Document:

exh_1034.htm

Exhibit 10.34

 

September 9, 2008

Mr. Brian Hanna

312 Laurinda Drive

Bentonville, AR 72712

Dear Brian:

I am very pleased to present this letter confirming our offer of employment to you as Chief Financial Officer, based in our corporate offices in Springdale Arkansas. As CFO, you will report to me and will be responsible for management oversight of all day to day financial functions of the Company. Along with the responsibilities that includes, your initial focus will include the following:

	
a.  

	
Reorganizing/ restaffing the accounting functions.

	
b.  

	
Implementing cash management systems.

	
c.  

	
Placing those systems in place that will consistently result in timely closing of monthly, quarterly and annual financial reports.

	
d.  

	
Implementation of system controls and information that will allow the management team to better run our business.

	
e.  

	
Focus on Timely reporting of SEC required documents.

	
f.  

	
Interfacing with investors and financial investment banks.

	
g.  

	
Development of a long term financial strategy.

Please not that these goals, along with all provisions of this offer must be kept absolutely confidential.

COMPENSATION

You will be paid an annual salary of $185,000 starting on your first day of employment. It will be paid according to the Company’s payroll program (Currently paid weekly on the second Monday following the work-week). Additionally, beginning with the fiscal year 2009, you will have the opportunity to earn a bonus of up to 100% of your salary through your achievement of the income and profitability targets established. 50% of the performance targets will be based upon achievement of Group goals. The remaining 50% will be based upon profitability and cash flow of the company. Your bonus is guaranteed to be at least 25% of your annual salary as long as the Company is profitable for the year.  Annual bonuses are paid on or about March 15 of each year following the end of the fiscal (calendar) year.

EQUITY OPPORTUNITY

You will have the opportunity to earn wealth to be granted 100,000 shares of stock each year for three years through the Company’s Key Associate and Management Equity Incentive Plan. You will be provided an initial grant of 100,000 shares within 30 days of your reporting to work. This initial grant will be subject to forfeiture until specified performance and other conditions are met. Future grants will similarly be based on your attainment of established performance objectives. There is a crediting  schedule within this plan of 25% per year over four years. Please also note that your participation in this program requires your signed commitment to the provisions of a Non-Compete and Nonsolicitation Agreement (Copy Attached for your review). Through appropriate revision of plan or other documents, it will be clarified that all granted shares vest should there be a change in ownership.

 

  

  

  

OTHER TERMS OF AGEEMENT

As part of this offer, we also agree to the following:

	
a.  

	
Within the first three years of your employment with AERT, should there be an ownership change of AERT, in addition to the immediate vesting of shares under the Key associate and Management Equity Incentive Plan, you will receive an additional 100,000 shares of stock. For purposes of this agreement, a change in ownership is defined as acquisition or merger or taking of the company private.

	
b.  

	
 Within the first three years of your employment with AERT, should your employment be terminated without cause (as defined below), AERT shall continue to pay you your monthly salary for the month in which your duties are terminated and eighteen months of pay based on your previous year’s annual salary and earned bonus. For the same eighteen month period, AERT will reimburse you the difference between the COBRA rate and the Associate rate for you to continue your medical/dental coverage through the company’s plan. Such action shall become effective upon written notice to you or such later time as may be specified in the notice of termination with a written reason being given for the termination. AERT agrees to provide you or your designated agent with sufficient evidence and access to its financial books and records to ascertain that any items of compensation due you as described in this paragraph are correctly paid. For the purposes of this paragraph, for cause includes:

	
i.  

	
Indictment or conviction of a crime involving willful dishonestly, fraud, theft or moral turpitude or that in the reasonable judgment of the Chief Executive Officer or Board of Directors has or could materially damage the reputation, goodwill or business opportunity of the company or would materially interfere with the performance of service by Hanna.

	
ii.  

	
The abuse of illegal drugs or the abuse of alcohol to the extent that it has an adverse effect on Hanna’s performance of his duties

	
iii.  

	
Gross nonfeasance of a material responsibility of Hanna as CFO

	
iv.  

	
Intentionally usurping of a business opportunity belonging to AER T for personal gain

	
v.  

	
The willful unauthorized disclosure of confidential information described  in paragraph 5 of the Non-Compete and Non-Solicitation Agreement

	
vi.  

	
Willful misconduct having a material adverse affect on AERT; No action or inaction is considered willful if it is done or omitted in good faith and with a reasonable belief that the action or omission was undertaken in the best interest of the company

	
vii.  

	
Insubordination defined as refusal to or failure to attempt in good faith to perform the CFO’s duties or to follow the written legal direction of the Chief Executive Officer, President or Board of Directors after in each case being given fifteen days written notice of such refusal or failure.

	
c.  

	
In the event of Hanna’s death, AERT shall pay his estate (or to another beneficiary designated in writing by him to AERT) the salary earned and payable, and the pro-rated incentive compensation, stock benefits and supplemental executive retirement plan contributions otherwise earned and payable, to Hanna until the end of the month in which his death occurs plus accumulated benefits to which he would otherwise be entitled such as accrued vacation.

 

  

  

  

BENEFITS

As a full time employee, you will be eligible to participate in the Company’s benefit package that includes:

	
1.  

	
Medical & Dental Insurance – Effective the first day of the month following employment

	
2.  

	
Company Paid Life Insurance through the standard AERT plan

	
3.  

	
Four Weeks of Paid Vacation

	
4.  

	
Participation in the Company’s 401(k) Retirement Savings Plan in accordance with established eligibility provisions of the plan.

As you know, our decision to hire you as CFO was not made lightly. With this step, you become a very important part of our future. At your earliest convenience, please sign and return one copy of this letter to confirm that you accept our employment offer and that you are not bound by any agreements, contracts or commitments which would in any way limit your performance and contributions in the responsibilities and position we are offering. Your signing this letter will also indicate that you understand you are an “at-will” employee and can terminate your employment at any time. Similarly AERT can also terminate your employment at any time. Please note that the offer contained in this letter will be effective for fourteen days and is contingent on the results of a drug screening you must complete as a prospective new employee.

  

  

  

This letter, in conjunction with the human resources policies of AERT, contains the complete understanding regarding your employment and supersedes any and all other agreements, whether oral or written. No amendment, modification, waiver or addition to it will be valid and binding unless it is in writing and signed by both you and myself. You can return the signed letter by scanning and e-mailing it to Tim Morrison at timmorrison@aert.cc or by faxing it to Tim Morrison at (479)756-7410.

_____________________________        09/19/08

             Brian Hanna                                           Date

Respectfully,

Tim Morrison,

President

cc:           Joe Brooks, Chief Executive Officer

Ed Carda, Chairman – Compensation Committee – Board of Directorsexhibit45.htm

EXHIBIT 4.5

 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE ISRAELI SECURITIES LAW, 5728-1968, AS AMENDED, THE U.S. SECURITIES ACT OF 1933, AS AMENDED OR UNDER ANY APPLICABLE U.S. STATE SECURITIES LAWS (COLLECTIVELY, THE “SECURITIES LAWS”). THEY MAY NOT BE OFFERED FOR SALE, SOLD, CONVEYED, TRANSFERRED, PLEDGED, GIFTED, ASSIGNED, ENCUMBERED OR OTHERWISE DISPOSED OF UNLESS (1) REGISTERED UNDER SUCH SECURITIES LAWS, OR (2) PURSUANT TO AVAILABLE EXEMPTIONS FROM REGISTRATION FROM SUCH SECURITIES LAWS AND THE RULES PROMULGATED THEREUNDER, PROVIDED THAT THE HOLDER DELIVERS TO THE COMPANY AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY, CONFIRMING THE AVAILABILITY OF SUCH EXEMPTION. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

BIOCANCELL THERAPEUTICS INC. WARRANT

 

 

To purchase

Shares of Common Stock (subject to adjustment) of

BIOCANCELL THERAPEUTICS INC. (the “Company”)

at a per share price and subject to the terms detailed below

VOID AFTER 17:00 p.m. Eastern Standard Time

on the last day of the Warrant Period (as defined below)

March __, 2010

THIS IS TO CERTIFY THAT ___________ (the “Holder”) is entitled to purchase from the Company up to ___________ (_______) fully paid and non-assessable Common Stock of the Company, nominal value US$.01 per share (the “Common Stock”), at an exercise price equal to NIS 4.25 (the “Exercise Price”), as may be adjusted hereunder, during the period commencing upon the date hereof and terminating upon the lapse of four (4) years following the closing date of the private placement in which this Warrant is issued) (the “Warrant Period”).

	
  

	
1.

	
EXERCISE OF WARRANT

 

 

	
1.1.

	
Cash Exercise of Warrant.  This Warrant may be exercised from time to time or at any time during the Warrant Period by presentation and surrender thereof to the Company at its principal office or at such other office or agency as it may designate from time to time, accompanied by:

 

 

	
  

	
1.1.1.

	
A duly executed notice of exercise, in the form attached hereto as Exhibit A (the “Exercise Notice”); and

 

 

	
  

	
1.1.2.

	
Payment to the Company, for the account of the Company, of the aggregate Exercise Price for the number of Warrant Shares specified in the applicable Exercise Notice, payable in immediately available funds by wire transfer to the Company's bank account or by banker’s check or by any other means of payment agreed upon between the Company and the Holder.

 

  

  

  

 

	
  

	
1.2.

	
Partial Exercise, Etc.  If this Warrant should be exercised in part only, the Company shall, upon surrender of this Warrant for cancellation, execute and deliver a new Warrant evidencing the rights of the Holder to purchase the balance of the Warrant Shares purchasable hereunder.

 

 

	
  

	
1.3.

	
Issuance of Warrant Shares Upon Cash Exercise.  Upon presentation and surrender of this Warrant accompanied by a duly executed Exercise Notice and the payment of the applicable aggregate Exercise Price pursuant to Section 1.1 above, the Company shall promptly (i) issue to the Holder the Warrant Shares to which the Holder is entitled; and (ii) deliver to the Holder the share certificate(s) evidencing such Warrant Shares. Upon receipt by the Company of this Warrant, the applicable Exercise Notice and the applicable aggregate Exercise Price, the Holder shall be deemed to be the holder of record of the Warrant Shares issuable upon such exercise, notwithstanding that the stock transfer books of the Company shall then be closed or that certificates representing such stock shall not then be actually delivered to the Holder.

 

 

	
  

	
1.4.

	
Fractional Shares.  No fractions of shares shall be issued in connection with the exercise of this Warrant, and the number of shares issued shall be rounded up to the nearest whole number.

 

 

	
  

	
1.5.

	
Taxes.  The Holder acknowledges that the grant of the Warrant, the issue of the Warrant Shares and the execution and/or performance of this Warrant may have tax consequences to the Holder and that the Company is not able to ensure or represent to the Holder the nature and extent of such tax consequences. The Company shall pay all of the applicable taxes and other charges payable by the Company in connection with the issuance of the Warrant Shares and the preparation and delivery of share certificates pursuant to this Section 1 in the name of the Holder (such as documentary stamp or similar issue or transfer taxes in respect of the issue or delivery of Common Sharess on exercise of this Warrant), but shall not pay any taxes payable by the Holder by virtue of the holding, issuance, exercise or sale of this Warrant or the Warrant Shares by the Holder and the Holder shall indemnify the Company, without derogating from the Holder’s obligation to pay such amounts, for any and all charges or payments as aforesaid, which may be deducted at source or set-off from any amounts payable to the Holder (including, without limitation, dividends, consideration for the sale of stock or from any other source), at the Company’s absolute and sole discretion, subject to applicable law.

 

 

	
  

	
1.6.

	
Additional Documents.  The Holder will sign any and all documents required by law, the Company’s ByLaws and/or any agreement to which the Company is a party or by which it bound, to facilitate the issuance of stock upon exercise of this Warrant.

 

 

	
  

	
1.7.

	
Loss or Destruction of Warrant.  Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) of reasonably expenses reimbursement and satisfactory indemnification, and upon surrender and cancellation of this Warrant, if mutilated, the Company will execute and deliver a new Warrant of like tenor and date.

 

-  -

  

  

  

 

	
  

	
2.

	
RESERVATION OF STOCK; preservation of rights of holder

 

 

	
  

	
2.1.

	
Reservation of Shares.  The Company hereby agrees that, at all times prior to the expiration or exercise of this Warrant, it will maintain and reserve, free from pre-emptive or similar rights, such number of authorized but unissued shares of Common Stock so that this Warrant may be exercised without additional authorization of Common Stock after giving effect to all other warrants, convertible securities and other rights to acquire shares of the Company.

 

 

	
  

	
2.2.

	
Preservation of Rights.  The Company will not, by amendment of its organizational documents or through reorganization, recapitalization, consolidation, merger, dissolution, transfer of assets, issue or sale of securities or any other voluntary act, avoid or seek to avoid the observance or performance of any of the covenants, stipulations, conditions or terms to be observed or performed hereunder, but will at all times in good faith assist in the carrying out of all the provisions hereof and in taking of all such actions and making all such adjustments as may be necessary or appropriate in order to fulfill the provisions hereof.

 

	
  

	
3.

	
ADJUSTMENT

 

 

	
  

	
3.1.

	
Adjustments.  The number of Warrant Shares purchasable upon the exercise of this Warrant and the payment of the Exercise Price shall be subject to adjustment from time to time or upon exercise as provided in this Section 3.

 

 

	
  

	
3.2.

	
In the event that during the Warrant Period the Company shall distribute a stock dividend or shares pursuant to a reclassification of its share capital to all of the stockholders of the Company (i.e., bonus shares) or issue rights, option or warrants for its Common Stock at below market price to all of the Company's stockholders, then this Warrant shall represent the right to acquire, in addition to the number of Warrant Shares indicated in the caption of this Warrant, the amount of such bonus shares and/or to receive the stock dividends and/or the rights, option or warrants for its Common Stock, without payment of any additional consideration therefor (excluding payment required upon actual exercise of such rights, options or warrants), to which the Holder would have been entitled had this Warrant been exercised prior to the distribution of the stock dividends or the bonus shares.

 

 

	
  

	
3.3.

	
Consolidation and Division.  In the event that during the Warrant Period the Company consolidates its share capital into stock of greater par value, or subdivides them into stock of lesser par value, then the number of Warrant Shares to be allotted on exercise of this Warrant after such consolidation or subdivision shall be reduced or increased accordingly, as the case may be, such increase or decrease, as the case may be, to become effective immediately after the opening of business on the day following the day upon which such subdivision or combination becomes effective, and in each case the Exercise Price shall be adjusted appropriately such that the aggregate consideration hereunder to the Company shall not change.

 

-  -

  

  

  

 

	
  

	
3.4.

	
Capital Reorganization.  In the event that during the Warrant Period a reorganization of the share capital of the Company is effected (other than subdivision, combination or reclassification provided for elsewhere in this Section 3) and the shares of Common Stock are exchanged for other securities of the Company, then, as part of such reorganization, provision shall be made so that the Holder shall be entitled to purchase upon exercise of this Warrant such kind and number of shares or other securities of the Company to which the Holder would have been entitled had this Warrant been exercised prior to such reorganization, and such that the aggregate consideration to the Company hereunder shall not change.

 

 

	
  

	
3.5.

	
Dividends. If at any time the Company shall distribute a dividend in liquidation or partial liquidation or by way of return of capital, or a dividend regardless of whether or not payable out of earnings or surplus legally available for dividends, the Exercise Price shall be reduced by an amount equal to the Dollar equivalent of the per-share distribution on the record date fixed for the purpose of such distribution.

 

	
  

	
4.

	
NOTICE OF ADJUSTMENTS

 

Whenever an adjustment pursuant to Section 3 above is effected, the Company shall promptly compute such adjustment and deliver to the Holder a certificate setting forth the number of Warrant Shares (or any other securities) for which this Warrant is exercisable and the Exercise Price as a result of such adjustment, a brief statement of the facts requiring such adjustment and the computation thereof and when such adjustment has or will become effective.

 

	
  

	
5.

	
RIGHTS OF THE HOLDER

 

The Holder acknowledges that the Warrant Shares shall be subject to such certain rights, privileges, restrictions and limitations as set forth in this Warrant and the Certificate of Incorporation or ByLaws of the Company, as may be amended from time to time, and that, as a result, inter alia, of such limitations, it may be difficult or impossible for the Holder to realize its investment and/or to sell or otherwise transfer the Warrant Shares. The Holder further acknowledges that the Warrant Shares are not listed for trading and therefore the sale and transfer thereof are subject to further limitations.  This Warrant shall not entitle the Holder, by virtue hereof, to any voting rights or other rights as a stockholder of the Company, except for the rights expressly set forth herein.

 

	
  

	
6.

	
TERMINATION

 

Notwithstanding anything to the contrary, this Warrant and all the rights conferred hereby shall terminate and expire at the aforementioned time on the last day of the Warrant Period.

 

	
  

	
7.

	
MISCELLANEOUS

 

 

	
  

	
7.1.

	
Entire Agreement; Amendment.  This Warrant sets forth the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes all existing agreements among them concerning such subject matter. All article and section headings herein are inserted for convenience only and shall not

 

-  -

  

  

  

 

	
  

	
modify or affect the construction or interpretation of any provision of this Warrant. No modification or amendment of this Warrant will be valid unless executed in writing by the Company and the Holder.

 

 

	
  

	
7.2.

	
Waiver.  No failure or delay on the part of any of the parties hereto in exercising any right, power or privilege hereunder and/or under any applicable laws or the exercise of such right or power in a manner inconsistent with the provisions of this Warrant or applicable law shall operate as a waiver thereof. Any waiver must be evidenced in writing signed by the party against whom the waiver is sought to be enforced.

 

 

	
  

	
7.3.

	
Successors and Assigns; Assignment.  This Warrant shall inure to the benefit of, be binding upon, and be enforceable by the Holder and its respective successors, assigns, and administrators. Either party may freely assign or transfer the rights granted pursuant to this Warrant. If, as a result of such assignment by the Purchaser, the Company is required under applicable law to file any registration statement or prospectus with the US Securities and Exchange Commission or any stock exchange or other similar institution in any jurisdiction, the party that seeks such assignment will cover the Company’s expenses for such filing.

 

 

	
  

	
7.4.

	
Governing Law. This Warrant shall be governed by and construed under the laws of the State of Israel, without regard for the conflicts of laws provisions thereof. Any dispute arising under in connection with this Note shall be settled exclusively before the competent courts of the city of Tel-Aviv-Jaffa.

 

 

	
  

	
7.5.

	
Notices.  Any notice required or permitted to be given to a party pursuant to the provisions of this Warrant will be in writing and will be effective and deemed delivered to such party on the earliest of the following:  (a) all notices and other communications delivered in person or by courier service shall be deemed to have been delivered as of actual delivery thereof; or, (b) those given by facsimile transmission shall be deemed delivered on the following business day after transmission, with confirmed transmission thereof; or (c) all notices and other communications sent by registered mail (or air mail if the posting is international) shall be deemed given seven (7) days after posting.

 

 

	
  

	
7.6.

	
Severability.  If any provision of this Warrant is held to be unenforceable, this Warrant shall be considered divisible and such provision shall be deemed inoperative to the extent it is deemed unenforceable, and in all other respects this Warrant shall remain in full force and effect; provided, however, that if any such provision may be made enforceable by limitation thereof, then such provision shall be deemed to be so limited and shall be enforceable to the maximum extent permitted by applicable law.

 

 

	
  

	
7.7.

	
Counterparts.  This Warrant may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.  Facsimile signatures of a party shall be binding as evidence of such party’s agreement hereto and acceptance hereof.

 

-  -

  

  

  

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized.

 

 

	
Dated:  March __, 2010

 

	
BIOCANCELL THERAPEUTICS INC.

 

 

By: ______________________________

       Name:  Uri Danon

       Title:    Chief Executive Officer

AGREED AND ACCEPTED:

 

 

HOLDER'S NAME: _______________

 

By: ______________________________

       Name:

 

       Title:

-  -

  

  

  

Exhibit A

Exercise Notice

 

Date: ____________

 

To:         BioCancell Therapeutics Inc.

 

 

The undersigned, pursuant to the provisions set forth in the Warrant to which this Exercise Notice is attached (the “Warrant”), hereby elects to purchase __________ of the Warrant Shares (as such term is defined in the Warrant) pursuant to Section 1.1 of the Warrant, and herewith makes payment of _____________, representing the full Exercise Price for such stock as provided for in such Warrant.

 

 

Signature:                                                        

 

 

Address:

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