Document:

Exhibit 10.1

 Exhibit 10.1 
 AGREEMENT 
 This Agreement is entered into this 10TH day of October, 2007, by and between Star Scientific, Inc., a Delaware Corporation with its principal place of business at 16 South Market Street, Petersburg,
Virginia 23803 (“Star Scientific”) and Christopher G. Miller, 603 Wellshire Place, Chester, Virginia 23836. 
 INTRODUCTION 
 WHEREAS, Christopher G. Miller has served as Chief Financial Officer, Treasurer and Assistant Secretary of
Star Scientific since 2000; and 
 WHEREAS, the Company and Mr. Miller have reached agreement to have Mr. Miller transition from
his executive positions with the Company and cease his employment with the Company, except for his continuing role as a consultant to the Company as set forth herein. 
 NOW THEREFORE, in consideration of the premises, covenants and undertaking set forth herein the Parties set forth their agreement with respect to the severance and other benefits to which the Parties have mutually
agreed. 
 AGREEMENT 
 1.
Upon execution of this Agreement, Mr. Miller will be deemed to have resigned his duties as Chief Financial Officer, Treasurer and Assistant Secretary of Star Scientific. Through November 9, 2007, Mr. Miller will continue to be an
employee of Star Scientific, Inc. and will continue to receive the same salary and benefits that he previously has been provided under his Executive Employment Agreement through the date of this Agreement. During the period from the date of this
Agreement through November 9, 2007, Mr. Miller will continue to provide services to Star Scientific consistent with the duties and obligations performed as Chief Financial Officer, including specifically assistance in the preparation of
Star Scientific’s Report on Form 10-Q for the Third Quarter 2007. Through November 9, 2007, Mr. Miller will continue to have the benefit of Star Scientific’s Directors and Officers Liability Insurance policies and, thereafter,
the benefits provided to former officers of Star Scientific under such policies. Mr. Miller’s status as an employee with Star Scientific, Inc. shall terminate as of the close of business on November 9, 2007. 
 2. Following the termination of his employment on November 9, 2007, Star Scientific agrees to pay to Mr. Miller, as severance, salary
continuation payments for the six month period ending on May 9, 2008, consistent with the terms of 

 
Mr. Miller’s Executive Employment Agreement relating to severance payments. The salary continuation payments will be calculated based on
Mr. Miller’s base compensation of $225,000 per year. The salary continuation payments will be paid in accordance with the Company’s customary payroll practices through March 9, 2008. On or before March 15, 2008, Star
Scientific will make a one time, lump sum payment for the remaining amount due to Mr. Miller for salary continuation payments under this Paragraph. In lieu of COBRA continuation health coverage or payment of any other health, life or disability
insurance, the Company agrees to pay Mr. Miller an additional amount of $1,666.66 per month for six months through May 9, 2008. The payments will be made monthly through March 9, 2008 and a final one time, lump sum payment will be
made on or before March 15, 2008. 
 3. During the one year period from November 9, 2007, Mr. Miller will be permitted
reasonable use of the office that he currently maintains at Star Scientific’s corporate offices at 16 S. Market Street, Petersburg, Virginia. Star Scientific agrees that Mr. Miller will be permitted to keep his computer provided to him by
the Company, docking station, hard disc backup, printer, desk, credenza and book shelves that are currently in the office space occupied by Mr. Miller. Promptly after his employment is terminated in accordance with Paragraph 1 above,
Mr. Miller will provide Star Scientific with any Company related materials on his computer or hard disc backup and delete any such documents from his computer and disc backup. 
 4. From November 9, 2007 until November 9, 2010, Star Scientific will retain Mr. Miller as a consultant and Mr. Miller agrees to
provide consulting services to Star Scientific at no charge and at reasonable times and upon reasonable notice. In no event during this period will Mr. Miller be required to devote more than nine hours during each quarterly period. Pursuant to
the terms of the Company’s 1998 Stock Option Plan, Mr. Miller has been granted an option to purchase 250,000 shares of the Company’s common stock (the “2000 Option”) which option terminates on October 10, 2010. Pursuant
to the Company’s 2000 Equity Incentive Plan, Mr. Miller has been granted an option to purchase 50,000 shares of the Company’s common stock (the “2001 Option”) which option terminates on March 15, 2011. In accordance
with the provisions of the Company’s Stock Option Plans and Mr. Miller’s agreement to continue to act as a consultant to the Company through November 9, 2010, the period during which Mr. Miller will be eligible to exercise
the 2000 Option and the 2001 Option will be as follows: (i) as to the 2000 Option, until October 10, 2010 or, in the event of Mr. Miller’s death prior to that date, by his estate during the earlier of the one-year period
following his death or October 10, 2010; and (ii) as to the 2001 Option, until February 7, 2011 (90 days after the termination of the consulting arrangement) or, in the event of Mr. Miller’s death prior to that date, by his
estate during the earlier of the one-year period following his death or February 7, 2011. 
 5. Star Scientific agrees to reimburse
Mr. Miller for the reasonable fees paid to his legal counsel to review this Agreement, with the understanding that the total obligation of the Company under this Paragraph shall not exceed $2,500. 

 6. Mr. Miller acknowledges and reaffirms the commitments he has made previously in his Executive
Employment Agreement to keep confidential all trade secrets and commercially sensitive information and not to compete with the Company for one year following the termination of his employment. Further, ten days prior to November 9, 2007
Mr. Miller will provide to Star Scientific an executed form of the Release attached hereto as Appendix “A”. If Mr. Miller fails to timely deliver an executed version of the Release to Star Scientific or if Mr. Miller
thereafter timely revokes the Release, then the obligations of Star Scientific under Paragraphs 2 through 5 of this Agreement shall terminate and be of no further force and effect. 
 7. Within four days of the execution of this Agreement, Star Scientific will issue a press release and 8-K confirming that Mr. Miller has resigned
his position as CFO, Treasurer and Assistant Secretary of Star Scientific, Inc. The parties have agreed upon the type of language that would appear in the press release and 8-K relating to Mr. Miller’s departure from the Company. Prior to
issuing the press release and filing the 8-K noted above, Star Scientific will provide Mr. Miller with a copy of the press release and 8-K for his review and comment, with the understanding that the 8-K will contain further required disclosure
with respect to the terms of this Agreement. 
 8. Star Scientific’s Officers and Directors know of no improper actions or conduct by
Mr. Miller at any time during his employment by Star Scientific. The “Officer Indemnification Agreement” dated September 15, 2000 between Mr. Miller and Star Scientific remains in full force and effect. For purposes of the
notice provision in the Officer Indemnification Agreement, the addresses set forth on the first page of this Agreement shall constitute the correct and updated addresses for any required notice. 
 9. This Agreement contains the entire and only agreement between the parties with respect to Mr. Miller’s termination as an employee of Star
Scientific and any oral or written representations or assurances regarding Mr. Miller’s termination as an employee of Star Scientific other than those contained or referenced in this Agreement shall have no force and effect. This Agreement
may only be modified by a written agreement signed by both parties. 

 In witness whereof the parties hereto have executed this Agreement as of the date first written above.

  

			
	 /s/ Christopher G. Miller

	Christopher G. Miller
	
	STAR SCIENTIFIC, INC.
		
	By:	 	 /s/ Paul L. Perito

		 	Paul L. Perito
		 	Chairman, President and COO

 General Release and Waiver 
 For and in consideration of the payments and other benefits due to Christopher G. Miller (the “Executive”) pursuant to the Employment
Agreement, dated as of March 15, 2001, (the “Employment Agreement”) and a further agreement dated September , 2007, by and between Star Scientific, Inc. (the “Company”) and the Executive, and for other good and
valuable consideration, the Executive hereby agrees, for the Executive, the Executive’s spouse and child or children (if any), the Executive’s heirs, beneficiaries, devisees, executors, administrators, attorneys, personal representatives,
successors and assigns, to forever release, discharge and covenant not to sue the Company, or any of its divisions, affiliates, subsidiaries, parents, branches, predecessors, successors, assigns, and, with respect to such entities, their officers,
directors, trustees, employees, agents, shareholders, administrators, general or limited partners, representatives, attorneys, insurers and fiduciaries, past, present and future (the “Released Parties”) from any and all claims of
any kind arising out of, or related to, his employment with the Company, its affiliates and subsidiaries (collectively, with the Company, the “Affiliated Entities”), the Executive’s separation from employment with the
Affiliated Entities, which the Executive now has or may have against the Released Parties, whether known or unknown to the Executive, by reason of facts which have occurred on or prior to the date that the Executive has signed this Release, except
for any contractual or statutory rights to indemnification to which Executive would be entitled to by virtue of his employment by the Company. Such released claims include, without limitation, any and all claims relating to the foregoing under
federal, state or local laws pertaining to employment, including, without limitation, the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. Section 2000e et. seq., the Fair
Labor Standards Act, as amended, 29 U.S.C. Section 201 et. seq., the Americans with Disabilities Act, as amended, 42 U.S.C. Section 12101 et. seq. the Reconstruction Era Civil Rights Act, as amended, 42 U.S.C.
Section 1981 et. seq., the Rehabilitation Act of 1973 , as amended, 29 U.S.C. Section 701 et. seq., the Family and Medical Leave Act of 1992, 29 U.S.C. Section 2601 et. seq., and any and all
state or local laws regarding employment discrimination and/or federal, state or local laws of any type or description regarding employment, including but not limited to any claims arising from or derivative of the Executive’s employment with
the Affiliated Entities, as well as any and all such claims under state contract or tort law. 
 The Executive has read this Release
carefully, acknowledges that the Executive has been given at least twenty-one (21) days to consider all of its terms and has been advised to consult with an attorney and any other advisors of the Executive’s choice prior to executing this
Release, and the Executive fully understands that by signing below the Executive is voluntarily giving up any right which the Executive may have to sue or bring any other claims against the Released Parties, including any rights and claims under the
Age Discrimination in Employment Act. The Executive also understands that the Executive has a period of seven (7) days after signing this Release within which to revoke his agreement, and that neither the Company nor any other person is
obligated to make any payments or provide any other benefits to the Executive pursuant to the 

 
Employment Agreement until eight (8) days have passed since the Executive’s signing of this Release without the Executive’s signature having
been revoked other than any accrued obligations or other benefits payable pursuant to the terms of the Company’s normal payroll practices or employee benefit plans. Finally, the Executive has not been forced or pressured in any manner
whatsoever to sign this Release, and the Executive agrees to all of its terms voluntarily. 
 Notwithstanding anything else herein to the
contrary, this Release shall not affect: (i) the Company’s obligations under any compensation or employee benefit plan, program or arrangement (including, without limitation, obligations to the Executive under any stock option, stock award
or agreements or obligations under any pension, deferred compensation or retention plan) provided by the Affiliated Entities where the Executive’s compensation or benefits are intended to continue or the Executive is to be provided with
compensation or benefits, in accordance with the express written terms of such plan, program or arrangement, beyond the date of the Executive’s termination; or (ii) rights to indemnification or liability insurance coverage the Executive
may have under the by-laws of the Company or applicable law. 
 This Release is final and binding and may not be changed or modified except
in a writing signed by both parties. 
  

							
	Date:                     	 		 	 /s/ Christopher G. Miller

		 		 	Christopher G. Miller
			
	Date:                     	 		 	Star Scientific, Inc.
				
		 		 	By:	 	 /s/ Paul L. Perito

		 		 		 	Paul L. Perito, Chairman,
		 		 		 	President and COOExhibit 10.2

 Exhibit 10.2 
 AGREEMENT 
 THIS AGREEMENT (this “Agreement”) is entered into as of October 10, 2007,
by and between STAR SCIENTIFIC, INC., a Delaware corporation (the “Company”) and Park A. Dodd, III (“Employee”). 
 RECITALS 
 A. The Company is engaged in the research, development, manufacturing and commercialization of less toxic
and potentially reduced-risk smokeless tobacco products, cessation products, and other allied consumer tobacco products. 
 B. Employee
has been engaged as an employee to Star Scientific since May, 2007. The Company wishes to have the continued benefit of Employee’s professional skills and services as the Company’s Chief Financial Officer (“CFO”) and to provide
Employee, in addition to his current salary, a Stock Option to purchase up to 250,000 shares of the Company’s Common Stock under its 2000 Equity Incentive Plan. 
 C. In his role as CFO, employee will have access to the Company’s most sensitive financial and commercial information and the Company wishes to take reasonable steps to protect this information.

 AGREEMENT 
 NOW,
THEREFORE, the parties hereto hereby agree as follows with respect to the issuance of a stock option to employee, the treatment of confidential information and Employee’s competition with the Company, if he cease to be an Employee. 

1. Stock Option. 
 (i) Stock
Option Grant. The parties acknowledge and agree that, as additional incentive, management will recommend and upon Board approval, the Company will grant to Executive a Stock Option (the “Option”) to purchase up to two-hundred and
fifty thousand (250,000) shares of Common Stock of the Company at fair market value as of the date of grant, pursuant to the Company’s standard form of stock option agreement under its 2000 Stock Option Plan (the “Plan”).

 (ii) Vesting. The Option shall vest and become exercisable on the following schedule.

  

			
	 Number of Shares
	  	 Date Vested

	 90,000
	  	October 10, 2007
	 80,000
	  	October 10, 2008
	 80,000
	  	October 10, 2009

 (iii) Other Option Terms. All other terms of the Option shall be determined in
accordance with the Plan and the Company’s standard Stock Option Agreement. 
 2. Restriction on Competition. 

(a) Covenant Not to Compete. The parties acknowledge that the Company is placing Employee in a position of great trust, responsibility,
and as a result, that Employee will be exposed to the Company’s most sensitive commercial and proprietary information. The parties also recognize and acknowledge that by virtue of his position, Employee will come to be identified closely with
the Company in the business and industries in which the Company operates. Employee further acknowledges that the Company’s interests in protecting its confidential information and its relationships are both significant and difficult to quantify
economically. Therefore, Employee agrees that for a period of twelve (12) months from the termination of his employment, Employee shall not, without the prior written consent of the Company, either directly or indirectly, for himself or on
behalf of or in conjunction with any other Person (i) own, manage, operate, control, be employed by, participate in, render services to, or be associated in any manner with the ownership, management, operation or control of, any business
similar to the type of business conducted by the Company or any of its Affiliates within any of the geographic territories in which the Company or any of its Affiliates conducts business, (ii) solicit business of the same or similar type being
carried on by the Company or any of its Affiliates from any Person or entity known by Employee to be a customer of the Company or any of its Affiliates, whether or not Employee had personal contact with such Person or entity during and by reason of
Employee’s employment with the Company, or (iii) solicit any employee or contractor of the Company to terminate that relationship or endeavor or attempt in any way to interfere with or induce a breach of any contractual relationship that
the Company or any of its Affiliates may have with any employee, customer, contractor, supplier, representative or distributor. 
 (b)
No Breach for Activities Deemed Not Competitive. It is further agreed that, in the event that Employee shall cease to be employed by the Company and enter into a business or pursue other activities that, at such time, are not in
competition with the Company or any of its Affiliates, Employee shall not be chargeable with a 

 
violation of this Section if the Company subsequently enters the same (or a similar) competitive business or activity. 
 (c) Fair and Reasonable. Employee has carefully read and considered the provisions of this Section and, having done so, agrees that the
restrictive covenants in this Section impose a fair and reasonable restraint on Employee, are reasonably required to protect the interests of the Company, its Affiliates and their respective officers, directors, employees and stockholders and
that the provisions would not unduly restrict his ability to make an adequate living following the termination of his employment with the Company. It is further agreed that the Company and Employee intend that such covenants be construed and
enforced in accordance with the changing activities, business and locations of the Company throughout the term of these covenants. 
 3.
Confidential Information. 
 (a) Confidential Information. Employee hereby agrees to hold in strict confidence and
not to disclose to any third party any of the confidential and proprietary business, financial, technical, economic, sales and/or other types of proprietary business information relating to the Company or any of its Affiliates (including all trade
secrets) in whatever form, whether oral, written, or electronic (collectively, the “Confidential Information”), to which Employee has, or is given (or has had or been given), access during the course of his employment with the Company. It
is agreed that the Confidential Information is confidential and proprietary to the Company because such Confidential Information encompasses technical know-how, trade secrets, or technical, financial, organizational, sales or other valuable aspects
of the business and trade of the Company or its Affiliates, including without limitation, technologies, products, processes, plans, clients, personnel, operations and business activities. This restriction shall not apply to any Confidential
Information that (a) becomes known generally to the public through no fault of the Employee, (b) is required by applicable law, legal process, or any order or mandate of a court or other governmental authority to be disclosed, or
(c) is reasonably believed by Employee, based upon the advice of legal counsel, to be required to be disclosed in defense of a lawsuit or other legal or administrative action brought against Employee; provided, however, that in the case
of clause (b) or (c), Employee shall give the Company reasonable advance written notice of the Confidential Information intended to be disclosed and the reasons and circumstances surrounding such disclosure, in order to permit the Company to
seek a protective order or other appropriate request for confidential treatment of the applicable Confidential Information. 
 (b)
Return of Company Property. In the event of termination of Employee’s employment with the Company for whatever reason or no reason, (a) Employee agrees not to copy, make known, disclose or use, any of the Confidential
Information without the Company’s prior written consent, and (b) Employee or Employee’s personal representative shall return to the Company (i) all Confidential 

 
Information, (ii) all other records, designs, patents, patent applications, business plans, financial statements, manuals, memoranda, lists,
correspondence, reports, records, charts, advertising materials and other data or property delivered to or compiled by Employee by or on behalf of the Company or its respective representatives, vendors or customers that pertain to the business of
the Company or any of its Affiliates, whether in paper, electronic or other form, and (iii) all keys, credit cards, vehicles and other property of the Company. Employee shall not retain or cause to be retained any copies of the foregoing.
Employee hereby agrees that all of the foregoing shall be and remain the property of the Company and the applicable Affiliates and be subject at all times to their discretion and control. 
 4. Representation. Employee acknowledges that he (a) has reviewed this Agreement in its entirety, and/or (b) has had an
opportunity to obtain the advice of separate legal counsel prior to executing this Agreement, and (c) fully understands all provisions of this Agreement. 
 5. Governing Law and Governing Venue. Any or all disputes, disagreements, or litigation relating to or under terms of this Agreement, shall be litigated in the Commonwealth of Virginia. In order to
effectuate this provision, the parties expressly consent to personal jurisdiction in Virginia and to a Virginia venue. This Agreement shall in all respects be construed according to the substantive laws of the Commonwealth of Virginia, without
regard to its conflict of laws principles. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

							
	COMPANY	 	EMPLOYEE:
		
	STAR SCIENTIFIC, INC.	 	
			
	 By
	 	  
	 	  

	(Signature)	 	(Signature)
		
	Paul L. Perito, Chairman, President and Chief Operating Officer	 	Park A. Dodd, III
	7475 Wisconsin Avenue	 	1 Foxmere
	Suite 850	 	Richmond, VA 23238
	Bethesda, Maryland 20814

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