Document:

exv10w1

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of May 25, 2009 (the
“Effective Date”), by and between Cinemark Holdings, Inc., a Delaware corporation (the “Company”),
and Steve Bunnell (“Executive”).

W I T N E S S E T H:

     WHEREAS, Company and Executive wish to enter into this Agreement to govern Executive’s
employment with the company.

     NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the
parties hereto agree as follows:

     1 Employment.

          1.1 Title and Duties. The Company hereby employs Executive as Senior Vice President
of Film Licensing of the Company. Executive’s duties, responsibilities and authority shall be
consistent with Executive’s position and titles and shall include serving in a substantially
similar capacity with certain of the Company’s Subsidiaries (as hereinafter defined) and such other
reasonably related duties, responsibilities and authority as may be assigned to Executive by the
Board of Directors of the Company (the “Board”). Executive shall report directly to the President
of the Company.

          1.2 Services and Exclusivity of Services. The Company and Executive recognize that
the services to be rendered by Executive are of such a nature as to be peculiarly rendered by
Executive, encompass the individual ability, managerial skills and business experience of Executive
and cannot be measured exclusively in terms of hours or services rendered in any particular period.
Executive shall devote Executive’s full business time and shall use Executive’s best efforts,
energy and ability exclusively toward advancing the business, affairs and interests of the Company
and its Subsidiaries, and matters related thereto.

          1.3 Location of Office. The Company shall make available to Executive an office and
support services (including an exclusive assistant) at the Company’s headquarters in the
Dallas/Plano, Texas area. Executive’s main office shall be at such location.

          1.4 Subsidiaries; Person. For purposes of this Agreement, “Subsidiary” or
“Subsidiaries” means, as to any Person, any other Person (i) of which such Person or any other
Subsidiary of such Person is a general partner, (ii) of which such Person, any one or more of its
other Subsidiaries of such Person, or such Person and any one or more of its other Subsidiaries,
directly or indirectly owns or controls securities or other equity interests representing more than
fifty percent (50%) of the aggregate voting power, or (iii) of which such Person, any one or more
of its other Subsidiaries of such Person, or such Person and any one or more its other
Subsidiaries, possesses the right to elect more than fifty percent (50%) of the board of directors
or Persons holding similar positions; and “Person” means any individual, corporation, partnership,
limited liability company, firm, joint venture, association, joint-stock company, trust,
unincorporated organization, or other entity or group (as defined in Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended).

     2 Term. The term of Executive’s employment under this Agreement (the “Term”) shall
commence on the Effective Date (as defined in Section 18) and shall continue for a period
of two (2) years thereafter; provided, however, that at the end of each year of the Term, the Term
shall be extended for an additional one-year period unless Executive’s employment with the Company
is terminated in accordance with Section 5. References in this Agreement to the “balance
of the Term” shall mean the period of time remaining on the scheduled Term after giving effect to
the most recent extension of the Term occurring prior to any termination of the Term.

 

 

     3 Compensation.

          3.1 Base Salary. During the Term, the Company will pay to Executive a base salary at
the rate of $300,000 per year, payable in accordance with the Company’s practices in effect from
time to time (“Base Salary”). Amounts payable shall be reduced by standard withholding and other
authorized deductions. Such Base Salary shall be reviewed during the Term for increase (but not
decrease) in the sole discretion of the Board, or such individual, group or committee that the
Board may select as its delegate, not less frequently than annually during the Term. In conducting
any such review, the Board or such delegate shall consider and take into account, among other
things, any change in Executive’s responsibilities, performance of Executive, the compensation of
other similarly situated executives of comparable companies and other pertinent factors. Once
increased, Executive’s Base Salary shall not be decreased except upon mutual agreement between the
parties, and, as so increased, shall constitute Base Salary hereunder.

          3.2 Bonuses; Incentive, Savings and Retirement Plans; Welfare Benefit Plans.

               (a) Executive shall be entitled to participate in all annual and long-term bonuses and
incentive, savings and retirement plans generally available to other similarly situated executive
employees of the Company. Executive, and Executive’s family as the case may be, shall be eligible
to participate in and receive all benefits under welfare benefit plans, practices, programs and
policies provided to other similarly situated executive employees of the Company, including,
without limitation, medical, prescription, dental, disability, salary continuance, employee life,
group life, accidental death and travel accident insurance plans and programs. The Company
reserves the right to modify, suspend or discontinue any and all of its benefits referred to in
this Section 3.2 at any time without recourse by Executive so long as such action is taken
generally with respect to other executives and does not single out Executive.

               (b) In addition to his Base Salary, for each fiscal year ending during the Term, Executive
will be entitled to participate in the Cinemark Holdings, Inc. Performance Bonus Plan (the “Annual
Bonus Plan”), as such Annual Bonus Plan may be amended from time to time, or pursuant to the terms
of any successor plan. If the performance targets specified by the Compensation Committee of the
Board are satisfied, Executive will receive an annual incentive cash bonus (the “Annual Bonus”)
based upon the award opportunity parameters and performance targets established by the Compensation
Committee of the Board pursuant to the terms of the Annual Bonus Plan. The amount of the Annual
Bonus award opportunity and the performance targets that must be satisfied to receive such Annual
Bonus award will be established by the Compensation Committee, in its sole discretion, each fiscal
year pursuant to the terms of the Annual Bonus Plan. All such Annual Bonus award payments will be
payable as specified pursuant to the terms of the Annual Bonus Plan and will be reduced by standard
withholding and other authorized deductions.

               (c) Equity Awards. Executive will be eligible to participate in and receive grants of
equity incentive awards (“Equity Awards”) under the Company’s Amended and Restated 2006 Long Term
Incentive Plan (the “Equity Incentive Plan”), as such Equity Incentive Plan may be amended from
time to time, or pursuant to the terms of any successor plan. Equity Awards to Executive may be
granted at such times and subject to such terms and conditions as the Equity Incentive Plan
administrator shall determine.

          3.3 Travel and Expenses. Executive shall be entitled to reimbursement for expenses
incurred in the furtherance of the business of the Company in accordance with the Company’s
practices and procedures, as they may exist from time to time. Executive may, in his discretion,
elect to purchase, and be reimbursed for, business class tickets on any international flights which
scheduled flight time exceeds five hours. Executive shall keep complete and accurate records of
all expenditures such that Executive may substantiate and fully account for such expenses according
to the Company’s practices and procedures.

          3.4 Vacation. Executive shall be entitled to twenty (20) days paid vacation and other
absences from work in accordance with the Company’s vacation and absence policy in effect at the
time of such vacations or absences.

 

 

          3.5 Payment of Compensation and Benefits. Executive acknowledges and agrees that all
payments required to be paid to Executive and benefits to be provided to Executive may be paid or
provided by the Company, its successor or any other Subsidiary of the Company.

     4 Confidential Information; Non-Competition; Non-Solicitation.

          4.1 General. Executive acknowledges that during his employment and as a result of his
relationship with the Company and its affiliates, Executive has obtained and will obtain knowledge
of, and has been given and will be given access to, information, including, but not limited to,
information regarding the business, operations, services, proposed services, business processes,
advertising, marketing and promotional plans and materials, price lists, pricing policies, ticket
sales, film licensing, purchasing, real estate acquisition and leasing, other financial information
and other trade secrets, confidential information and proprietary material of the Company and its
affiliates or designated as being confidential by the Company or its affiliates which are not
generally known to non-Company personnel, including information and material originated, discovered
or developed in whole or in part by Executive (collectively referred to herein as “Confidential
Information”). The term “Confidential Information” does not include any information which (i) at
the time of disclosure is generally available to the public (other than as a result of a disclosure
by Executive in breach of this Agreement), or (ii) was available to Executive on a non-confidential
basis from a source (other than the Company or its Affiliates or their representatives) that is not
and was not prohibited from disclosing such information to Executive by a contractual, legal or
fiduciary obligation. Executive agrees that during the Term and, to the fullest extent permitted
by law, thereafter, Executive will, in a fiduciary capacity for the benefit of the Company and its
affiliates, hold all Confidential Information strictly in confidence and will not directly or
indirectly reveal, report, disclose, publish or transfer any of such Confidential Information to
any Person, or utilize any of the Confidential Information for any purpose, except in furtherance
of Executive’s employment under this Agreement and except to the extent that Executive may be
required by law to disclose any Confidential Information. Executive acknowledges that the Company
and its affiliates are providing Executive additional Confidential Information that Executive was
not given prior to execution of this Agreement, as further consideration to Executive for executing
this Agreement, including the promises and covenants made by Executive in this Section 4.

          4.2 Non-Competition. In further consideration of the compensation to be paid to
Executive hereunder, Executive acknowledges that during the course of his employment with the
Company and its Subsidiaries, he has, and will, become familiar with the trade secrets of the
Company and its Subsidiaries and with other Confidential Information concerning the Company and its
Subsidiaries and that his services have been and shall continue to be of special, unique and
extraordinary value to the Company and its Subsidiaries. Therefore, Executive agrees that, during
Executive’s employment hereunder and for one year after the date of termination of employment (the
“Non-compete Period”), he shall not directly or indirectly own any interest in, manage, control,
participate in, consult with, render services for, be employed in an executive, managerial or
administrative capacity by, or in any manner engage in, any Competing Business. For purposes
hereof, “Competing Business” means any business that owns, operates or manages any movie theatre.
Nothing herein shall prohibit Executive from being a passive owner of not more than five percent
(5%) of the outstanding stock of any class of a corporation which is publicly traded, so long as
Executive has no active participation in the business of such corporation. Notwithstanding the
foregoing, Executive’s obligations under this Section 4.2 shall terminate and become null
and void if Executive is terminated by Company without Cause or Executive terminates his employment
with Good Reason.

          4.3 Non-Solicitation. During the Term and for three (3) years thereafter (the
“Non-solicitation Period”), Executive shall not directly or indirectly through another Person (i)
induce or attempt to induce any managerial or executive-level employee of the Company or any
Subsidiary to leave the employ of the Company or such Subsidiary, or in any way interfere with the
relationship between the Company or any Subsidiary and any such employee, (ii) without the
Company’s prior written consent, hire any person who was a managerial or executive level employee
of the Company or any Subsidiary at any time during the Term or (iii) induce or attempt to induce
any customer, supplier, landlord, developer, licensee, licensor, franchisee or other business
relation of the Company or any Subsidiary to cease doing business with the Company or such
Subsidiary, or in any way interfere with the relationship between any such customer, supplier,
licensee or business relation and the Company or any Subsidiary or (iv) make any negative,
derogatory or disparaging statements or communications regarding the Company or its Subsidiaries or
any of their officers, directors or affiliates. Notwithstanding the foregoing, after

 

 

Executive’s employment is terminated for any reason, Executive may hire any former employee of
the Company or any of its Subsidiaries who were involuntarily terminated by the Company or any of
its Subsidiaries.

          4.4 Proprietary Interest. All inventions, designs, improvements, patents, copyrights
and discoveries conceived by Executive during Executive’s employment by the Company or its
affiliates that are useful in or directly or indirectly related to the business of the Company and
its affiliates or to any experimental work carried on by the Company or its affiliates, shall be
the property of the Company and its affiliates. Executive will promptly and fully disclose to the
Company or its affiliates all such inventions, designs, improvements, patents, copyrights and
discoveries (whether developed individually or with other persons) and shall take all steps
necessary and reasonably required to assure the Company’s or such affiliate’s ownership thereof and
to assist the Company and its affiliates in protecting or defending the Company’s or such
affiliate’s proprietary rights therein.

          4.5 Return of Materials. Executive expressly acknowledges that all data, books,
records and other Confidential Information of the Company and its affiliates obtained in connection
with the Company’s business is the exclusive property of the Company or its affiliates and that
upon the termination of Executive’s employment by the Company or its affiliates, Executive will
immediately surrender and return to the Company or its affiliates all such items and all other
property belonging to the Company or its affiliates then in the possession of Executive, and
Executive shall not make or retain any copies thereof.

          4.6 Property of the Company. Executive acknowledges that from time to time in the
course of providing services pursuant to this Agreement, Executive shall have the opportunity to
inspect and use certain property, both tangible and intangible, of the Company and its affiliates
and Executive hereby agrees that such property shall remain the exclusive property of the Company
and its affiliates. Executive shall have no right or proprietary interest in such property,
whether tangible or intangible, including, without limitation, Executive’s customer and supplier
lists, contract forms, books of account, computer programs and similar property. Executive may
retain his day planner and rolodex, whether documentary or computerized, provided Executive leaves
a copy of each with the Company.

          4.7 Reasonable in Scope and Duration; Consideration. Executive agrees and
acknowledges that the restrictions contained in this Section 4 are reasonable in scope and
duration and are necessary to protect the business interests and Confidential Information of the
Company and its affiliates after the Effective Date of this Agreement, and Executive further agrees
and acknowledges that he has reviewed the provisions of this Agreement with his legal counsel.
Executive acknowledges and agrees that Executive will receive substantial, valuable consideration
from the Company for the covenants contained in this Section 4, including without
limitation, compensation and other benefits.

     5 Termination.

          5.1 Termination Prior to Expiration of Term. Notwithstanding anything to the contrary
contained in Section 2, Executive’s employment may be terminated prior to the expiration of
the Term only as provided in this Section 5.

          5.2 Death or Disability.

               (a) The Company may terminate Executive’s employment hereunder due to death or Disability (as
defined below). If Executive’s employment hereunder is terminated as a result of death or
Disability, Executive (or Executive’s estate or personal representative in the event of death)
shall be entitled to receive (i) all Base Salary due to Executive through the date of termination;
(ii) the actual Annual Bonus, if any, that Executive would have received in respect of the fiscal
year of the Company in which Executive’s termination of employment occurs, prorated by a fraction,
the numerator of which is the number of days in such fiscal year prior to the date of termination
and the denominator of which is 365 days, payable at the same time as any Annual Bonus payments are
made to other similarly situated active executives pursuant to the terms of the Annual Bonus Plan
and subject to satisfaction of the performance targets for such fiscal year; (iii) any previously
vested Equity Awards and benefits, such as retirement benefits, in accordance with the terms of the
plan or agreement pursuant to which such Equity Awards or benefits were granted to Executive (items
(i) through (iii) above collectively referred to as “Accrued Employment Entitlements”); (iv) a lump
sum payment equal to twelve (12) months of Executive’s full Base Salary,

 

 

which shall be payable as soon as practicable following the date of termination but not later
than March 15 of the first calendar year following the year of such termination; provided, that in
the case of Disability such payment shall be offset by the amount of Base Salary paid by the
Company to Executive or Executive’s personal representative from the date on which Executive was
first unable substantially to perform Executive’s duties through the date of such termination, and
(v) any benefits payable to Executive or Executive’s beneficiaries, as applicable, in accordance
with the terms of the applicable benefit plan. At the Company’s expense, Executive and/or
Executive’s dependents shall be entitled to continue to participate in the Company’s welfare
benefit plans and programs on the same terms as similarly situated actively-employed executives for
a period of twelve months from the date of such termination. Executive and/or Executive’s
dependents shall thereafter be entitled to any continuation of such benefits provided under such
benefit plans or by applicable law. Following the death or Disability of Executive, Executive’s
participation under any Equity Award or other incentive compensation plan (other than Annual
Bonuses included in the definition of Accrued Employment Entitlements) shall be governed by the
terms of such plans.

               (b) “Disability” shall mean a physical or mental impairment that (i) renders Executive unable
to perform the essential functions of Executive’s positions, even with reasonable accommodation
that does not impose an undue hardship on the Company or its Subsidiaries; (ii) has existed for at
least sixty (60) consecutive days; and (iii) in the opinion of a physician mutually agreed upon by
the Company and Executive (which agreement shall not be unreasonably withheld) will last for a
duration of at least one hundred eighty (180) consecutive days. Executive’s Disability shall be
determined by the Company, in good faith, based upon information supplied by Executive and the
physician mutually agreed upon by the Company and Executive; provided, however, that such
physician’s opinion of Executive’s Disability as defined in this Section 5.2(b) will be binding and
conclusive on the parties and for purposes of this Section 5.2, Executive’s date of termination
will be deemed the date of delivery of such opinion to the Company. Executive agrees to submit to
physical exams and diagnostic tests reasonably recommended by such physician.

          5.3 Termination by the Company for Cause or by Executive because of a Voluntary
Termination.

               (a) Executive’s employment hereunder may be terminated by the Company for Cause (as
hereinafter defined) or by Executive under a Voluntary Termination (as hereinafter defined). If
Executive’s employment hereunder is terminated under this Section 5.3, Executive shall be
entitled to receive all Base Salary due to Executive through the date of termination. Furthermore,
all previously vested rights of Executive under an Equity Award or similar incentive compensation
plan or program shall be treated in accordance with the terms of such plan or program. Except as
specifically set forth in this Section 5.3, the Company shall have no further obligations
to Executive following a termination for Cause, or a Voluntary Termination.

               (b) “Cause” shall mean (i) subject to clause (ii) below, a felony or a violation by Executive
of federal securities laws which results in a conviction, a guilty plea or a plea of nolo
contendere, (ii) the commission of fraud, embezzlement or theft by Executive in connection with
Executive’s employment hereunder; (iii) engaging in conduct involving moral turpitude that causes
the Company and its affiliates substantial public disrepute or substantial economic harm; (iv) a
material breach of this Agreement by Executive and/or Executive’s gross neglect of Executive’s
duties hereunder which is not cured to the Board’s reasonable satisfaction within fifteen (15) days
after written notice thereof is given to Executive by the Board; (v) the intentional wrongful
damage to material property of the Company or its affiliates; or (vi) drug or alcohol abuse or
other intentional conduct by Executive which causes the Company and its affiliates substantial
public disrepute or substantial economic harm. Notwithstanding the foregoing, the Company shall
not be entitled to terminate Executive for Cause under clause (ii) above, unless (A) the Board
shall have made a good faith investigation into the existence of the commission of the fraud,
embezzlement or theft which would serve as the basis of Executive’s termination for Cause under
clause (ii) above, during which investigation the Company may place Executive on a paid
administrative leave of absence and (B) no less than 2/3 of the members of the Board (excluding
Executive if Executive is then a member of the Board) shall have made a good faith determination
that the Company is entitled to terminate Executive for Cause under clause (ii) above.

               (c) “Voluntary Termination” shall mean a termination of employment by Executive on Executive’s
own initiative other than (i) a termination due to Disability or (ii) a termination for Good
Reason.

 

 

          5.4 Termination by the Company without Cause or by Executive for Good Reason. The
Company may terminate Executive’s employment hereunder without Cause, and Executive shall be
permitted to terminate Executive’s employment hereunder for Good Reason (as hereinafter defined).
If the Company terminates Executive’s employment hereunder without Cause, other than due to death
or Disability, or if Executive effects a termination for Good Reason, Executive shall be entitled
to receive the payments and benefits set forth in this Section 5.4.

               (a) If Executive’s employment hereunder is terminated by the Company without Cause, so long as
Executive has not breached any of the terms contained in Section 4, Executive shall be
entitled to each of the following:

                    (i) Executive’s Accrued Employment Entitlements;

                    (ii) Executive’s annual Base Salary in effect as of the date of such termination, payable in
accordance with the Company’s normal payroll practices for a period equal to the longer of (i) the
balance of the Term or (ii) twelve (12) months following any such termination; provided, however,
that if Executive is, as of the date of such termination, a “specified employee” within the meaning
of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), any amount that is
(1) not treated as a short-term deferral within the meaning of Treas. Reg. § 1.409A-1(b)(4), and
(2) exceeds the separation pay limit under Treas. Reg. § 1.409A-1(b)(9)(iii)(A) (two times the
lesser of (A) the sum of Executive’s annualized compensation based on Executive’s annual Base
Salary for the calendar year preceding the calendar year in which termination occurs (adjusted for
any increase during that year that was expected to continue indefinitely if Executive’s employment
had not been terminated), or (B) the maximum amount that may be taken into account under a
qualified plan pursuant to Code Section 401(a)(17) for the year in which such termination occurs),
will not be paid before the date that is six months after such date of termination, or if earlier,
the date of Executive’s death. Any payments or benefits to which Executive would otherwise be
entitled during such non-payment period will be accumulated and paid or otherwise provided to
Executive on the first day of the seventh month following such date of termination, or if earlier,
within 30 days of Executive’s death to his surviving spouse (or to his estate if Executive’s spouse
does not survive him). For purposes of this Section 5.4(a)(ii) and Section 5.4(b),
any amount that is paid as a short-term deferral within the meaning of Treas. Reg. §
1.409A-1(b)(4), or within the separation pay limit under Treas. Reg. § 1.409A-1(b)(9)(iii)(A) shall
be treated as a separate payment, provided the aggregate of the separate payments under this
Section 5.4(a)(ii) shall not exceed an amount equal to the Executive’s annual Base Salary
in effect as of the date of such termination or for a period in excess of twelve (12) months
following any such termination;

                    (iii) an amount equal to the most recent Annual Bonus received by Executive for any fiscal
year ended prior to the date of such termination (determined without regard to any performance
goals) , payable in a lump sum within thirty (30) days following such termination of employment;
provided further, that if such termination or resignation occurs within thirty (30) days prior to
the calendar year end, the payment, without interest, of the amount paid for a termination by the
Company without Cause shall be paid no earlier than January 1 of the next year; and

                    (iv) Executive and Executive’s dependents shall be entitled to continue to participate in the
Company’s welfare benefit plans and insurance programs on the same terms as other actively employed
executives for a period of twelve (12) months from the termination date. Following the expiration
of such twelve-month period, Executive and/or Executive’s dependents shall be entitled to any
continuation of benefits as are provided under such benefit plans by the Company or as are required
to be provided in accordance with applicable law.

               (b) If Executive’s employment hereunder is terminated by the Executive for Good Reason, so
long as Executive has not breached any of the terms contained in Section 4, Executive shall
be entitled to the benefits provided in Section 5.4(a), except the severance benefit
specified in Section 5.4(a)(ii) (the “Regular Severance Benefit”) shall be payable in a
lump sum (the “Permitted Lump Sum Benefit”) to the extent it is (1) treated as a short-term
deferral within the meaning of Treas. Reg. § 1.409A-1(b)(4), or (2) does not exceed the separation
pay limit under Treas. Reg. § 1.409A-1(b)(9)(iii)(A) (two times the lesser of (A) the sum of
Executive’s annualized compensation based on Executive’s annual Base Salary for the calendar year
preceding the calendar year in which termination occurs (adjusted for any increase during that year
that was expected to continue indefinitely if

 

 

Executive’s employment had not been terminated), or (B) the maximum amount that may be taken
into account under a qualified plan pursuant to Code Section 401(a)(17) for the year in which such
termination occurs), as described in Section 5.4(a)(ii). The Permitted Lump Sum Benefit
shall be payable within thirty (30) days following such termination of employment; provided
further, that if such termination or resignation occurs within thirty (30) days prior to the
calendar year end, the payment, without interest, of the Permitted Lump Sum Benefit paid for a
termination by Executive for Good Reason shall be paid no earlier than January 1 of the next year
and any remaining amount shall be payable in installments in accordance with the Regular Severance
Benefit provisions of Section 5.4(a)(ii).

               (c) Any outstanding stock options granted to Executive shall be vested and/or exercisable for
the period through the date of such termination of employment, and shall remain exercisable, in
accordance with the terms contained in the plan and the agreement pursuant to which such option
awards were granted.

               (d) For purposes of the calculation of Executive’s benefits under any supplemental defined
benefit plan in which Executive participates, Executive shall be credited with one additional year
of service as a result of termination pursuant to this Section 5.4.

               (e) “Good Reason” means and shall be deemed to exist if, without the prior written consent of
Executive, (i) Executive suffers a significant reduction in duties, responsibilities or effective
authority associated with Executive’s titles and positions as set forth and described in this
Agreement or is assigned any duties or responsibilities inconsistent in any material respect
therewith (other than in connection with a termination for Cause); (ii) the Company fails to pay
Executive any amounts or provide any benefits required to be paid or provided under this Agreement
or is otherwise in material breach of this Agreement; (iii) the Company adversely changes
Executive’s titles or reporting requirements; (iv) Executive’s Base Salary or benefits provided for
hereunder are materially decreased other than as part of reductions affecting the Company’s
executives generally after the second anniversary of the Effective Date; or (v) the Company
transfers Executive’s primary workplace by more than twenty (20) miles from the current workplace.
No termination by Executive shall be for “Good Reason” unless written notice of such termination
setting forth in particular the event(s) constituting Good Reason is delivered to the Company
within thirty (30) days following the date on which the event constituting Good Reason occurs and
the Company fails to cure or remedy the event(s) identified in the notice within thirty (30) days
after receipt of such notice.

          5.5 General Release. Except where the termination is the result of Executive’s death
and notwithstanding the foregoing, no payment shall be made by the Company to Executive under this
Section 5 unless otherwise required by state, local or federal law, until Executive
executes a general release of all claims in a form reasonably approved by the Company. The terms
of any such general release will not, without the written consent of the Executive, terminate any
continuing payment or benefit obligations hereunder by the Company to the Executive.

          5.6 Section 5 and this Agreement shall be administered and interpreted to maximize the
short-term deferral exception to Code Section 409A, and Executive shall not, directly or
indirectly, designate the taxable year of a payment made under this Agreement. The portion of any
payment under this Agreement that is paid within the short-term deferral period (within the meaning
of Code Section 409A and Treas. Reg. § 1.409A-1(b)(4)) will be treated as a short term deferral and
not aggregated with other plans or payments. Any other portion of the payment that does not meet
the short-term deferral requirement will, to the maximum extent possible, be deemed to satisfy the
exception from Code Section 409A under Treas. Reg. § 1.409A-1(b)(9)(iii)(A) for involuntary
separation pay and shall not be aggregated with any other payment. Any right to a series of
installment payments pursuant to this Agreement is to be treated as a right to a series of separate
payments. Any amount that is paid as a short-term deferral within the meaning of Treas. Reg. §
1.409A-1(b)(4) or within the involuntary separation pay limit under Treas. Reg.
§1.409A-1(b)(9)(iii)(A) will be treated as a separate payment. Payment dates provided for in this
Agreement are deemed to incorporate “grace periods” within the meaning of Code Section 409A.

 

 

     6 Arbitration.

          6.1 General. Any dispute, controversy or claim arising out of or relating to this
Agreement, the breach hereof or the coverage or enforceability of this arbitration provision shall
be settled by arbitration in Dallas, Texas (or such other location as the Company and Executive may
mutually agree), conducted in accordance with the Commercial Arbitration Rules of the American
Arbitration Association, as such rules are in effect in Dallas/Fort Worth, Texas on the date of
delivery of demand for arbitration. The arbitration of any such issue, including the determination
of the amount of any damages suffered by either party hereto by reason of the acts or omissions of
the other, shall be to the exclusion of any court of law. Notwithstanding the foregoing, either
party hereto may seek any equitable remedy in a court to enforce the provisions of this Agreement,
including but not limited to an action for injunctive relief or attachment, without waiving the
right to arbitration.

          6.2 Procedure.

               (a) Either party may demand such arbitration by giving notice of that demand to the other
party. The party demanding such arbitration is referred to herein as the “Demanding Party,” and
the party adverse to the Demanding Party is referred to herein as the “Responding Party.” The
notice shall state (x) the matter in controversy, and (y) the name of the arbitrator selected by
the party giving the notice.

               (b) Not more than fifteen (15) days after such notice is given, the Responding Party shall
give notice to the Demanding Party of the name of the arbitrator selected by the Responding Party.
If the Responding Party shall fail to timely give such notice, the arbitrator that the Responding
Party was entitled to select shall be named by the Arbitration Committee of the American
Arbitration Association. Not more than fifteen (15) days after the second arbitrator is so named;
the two arbitrators shall select a third arbitrator. If the two arbitrators shall fail to timely
select a third arbitrator, the third arbitrator shall be named by the Arbitration Committee of the
American Arbitration Association.

               (c) The dispute shall be arbitrated at a hearing that shall be concluded within ten days
immediately following the date the dispute is submitted to arbitration unless a majority of the
arbitrators shall elect to extend the period of arbitration. Any award made by a majority of the
arbitrators (x) shall be made within ten days following the conclusion of the arbitration hearing,
(y) shall be conclusive and binding on the parties, and (z) may be made the subject of a judgment
of any court having jurisdiction.

               (d) Any amount to which Executive is entitled under this Agreement (including any disputed
amount) which is not paid when due shall bear interest from the date due but not paid at a rate
equal to the lesser of eight percent (8%) per annum and the maximum lawful rate.

          6.3 Costs and Expenses. All administrative and arbitration fees, costs and expenses
shall be borne fifty percent (50%) by the Company and fifty percent (50%) by Executive. The
non-prevailing party shall pay the reasonable costs, expenses and legal fees of the prevailing
party.

     7 Non-Assignment. This Agreement shall not be assignable nor the duties hereunder
delegable by Executive. None of the payments hereunder may be encumbered or in any way anticipated
by Executive (or Executive’s estate or personal representative). The Company shall not assign this
Agreement nor shall it transfer all or any substantial part of its assets without first obtaining
in conjunction with such transfer the express assumption of the obligations hereof by the assignee
or transferee.

     8 Remedies. Executive acknowledges that the services Executive is to render under
this Agreement are of a unique and special nature, the loss of which cannot reasonably or
adequately be compensated for in monetary damages, and that irreparable injury and damage will
result to the Company and its Subsidiaries in the event of any default or breach of this Agreement
by Executive. The parties agree and acknowledge that the breach by Executive of any of the terms
of this Agreement will cause irreparable damage to the Company and its affiliates, and upon any
such breach, the Company shall be entitled to injunctive relief, specific performance, or other
equitable relief (without posting a bond or other security); provided, however, that this shall in
no way limit any
other remedies which the Company and its affiliates may have (including, without limitations,
the right to seek monetary damages).

 

 

     9 Survival. The provisions of Sections 4 through 19 shall survive the
expiration or earlier termination of the Term.

     10 Taxes. All payments to Executive under this Agreement shall be reduced by all
applicable withholding required by Federal, state or local law.

     11 No Obligation to Mitigate. Executive shall not be required to mitigate the amount
of any payment or other benefit required to be paid to Executive pursuant to this Agreement,
whether by seeking other employment or otherwise, nor shall the amount of any such payment or other
benefit be reduced on account of any compensation earned by Executive as a result of employment by
another person; provided that Executive and Executive’s dependents shall not be entitled to
continue to participate in the welfare benefit plans of the Company and its Subsidiaries if
Executive is covered by the welfare benefit plans of another employer.

     12 Notices. Any notice or other communications relating to this Agreement shall be in
writing and delivered personally or mailed by certified mail, return receipt requested, or sent by
overnight courier (e.g. Federal Express), to the party concerned at the address set forth below:

	 	 	 
	If to Company:

	 	3900 Dallas Parkway, Suite 500
	 

	 	Plano, Texas 75093
	 

	 	Attn: Chief Executive Officer
	 
	 	 
	If to Executive:

	 	At Executive’s residence address as maintained by the Company in
the regular course of its business for payroll purposes.
	 
	 	 
	With a copy to:

	 	Law Offices of George Sheanshang
	 

	 	130 West 57th Street, Suite 5B
	 

	 	New York, NY 10019
	 

	 	Attn: George Sheanshang

     Either party may change the address for the giving of notices at any time by written notice
given to the other party under the provisions of this Section 12. If notice is given by
personal delivery or overnight courier, said notice shall be conclusively deemed given at the time
of such delivery or upon receipt of such couriered notice. If notice is given by mail, such notice
shall be conclusively deemed given upon deposit thereof in the United States mail.

     13 Entire Agreement. This Agreement constitutes the entire agreement between the
parties and supersedes all prior written and oral and all contemporaneous oral agreements,
understandings and negotiations with respect to the subject matter hereof. This Agreement may not
be changed orally, but only by an agreement in writing signed by both parties.

     14 Counterparts. This Agreement may be executed in counterparts, each of which shall
be an original, but all of which together shall constitute one agreement. Any executed counterpart
returned by facsimile or electronically (pdf) shall be deemed an original executed counterpart.

     15 Construction. This Agreement shall be governed under and construed in accordance
with the laws of the State of Texas, without regard to the principles of conflicts of laws. The
paragraph headings and captions contained herein are for reference purposes and convenience only
and shall not in any way affect the meaning or interpretation of this Agreement. It is intended by
the parties that this Agreement be interpreted in accordance with its fair and simple meaning, not
for or against either party, and neither party shall be deemed to be the drafter of this Agreement.

 

 

     16 Severability. The parties agree that if any provision of this Agreement as applied
to any party or to any circumstance is adjudged by a court or arbitrator to be invalid or
unenforceable, the same will in no way affect any other circumstance or the validity or
enforceability of this Agreement. Without limiting the generality of the foregoing, in particular,
if any provision in Section 4, or any part thereof, is held to be unenforceable because of
the duration of such provision or the area covered thereby, the parties agree that the court or
arbitrator making such determination shall have the power to reduce the duration and/or area of
such provision, and/or to delete specific words or phrases, and in its reduced form, such provision
shall then be enforceable and shall be enforced. In addition, in the event of a breach by
Executive of Section 4, the Non-compete Period and the Non-solicitation Period shall be
automatically extended respectively by the amount of time between the initial occurrence of the
breach or violation and when such breach or violation has been duly cured.

     17 Binding Effect. Subject to Section 7 hereof, the rights and obligations of
the parties under this Agreement shall be binding upon and inure to the benefit of the permitted
successors, assigns, heirs, administrators, executors and personal representatives of the parties.

     18 Effective Date; Effect on Original Agreement. This Agreement shall become
effective as of the date first written above. This Agreement contains the entire understanding
between the parties hereto and supersedes in all respects any prior or other agreement or
understanding between the Company or any affiliate of the Company and Executive.

     19 Executive’s Cooperation. During the Term and for five (5) years thereafter,
Executive shall cooperate with the Company and its Subsidiaries in any internal investigation, any
administrative, regulatory or judicial proceeding or investigation or any material dispute with a
third party, in each case as reasonably requested by the Company (including, without limitation,
Executive’s being reasonably available to the Company upon reasonable notice for interviews and
factual investigations, appearing at the Company’s request to give testimony without requiring
service of subpoena or other legal process, volunteering to the Company all pertinent information
and turning over to the Company all relevant documents which are or may come into Executive’s
possession, excluding documents which may come into Executive’s possession after the Term from
third parties which are subject to obligations of confidentiality, all at times and on schedules
that are reasonably consistent with Executive’s other activities and commitments), in each case
limited to the extent that such cooperation (a) becomes unduly burdensome for Executive (including
in terms of the time commitments required by Executive in connection with such cooperation), (b) in
the event that such cooperation is required after the Term, unreasonably interferes with
Executive’s duties under his then current employment, (c) causes Executive to breach in any
material respect any material agreement by which he is bound, or (d) is limited to the extent
Executive is advised by legal counsel that such cooperation would not be in Executive’s best
interests. In the event that the Company requires Executive’s cooperation in accordance with this
paragraph, the Company shall reimburse Executive solely for: (i) his reasonable out-of-pocket
expenses (including travel, lodging and meals) upon submission of receipts and (ii) any reasonable
attorneys’ fees incurred by Executive to the extent that, after consultation with the Company,
Executive deems it advisable to seek the advice of legal counsel regarding his obligations
hereunder.

[Signature page follows]

 

 

     IN WITNESS WHEREOF, the parties have executed this Employment Agreement on the day and in the
year first written above.

	 	 	 	 	 
	 	COMPANY:

CINEMARK HOLDINGS, INC.

 	 
	 	By:  	/s/ Alan W. Stock
 	 
	 	 	Name:  	Alan W. Stock 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	EXECUTIVE:

 	 
	 	/s/ Steve Bunnell
 	 
	 	Name:  	Steve BunnellEX-10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is dated as of August 6th, 2009,
between Novavax, Inc., a Delaware corporation having its principal office at 9920 Belward Campus
Drive, Rockville, MD 20850, and Frederick W. Driscoll (“Executive”).

     WHEREAS, Executive will commence employment with the Company on or about August 24, 2009
pursuant to an offer letter dated August 6, 2009; and

     The Company and Executive hereby agree as follows:

     1. Employment. The Company hereby employs Executive and Executive hereby accepts employment
as Vice President, Chief Financial Officer, and Treasurer upon the terms and conditions hereinafter
set forth. As used throughout this Agreement, “Company” shall mean and include any and all of its
present and future subsidiaries and any and all subsidiaries of a subsidiary. Executive warrants
and represents that he is free to enter into and perform this Agreement and is not subject to any
employment, confidentiality, non-competition or other agreement which prohibits, restricts, or
would be breached by either his acceptance or his performance of this Agreement.

     2. Duties. During the Term (as hereinafter defined), Executive shall devote his full business
time to the performance of services as Vice President, Chief Financial Officer, and Treasurer of
Novavax, Inc., performing such services, assuming such responsibilities and exercising such
authority as are set forth in the Bylaws of the Company for such offices and assuming such other
duties and responsibilities as prescribed by the President and CEO and Board of Directors. During
the Term, Executive’s services shall be completely exclusive to the Company and he shall devote his
entire business time, attention and energies to the business of the Company and the duties which
the Company shall assign to him from time to time. Executive agrees to perform his services
faithfully and to the best of his ability and to carry out the policies and directives of the
Company. Notwithstanding the foregoing, it shall not be a violation of this Agreement for the
Executive to serve as a director of any company whose products do not compete with those of the
Company and to serve as a director, trustee, officer, or consultant to a charitable or non-profit
entity; provided that such service does not adversely affect Executive’s ability to perform his
obligations hereunder. Executive agrees to take no action which is in bad faith and prejudicial to
the interests of the Company during his employment hereunder. Notwithstanding the location where
Executive shall be based, as set forth in this Agreement, he also may be required from time to time
to perform duties hereunder for reasonably short periods of time outside of said area.

     3. Term. The term of this Agreement shall be for the period beginning on August 24, 2009 and
continuing until September 1, 2010, unless earlier terminated pursuant to Section 7 hereof (the
“Term”) and shall be renewed automatically for additional twelve-month periods on the terms set
forth herein, as they may be modified from time to time by mutual agreement, unless one of the
Company or the Executive provides notice of termination at least 30 days before the expiration of
the then current term. The parties acknowledge that the employment hereunder is employment at
will.

     4. Compensation.

          (a) Base Compensation. For all Executive’s services and covenants under this Agreement, the
Company shall pay Executive an annual salary, which is $275,000 as of this

 

 

agreement, established by the Board of Directors or an authorized committee thereof (in
accordance with the management processes) and payable in accordance with the Company’s payroll
policy as constituted from time to time. The Company may withhold from any amounts payable under
this Agreement all required federal, state, city or other taxes and all other deductions as may be
required pursuant to any law or government regulation or ruling.

          (b) Bonus Program. The Company agrees to pay the Executive a performance and incentive bonus
in respect of Executive’s employment with the Company each year in an amount determined by the
President and CEO and Board of Directors (or any committee of the Board of Directors authorized to
make that determination) to be appropriate based upon Executive’s, and the Company’s, achievement
of certain specified goals (to be established at the beginning of the bonus period), with a target
bonus of 40%, or any other percentage determined by the Board of Directors, of Executive’s base
salary during the year to which the bonus relates based on performance. Such bonus shall be
payable no later than two and one-half months following the year for which the bonus applies. The
bonus shall be paid out partly in cash and partly in shares of restricted stock, in the discretion
of the Board of Directors.

          (c) Stock Awards. Subject to approval by the Board of Directors (or any committee of the
Board of Directors authorized to make that determination), the Company will grant Executive (a)
stock options to purchase 220,000 shares of the Company’s Common Stock ($.01 par value) at an
exercise price equal to the closing price of the Company’s Common Stock on the later date of
Executive’s date of hire or the date of such Board of Directors’ approval and (b) 10,000 shares of
restricted stock. Each of these awards will vest as to one-third of the award on each of the first
three (3) anniversaries of Executive’s date of employment.

Executive will be eligible for additional stock awards based upon performance subject to the
approval of the President and Chief Executive Officer and the Board of Directors.

     5. Reimbursable Expenses. Executive shall be entitled to reimbursement for reasonable
expenses incurred by him in connection with the performance of his duties hereunder in accordance
with such procedures and policies for executive officers as the Company has heretofore or may
hereafter establish. The amount of expenses eligible for reimbursement during any calendar year
shall not affect the expenses eligible for reimbursement in any other calendar year, and the
reimbursement of an eligible expense shall be made as soon as practicable after Executive submits
the request for reimbursement, but not later than December 31 following the calendar year in which
the expense was incurred.

     6. Benefits. (a) Executive shall be entitled to four weeks of paid vacation time per year
starting from August 24, 2009, calculated and administered in accordance with Company policies for
executive officers in effect from time to time. The Executive shall be entitled to all other
benefits associated with normal full time employment in accordance with Company policies.

          (b) Executive shall be entitled to participate in the Company’s Change of Control Severance
Benefit Plan.

     7. Termination of Employment.

          (a) Notwithstanding any other provision of this Agreement, Executive’s employment may be
terminated, without such action constituting a breach of this Agreement:

2

 

               (i) By the Company, for “Cause,” as defined in Section 7(b) below;

               (ii) By the Company, upon 30 days’ notice to Executive, if he should be prevented by illness,
accident or other disability (mental or physical) from discharging his duties hereunder for one or
more periods totaling three consecutive months during any twelve-month period;

               (iii) By the Executive with “Good Reason”, as defined in Section 7(c) below, within 30 days of
the occurrence or commencement of such Good Reason;

               (iv) By the event of Executive’s death during the Term.

          (b) “Cause” shall mean (i) Executive’s willful failure or refusal to perform in all material
respects the services required of him hereby, (ii) Executive’s willful failure or refusal to carry
out any proper and material direction by the President and CEO or Board of Directors with respect
to the services to be rendered by him hereunder or the manner of rendering such services, (iii)
Executive’s willful misconduct in the performance of his duties hereunder, (iv) Executive’s
commission of an act of fraud, embezzlement or theft or a felony involving moral turpitude, (v)
Executive’s use or disclosure of Confidential Information (as defined in Section 10 of this
Agreement), other than for the benefit of the Company in the course of rendering services to the
Company or (vi) Executive’s engagement in any activity prohibited by Section 11 of this Agreement.
For purposes of this Section 7, the Company shall be required to provide Executive a specific
written warning with regard to any occurrence of subsections (b)(i), (ii) and (iii) above, which
warning shall include a statement of corrective actions and a 30 day period for the Executive to
respond to and implement such actions, prior to any termination of employment by the Company
pursuant to Section 7(a)(i) above.

          (c) “Good Reason” shall mean the Company’s material reduction or diminution of Executive’s
responsibilities and authority, other than for Cause, without his consent.

     8. Separation Pay. (a) Subject to Executive’s execution and delivery to the company of the
Company’s standard form of Separation and Release Agreement, the Company shall pay Executive an
amount equal to the Separation Pay upon the occurrence of the applicable Separation Event but in no
case later than two and one-half months following the year in which the Separation Event occurs.
Separation Pay shall each be payable in accordance with the Company’s payroll policy as constituted
from time to time, and shall be subject to withholding of all applicable federal, state and local
taxes and any other deductions required by applicable law. In the event of Executive’s death, the
Company’s obligation to pay further compensation hereunder shall cease forthwith, except that
Executive’s legal representative shall be entitled to receive his fixed compensation for the period
up to the last day of the month in which such death shall have occurred.

          (b) Section 8(a) above shall not apply should Executive receive severance benefits under the
Company’s Change in Control Severance Benefit Plan.

     9. “Separation Pay” shall mean a lump sum amount equal to twelve months of Executive’s then
effective salary.

          (a) “Separation Event” shall mean:

3

 

(i) the Company’s termination of Executive’s employment by the Company
without Cause, during the Term; or

(ii) the termination of Executive’s employment by the Executive for Good
Reason.

     10. All Business to be Property of the Company; Assignment of Intellectual Property.

          (a) Executive agrees that any and all presently existing business of the Company and all
business developed by him or any other employee of the Company including without limitation all
contracts, fees, commissions, compensation, records, customer or client lists, agreements and any
other incident of any business developed, earned or carried on by Executive for the Company is and
shall be the exclusive property of the Company, and (where applicable) shall be payable directly to
the Company.

          (b) Executive hereby acknowledges that any plan, method, data, know-how, research,
information, procedure, development, invention, improvement, modification, discovery, design,
process, software and work of authorship, documentation, formula, technique, trade secret or
intellectual property right whatsoever or any interest therein whether patentable or
non-patentable, patents and applications therefor, trademarks and applications therefor or
copyrights and applications therefor (herein sometimes collectively referred to as “Intellectual
Property”) made, conceived, created, invested, developed, reduced to practice and/or acquired by
Executive solely or jointly with others during the Term is the sole and exclusive property of the
Company, as work for hire, and that he has no personal right in any such Intellectual Property.
Executive hereby grants to the Company (without any separate remuneration or compensation other
than that received by him from time to time in the course of his employment) his entire right,
title and interest throughout the world in and to, all Intellectual Property, which is made,
conceived, created, invested, developed, reduced to practice and/or acquired by him solely or
jointly with others during the Term.

          (c) Executive shall cooperate fully with the Company, both during and after his employment
with or engagement by the Company, with respect to the procurement, maintenance and enforcement of
copyrights, patents and other intellectual property rights (both in the United States and foreign
countries) relating to Intellectual Property. Without limiting the foregoing, Executive agrees
that to the extent copyrightable, any such original works of authorship shall be deemed to be
“works for hire” and that the Company shall be deemed the author thereof under the U.S. Copyright
Act, provided that in the event and to the extent such works are determined not to constitute
“works for hire” as a matter of law, Executive hereby irrevocably assigns and transfers to the
Company all right, title and interest in such works, including but not limited to copyrights
thereof. Executive shall sign all papers, including, without limitation, copyright applications,
patent applications, declarations, oaths, formal assignments, assignments of priority rights and
powers of attorney, which the Company may deem necessary or desirable in order to protect its
rights and interests in any Intellectual Property (at the Company’s expense) and agrees that these
obligations are binding upon his assigns, executors,
administrators and other legal
representatives. To that end, Executive shall provide current contact information to the Company
including, but not limited to, home address, telephone number and email address, and shall update
his contact information whenever necessary.

4

 

     11. Confidentiality. Executive acknowledges his obligation of confidentiality with respect to
all proprietary, confidential and non-public information of the Company, including all Intellectual
Property. By way of illustration, but not limitation, confidential and proprietary information
shall be deemed to include any plan, method, data, know-how, research, information, procedure,
development, invention, improvement, modification, discovery, process, work of authorship,
documentation, formula, technique, product, idea, concept, design, drawing, specification,
technique, trade secret or intellectual property right whatsoever or any interest therein whether
patentable or non-patentable, patents and applications therefor, trademarks and applications
therefor or copyrights and applications therefor, personnel data, records, marketing techniques and
materials, marketing and development plans, customer names and other information related to
customers, including prospective customers and contacts at customers, price lists, pricing policies
and supplier lists of the Company, in each case coming into Executive’s possession, or which
Executive learns, or to which Executive has access, or which Executive may discover or develop
(whether or not related to the business of the Company at the time this Agreement is signed or any
information Executive originates, discovers or develops, in whole or in part) as a result of
Executive’s employment by (either full-time or part-time), or retention as a consultant of, the
Company. Executive shall not, either during the Term or for a period of ten (10) years thereafter,
use for any purpose other than the furtherance of the Company’s business, or disclose to any person
other than a person with a need to know such confidential, proprietary or non-public information
for the furtherance of the Company’s business who is obligated to maintain the confidentiality of
such information, any information concerning any Intellectual Property, or other confidential,
proprietary or non-public information of the Company, whether Executive has such information in his
memory or such information is embodied in writing, electronic or other tangible form.

     All originals and copies of any of the foregoing, however and whenever produced, shall be the
sole property of the Company. All files, letters, memoranda, reports, records, data, sketches,
drawings, program listings, or other written, photographic, or other tangible or electronic
material containing confidential or proprietary information or Intellectual Property, whether
created by me or others, which shall come into Executive’s custody or possession, shall be and are
the exclusive property of the Company to be used by Executive only in the performance of his duties
for the Company. All electronic material containing confidential or proprietary information or
Intellectual Property will be stored on a computer supplied to Executive by the Company and, under
no circumstances, will it be transferred to a personal computer. Executive will promptly deliver
to the Company and/or a person or entity identified by the Company all such materials or copies of
such materials and all tangible property of the Company in Executive’s custody or possession, upon
the earlier of (i) a request by the Company or (ii) termination of employment or engagement by the
Company. After such delivery, Executive will not retain any such materials or copies or any such
tangible property or any summaries or memoranda regarding same.

     12. Non-Competition Covenant. As the Executive has been granted options to purchase stock in
the Company and as such has a financial interest in the success of the Company’s business and as
Executive recognizes that the Company would be substantially injured by Executive competing with
the Company, Executive agrees and warrants that within the United States, he will not, unless
acting with the Company’s express prior written consent, directly or indirectly, while an employee
of the Company and during the Non-Competition
Period, as defined below, own, operate, join,
control, participate in, or be connected as an officer, director, employee, partner, stockholder,
consultant or otherwise, with any business or entity which competes with the business of the
Company (or its successors or assigns) as such business is now constituted or as it may be
constituted at any time during the Term of this

5

 

Agreement; provided, however, that Executive may own, and exercise rights with respect to,
less than one percent of the equity of a publicly traded company. The “Non-Competition Period”
shall be a period of twelve months following termination of employment.

     Executive and the Company are of the belief that the period of time and the area herein
specified are reasonable in view of the nature of the business in which the Company is engaged and
proposes to engage, the state of its business development and Executive’s knowledge of this
business; however, if such period or such area should be adjudged unreasonable in any judicial
proceeding, then the period of time shall be reduced by such number of months or such area shall be
reduced by elimination of such portion of such area, or both, as are deemed unreasonable, so that
this covenant may be enforced in such area and during such period of time as is adjudged to be
reasonable.

     13. Non-Solicitation Agreement. Executive agrees and covenants that he will not, unless
acting with the Company’s express written consent, directly or indirectly, during the Term of this
Agreement or during the Non-Competition Period (as defined in Section 12 above) solicit, entice or
attempt to entice away or interfere in any manner with the Company’s relationships or proposed
relationships with any customer, officer, employee, consultant, proposed customer, vendor,
supplier, proposed vendor or supplier or person or entity or person providing or proposed to
provide research and/or development services to, on behalf of or with the Company.

     14. Notices. All notices and other communications hereunder shall be in writing and shall be
deemed to have been given on actual receipt after having been delivered by hand, mailed by first
class mail, postage prepaid, or sent by Federal Express or similar overnight delivery services, as
follows: (a) if to Executive, at the address shown at the head of this Agreement, or to such other
person(s) or address(es) as Executive shall have furnished to the Company in writing and, if to the
Company, to it at the address set forth in the preamble hereto with a copy to Jennifer L. Miller,
Esq., Ballard Spahr Andrews & Ingersoll, LLP, 1735 Market Street, 51st Floor,
Philadelphia, Pennsylvania 19103, or to such other person(s) or address(es) as the Company shall
have furnished to Executive in writing.

     15. Assignability. In the event of a change of control (as defined in the Company’s Change of
Control Severance Benefit Plan), the terms of this Agreement shall inure to the benefit of, and be
assumed by, the successor to the Company or the acquiring person in such change in control
transaction. This Agreement shall not be assignable by Executive, but it shall be binding upon,
and to the extent provided in Section 8 shall inure to the benefit of, his heirs, executors,
administrators and legal representatives.

     16. Entire Agreement. This Agreement contains the entire agreement between the Company and
Executive with respect to the subject matter hereof and there have been no oral or other prior
agreements of any kind whatsoever as a condition precedent or inducement to the signing of this
Agreement or otherwise concerning this Agreement or the subject matter hereof. Notwithstanding the
foregoing, Executive acknowledges that he is required as a condition to continued employment, to
comply at all times, with the Company’s policies affecting employees, including the Company’s
published Code of Ethics, as in effect from time to time. Executive further acknowledges that the
Non-Disclosure, Proprietary Information and Invention
Assignment Agreement he signed upon becoming
an employee or thereafter remains in full force and effect despite the execution of this Agreement
and any changes in his employment status with the Company.

6

 

     17. Equitable Relief. Executive recognizes and agrees that the Company’s remedy at law for
any breach of the provisions of Sections 10, 11, 12 or 13 hereof would be inadequate, and he agrees
that for breach of such provisions, the Company shall, in addition to such other remedies as may be
available to it at law or in equity or as provided in this Agreement, be entitled to injunctive
relief and to enforce its rights by an action for specific performance. Should Executive engage in
any activities prohibited by this Agreement, he agrees to pay over to the Company all compensation,
remuneration or monies or property of any sort received in connection with such activities; such
payment shall not impair any rights or remedies of the Company or obligations or liabilities of
Executive which such parties may have under this Agreement or applicable law.

     18. Amendments. This Agreement may not be amended, nor shall any change, waiver,
modification, consent or discharge be effected except by written instrument executed by the Company
and Executive.

     19. Severability. If any part of any term or provision of this Agreement shall be held or
deemed to be invalid, inoperative or unenforceable to any extent by a court of competent
jurisdiction, such circumstances shall in no way affect any other term or provision of this
Agreement, the application of such term or provision in any other circumstances, or the validity or
enforceability of this Agreement. Executive agrees that the restrictions set forth in Sections 11
and 12 above (including, but not limited to, the geographical scope and time period of
restrictions) are fair and reasonable and are reasonably required for the protection of the
interests of the Company and its affiliates. In the event that any provision of Section 12 or 13
relating to time period and/or areas of restriction shall be declared by a court of competent
jurisdiction to exceed the maximum time period or areas such court deems reasonable and
enforceable, said time period and/or areas of restriction shall be deemed to become and thereafter
be the maximum time period and/or areas which such court deems reasonable and enforceable.

     20. Paragraph Headings. The paragraph headings used in this Agreement are included solely for
convenience and shall not affect, or be used in connection with, the interpretation hereof.

     21. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the law of the State of Maryland, without regard to the principles of conflict of
laws thereof.

     22. Resolution of Disputes. With the exception of proceedings for equitable relief brought
pursuant to Section 17 of this Agreement, any disputes arising under or in connection with this
Agreement including, without limitation, any assertion by any party hereto that the other party has
breached any provision of this Agreement, shall be resolved by arbitration, to be conducted in
Baltimore, Maryland, in accordance with the rules and procedures of the American Arbitration
Association. The parties shall bear equally the cost of such arbitration, excluding attorneys’
fees and disbursements which shall be borne solely by the party incurring the same; provided,
however, that if the arbitrator rules in favor of the Executive on at least one material component
of the dispute, Company shall be solely responsible for the payment of all costs, fees and expenses
(including without limitation Executive’s reasonable attorney’s fees and
disbursements) of such
arbitration. The Company shall reimburse Executive for any such fees and expenses) incurred by
Executive in any calendar year within a reasonable time following Executive’s submission of a
request for such reimbursement, which in no case shall be later than the end of the calendar year
following the calendar year in which such expenses were

7

 

incurred. Executive shall submit any such reimbursement request no later than the June
30th next following the calendar year in which the fees and expenses are incurred. In
the event the arbitrator rules against Executive, Executive shall repay the Company the amount of
such reimbursed expenses no later than 180 days following the date as of which such arbitrator’s
decision becomes final. The provisions of this Section 22 shall survive the termination for any
reason of the Term (whether such termination is by the Company, by Executive or upon the expiration
of the Term).

     23. Indemnification; Insurance. The Executive shall be entitled to liability and expense
indemnification, advancement of expenses and reimbursement to the fullest extent permitted by the
Company’s current By-laws and Certificate of Incorporation, whether or not the same are
subsequently amended. During the Term, the Company will use commercially reasonable efforts to
maintain in effect directors’ and officers’ liability insurance no less favorable to Executive than
that in effect as of the date of this Agreement.

     24. Survival. Sections 8 through 23 shall survive the expiration or earlier termination of
this Agreement, for the period and to the extent specified therein.

     IN WITNESS WHEREOF, the parties have executed or caused to be executed under seal this
Agreement as of the date first above written.

	 	 	 	 	 
		NOVAVAX, INC.

 	 
	[SEAL]	 	 
	 	By:  	/s/ Rahul Singhvi
 	 
	 	 	Name:  	Rahul Singhvi 	 
	 	 	Title:  	President & Chief Executive Officer 	 
	 
	 
	 	Executive:

 	 
	 	/s/ Frederick W. Driscoll
 	 
	 	Frederick W.  Driscoll 	 
	 	 	 
	 

8

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