Document:

exv10w1

 

Exhibit 10.1

EMPLOYMENT SEPARATION AGREEMENT

AND GENERAL RELEASE

     This Employment Separation Agreement and General Release (“Separation Agreement”) is entered
into by and between Judith Hemberger, Ph.D. (Dr. Hemberger), an individual, and Pharmion
Corporation (“Pharmion” or “Company”), and shall become effective on the Effective Date as defined
in Section 18 below. Dr. Hemberger and Pharmion may be collectively referred to herein as the
“Parties.”

RECITALS

     A. Dr. Hemberger has been employed by Pharmion since January 1, 2000 as Executive Vice
President and Chief Operating Officer and, since that date, has served as a member of the board of
directors of the Company (the “Board”).

     B. Dr. Hemberger and Pharmion are also parties to an employment agreement dated January 1,
2000 and amended March 1, 2004.(the “Employment Agreement”).

     C. In conjunction with entering into the Employment Agreement, Dr. Hemberger also entered into
and agreed to comply with the Confidential Information and Invention Assignment Agreement which is
attached to the Employment Agreement as Attachment A (the “Confidential Information Agreement”).

     D. The Parties have mutually determined that Dr. Hemberger shall resign from her position of
employment with Pharmion and her position as member of the Board effective April 1, 2006. While
neither Dr. Hemberger nor Pharmion believes that there are any disputes or legal issues arising out
of Dr. Hemberger’s resignation, they wish to ensure that their separation is completely amicable
and free from the uncertainty that potential legal claims might create.

     E. Pharmion is willing to provide Dr. Hemberger with certain severance benefits in
consideration for her release of any and all claims she may have against Pharmion. Dr. Hemberger
is willing to release any and all claims that she may have against Pharmion in consideration of her
receipt of certain severance benefits. The Parties are thus entering into this Separation
Agreement to formalize the terms of the agreement between the Parties concerning the release of
claims and the payment of severance benefits.

COVENANTS

     In consideration of the mutual covenants and promises set forth in this Separation Agreement,
including Dr. Hemberger’s release of claims, the Parties agree as follows:

 

 

     1. Termination of Employment Relationship. Dr. Hemberger’s employment relationship
with Pharmion and membership on the Board terminated effective as of April 1, 2006 (the “Separation
Date”). Dr. Hemberger acknowledges that she has received payment of all wages and compensation,
including payment of accrued vacation benefits, if any, that she earned up through the Separation
Date.

     2. Severance Benefits. As part of the consideration for the mutual covenants and
promises contained in this Separation Agreement, including Dr. Hemberger’s general release of
claims and covenant not to sue, Dr. Hemberger will be eligible to receive the following severance
benefits:

     a. Severance Pay. Dr. Hemberger will be eligible to receive severance pay
(“Severance Pay”) equivalent to 24 months of Dr. Hemberger’s monthly base compensation. The
Severance Pay will be subject to all required deductions and tax withholdings. The
Severance Pay will be paid in a lump sum payment to Dr. Hemberger no later than ten (10)
business days after the Effective Date of this Separation Agreement as defined in Section 18
below.

     b. COBRA Insurance Premiums. For purposes of the Consolidated Omnibus Budget
Reconciliation Act, the applicable COBRA period (typically 18 months) began on April 16,
2006. Pursuant to the terms and conditions of COBRA and Pharmion’s group medical, dental
and vision insurance plans, Dr. Hemberger may continue her participation in Pharmion’s
medical, dental and vision insurance plans for the applicable COBRA period by making
required COBRA payments. Dr. Hemberger acknowledges that Pharmion has provided her with a
COBRA notification setting forth her rights and responsibilities with respect to COBRA
coverage. As part of the consideration for the mutual covenants and promises contained in
this Separation Agreement, including Dr. Hemberger’s release of claims and promise not to
sue, should Dr. Hemberger timely elect to continue medical, dental and vision insurance
coverage pursuant to COBRA, Pharmion agrees to pay Dr. Hemberger’s COBRA monthly premiums
for such coverage for the period beginning April 16, 2006 and ending October 15, 2007.
Pharmion will make the COBRA premium payments directly to the COBRA administrator.
Notwithstanding the foregoing, Pharmion’s obligation to pay COBRA premiums on behalf of Dr.
Hemberger shall terminate immediately upon Dr. Hemberger becoming eligible for comparable
insurance benefits provided through a new employer.

     c. Outplacement Assistance. Pharmion will pay the fee associated with Dr.
Hemberger’s participation in a six month long outplacement assistance program to be provided
by Right Management Consultants.

     3. Stock Options. The stock options that were granted to Dr. Hemberger by Pharmion
under the Pharmion Corporation 2000 Stock Incentive Plan shall continue to be governed and
controlled by the terms and conditions of the various stock option agreements under which Dr.
Hemberger’s stock options were granted and the Pharmion Corporation 2000 Stock Incentive Plan.

2

 

     4. Dr. Hemberger’s General Release and Covenant Not to Sue. Dr. Hemberger, for
herself, her heirs and assigns, does hereby release and discharge Pharmion and its present, past
and future subsidiaries, divisions, parent and affiliated companies, and their respective
shareholders, directors, officers, employees, agents, insurers and attorneys (collectively referred
to hereafter as the “Pharmion Released Parties”), of and from, and promises not to sue or assert
against the Pharmion Released Parties, for any purpose, all claims, causes of action, damages,
losses, liabilities and demands whatsoever including, but not limited to, any claim arising from or
related to Dr. Hemberger’s employment with Pharmion and the termination of such employment;
provided, however, nothing herein shall be deemed to release Pharmion from its obligations under
Delaware law and its By-Laws to defend and indemnify Dr. Hemberger from costs, claims and
liabilities as a result of her service as a director, officer and employee of Pharmion. This
release includes, but is not limited to, all matters which may arise under common law or under
federal, state, or local laws, including, but not limited to, all claims based upon or relating to
the Employment Agreement and all claims arising under the Age Discrimination in Employment Act, as
amended, 29 U.S.C. §§ 621, et seq. (“ADEA”), Title VII of the Civil Rights Act of 1964, as amended,
the Civil Rights Act of 1991, and the Americans with Disabilities Act of 1990. Dr. Hemberger
understands and agrees that her release of claims under this Separation Agreement extends to all
claims of every nature and kind, known and unknown, suspected or unsuspected, presently existing or
which may arise in the future caused by or resulting from or attributable to any act or omission of
the Pharmion Released Parties occurring prior to Dr. Hemberger’s execution of this Separation
Agreement. Pharmion understands and agrees that Dr. Hemberger is not waiving any right or claim
which may arise after the date she executes this Separation Agreement which is based upon any act
or omission of Pharmion or the Pharmion Released Parties occurring after her execution of this
Separation Agreement.

     5. Dr. Hemberger’s Acknowledgment Concerning Release of ADEA Claims. Dr. Hemberger
expressly acknowledges and agrees that, by entering into this Separation Agreement, she is waiving
any and all rights or claims that she may have under the Age Discrimination in Employment Act of
1967 (“ADEA”), as amended, which have arisen on or before the date of her execution of this
Separation Agreement. Dr. Hemberger further expressly acknowledges and agrees that:

     a. In exchange for Dr. Hemberger’s waiver of any and all rights or claims under the
ADEA arising on or before the date of her execution of this Separation Agreement, she will
receive consideration in addition to any consideration which she was already entitled to
receive before executing this Separation Agreement;

     b. With the advice of the Company, Dr. Hemberger has had a reasonable opportunity to
consult with an attorney of her choice and at her expense prior to her execution of this
Separation Agreement;

     c. A copy of this Separation Agreement was delivered to Dr. Hemberger on or before
April 1, 2006 and she was informed in writing by this Separation Agreement that she has
twenty-one (21) days within which to consider the Separation Agreement;

3

 

     d. If Dr. Hemberger executes this Separation Agreement prior to the expiration of the
21-day period mentioned above, she voluntarily does so thereby waiving the 21-day period;
and

     e. Dr. Hemberger was informed that she has seven (7) days following her execution of
this Separation Agreement in which to revoke the Separation Agreement.

     6. Continuing Obligations Under the Confidential Information Agreement.

     a. Dr. Hemberger understands and agrees that notwithstanding the termination of her
employment relationship with Pharmion, she remains subject to the terms and conditions of
the Confidential Information Agreement and agrees to comply in all respects with her
obligations under the Confidential Information Agreement.

     b. Notwithstanding any provisions in this Separation Agreement to the contrary,
Pharmion’s obligation to provide the severance benefits specified in Section 2 above
(including the Severance Pay, payment of Dr. Hemberger’s COBRA premiums, and payment of the
fee associated with Dr. Hemberger’s participation in the outplacement assistance program),
and Dr. Hemberger’s right to receive such severance benefits shall cease and be rendered a
nullity immediately should Dr. Hemberger fail to comply in all respects with her obligations
under this Separation Agreement or her obligations under the Confidential Information
Agreement.

     7. Return of Pharmion Property; Termination Certification. Dr. Hemberger represents
and affirms that she has returned to Pharmion all Pharmion property in her possession or control
including, but not limited to, such items as corporate credit cards, keys, equipment on loan,
files, documents, computer hardware and software, computer accessories, manuals, notebooks, and all
other corporate property belonging to Pharmion. Dr. Hemberger further represents and affirms that
she has accurately completed and returned to Pharmion the Termination Certification, which is
attached as Exhibit B to the Confidential Information Agreement.

     8. Non-Disparagement. In consideration for the covenants and promises contained in
this Separation Agreement, Dr. Hemberger agrees not to disparage or otherwise make negative
statements or comments about or relating to Pharmion, the Pharmion Released Parties, or Pharmion’s
products and services.

     9. Confidentiality. Dr. Hemberger agrees that the terms and conditions of this
Separation Agreement shall remain confidential as between the Parties. With the exception of her
legal and financial advisors and family members, each of whom shall be advised of and be required
to adhere to this Separation Agreement’s confidentiality requirement, and except as required by
legal process or a legal obligation to give testimony, and except as necessary to enforce one or
more terms of this Separation Agreement, Dr. Hemberger shall not disclose the terms and conditions
of this Separation Agreement to any person. Without limiting the generality of the foregoing, Dr.
Hemberger specifically agrees that she shall not disclose any information regarding this Separation
Agreement to any current, former or future employee of Pharmion without first obtaining Pharmion’s
written consent.

4

 

     10. Opportunity to Review and Consider Separation Agreement. Dr. Hemberger
acknowledges that a copy of this Separation Agreement was delivered to her on or before April 1,
2006, and that she has been given a period of 21 calendar days to review, analyze and consider this
Separation Agreement before signing it. Dr. Hemberger further acknowledges that he/she understands
this Separation Agreement in its entirety.

     11. Right to Revoke Separation Agreement. Dr. Hemberger may revoke this Separation
Agreement, and, in particular, may revoke her waiver of any and all rights or claims under the ADEA
arising on or before the date of her execution of this Separation Agreement, during the seven (7)
days following her execution of this Separation Agreement. Any revocation of this Separation
Agreement must be in writing and hand-delivered (or delivered via certified mail) during the
revocation period to Pam Herriott, Vice President Human Resources, Pharmion Corporation. 

     12. Entire Agreement; Counterparts; Facsimile Signatures. This Separation Agreement,
and the attached Confidential Information Agreement, constitute and continue the entire agreement
and understanding between the Parties concerning Dr. Hemberger’s employment with Pharmion, the
termination of such employment, and the other subjects addressed herein. This Separation Agreement
may not be modified or terminated by Dr. Hemberger or Pharmion unless both Dr. Hemberger and
Pharmion execute a subsequent written agreement terminating or modifying this Separation Agreement.
This Separation Agreement may be executed in counterparts, each of which shall be deemed an
original instrument, but all of which taken together will constitute a complete instrument.
Signatures by facsimile will be deemed to be original signatures for all purposes.

     13. Severability. If any provision of this Separation Agreement or any application
thereof is held invalid, the invalidity shall not affect other provisions or applications of this
Separation Agreement which can be given effect without the invalid provision or application. To
this end, the provisions of this Separation Agreement are declared to be severable.

     14. Governing Law. This Separation Agreement and the rights and obligations of the
Parties hereunder shall be governed by and construed in accordance with the laws of the State of
Colorado.

     15. Arbitration of Disputes. Except for alleged violations of the Confidential
Information Agreement referred to in Section 6 above and Dr. Hemberger’s non-disparagement
obligation set forth in Section 8 above (which may be submitted to and resolved by any court of
proper jurisdiction), Dr. Hemberger and Pharmion agree that any controversy or claim arising out of
or relating to this Separation Agreement, or the breach thereof, shall be settled by final and
binding arbitration to be conducted privately and confidentially in the Boulder, Colorado
metropolitan area by a single arbitrator pursuant to the arbitration procedures set forth in the
Employment Dispute Resolution Rules of the American Arbitration Association. Dr. Hemberger and
Pharmion also agree that the fee charged by the arbitrator shall initially be split equally between
the Parties. The arbitrator’s award, which shall be in writing, shall be final and binding on the
Parties on all claims that were or could have been raised in the arbitration. Judgment upon

5

 

the award may be entered by any court having proper jurisdiction. As part of the award, the
arbitrator shall award the prevailing party her or its reasonable attorney’s fees and out-of-pocket
costs incurred in connection with the arbitration, including reimbursement of her or its share of
the arbitrator’s expenses, in addition to any other relief that may be awarded.

     16. Attorney’s Fees. Except to the extent inconsistent with the Confidential
Information Agreement or the arbitration provision set forth in Section 15 above, Dr. Hemberger and
Pharmion agree that the prevailing party in any dispute arising out of or relating to this
Separation Agreement shall be entitled to an award of her or its costs and expenses incurred in
such dispute, including her or its reasonable attorney’s fees in addition to any other relief to
which the party may be entitled. Such party shall also be awarded reasonable attorney’s fees,
court costs and other reasonable expenses incurred in collecting her or its judgment, including
appeals.

     17. Legal Advice. Dr. Hemberger acknowledges that she has been advised to consult
with an attorney of her own choice and at her own expense before executing this Separation
Agreement and that she has been given a reasonable opportunity to do so.

     18. Effective Date. The Effective Date of this Separation Agreement shall be the
eighth day after Dr. Hemberger signs and returns this Separation Agreement to Pharmion so long as
Dr. Hemberger does not exercise her right to revoke this Separation Agreement as set forth in
Section 11 above. In the event Dr. Hemberger fails to sign and return this Separation Agreement to
Pharmion on or before April 22, 2006, or revokes this Separation Agreement within 7 days after she
signs it, this Separation Agreement shall be null and void.

     DR. HEMBERGER HEREBY ACKNOWLEDGES THAT SHE HAS READ THIS SEPARATION AGREEMENT, THAT SHE FULLY
UNDERSTANDS ITS FINAL AND BINDING EFFECT, THAT THE ONLY PROMISES MADE TO HER TO SIGN THIS
SEPARATION AGREEMENT ARE THOSE STATED ABOVE, AND THAT SHE ISSIGNING THIS SEPARATION AGREEMENT
VOLUNTARILY.

	 	 	 	 	 
	 	Dr. Judith Hemberger

 	 
	Date: April 20, 2006 	/s/  Dr. Judith Hemberger
 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	PHARMION CORPORATION

 	 
	Date: April 28, 2006 	/s/   Patrick J. Mahaffy
 	 
	 	Patrick J. Mahaffy 	 
	 	President, and

Chief Executive Officer 	 
	 

6

 

ATTACHMENT A

 

 

PHARMION CORPORATION

CONFIDENTIAL INFORMATION AND

INVENTION ASSIGNMENT AGREEMENT

     As a condition of my becoming employed (or my employment being continued) by Pharmion
Corporation, a Delaware corporation or any of its current or future subsidiaries, affiliates,
successors or assigns (collectively, the “Company”), and in consideration of my employment
relationship with the Company and my receipt of the compensation now and hereafter paid to me by
the Company, I agree to the following:

     1. Employment Relationship. I understand and acknowledge that this Agreement does not
alter, amend or expand upon any rights I may have to continue in the employ of, or the duration of
my employment with, the Company under any existing agreements between the Company and me or under
applicable law. Any employment relationship between the Company and me, whether commenced prior to
or upon the date of this Agreement, shall be referred to herein as the “Relationship.”

     2. At-Will Relationship. I understand and acknowledge that my Relationship with the
Company is and shall continue to be at-will, as defined under applicable law, meaning that either I
or the Company may terminate the Relationship at any time for any reason or no reason, without
further obligation or liability.

     3. Confidential Information.

          (a) Company Information. I agree at all times during the term of my Relationship with
the Company and thereafter, to hold in strictest confidence, and not to use, except for the benefit
of the Company, or to disclose to any person, firm, corporation or other entity without written
authorization of the Board of Directors of the Company, any Confidential Information of the Company
which I obtain or create. I further agree not to make copies of such Confidential Information
except as authorized by the Company. I understand that “Confidential Information” means
any Company proprietary information, technical data, trade secrets or know-how, including, but not
limited to, research, product plans, products, services, suppliers, customer lists and customers
(including, but not limited to, customers of the Company on whom I called or with whom I became
acquainted during the Relationship), prices and costs, markets, software, developments, inventions,
laboratory notebooks, processes, formulas, technology, designs, drawings, engineering, hardware
configuration information, marketing, licenses, finances, budgets or other business information
disclosed to me by the Company either directly or indirectly in writing, orally or by drawings or
observation of parts or equipment or created by me during the period of the Relationship, whether
or not during working hours. I understand that “Confidential Information” includes, but is
not limited to, information pertaining to any aspects of the Company’s business which is either
information not known by actual or potential competitors of the Company or is proprietary
information of the Company or its customers or suppliers, whether of a technical nature or
otherwise. I further understand that Confidential Information does not include any of the
foregoing items which has become publicly and widely

 

 

known and made generally available through no wrongful act of mine or of others who were under
confidentiality obligations as to the item or items involved.

          (b) Former Employer Information. I represent that my performance of all terms of this
Agreement as an employee of the Company has not breached and will not breach any agreement to keep
in confidence proprietary information, knowledge or data acquired by me in confidence or trust
prior or subsequent to the commencement of my Relationship with the Company, and I will not
disclose to the Company, or induce the Company to use, any inventions, confidential or proprietary
information or material belonging to any previous employer or any other party.

          (c) Third Party Information. I recognize that the Company has received and in the
future will receive confidential or proprietary information from third parties subject to a duty on
the Company’s part to maintain the confidentiality of such information and to use it only for
certain limited purposes. I agree to hold all such confidential or proprietary information in the
strictest confidence and not to disclose it to any person, firm or corporation or to use it except
as necessary in carrying out my work for the Company consistent with the Company’s agreement with
such third party.

     4. Inventions.

          (a) Inventions Retained and Licensed. I have attached hereto, as Exhibit A, a
list describing with particularity all inventions, original works of authorship, developments,
improvements, and trade secrets which were made by me prior to the commencement of the Relationship
(collectively referred to as “Prior Inventions”), which belong solely to me or belong to me
jointly with another, which relate in any way to any of the Company’s proposed businesses, products
or research and development, and which are not assigned to the Company hereunder; or, if no such
list is attached, I represent that there are no such Prior Inventions. If, in the course of my
Relationship with the Company, I incorporate into a Company product, process or machine a Prior
Invention owned by me or in which I have an interest, the Company is hereby granted and shall have
a non-exclusive, royalty-free, irrevocable, perpetual, worldwide license (with the right to
sublicense) to make, have made, copy, modify, make derivative works of, use, sell and otherwise
distribute such Prior Invention as part of or in connection with such product, process or machine.

          (b) Assignment of Inventions. I agree that I will promptly make full written
disclosure to the Company, will hold in trust for the sole right and benefit of the Company, and
hereby assign to the Company, or its designee, all my right, title and interest throughout the
world in and to any and all inventions, original works of authorship, developments, concepts,
know-how, improvements or trade secrets, whether or not patentable or registrable under copyright
or similar laws, which I may solely or jointly conceive or develop or reduce to practice, or cause
to be conceived or developed or reduced to practice, during the period of time in which I am
employed by the Company (collectively referred to as “Inventions”). I further acknowledge
that all inventions, original works of authorship, developments, concepts, know-how, improvements
or trade secrets which are made by me (solely or jointly with others) within the scope of and
during the period of my Relationship with the Company are “works made for hire”

9

 

          (to the greatest extent permitted by applicable law) and are compensated by my salary, unless
regulated otherwise by the mandatory law of the state of Colorado.

          (c) Maintenance of Records. I agree to keep and maintain adequate and current written
records of all Inventions made by me (solely or jointly with others) during the term of my
Relationship with the Company. The records may be in the form of notes, sketches, drawings, flow
charts, electronic data or recordings, laboratory notebooks, and any other format. The records
will be available to and remain the sole property of the Company at all times. I agree not to
remove such records from the Company’s place of business except as expressly permitted by Company
policy which may, from time to time, be revised at the sole election of the Company for the purpose
of furthering the Company’s business.

          (d) Patent and Copyright Rights. I agree to assist the Company, or its designee, at
the Company’s expense, in every proper way to secure the Company’s rights in the Inventions and any
copyrights, patents, trademarks, mask work rights, moral rights, or other intellectual property
rights relating thereto in any and all countries, including the disclosure to the Company of all
pertinent information and data with respect thereto, the execution of all applications,
specifications, oaths, assignments, recordations, and all other instruments which the Company shall
deem necessary in order to apply for, obtain, maintain and transfer such rights and in order to
assign and convey to the Company, its successors, assigns and nominees the sole and exclusive
rights, title and interest in and to such Inventions, and any copyrights, patents, mask work rights
or other intellectual property rights relating thereto. I further agree that my obligation to
execute or cause to be executed, when it is in my power to do so, any such instrument or papers
shall continue after the termination of this Agreement until the expiration of the last such
intellectual property right to expire in any country of the world. If the Company is unable
because of my mental or physical incapacity or unavailability or for any other reason to secure my
signature to apply for or to pursue any application for any United States or foreign patents or
copyright registrations covering Inventions or original works of authorship assigned to the Company
as above, then I hereby irrevocably designate and appoint the Company and its duly authorized
officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to
execute and file any such applications and to do all other lawfully permitted acts to further the
application for, prosecution, issuance, maintenance or transfer of letters patent or copyright
registrations thereon with the same legal force and effect as if originally executed by me. I
hereby waive and irrevocably quitclaim to the Company any and all claims, of any nature whatsoever,
which I now or hereafter have for infringement of any and all proprietary rights assigned to the
Company.

     5. Returning Company Documents. I agree that, at the time of termination of my
Relationship with the Company, I will deliver to the Company (and will not keep in my possession,
recreate or deliver to anyone else) any and all devices, records, data, notes, reports, proposals,
lists, correspondence, specifications, drawings, blueprints, sketches, laboratory notebooks,
materials, flow charts, equipment, other documents or property, or reproductions of any
aforementioned items developed by me pursuant to the Relationship or otherwise belonging to the
Company, its successors or assigns. I further agree that to any property situated on the Company’s
premises and owned by the Company, including disks and other storage media, filing cabinets or
other work areas, is subject to inspection by Company personnel at any time with or

10

 

without notice. In the event of the termination of the Relationship, I agree to sign and
deliver the “Termination Certification” attached hereto as Exhibit B.

     6. Notification to Other Parties.

          (a) Employees. In the event that I leave the employ of the Company, I hereby consent
to notification by the Company to my new employer about my rights and obligations under this
Agreement.

          (b) Consultants. I hereby grant consent to notification by the Company to any other
parties besides the Company with whom I maintain a consulting relationship, including parties with
whom such relationship commences after the effective date of this Agreement, about my rights and
obligations under this Agreement.

     7. Solicitation of Employees, Consultants and Other Parties. I agree that during the
term of my Relationship with the Company, and for a period of twenty-four (24) months immediately
following the termination of my Relationship with the Company for any reason, whether with or
without cause, I shall not either directly or indirectly solicit, induce, recruit or encourage any
of the Company’s employees or consultants to terminate their relationship with the Company, or take
away such employees or consultants, or attempt to solicit, induce, recruit, encourage or take away
employees or consultants of the Company, either for myself or for any other person or entity.
Further, for a period of twenty-four (24) months following termination of my Relationship with the
Company for any reason, with or without cause, I shall not solicit any licensor to or customer of
the Company or licensee of the Company’s products, in each case, that are known to me, with respect
to any business, products or services that are competitive to the products or services offered by
the Company or under development as of the date of termination of my Relationship with the Company.

     8. Representations and Covenants.

          (a) Facilitation of Agreement. I agree to execute promptly any proper oath or verify
any proper document required to carry out the terms of this Agreement upon the Company’s written
request to do so.

          (b) Conflicts. I represent that my performance of all the terms of this Agreement
will not breach any agreement to keep in confidence proprietary information acquired by me in
confidence or in trust prior to commencement of my Relationship with the Company. I have not
entered into, and I agree I will not enter into, any oral or written agreement in conflict with any
of the provisions of this Agreement.

          (c) Voluntary Execution. I certify and acknowledge that I have carefully read all of
the provisions of this Agreement and that I understand and will fully and faithfully comply with
such provisions.

11

 

     9. General Provisions.

          (a) Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of Colorado, without giving effect to the
principles of conflict of laws.

          (b) Entire Agreement. This Agreement sets forth the entire agreement and
understanding between the Company and me relating to the subject matter herein and merges all prior
discussions between us. No modification or amendment to this Agreement, nor any waiver of any
rights under this Agreement, will be effective unless in writing signed by the party to be charged.
Any subsequent change or changes in my duties, obligations, rights or compensation will not affect
the validity or scope of this Agreement.

          (c) Severability. If one or more of the provisions in this Agreement are deemed void
by law, then the remaining provisions will continue in full force and effect.

          (d) Successors and Assigns. This Agreement will be binding upon my heirs, executors,
administrators and other legal representatives and will be for the benefit of the Company, its
successors, and its assigns.

          (e) Survival. The provisions of this Agreement shall survive the termination of the
Relationship and the assignment of this Agreement by the Company to any successor in interest or
other assignee.

          (f) ADVICE OF COUNSEL. I ACKNOWLEDGE THAT, IN EXECUTING THIS AGREEMENT, I HAVE HAD
THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL, AND I HAVE READ AND UNDERSTOOD ALL
OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT SHALL NOT BE CONSTRUED AGAINST ANY
PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF.

[Signature Page Follows]

12

 

     The parties have executed this Agreement on the respective dates set forth below:

	 	 	 	 	 	 	 
	COMPANY:	 	EMPLOYEE:
	 
	PHARMION CORPORATION	 	JUDITH HEMBERGER, an Individual:
	 
	/s/ Pam Herriott
	 	/s/ Judith Hemberger

	 	 	 
	Signature
	 	Signature

	 
	By:	 	Pam Herriott	 	Judith Hemberger
	 

	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Printed Name
	Title:

	 	VP, HR	 	 	 	 
	 

	 	 	 	 	 	 
	 
	Date:
	 	 	 	Date:	3-29-00	 
	 
	Address:

	 	4865 Riverbend Road
	 	Address:
	3117 W. 118 St.
	 

	 	Boulder, CO 80301	 	 	 	 
	 	 	 	 	               Leawood, KS 66211

 

 

EXHIBIT A

LIST OF PRIOR INVENTIONS

AND ORIGINAL WORKS OF AUTHORSHIP

EXCLUDED FROM SECTION 4

	 	 	 	 	 
	 	 	 	 	Identifying Number
	Title	 	Date	 	or Brief Description
	 

	 	 
	 	 

___ No inventions or improvements

___ Additional Sheets Attached

Signature of Employee:                                                         

Print Name of Employee:                                                         

Date:                                                         

 

 

EXHIBIT B

TERMINATION CERTIFICATION

     This is to certify that I do not have in my possession, nor have I failed to return, any
devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings,
blueprints, sketches, laboratory notebooks, flow charts, materials, equipment, other documents or
property, or copies or reproductions of any aforementioned items belonging to Pharmion Corporation,
its subsidiaries, affiliates, successors or assigns (together the “Company”).

     I further certify that I have complied with all the terms of the Company’s Confidential
Information and Invention Assignment Agreement signed by me, including the reporting of any
inventions and original works of authorship (as defined therein), conceived or made by me (solely
or jointly with others) covered by that agreement.

     I further agree that, in compliance with the Confidential Information and Invention Assignment
Agreement, I will preserve as confidential all trade secrets, confidential knowledge, data or other
proprietary information relating to products, processes, know-how, designs, formulas, developmental
or experimental work, computer programs, data bases, other original works of authorship, customer
lists, business plans, financial information or other subject matter pertaining to any business of
the Company or any of its employees, clients, consultants or licensees.

     I further agree that for twenty-four (24) months from the date of this Certificate, I shall
not either directly or indirectly solicit, induce, recruit or encourage any of the Company’s
employees or consultants to terminate their relationship with the Company, or take away such
employees or consultants, or attempt to solicit, induce, recruit, encourage or take away employees
or consultants of the Company, either for myself or for any other person or entity. Further, for a
period of twenty-four (24) months from the date of this Certificate, I shall not solicit any
licensor to or customer of the Company or licensee of the Company’s products, in each case, that
are known to me, with respect to any business, products or services that are competitive to the
products or services offered by the Company or under development as of the date of termination of
my Relationship with the Company.

Date:                                                    

	 	 	 	 	 
	 	 	 
	 	/s/  Judith Hemberger	 
	 	(Employee's Name) 	 
	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	Judith Hemberger	 
	 	(Type/Print Employee's Name)exv10w1

 

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”); effective as of December 1,
1999, by and between TBX Resources, Inc., a Texas corporation (the “Company”), with
offices at 12300 Ford Road, Suite 194, Dallas, Texas, 75234 and Timothy Burroughs,
(“Burroughs”), who resides at 9519 Windy Hollow, Valley Ranch, Texas 75063.

RECITALS

     WHEREAS, the Company is engaged in the business of exploring for, producing, and selling oil
and gas (the “Business”), with its principal Executive office in Dallas, Texas. For purposes of
this Agreement, the term “Company” shall include the Company, its subsidiaries, affiliates, and
assignees and any successors in interest of the Company and its subsidiaries and/or affiliates;

     WHEREAS, the Company desires to employ Burroughs and Burroughs desires to be employed by the
Company, on the terms set forth herein;

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

     1. Employment.

     1.1 Engagement of Employee. The Company agrees to employ Burroughs and
Burroughs agrees to accept employment as President of the Company, all in accordance
with the terms and conditions of this Agreement.

     1.2 Duties and Powers.

     a. During the Employment Period (as defined herein), Burroughs
shall serve as President of the Company, reporting directly to the Board
of Directors of the Company (the “Board”), and will have such
responsibilities, duties and authorities, and will render such services
of an administrative character, or act in such other capacity for the
Company as the Company’s Board of Directors (the “Board”) shall from
time to time direct. Burroughs shall devote his best efforts, energies
and abilities and his full business time, skill and attention (except
for permitted vacation periods and reasonable periods of illness or
other incapacity) to the Business and affairs of the Company.

     b. Burroughs acknowledges that his duties and responsibilities
will require his full-time business efforts and agrees that during he
Employment Period, he will not engage in any other business activity or
have any business pursuits or interests which interfere or conflict with
the performance of his duties hereunder or which compete with the
Company.

     1.3 Employment Period. Burroughs’ employment under this Agreement shall
begin on the date hereof and shall continue through and until the third anniversary of
the date hereof (the “Initial Period”) unless extended as provided in this Section 1.3
or terminated as provided in Section 1.4. The

 

Company may renew this Agreement for additional one (1) year periods (the
“Renewal Periods”) on terms that are mutually acceptable to Burroughs and the Company
at least ninety (90) days prior to the expiration of the Initial Period or any Renewal
Period. The Initial Period and the Renewal Period are collectively referred to herein
as the “Employment Period.” Notwithstanding anything to the contrary contained
herein, the Employment Period is subject to termination pursuant to Section 1.4 and
Section 1.5 below.

     1.4 Termination. The Company has the right to terminate Burroughs’
employment hereunder, by notice to Burroughs in writing at any time (i) for “Cause,”
(ii) without Cause for any or no reason, and (iii) due to the Disability of Burroughs.
Any such termination shall be effective upon the date of service of such notice
pursuant to Section 15. In addition, this Agreement shall terminate automatically
upon Burroughs’ death.

     “Cause”, as used herein, means the occurrence of any of the following events:

     a. the failure of Burroughs to perform his duties or comply
with reasonable directions of the Board;

     b. the determination by the Board in the exercise of its
reasonable judgment that Burroughs has committed an act or acts
constituting (i) a felony or other crime involving moral turpitude,
dishonesty or theft (ii) dishonesty or breach of duty with respect to
the Company; or (iii) fraud;

     c. the determination by the Board in the exercise of its
reasonable judgment that Burroughs has committed an act that (i)
negatively affects the Company’s business or reputation (including its
relationships with its customers, suppliers, or employees), or (ii)
indicates alcohol or drug abuse by Burroughs that adversely affects his
performance hereunder;

     d. a material breach by Burroughs of any of the terms and
conditions of the Agreement; or

     e. Burroughs’ gross negligence in performance of his duties
hereunder.

     Burroughs shall be deemed to have a “Disability” for purposes of this Agreement if he shall be
unable, by reason of illness or physical or mental incapacity or disability to perform his duties
hereunder, with or without reasonable accommodation by the Company, in substantially the manner and
to the extent required hereunder prior to the commencement of such Disability for a total period of
ninety (90) days in any one hundred eighty (180) day period.

     2. Compensation and Benefits

     2.1 Base Compensation. During the Employment Period, the Company will
pay Burroughs a base salary at a rate of $150,000 per annum (the “Base Salary”). The
Board shall perform an annual review of Burroughs’ Base Salary based on Burroughs’
performance of his duties and the Company’s other compensation policies.

     2.2 Bonuses. During the Employment Period, Burroughs shall be eligible
for bonuses of up to 10% of the transaction each time the Company completes a major
acquisition, funding, or financing. Any bonus shall be payable in TBX Common Stock or
cash, at the discretion of Burroughs.

     2.3 Options. At the inception of the Employment Period, Burroughs shall
receive stock options good for five years from the date of issuance to purchase up to
500,000 shares of the Company’s

 

common stock a year at a price which shall not be greater than 50% of the average
bid price for the shares during the previous quarter exercised.

     2.4 Benefits. In addition to the Base Salary, Burroughs will be
entitled to the following benefits during the Employment Period if offered by the
Company, unless otherwise altered by the Board with respect to all Executives of the
Company:

     a. hospitalization, disability, life and health insurance, to the
extent offered by the Company, and in amounts consistent with Company
policy, for all key management employees, as reasonably determined by
the Board;

     b. up to two (2) weeks paid vacation each year with salary,
consistent with Company policy for all senior employees and provided
that unused vacation time shall not be carried over to subsequent years;

     c. reimbursement for reasonable, ordinary and necessary
out-of-pocket expenses incurred by Burroughs in the performance of his
duties, subject to the Company’s policies in effect from time to time
with respect to travel, entertainment and other expenses, including,
without limitation, requirements with respect to reporting and
documentation of such expenses;

     d. a $500 a month car allowance;

     e. other benefit arrangements, including a 401(k) or similar tax
deferral plan, to the extent made generally available by the Company to
its Executives and key management employees.

     2.5 Compensation After Termination.

     a. If the Employment Period is terminated (i) by the Company for
Cause or due to the death or Disability of Burroughs, (ii) by Burroughs
or (iii) through expiration of the Employment Period, then the Company
shall have no further obligations hereunder or otherwise with respect to
Burroughs’ employment from and after the termination or expiration date
(except payment of Burroughs’ Base Salary accrued through the date of
termination or expiration and the Company shall continue to have all
other rights available hereunder (including, without limitation, all
rights under Section 3 hereof at law or in equity).

     b. If the Employment Period is terminated by the Company without
Cause, Burroughs shall be entitled to receive the payment of the Base
Salary through the remainder of the Initial Period or, at the option of
the Company, in lieu of such Base Salary a lump sum payment other
payments in a mutually agreeable amount. The Company shall have no
other obligations hereunder or otherwise with respect to Burroughs’
employment from and after the termination of his employment or
expiration of this Agreement, and the Company shall continue to have all
rights available hereunder (including, without limitation, all rights
under Sections 3, 4, 5 and 6 hereof, at law or in equity).

     2.6. Profit Sharing, Pension and Salary Deferral Benefits. It is
understood by the parties to this Agreement that, during the Employment Period,
Burroughs shall be entitled to participate in or accrue benefits under any pension,
salary deferral or profit sharing plan now existing or hereafter created for employees
of the Company upon terms and conditions equivalent to those which the Company may
provide for other senior Executive employees. The termination of this Agreement shall
not result in

 

forfeiting vested benefits such as pension or 401(k) plan benefits that have
vested in Burroughs as of the date of termination.

     3. Covenant Not to Compete.

     3.1 Burroughs’ Acknowledgment. Burroughs agrees and acknowledges that in
order to assure the Company that it will retain its value as a going concern, it is
necessary that Burroughs undertake not to utilize his knowledge of the Business and
his relationships with customers and suppliers to compete with the Company. Burroughs
further acknowledges that:

     a. the Company is and will be engaged in the Business;

     b. Burroughs occupies a position of trust and confidence with
the Company and, during employment under this Agreement, Burroughs will
be familiar with the Company’s trade secrets and with other proprietary
and confidential information concerning the Company;

     c. the agreements and covenants contained in this Section 3 are
essential to protect the Company and the goodwill of the Business; and

     d. Burroughs’ employment with the Company has special, unique and
extraordinary value to the Company and the Company would be irreparably
damaged if Burroughs were to provide services to any person or entity in
violation of the provisions of this Agreement.

     3.2 Competitive Activities. The following term has the following meaning
for the purposes of this Section 3.2:

     “Restricted Period” means the longer of: (i) the period during which Burroughs is
employed by the Company, or (ii) the period of twelve (12) months from and after the
date hereof.

     Burroughs hereby agrees that during the Restricted Period he will not, directly
or indirectly, as employee, agent, consultant, stockholder, director, co-partner or in
any other individual or representative capacity act as a competitor to the Company.
If in Burroughs sole discretion he believes a proposed activity could be construed as
competitive he will obtain a written waiver of said activity from the Company
specifying that the activity contemplated is non-competitive.

     3.3 Solicitation of Employees. Without limited the generality of the
provisions of Section 3.2 above, Burroughs hereby agrees that during the Restricted
Period he will not (except on behalf of the Company), directly or indirectly, solicit
or participate as employee, agent, consultant, stockholder, director, partner or in
any other individual or representative capacity in any business which solicits,
business from any person, firm, corporation or other entity which is or was a customer
or supplier of the Company during the term of this Agreement.

     4. Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original, but all of which taken together shall constitute one the same
Agreement.

     5. Descriptive Headings; Interpretation. The descriptive headings in this Agreement
are inserted for convenience of reference only, and are not intended to be part of or to affect the
meaning or interpretation of this Agreement. The use of the word “including” in this Agreement
shall be by way of example rather than by limitation.

     6. Notices. All notices, demands or other communications to be given or delivered
under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to
have been duly given if (i) delivered personally to

 

the recipient, (ii) sent to the recipient by reputable express courtier service (charges prepaid)
or mailed to the recipient by certified or registered mail, return receipt requested and postage
prepaid, or (iii) transmitted by telecopy to the recipient with a confirmation copy to follow the
next day to be delivered by overnight carrier. Such notices, demands and other communications
shall be sent to these addresses indicated below:

     If to Burroughs:

Timothy Burroughs

9519 Windy Hollow

Valley Ranch, Texas 75063

     If to the Company:

TBX Resources, Inc.

12300 Ford Road, Suite 265

Dallas, Texas 75234

     with a copy to:

Richard M. Hewitt, P.C.

Seven Village Circle

Suite 220

Westlake, Texas 76262

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

	 	 	 	 	 
	 	COMPANY:

TBX RESOURCES, INC.

 	 
	 	By:  	/s/ Tim Burroughs
 	 
	 	 	Timothy Burroughs, Director* 	 
	 	 	 	 
	 
	 	 	 
	 	     /s/ Christine Coley
 	 
	 	Christine Coley, Director* 	 
	 	 	 
	 
	 	EMPLOYEE:

 	 
	 	By:  	/s/ Tim Burroughs
 	 
	 	 	Timothy Burroughs 	 
	 	 	 	 
	 

 

*Being all the Directors of the Company.

 

EMPLOYMENT
AGREEMENT AMENDMENT

For

TIMOTHY P. BURROUGHS

     THIS EMPLOYMENT AGREEMENT AMENDMENT effective as of August 4, 2005, is by and between TBX
Resources, Inc., a Texas Corporation, (the “Company”), and Timothy P. Burroughs, (“Burroughs”).

     WHEREAS, the Company desires to amend the current and continuing Employment Agreement with
Burroughs, and;

     WHEREAS, the Company wishes to conform the Employment Agreement to meet the standards recently
initiated by the Sarbanes-Oxley act;

     THEREFORE, the Company is amending Paragraph 2.3 Options to continue the grant of
stock options good for five years, beginning with the current 2005 year, at an option price no
greater than 50% of the closing price for the shares as of the date of this Amendment. As
determined by the OTCBB, the closing price on August 4, 2005, is $0.14 per share.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Employment
Agreement of Timothy P. Burroughs as of the day and year first written above.

	 	 	 
	/s/ Tim P. Burroughs
	 	 
	 
	 	 
	 

TBX Resources, Inc.

	 	 
	Tim P. Burroughs, Director
	 	 
	 
	 	 
	/s/ Tim P. Burroughs
	 	 
	 
	 	 
	 

Employee

	 	 
	Timothy P. Burroughs

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]