agreement executed between you and EXACT, the Company may immediately cease payment of all Severance Payments set forth in this Agreement. The cessation of any Severance Payments shall be in addition to, and not as an alternative to, any other remedies at law or in equity available to EXACT, including the right to seek specific performance or an injunction.
 
5. Nothing in this Agreement is intended, or shall be construed, to restrict or otherwise limit EXACT’s right to terminate your employment with or without Cause and with or without notice. This letter is not a guarantee of continued employment, it being understood you are and continue to be employed at-will.
 
6. Breach of any of the terms of this Agreement by you shall be considered a material breach of this Agreement. In the event of such a breach, EXACT shall be released from any obligations to make any Severance Payments under this Agreement or, if any such payments have been made, EXACT shall be entitled to recover from you any amounts already paid under this Agreement in addition to any and all of its remedies under law arising of such breach.
 
7. This Agreement sets forth the entire Agreement of the parties with respect to the subject matter hereof and may not be changed orally. Notwithstanding the foregoing, this Agreement shall not be deemed to cancel, modify or replace that certain Executive Agreement entered into between the parties dated November 12, 2004; except that, for the avoidance of confusion, the rights accorded under the November 12, 2004 Agreement shall only provide for payment to Mr. Carelli in the absence of a change of control.
 
Please indicate your acceptance of this Agreement by signing the enclosed copy of this letter and returning it to me.
 

	 
	Very truly yours,

	 
	 

	 
	/s/ Don Hardison
	 

	 
	 

	 
	Don Hardison

	 
	Chief Executive Officer

	 
	 

	 
	 

	 
	  /s/ Charles R. Carelli
	 

	 
	Name: Charles R. Carelli

	 
	Title: Vice President Finance

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