Document:

EX-10.1

 

Exhibit 10.1

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

     AMENDED AND RESTATED EMPLOYMENT AGREEMENT dated as of March 21, 2006 between Sentigen Holding
Corp., a Delaware corporation (the “Employer” or the “Company”), and Joseph K.
Pagano (“Pagano”).

W I T N E S S E T H:

     WHEREAS, Pagano and the Company have entered into that certain Employment Agreement dated as
of May 24, 1999, as amended (the “Prior Agreement”);

     WHEREAS, Pagano desires to resign from his position as President and Chief Executive Officer
of the Company effective as of the date hereof and continue to serve as the Chairman of the
Company’s Board of Directors (the “Board”) and as an employee of the Company;

     WHEREAS, in connection with Pagano’s resignation as President and Chief Executive Officer of
the Company, each of Pagano and the Company wishes to amend and restate the provisions of the Prior
Agreement as hereinafter set forth; and

     WHEREAS, subject to the terms and conditions hereinafter set forth, the Company therefore
wishes to establish the terms of the continued employment of Pagano as the Chairman of the Board
and an employee of the Company, and Pagano agrees to so establish such terms of his employment.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth,
and intending to be legally bound hereby, the Employer and Pagano hereby agree as follows:

1. Term. The Employer hereby agrees to employ Pagano, and Pagano hereby agrees to serve the
Employer as herein provided, commencing effective as of the date of this Agreement (the
“Effective Date”) for a term of one (1) year thereafter (such period being herein referred
to as the “Initial Term,” and any year commencing on the Effective Date or any anniversary
of the Effective Date being hereinafter referred to as an “Employment Year”), unless
further extended or sooner terminated as hereinafter provided. After the Initial Term and on the
last day of any Employment Year thereafter, this Agreement shall be automatically renewed for
successive one year periods (each such period being referred to as a “Renewal Term”),
unless, more than ninety (90) days prior to the expiration of the Initial Term or any Renewal Term,
either Pagano or the Company gives written notice that employment will not be renewed (“Notice
of Non-Renewal”).

2. Duties.

     (a) During the term of this Agreement, Pagano shall have the duties and responsibilities of
the Chairman of the Board, reporting to the entire Board, provided, however, that in the event
Pagano is not elected to the Board, he shall continue his service under this

 

 

Agreement as an employee of the Company and shall have the duties and responsibilities as may
be designated, from time to time, by the Board. It is understood that such duties and
responsibilities shall be reasonably related to Pagano’s position. It is acknowledged and agreed
that Pagano is not required to devote all or substantially all of his time to the performance of
his duties hereunder, it being further acknowledged and agreed that Pagano shall devote only such
time as, in his sole discretion, is necessary to perform such services. It is further agreed that
Pagano’s services hereunder will be performed at such times and at such places as shall be mutually
agreeable to the Company and Pagano.

     (b) Pagano may, during the term of this Agreement, engage in such other employment and
activities as he may see fit, it being agreed that the employment of Pagano is non-exclusive and
that nothing herein contained shall be deemed to prohibit Pagano from engaging in such other
activities as he may see fit so long as they do not unreasonably interfere with the performance of
Pagano’s functions pursuant to the terms of this Agreement. Without limiting the foregoing, Pagano
may engage or invest in any other business or venture of any nature or description, or possess any
interest therein, independently or with others. Pagano shall have no duty or obligation to disclose
or offer to the Company or obtain for the benefit of the Company any such independent venture or
interest therein; and the Company, the creditors and stockholders of the Company, and any other
person having any interest in the Company shall not have (a) any claim, right or cause of action of
any kind against Pagano by reason of any direct or indirect investment or other participation,
whether active or passive, in any such independent venture or interest therein, or (b) any rights
in or to any such independent venture or interest therein or the income or profits derived
therefrom.

3. Compensation.

     (a) Effective as of March 1, 2006 and throughout the term of this Agreement, the Employer
shall pay Pagano a base salary (the “Salary”) at a rate of $150,000 per annum in respect of
each Employment Year, payable in equal installments bi-weekly, or at such other times as may
mutually be agreed upon between the Employer and Pagano. Such Salary may be increased from time to
time at the discretion of the Board.

     (b) In addition to the foregoing, Pagano shall be entitled to such other cash bonuses as may
from time to time be awarded to him by the Board during or in respect of his employment hereunder.

4. Benefits. During the term of this Agreement, Pagano shall have the right to receive or
participate in all benefits and plans which the Company may from time to time institute during such
period for its employees and for which Pagano is eligible. Nothing paid to Pagano under any plan or
arrangement presently in effect or made available in the future shall be deemed to be in lieu of
the salary or any other obligation payable to Pagano pursuant to this Agreement.

5. Travel Expenses. All travel and other expenses incident to the rendering of services
reasonably incurred on behalf of the Company by Pagano during the term of this Agreement shall be
paid by the Employer. If any such expenses are paid in the first instance by Pagano, the Employer
shall reimburse him therefor on presentation of appropriate receipts for any such expenses.

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6. Termination. Pagano’s employment under this Agreement may be terminated, effective as of
the Date of Termination pursuant to Section 8 of this Agreement, without any breach of this
Agreement only on the following circumstances:

     6.1 Death. Pagano’s employment under this Agreement shall terminate upon his death.

     6.2 Disability. If, as a result of Pagano’s incapacity due to physical or mental
illness, Pagano shall have been absent from, or unable to perform, his duties under this Agreement
for 150 consecutive days, the Employer may terminate Pagano’s employment under this Agreement by
giving the Notice of Termination (as defined in Section 7 below) anytime after the 150th
consecutive day.

     6.3 Cause. The Employer may terminate Pagano’s employment under this Agreement for
Cause. For purposes of this Agreement, the Employer shall have “Cause” to terminate Pagano’s
employment under this Agreement upon (a) the willful and continued failure or refusal by Pagano to
substantially perform his duties under this Agreement (other than any such failure resulting from
Pagano’s incapacity due to physical or mental illness) after demand for substantial performance is
delivered by the Board, in writing, specifically identifying the manner in which the Employer
believes Pagano has not substantially performed his duties and Pagano has been afforded an
opportunity, as soon as practicable, to perform as required, or (b) the conviction of Pagano of a
felony. For purposes of this paragraph, no act, or failure to act, on Pagano’s part shall be
considered “willful” unless done, or omitted to be done, by him not in good faith and without
reasonable belief that his action or omission was in the best interest of the Employer.

Notwithstanding anything contained in this Agreement to the contrary, Pagano shall not be deemed to
have been terminated for Cause unless and until there shall have been delivered to Pagano, together
with the Notice of Termination (as defined in Section 7 below), a copy of a resolution, duly
adopted by the affirmative vote of not less than sixty percent of the entire membership of the
Board (other than Pagano) at a meeting of the Board called and held for such purpose (after
reasonable written notice to Pagano and an opportunity for him, together with his counsel, to be
heard before the Board), finding that in the good faith opinion of the Board, Pagano was guilty of
conduct set forth above in clause (a) or (b), and specifying the particulars thereof in detail.

     6.4 Termination by Pagano for Good Reason, or Because of Ill Health. Pagano may
terminate his employment under this Agreement (a) for Good Reason (as hereinafter defined) or (b)
if his health should become impaired to any extent that makes the continued performance of his
duties under this Agreement hazardous to his physical or mental health or his life, provided that,
in the latter case, Pagano shall have furnished the Employer with a written statement from a
qualified doctor to such effect and provided, further, that at the Employer’s request and expense
Pagano shall submit to an examination by a doctor selected by the Employer and such doctor shall
have concurred in the conclusion of Pagano’s doctor. For purposes of this Agreement, “Good
Reason” shall mean (a) any assignment to Pagano of any duties or reporting obligations other
than those contemplated by, or any limitation of the powers of Pagano in any respect not
contemplated by, this Agreement, (b) failure by the Employer to comply with its material
obligations and agreements contained in this Agreement, or (c) failure of the Employer to obtain

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the assumption of the agreement to perform this Agreement by any successor as contemplated in
Section 8(e) of this Agreement. With respect to the matters set forth in clauses (a), (b) and (c)
of this paragraph, Pagano must give the Employer thirty (30) days prior written notice of his
intent to terminate this Agreement as a result of any breach or alleged breach of the applicable
provision and the Employer shall have the right to cure any such breach or alleged breach within
such thirty (30) day period.

7. Notice/Date of Termination.

     (a) Any termination of Pagano’s employment by the Employer or by Pagano (other than
termination by reason of Pagano’s death) shall be communicated by written Notice of Termination to
the other party of this Agreement. For purposes of this Agreement, a “Notice of
Termination” shall mean a notice which shall indicate the specific termination provision in
this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Pagano’s employment under the provision so indicated.

     (b) The “Date of Termination” shall mean (i) if Pagano’s employment is terminated by
his death, the date of his death, (ii) if Pagano’s employment is terminated pursuant to Section 6.2
above, the date on which the Notice of Termination is given, (iii) if Pagano’s employment is
terminated pursuant to Section 6.3 above, the date specified on the Notice of Termination after the
expiration of any cure periods, (iv) upon the expiration of the Initial Term or Renewal Term, if a
Notice of Non-Renewal is timely given, and (v) if Pagano’s employment is terminated for any other
reason, the date on which Notice of Termination is given.

8. Compensation Upon Termination or During Disability.

     (a) If Pagano’s employment shall be terminated by reason of his death, the Employer shall pay
to such person as he shall designate in a notice filed with the Employer, or if no such person
shall be designated, to his estate as a lump sum benefit, his full Salary to the date of his death
in addition to any payments Pagano’s spouse, beneficiaries or estate may be entitled to receive
pursuant to any pension or employee benefit plan or life insurance policy or similar plan or policy
then maintained by the Employer, and such payments shall, assuming the Employer is in compliance
with the provisions of this Agreement, fully discharge the Employer’s obligations with respect to
Section 3 of this Agreement, but all other obligations of the Employer under this Agreement,
including the obligations to indemnify, defend and hold harmless Pagano, shall remain in effect.

     (b) During any period that Pagano fails to perform his duties hereunder as a result of
incapacity due to physical or mental illness, Pagano shall continue to receive his Salary and other
compensation until Pagano’s employment is terminated pursuant to Section 6.2 of this Agreement.

     (c) If Pagano’s employment shall be terminated for Cause, the Employer shall pay Pagano his
full Salary and other compensation through the Date of Termination, at the rate in effect at the
time Notice of Termination is given, and the Employer shall, assuming the Employer is in compliance
with the provisions of this Agreement, have no further obligations

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with respect to Section 3 of this Agreement, but all other obligations of the Employer under
this Agreement, including the obligations to indemnify, defend and hold harmless Pagano, shall
remain in effect.

     (d) If (A) in breach of this Agreement, the Employer shall terminate Pagano’s employment other
than pursuant to Sections 6.2 or 6.3 hereof (it being understood that a purported termination
pursuant to Section 6.2 or 6.3 hereof which is disputed and finally determined not to have been
proper shall be a termination by the Employer in breach of this Agreement), and/or (B) Pagano shall
terminate his employment for Good Reason, then the Employer shall pay to Pagano:

          (i) his full Salary and other compensation through the last day of the Initial Term or Renewal
Term, as the case may be, at the rate in effect at the time Notice of Termination is given; and

          (ii) all other damages to which Pagano may be entitled as a result of the termination of his
employment under this Agreement, including all legal fees and expenses incurred by him in
contesting or disputing any such termination or in seeking to obtain or enforce any right or
benefit provided by this Agreement.

     (e) The Employer will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Employer, by agreement, in form and reasonably substance satisfactory to Pagano, to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the
Employer would be required to perform it if no such succession had taken place.

9. Confidentiality.

     (a) Pagano shall not, during the term of this Agreement, and at any time following termination
of this Agreement, directly or indirectly, disclose or permit to be known, to any person, firm or
corporation, any confidential or proprietary information acquired by him during the course of or as
an incident to his employment hereunder, relating to the Company or its subsidiaries, the directors
of the Company or its subsidiaries, any client of the Company or its subsidiaries, or any
corporation, partnership or other entity owned or controlled directly or indirectly by any of the
foregoing, or in which any of the foregoing has a beneficial interest, including, but not limited
to, the business affairs of each of the foregoing. Such confidential information shall include, but
shall not be limited to, research studies, proprietary technology, trade secrets, know-how,
developments, improvements, methods, procedures, discoveries, patents, patent applications,
inventions, processes, formulas, products, services, test and/or experimental data and results,
market studies and forecasts, competitive analyses, pricing policies, the substance of agreements
with customers and others, marketing arrangements, customer lists and any other document or
computer programs embodying such confidential information.

     (b) All information and documents relating to the Company and its subsidiaries as hereinabove
described (or other business affairs) shall be the exclusive property of the Company, and Pagano
shall use his best efforts to prevent any publication or disclosure thereof. Upon

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termination of Pagano’s employment with the Company, all documents, records, reports,
writings, computer disks and other similar documents containing confidential information, including
copies thereof, then in Pagano’s possession or control shall be returned and left with the Company.

     (c) Pagano acknowledges that money damages are an inadequate remedy for the irreparable harm
that may be suffered by reason of a breach of this confidentiality provision because of the
difficulty of ascertaining the amount of damages that will be suffered by the Employer. Therefore,
Pagano agrees that the Employer may, in addition to any other available remedy, obtain specific
performance of this confidentiality provision and injunctive relief against any breach or
threatened breach thereof without the necessity of proving actual damages or posting a bond and
that Pagano shall not oppose the granting of such relief.

10. Indemnification. The Employer shall indemnify and hold harmless Pagano against any and
all expenses reasonably incurred by him in connection with or arising out of (a) the defense of any
action, suit or proceeding in which he is a party, or (b) any claim asserted or threatened against
him, in either case by reason of or relating to his being an employee, officer or director of the
Company or having been an employee, officer or director of the Company, or serving at the request
of the Company as an employee, officer, member, agent or director of another corporation, whether
or not he continues to be such an employee, officer or director at the time of incurring such
expenses, except insofar as such indemnification is prohibited by law. Such expenses shall include,
without limitation, the fees and disbursements of attorneys, amounts of judgments and amounts of
any settlements, provided that such expenses are agreed to in advance by the Employer. The
foregoing indemnification obligation and advancement of expenses shall not be deemed exclusive of
any other rights to which Pagano may be entitled under the Employer’s Certification of
Incorporation, the Employer’s By-Laws, any agreement, any vote of stockholders or disinterested
directors, the General Corporation Law of Delaware, any other law (common or statutory), or
otherwise, with respect to any matters attributable to periods prior to the Effective Date, and to
matters attributable to his employment hereunder, without regard to when asserted.

11. General. This Agreement is further governed by the following provisions:

     (a) Notices. All notices relating to this Agreement shall be in writing and shall be either
personally delivered, sent by overnight mail, sent by telecopy (receipt confirmed) or mailed by
certified mail, return receipt requested, to be delivered at such address as is indicated below, or
at such other address or to the attention of such other person as the recipient has specified by
prior written notice to the sending party. Notice shall be effective upon receipt.

To the Employer:

Sentigen Holding Corp.

445 Marshall Street

Phillipsburg, New Jersey 08865

To Pagano:

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Joseph K. Pagano

434 E. Cooper Avenue, Suite 201

Aspen, Colorado 81611

     (b) Parties in Interest. Pagano may not delegate his duties or assign his rights
hereunder. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto
and their respective heirs, legal representatives, successors and permitted assigns.

     (c) Entire Agreement. This Agreement supersedes any and all other agreements, either
oral or in writing, including without limitation, the Prior Agreement, between the parties hereto
with respect to the employment of Pagano by the Employer and any such previous contracts or
agreements, including without limitation, the Prior Agreement, shall become null and void upon
execution of this Agreement. This Agreement contains all of the covenants and agreements between
the parties with respect to the employment of Pagano by the Employer in any manner whatsoever. Any
modification or termination of this Agreement will be effective only if it is in writing signed by
the party to be charged.

     (d) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.

     (e) Severability. In the event that any term or condition in this Agreement shall for
any reason be held by a court of competent jurisdiction to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect any other term or
condition of this Agreement, but this Agreement shall be construed as if such invalid or illegal or
unenforceable term or condition had never been contained herein.

     (f) Execution in Counterparts. This Agreement may be executed by the parties in one or
more counterparts, each of which shall be deemed to be an original but all of which taken together
shall constitute one and the same agreement, and shall become effective when one or more
counterparts has been signed by each of the parties hereto and delivered to each of the other
parties hereto.

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

	 	 	 	 	 	 	 
	 	 	SENTIGEN HOLDING CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	  /s/ Thomas J. Livelli	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Thomas J. Livelli	 	 
	 	 	Title:    President and CEO	 	 
	 
	 	 	 	 	 	 
	 	 	  /s/ Joseph K. Pagano	 	 
	 	 	 	 	 
	 	 	Joseph K. Pagano	 	 

8EX-10.2

 

Exhibit 10.2

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

     AMENDED AND RESTATED EMPLOYMENT AGREEMENT dated as of March 21, 2006 among THOMAS J. LIVELLI,
residing at 19 Tine Road, Lebanon, New Jersey 08833 (“Executive”), SENTIGEN HOLDING CORP.,
a Delaware corporation having its principal office at 445 Marshall Street, Phillipsburg, New Jersey
08865 (the “Company”) and CELL & MOLECULAR TECHNOLOGIES, INC., a Delaware corporation and
wholly-owned subsidiary of the Company having its principal office at 445 Marshall Street,
Phillipsburg, New Jersey 08865 (“CMT”).

     WHEREAS, Executive has been the Chief Executive Officer and President of CMT under an
Employment Agreement dated May 23, 2001, as amended (the “Prior Agreement”);

     WHEREAS, the Company wishes to establish the terms of employment of the Executive as the Chief
Executive Officer and President of the Company and CMT wishes to establish the terms of continued
employment of the Executive as Chief Executive Officer and President of CMT; and

     WHEREAS, the Executive wishes to amend and restate the provisions of the Prior Agreement as
hereinafter set forth.

     IT IS AGREED:

1. Employment, Duties and Acceptance.

     1.1 The Company shall employ Executive as its Chief Executive Officer and President and CMT
shall continue to employ Executive as its Chief Executive Officer and President of CMT for a period
commencing on the date hereof (“Start Date”) and terminating in accordance with the terms
of this Agreement. All of Executive’s powers and authority in any

 

 

capacity shall at all times be subject to the direction and control of the Company’s Board of
Directors. When used herein, the term “Board of Directors” shall mean the Board of
Directors of the Company. At the Company’s request, Executive shall serve as a member of the Board
of Directors of CMT during the period in which he serves as Chief Executive Officer and President
of CMT. At the request of the Board of Directors of CMT given at any time, Executive shall sign a
letter resigning from the Board of Directors of CMT.

     1.2 The Board of Directors and/or the Chairman of the Company may assign to Executive such
general management and supervisory responsibilities and executive duties for the Company or any
subsidiary of the Company as are consistent with Executive’s status as Chief Executive Officer and
President.

     1.3 Executive accepts such employment and agrees to devote substantially all of his business
time, energy and attention to the performance of his duties hereunder beginning on the Start Date.
Nothing herein shall be construed as preventing Executive from making and supervising personal
investments during the term of this Agreement, provided they will not (a) require any substantial
services on his part in the operation of the affairs of the companies in which such investments are
made, (b) interfere with the performance of Executive’s duties hereunder or (c) violate the
provisions of paragraph 5.4 hereof.

2. Compensation and Benefits.

     2.1 The Company shall pay to Executive a salary at the annual rate of $200,000. Executive’s
compensation shall continue to be paid in equal two week installments. Executive’s salary shall be
adjusted on each one year anniversary of this agreement as set forth below, based on changes in the
CPI (as defined below). Executive may also be awarded merit increases in salary at the sole
discretion of the Board of Directors.

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          Executive’s salary on each one year anniversary of this Agreement shall be adjusted to an
amount equal to the product obtained by multiplying Executive’s salary in the immediately preceding
year by a fraction, the numerator of which shall be the Consumer Price Index for All Urban Wage
Earners and Clerical Workers (CPI-W) Northeast Urban, as published by the U.S. Bureau of Labor
Statistics (reference base 1982-1984 = 100) (“CPI”), for the month of May in which the
adjustment occurs, and the denominator of which shall be the CPI for the month of May in the
immediately preceding year.

2.2 As additional compensation for services to be rendered by Executive hereunder:

          (a) Executive shall be entitled to participate in the Company’s bonus plan, which is based on
the Company’s earnings before depreciation, amortization and intercompany charges (“Cash
Earnings”) and allocated each year by the Board of Directors. Notwithstanding the Board of
Directors’ discretion in allocating bonuses under the plan, Executive’s minimum bonus shall be
$20,000 for each full fiscal year of employment. If such payment exceeds Executive’s allocated
bonus under the plan, the excess shall be credited against any future allocated bonuses in excess
of $20,000. In addition, the Executive shall be paid a one-time bonus of $30,000 within 5 business
days of the date hereof, which bonus shall be in addition to any other bonus earned by the
Executive as provided for above.

          (b) Executive shall be entitled to a car allowance of $500 per month during the term of this
Agreement.

     2.3 Executive shall be entitled to such medical, dental, life, disability, insurance coverage
and other employee benefits (or their equivalents) as are currently being provided to him by CMT.

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     2.4 Executive shall be entitled to four weeks of vacation in each calendar year and to a
reasonable number of other days off for religious and personal reasons.

     2.5 The Company shall reimburse the Executive for all reasonable and necessary travel and
entertainment expenses, disbursements and other incidental expenses incurred for or on behalf of
the Company or any of its subsidiaries, in addition to any fees, charges or costs for membership in
business or professional organizations reasonably approved by the Company, upon the presentation of
appropriate vouchers or other evidence of such expenditures. The Executive will not incur any
expense in excess of $2,000 without the prior approval of the Board of Directors or an appropriate
committee thereof.

3. Term and Termination.

     3.1 The term of Executive’s employment hereunder shall commence on the Start Date and shall
continue until the earlier of May 22, 2009 or the two year anniversary of a “Change in Control” (as
defined below), unless sooner terminated as herein provided.

     3.2 Executive’s employment hereunder shall terminate on the date of his death, in which case
the Company shall pay to the legal representative of Executive’s estate (i) the base salary due
Executive pursuant to paragraph 2.1 hereof through the date of Executive’s death, (ii) all earned
and previously approved but unpaid bonuses, (iii) all valid expense reimbursements through the date
of the termination of employment and (iv) all accrued but unused vacation pay.

     3.3 The Company, by notice to Executive, may terminate Executive’s employment hereunder if
Executive shall fail because of illness or incapacity to render, for six consecutive months,
services of the character contemplated by this Agreement. Notwithstanding such termination, the
Company shall pay to Executive (i) the base salary due Executive pursuant to paragraph 2.1 hereof
through the date of such notice, less any amount Executive receives for

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such period from any Company-sponsored or Company-paid source of insurance, disability
compensation or government program, (ii) all earned and previously approved but unpaid bonuses,
(iii) all valid expense reimbursements through the date of the termination of employment and (iv)
all accrued but unused vacation pay.

     3.4 The Company, by notice to Executive, may terminate Executive’s employment hereunder for
“Cause.” As used herein, “Cause” shall mean: (a) the willful and continued failure by
Executive to substantially perform his duties hereunder (other than any such failure resulting form
Executive’s incapacity due to physical or mental illness) after demand for performance is delivered
by the Company specifically identifying the manner in which Company believes Executive has not
substantially performed his duties and the failure to correct such failure within 30 days of
Executive’s receipt of such demand, (b) the willful engaging by Executive in criminal misconduct
which is injurious to Company or any of its subsidiaries, monetarily or otherwise, (c) Executive is
convicted by a court of competent jurisdiction, or pleads guilty or nolo contendere to, any felony
involving the possession of a controlled substance, fraud or dishonesty, moral turpitude, theft or
larceny, or (d) the willful breach by Executive of any material provision of this Agreement after
demand to cure the breach is delivered by the Company specifically identifying the manner in which
Company believes Executive has breached and the failure to cure such breach within 30 days of
Executive’s receipt of such demand, provided, however, that a repeated failure or breach after
notice and cure of any provision of clauses (a) or (d) above involving the same or substantially
similar actions or conduct, shall be grounds for termination for “Cause” without any additional
notice. Notwithstanding such termination, the Company shall pay to Executive (i) the base salary
due Executive pursuant to paragraph 2.1 hereof through the date of such notice, (ii) all earned and
previously approved but unpaid bonuses, (iii) all valid expense

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reimbursements through the date of the termination of employment and (iv) all accrued but
unused vacation pay.

     3.5 The Executive, by notice to the Company, may terminate Executive’s employment hereunder if
a “Good Reason” exists. For purposes of this Agreement, “Good Reason” shall mean the
occurrence of any circumstance set forth below, unless such circumstance is fully corrected within
30 days of receipt by the Company of written notice of such circumstance from Executive
specifically identifying the circumstance he believes creates “Good Reason”:

          (a) the assignment to Executive of duties materially inconsistent with the duties involved in
his position as President and Chief Executive Officer of CMT, or a substantial diminution in the
responsibilities which would be involved in the position as President and Chief Executive Officer
of CMT;

          (b) a reduction by the Company of the Base Salary as in effect on the Start Date;

          (c) the deliberate failure by the Company to provide, within two weeks of the date payment was
required, the compensation, expense reimbursement, or benefits specified in Section 2; provided
Executive is not the person responsible for payment of compensation, expense reimbursement or
benefits; and provided, further, that after the passage of two weeks from the date payment was
required, Executive shall have given written notice to the Chairman of the Compensation Committee
and to the Chairman of the Board of Directors at their then current addresses and to then counsel
to the Company which is Fulbright & Jaworski L.L.P., attn: Merrill M. Kraines, Esq. (or as changed
by notice to Executive), of such failure by the Company, Executive shall have called a meeting of
the Board of Directors and such failure shall

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not have been completely cured by the close of business two business days after such meeting
of the Board of Directors;

          (d) moving the principal office of the Company to a location more than 60 miles from its
current location; or

          (e) the commission by the Company of a material breach of the provisions of this Agreement.

     3.6 If Executive terminates his employment hereunder for Good Reason, pursuant to the
provisions of paragraph 3.5, or the Company terminates his employment hereunder without “Cause,” as
defined in paragraph 3.4, the Company shall pay to Executive (i) a lump sum payment equal to the
base salary due Executive pursuant to paragraph 2.1 hereof through the six-month anniversary of the
date of such notice, (ii) all earned and previously approved but unpaid bonuses, (iii) all valid
expense reimbursements through the date of the termination of employment and (iv) all accrued but
unused vacation pay; and, in addition the Company shall continue to pay for Executive’s insurance
coverage until the earlier of (a) the date the Executive becomes eligible to be covered under a
similar program by reason of employment elsewhere; or (b) the one-year anniversary of the
termination of employment.

     3.7 A “Change in Control” shall occur if any “person” (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act of 1934 (“Exchange Act”)), other than the
Company or an affiliate of the Company becomes the “beneficial owner” (as referred in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company representing more
than 50% of the voting power of the Company’s securities in one or more transactions (including by
way of merger or reorganization), or a sale of all or substantially all of the Company’s assets.

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4. Executive Indemnity.

     4.1 To the maximum extent permitted by law, the Company agrees to indemnify and defend
Executive and hold Executive harmless against all claims, causes of action, costs, expenses
(including, without limitation, reasonable attorneys’ fees) and liabilities (other than settlements
to which the Company does not consent, which consent shall not be unreasonably withheld)
(collectively, “Losses”) reasonably incurred by Executive in connection with any claim,
action, proceeding or investigation brought against or involving Executive with respect to, arising
out of or in any way relating to Executive’s employment with the Company or any of its subsidiaries
or Executive’s service as a director of the Company or any of its subsidiaries; provided, however,
that the Company shall not be required to indemnify Executive for Losses incurred as a result of
Executive’s intentional misconduct or gross negligence. Executive shall promptly notify the Company
of any claim, action, proceeding or investigation under this paragraph and the Company shall be
entitled to participate in the defense of any such claim, action, proceeding or investigation and,
if it so chooses, to assume the defense with counsel selected by the Company; provided that
Executive shall have the right to employ counsel to represent him (at the Company’s expense) if
Company counsel would have a “conflict of interest” in representing both the Company and Executive.
The Company shall not settle or compromise any claim, action, proceeding or investigation without
Executive’s consent, which consent shall not be unreasonably withheld; provided, however, that such
consent shall not be required if the settlement entails only the payment of money and the Company
fully indemnifies Executive in connection therewith and obtains a general release with respect to
Executive. The Company further agrees to advance any and all expenses (including, without
limitation, the fees and expenses of counsel) reasonably incurred by the Executive in connection
with any such

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claim, action, proceeding or investigation, provided Executive first enters into an
appropriate agreement for repayment of such advances if indemnification is found not to have been
available. The Company shall, upon the settlement of a claim, action, proceeding or investigation,
grant Executive a release of liability if the Company has obtained a release and if Executive was
lawfully entitled to indemnity. This Section 4 survives the termination of this Agreement.

5. Protection of Confidential Information; Non-Competition; Non- Solicitation.

     5.1 (a) The Company will suffer substantial damage which will be difficult to ascertain if,
during the term of this Agreement or thereafter, Executive should enter a business competitive with
the Company or any of its subsidiaries, or divulge Confidential Information as defined below, or
breach his obligations under Section 6.

          (b) The provisions of this Agreement are reasonable and necessary for the protection of the
business of the Company.

     5.2 Executive acknowledges that:

          (a) As a result of Executive’s employment with the Company and CMT, he has obtained and will
obtain secret and confidential information concerning the business of the Company and its
subsidiaries and affiliates (referred to collectively in this Section 5 and in Section 6 as the
“Company”), including, without limitation, financial information, research studies,
proprietary technology, developments, improvements, methods, procedures, discoveries, patents,
patent applications, inventions, processes, formulae, products, services, test and/or experimental
data and results, designs and other proprietary rights, trade secrets and “know-how,” customers and
sources (“Confidential Information”). The obligations herein imposed shall not extend to
Confidential Information which: (i) is or lawfully becomes available to the public

9

 

without restriction and without breach of this Agreement by Executive; or (ii) is previously
known to Executive or which is independently developed by Executive without reference to any
Confidential Information and, in either case, is so evidenced by written material in his
possession.

          (b) Executive agrees that he will not at any time, either during the term of this Agreement or
thereafter, divulge to any person or entity any Confidential Information obtained or learned by him
as a result of his employment with the Company, except (i) in the course of performing his duties
hereunder, (ii) with the Company’s express written consent; (iii) to the extent that any such
information is in the public domain other than as a result of Executive’s breach of any of his
obligations hereunder; or (iv) where required to be disclosed by court order, subpoena or other
government process. If Executive shall be required to make disclosure pursuant to the provisions of
clause (iv) of the preceding sentence, Executive promptly, but in no event more than 72 hours after
learning of such subpoena, court order, or other government process, shall notify, by personal
delivery or by electronic means, confirmed by mail, the Company and, at the Company’s expense,
Executive shall: (a) take all reasonably necessary and lawful steps required by the Company to
defend against the enforcement of such subpoena, court order or other government process, and (b)
not object to the Company’s intervention and participation with counsel of its choice in any
proceeding relating to the enforcement thereof.

     5.3 Upon termination of his employment with the Company for any reason, Executive will
promptly deliver to the Company all memoranda, notes, correspondence, records, reports, manuals,
drawings, blueprints and any other documents (and all copies thereof) relating to the business of
the Company and all property associated therewith, including but not limited to any of its
Confidential Information, which he may then possess or have under his control; provided,

10

 

however, that Executive shall be entitled to retain copies of such documents reasonably
necessary to document his financial relationship (both past and future) with the Company.

     5.4 During the period commencing on the date hereof and ending on the second anniversary of
the date Executive’s employment hereunder is terminated (provided, however, that if Executive’s
employment is terminated without “Cause” or Executive terminates his employment with “Good Reason,”
such period shall terminate on the one-year anniversary of the termination date), and in
consideration for Executive’s employment hereunder, Executive, without the prior written permission
of the Company, shall not, (i) be employed by, or render any services to, any person, firm or
corporation engaged in any business which is in competition with either (a) the business conducted
by the Company on the effective date of termination or (b) a business which the Company is involved
in as of the effective date of termination (either, a “Competitive Business”); (ii) engage
in any Competitive Business for his or its own account; (iii) be associated with or interested in
any Competitive Business as an individual, partner, shareholder, creditor, director, officer,
principal, agent, employee, trustee, consultant, advisor or in any other relationship or capacity;
or (iv) solicit, interfere with, or endeavor to entice away from the Company, for the benefit of a
Competitive Business, any of its customers, employees or other persons with whom the Company has a
contractual relationship. Notwithstanding the foregoing, this provision shall not preclude
Executive from investing his personal assets in the publicly traded securities of any corporation
or other business entity which is engaged in a Competitive Business if such ownership is in
compliance with the requirements set forth in clauses (a) and (b) of the last sentence of paragraph
1.3 hereof and if such investment does not result in his beneficially owning, at any time, more
than 1% of the publicly traded equity securities of such Competitive Business.

11

 

     5.5 If Executive commits a breach, or threatens to commit a breach, of any of the provisions
of paragraphs 5.2 or 5.4, or of any of the provisions of Section 6, the Company shall have the
right and remedy to have the provisions of this Agreement specifically enforced by any court having
equity jurisdiction, it being acknowledged and agreed by Executive that the services being rendered
hereunder to the Company are of a special, unique and extraordinary character and that any such
breach or threatened breach will cause irreparable injury to the Company and that money damages
will not provide an adequate remedy to the Company.

          Each of the rights and remedies enumerated in this paragraph 5.5 shall be independent of the
other, and shall be severally enforceable, and such rights and remedies shall be in addition to,
and not in lieu of, any other rights and remedies available to the Company under law or equity.

          In connection with any legal action or proceeding arising out of or relating to this
Agreement, the prevailing party in such action or proceeding shall be entitled to be reimbursed by
the other party for the reasonable attorneys’ fees and costs incurred by the prevailing party.

     5.6 If Executive violates any covenant contained in paragraph 5.4, the duration of such
covenant so violated shall automatically extend for a period of time equal to the period of such
violation.

     5.7 If any provision of paragraphs 5.2 or 5.4 is held to be unenforceable, the tribunal making
such determination shall have the power to modify such provision or provisions which shall then be
applicable in such modified form.

     5.8 The provisions of this Section 5 shall survive the termination of this Agreement.

6. Inventions, Patents and Copyrights.

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     6.1 All inventions and other creative works, including any patent, copyright, trade secret,
trademark or other intellectual property rights, developed or produced by Executive either alone or
jointly with others and which relate to the Company’s business or technology (collectively,
“Intellectual Property”) shall be considered to have been prepared for the Company as a
part, and in the course, of Executive’s employment with the Company. Any such Intellectual Property
shall be owned by the Company regardless of whether it would otherwise be considered a work made
for hire. Such Intellectual Property shall include, among other things, software and documentation
therefor.

     6.2 The Company shall have full ownership of the Intellectual Property, with no rights of
ownership vested in Executive. Executive agrees that, if any Intellectual Property is determined by
a court of competent jurisdiction not to be a work for hire under the federal copyright laws, this
Agreement shall operate as an irrevocable assignment by him to the Company of the copyright in the
works, including all rights thereunder in perpetuity. Under this irrevocable assignment, Executive
hereby assigns to the Company the sole and exclusive right, title, and interest in and to the
Intellectual Property, without further consideration, and agrees to assist the Company in
registering and enforcing all copyrights and other rights and protections relating to the
Intellectual Property in any and all countries. Executive agrees that in the event of any dispute
arising out of or concerning this Section 6, no actions by the Executive undertaken for the purpose
of securing, maintaining, or preserving the copyright in the works shall be considered by any
finder of fact or determiner of law in determining the character of the work as work made for hire,
unless expressly authorized by the Company.

13

 

     6.3 Executive agrees to divulge to the Company promptly and fully in writing, in such format
as the Company may deem appropriate, all Intellectual Property and to assign to the Company all
Intellectual Property.

     6.4 Executive shall make and maintain adequate permanent records of all Intellectual Property,
in the form of memoranda, notebook entries, drawings, printouts, or reports relating thereto, in
keeping with then current Company procedures. Executive agrees that these records, as well as the
Intellectual Property, shall be and remain the property of the Company at all times.

     6.5 Executive shall cooperate with and assist the Company and its nominees, at their sole
expense, during the term of this Agreement and thereafter, in securing and protecting patent,
copyright or other similar rights in the United States and foreign countries in the Intellectual
Property. In this connection, Executive specifically agrees to execute all papers which the Company
deems necessary to protect its interests including the execution of assignments of invention and
copyrights and to give evidence and testimony, as the Company may deem necessary, to secure and
enforce the Company’s rights in the Intellectual Property. Executive hereby appoints the Company as
his agent and attorney-in-fact to act for and in his behalf and stead to execute, register, and
file any applications, and to do all other lawfully permitted acts to further the registration,
prosecution, issuance, renewals, and extensions of patents, copyrights or other protections with
the same legal force and effect as if personally executed by Executive. The Company agrees that, to
the extent (i) allowable by law and (ii) not affecting the Company’s rights in any way, it will
include Executive’s name as an “author” on all patents to which he has substantially contributed.

     6.6 The provisions of this Section 6 shall survive termination of this Agreement.

7. Miscellaneous Provisions.

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     7.1 All notices provided for in this Agreement shall be in writing, and shall be (i) delivered
personally to the party to receive the same, (ii) given by facsimile transmission, or (iii) mailed
first class postage prepaid, by certified mail, return receipt requested, addressed to the party to
receive the same at his or its address set forth below, or such other address as the party to
receive the same shall have specified by written notice given in the manner provided for in this
paragraph 7.1. All notices shall be deemed to have been given as of the date of personal delivery,
faxing (if evidence of successful transmission is obtained by the sender) or mailing thereof.

     If to Executive:

Thomas J. Livelli

19 Tine Road

Lebanon, New Jersey 08833

     with a copy to:

John C. Maloney, Jr., Esq.

Pitney, Harden, Kipp & Szuch LLP

P.O. Box 1945

Morristown, New Jersey 07962-1945

     If to the Company or CMT:

Sentigen Holding Corp.

445 Marshall Street

Philipsburg, New Jersey 08865

Attn: Chairman of Board

Facsimile No.: 908-454-4792

     with a copy to:

Fulbright & Jaworski L.L.P.

666 Fifth Avenue

New York, New York 10103

Attn: Merrill Kraines, Esq.

Facsimile No. (212) 318-3400

     7.2 This Agreement sets forth the entire agreement of the parties relating to the employment
of Executive and is intended to supersede all prior negotiations, understandings and

15

 

agreements. The Prior Agreement shall terminate and be of no further force and effect from and
after the date hereof. No provisions of this Agreement may be waived or changed except by a writing
signed by the party against whom such waiver or change is sought to be enforced. The failure of any
party to require performance of any provision hereof or thereof shall in no manner waive or affect
the right at a later time to enforce such provision.

     7.3 This Agreement shall be governed by and construed under the law of the State of New
Jersey, disregarding any principles of conflicts of law that would otherwise provide for the
application of the substantive law of another jurisdiction. Each of the parties (i) agrees that any
legal suit, action or proceeding arising out of or relating to this Agreement shall be instituted
exclusively in New York State Supreme Court, County of New York, or in the United States District
Court for the Southern District of New York, (ii) waives any objection to the venue of any such
suit, action or proceeding and the right to assert that such forum is not a convenient forum, and
(iii) irrevocably consents to the jurisdiction of the New York State Supreme Court, County of New
York, and the United States District Court for the Southern District of New York, and agrees in any
such suit, action or proceeding. Each of the parties further agrees to accept and acknowledge
service of any and all process which may be served in any such suit, action or proceeding in the
New York State Supreme Court, County of New York, or in the United States District Court for the
Southern District of New York and agrees that service of process upon it mailed by certified mail
to its address shall be deemed in every respect effective service of process upon it in any such
suit, action or proceeding.

     7.4 This Agreement shall inure to the benefit of and be binding upon the successors and
assigns of the Company and CMT, including any transferee of all or substantially all of the

16

 

Company’s or CMT’s assets. This Agreement shall not be assignable by Executive, but shall
inure to the benefit of and be binding upon Executive’s heirs and legal representatives.

     7.5 Should any provision of this Agreement become, or be held to be, legally unenforceable, no
other provision of this Agreement shall be affected thereby, and this Agreement shall continue as
if the Agreement had been executed absent the unenforceable provision.

     7.6 Executive represents that he is not prohibited or limited in any way, pursuant to the
terms of any employment, non-competition or similar agreement, or otherwise, from entering into
this Agreement and performing his obligations hereunder.

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

	 	 	 	 	 	 	 
	 	 	SENTIGEN HOLDING CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ G. Scott Segler
 

	 	 
	 

	 	Name:
	 	G. Scott Segler	 	 
	 

	 	Title:
	 	 Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	CELL & MOLECULAR TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ G. Scott Segler
 

	 	 
	 

	 	Name:
	 	G. Scott Segler	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Thomas J. Livelli	 	 
	 	 	 	 	 
	 	 	THOMAS J. LIVELLI, Executive	 	 

18

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