Document:

Exhibit 4.11

 

PHOTOGEN TECHNOLOGIES, INC.

 

NON-QUALIFIED STOCK OPTION AWARD AGREEMENT

 

 

THIS AWARD AGREEMENT (this “Agreement”) is made as of the 14th day of
January, 2004, by and between Photogen Technologies, Inc., a Nevada corporation
(the “Company”), and Taffy J. Williams, Ph.D. (the “Optionee”).

 

W I T N E S E T H:

 

WHEREAS, the Company, through its Compensation Committee (the
“Committee”), desires to grant to the Optionee a non-qualified stock option to
purchase shares of the Company’s common stock, par value $.001 per share (the
“Common Stock”), subject to approval of the Company’s stockholders.

 

NOW, THEREFORE, the parties hereto, intending to be legally bound,
agree as follows:

 

1.                                      Grant
of Option and Tax Consequences. 
Subject to the approval of the Company’s stockholders and to the terms
and conditions of this Agreement, the Company hereby grants to the Optionee the
right and option to purchase from the Company all or part of an aggregate of
1,050,000 shares of Common Stock (the “Option”).  This Option is not intended to qualify as an Incentive Stock
Option within the meaning of Section 422A of the Internal Revenue Code of
1986, as amended, but rather as a Non-Qualified Stock Option.  Upon exercise, the difference between the
fair market value of the Common Stock on the date of exercise and the option
price may subject the Optionee to Federal and State income tax liability.  Optionee should seek advice form his or her
tax advisor.

 

2.                                      Option
Price and Time of Exercise.  The per
share exercise price at which the shares subject to Option may be purchased by
Optionee shall be $1.08.  The Optionee’s
right to exercise this Option shall be as follows:

 

100% of the total number of shares covered by the Option beginning on
the earlier of the date on which a Change of Control, as defined herein, occurs
or the date on which Optionee ceases to be a salaried employee of the Company.

 

The right to exercise this Option shall in all events expire at the
close of business on the tenth anniversary date of this grant, unless such
right expires and terminates sooner in accordance with this Agreement.  The Optionee’s right to exercise this option
shall be accelerated as provided in Section 9 below and as may be provided
by action of the Committee.

 

3.                                      Method of
Exercise and Payment for Shares.  This Option shall be exercised by written notice directed to the
Company at its principal office, specifying the number of shares to be acquired
upon such exercise and indicating that the exercise is being paid for (i) in
cash or (ii) if applicable, by a commitment by a broker-dealer to pay to the
Company that portion of any sale

 

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proceeds receivable by the Optionee upon the exercise of the Option and
sale of underlying shares.

 

4.                                      Non
transferability.  This Option
is not transferable by the Optionee except as otherwise provided in
Section 7 below, and during the Optionee’s lifetime is exercisable only by
the Optionee.

 

5.                                      Termination
of Option.  The Option, to
the extent it has not been previously exercised, shall terminate upon the
earliest to occur of:  (a) the
expiration of the Option period set forth in Section 2 above; (b) the
expiration of three months following the Optionee’s retirement; (c) the
expiration of 12 months following the Optionee’s death or disability; (d)
immediately upon termination of Optionee’s employment for Cause; or (e) the
expiration of 90 days following the termination of Optionee’s employment for
any reason other than cause, Change in Control, death, disability, or
retirement.  Upon a termination of
employment related to a Change in Control, Options shall be treated in the
manner set forth in Section 9.

 

6.                                      Adjustment.  If there shall be any change in the
corporate capitalization of the Company (such as a stock split, or a corporate
transaction, such as any merger, consolidation, separation, including a
spin-off, or other distribution of stock or property of the Company, any
reorganization (whether or not such reorganization comes within the definition
of such term in Code Section 368) or any partial or complete liquidation
of the Company) appropriate and equitable adjustments shall be made in the
aggregate number and kind of shares or other securities subject to this Option
and in the purchase price of this Option to reflect such change.

 

7.                                      Option
Non-Assignable and Non-Transferable.  This Option and all rights hereunder shall be non-assignable and
non-transferable other than by will or the laws of descent and distribution and
shall be exercisable during the Optionee’s lifetime only by the Optionee or the
Optionee’s guardian or legal representative.

 

8.                                      Limitation
of Rights.

 

(a)                                  No
Rights as an Employee.  Nothing in
this Agreement shall be deemed to: 
create or affect any contract of employment between the Optionee or
Company or an Affiliate; prevent the Company or an Affiliate from terminating
Optionee’s employment; give Optionee a right to be retained in employment by
the Company or any Affiliate for any period of time; confer on any person any
right to any other compensation, remuneration or benefits (except to the extent
expressly set forth in this Agreement).

 

(b)                                 No
Rights as a Stockholder.  The
Optionee shall have no rights as a stockholder with respect to the shares
covered by this Option until the date the Optionee tenders full payment of the
exercise price for the portion of the Option being exercised and the issuance
of a stock certificate therefor, and no adjustment will be made for any
dividends or other rights where the record date is prior to the date such
certificate is issued.

 

9.                                      Change of
Control.  Upon the occurrence
of a Change of Control, as defined herein, unless otherwise specifically
prohibited under applicable laws or by the rules and

 

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regulations of any governing governmental agencies or national
securities exchanges, all of the Options hereunder shall become immediately
exercisable and shall remain exercisable throughout their entire term.  For purposes of this Agreement, a “Change of
Control” shall be deemed to have occurred as of the first day that any one or
more of the following conditions shall have been satisfied:

 

(a)                               The acquisition by any
person of beneficial ownership of 50% or more of either (1) the then
outstanding shares of Common Stock of the Company, or (2) the combined voting
power of the outstanding voting securities of the Company entitled to vote
generally in the election of Directors; provided, however, that for purposes of
this subsection, the following transactions shall not constitute a Change of
Control: (A) any acquisition directly from the Company through a public
offering of shares of Common Stock of the Company, (B) any acquisition by the
Company, (C) any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the
Company, or (D) any acquisition by any corporation pursuant to a transaction
which complies with clauses (1), (2) and (3) of subsection (c) below;

 

(b)                              The cessation, for any
reason, of the individuals who constitute the Company’s Board of Directors as
of the date hereof (“Incumbent Board”) to constitute at least a majority of the
Company’s Board of Directors; provided, however, that any individual becoming a
Director following the date hereof whose election, or nomination for election
by the Company’s stockholders, was approved by a vote of at least a majority of
the Directors then comprising the Incumbent Board shall be considered as though
such individual was a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs because
of an actual or threatened election contest with respect to the election or
removal of Directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a person other than the Company’s Board of
Directors;

 

(c)                               The consummation of a
reorganization, merger or consolidation or sale or other disposition of all or
substantially all of the assets of the Company (“Business Combination”) unless,
following such Business Combination, (1) all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
outstanding shares of Common Stock of the Company and the outstanding voting
securities of the Company immediately before such Business Combination
beneficially own, directly or indirectly, more than 50% of, respectively, the
then outstanding shares of Common Stock and the combined voting power of the
then outstanding voting securities entitled to vote generally in the election
of Directors, as the case may be, of the Company resulting from such Business
Combination (including, without limitation, a corporation which as a result of
such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially
the same proportions as their ownership immediately before such Business
Combination of the outstanding shares of Common Stock and the

 

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outstanding voting securities of the Company, as the case may be; (2)
no party (excluding any corporation resulting from such Business Combination or
any employee benefit plan (or related trust) of the Company or such corporation
resulting from such Business Combination) beneficially owns, directly or
indirectly, 50%; or more of, respectively, the then outstanding shares of
common stock of the corporation resulting from such Business Combination or the
combined voting power of the then outstanding voting securities of such
corporation except to the extent that such ownership existed before the
Business Combination; and (3) at least a majority of the members of the board
of directors of the corporation resulting from such Business Combination were
members of the Company’s Board of Directors at the time of the execution of the
initial agreement, or of the action of the Company’s Board of Directors,
providing for such Business Combination; or the approval by the stockholders of
the Company of a complete liquidation or dissolution of the Company.

 

10.                               Stock Legend.  The Optionee hereby represents and warrants to the
Company that upon exercise of any portion of the Option hereunder that the
Optionee will be acquiring such shares for his or her own account, for
investment and not with a view to, or for the sale in connection with, the
distribution of any such shares.  The
Optionee hereby agrees that the following legend shall be endorsed upon the
certificates evidencing the Optionee’s shares issued pursuant to the exercise
of this Option:

 

The shares evidenced by this certificate have not been registered under
the Securities Act of 1933, as amended, or under state securities laws to the
extent applicable.  The shares may not
be sold, offered for sale, or otherwise transferred in the absence of an
effective registration statement under said Act (and any registration or
qualification as may be required under such state laws) or an opinion of
counsel satisfactory to the Company and its counsel that such registration or
qualification is not required.

 

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be signed
by its President, and the Optionee has affixed his or her signature hereto on
the date set forth above.

 

 

	
   

  	
  /s/Taffy J. Williams

  	
   

  
	
   

  	
  Taffy J. Williams, Ph.D., Optionee

  
	
   

  	
   

  
	
   

  	
  Photogen Technologies, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brooks Boveroux

  	
   

  
	
   

  	
   

  	
  Brooks Boveroux, Senior Vice

  President-Finance, Chief Financial

  Officer, Secretary and Treasurer

  
					

 

4Exhibit 10.18

 

	
  

  	
  Photogen Technologies, Inc

  
	
  140 Union Square Drive

  
	
  New Hope, PA ?8938

  
	
  Phone

  	
  (215) 862-6860

  
	
  Fax

  	
  (215) 862-7139

  
	
   

  	
   

  
	
   

  	
   

  
	
  B. Jack DeFranco

  	
  June 6, 2003

  
	
  7323 Vista Del Mar

  	
   

  
	
  La Jolla, CA 92037

  	
   

  
				

 

Dear Jack:

 

I am pleased to extend to you our offer of employment to join Photogen
Technologies, Inc. (“Photogen” or “Company”) as Senior Vice President.  This offer is being made to you contingent
upon Photogen’s acquisition of the Imagent®
business from Alliance Pharmaceutical Corp.

 

We are very excited by the prospect of acquiring the Imagent business.  You represent an important part of the
business, and your future employment with us will be a significant step in
ensuring our collective success.  After
the acquisition of the Imagent business,
Alliance will continue as a going concern. 
You agree and acknowledge that we are a separate company and are not the
successor employer to Alliance.

 

Your initial salary for this position will be $186,472.00 per year
(less applicable withholding and deductions). 
Payments will be made on a bi-weekly basis in accordance with Company
policy.  Merit increases and bonuses, if
any, will be at the sole discretion of the Board of Directors.  Your primary employment location will be at
our office located in San Diego, California. 
The Company will reimburse you for approved travel and related expenses,
subject to proper documentation.

 

The Company will provide you with the following benefits.  Please note that we operate on a calendar
year basis and thus, where appropriate, benefits accruing for the remainder of
2003 will be on a “pro-rata” basis;

 

•                                          As
you currently are an employee of Alliance Pharmaceutical Corp receiving an
offer to join Photogen, we are offering you a retention bonus payable as
follows:

 

•                                          If
you remain an employee of Photogen for one month following Photogen’s
acquisition of the Imagent
business, a payment equal to five percent of your initial base salary.

 

•                                          If
you remain an employee of Photogen for a further five months following
Photogen’s acquisition of the Imagent
business (total of six months), a second payment equal to five percent of your
initial base salary.

 

•                                          Vacation
hours will be earned at your current rate of accrual.  All unused accrued vacation will be transitioned from Alliance to
Photogen; should your unused vacation accrual exceed our maximum levels, no
additional vacation hours will accrue until vacation hours are taken and
reduced to the new maximum accruals listed below.  This will be effective on the date of acquisition.  Maximum accruals for current employees will
“cap” at the same level as those for new employees (below).  Increases in vacation accrual based on years
of service will occur at the beginning of the 6th and 11th
years of employment including your years of service while at Alliance.

 

 

•                                          The
new-hire vacation earnings schedule:

 

•                                          Bands
1 -3 Non-Exempt Employees

2 weeks annually — Maximum accrual: 2 x annual (4 weeks)

•                                          Bands
1 -4 Exempt Employees

3 weeks annually — Maximum accrual: 1.5 X annual (4.5 weeks)

•                                          Band
5 Exempt Employees

4 weeks annually — Maximum accrual: 1.25 x annual (5 weeks)

 

•                                          Nine
Company holidays plus two discretionary “floating” days, i.e., Alliances
original vacation schedule, including President’s Day and a Spring
Holiday.  The Company will remain open
between the Christmas and New Year’s Day holidays.

 

•                                          Company
sponsored medical and dental coverage for you and eligible dependents; premiums
will be shared between the Company and the employee.

 

•                                          Sick
Leave will accrue per pay period, to a maximum of 8 days annually, and can be
accumulated for a period of two years (or 16 days).  Because sick time may only be used for an actual illness of you
or, pursuant to applicable law, of your child, parent, spouse or domestic
partner, accrued, unused sick leave will not be paid out on termination.

 

•                                          Salary
deferral under our 401(k) Plan (currently, the Company does not make any
contribution to the 401(k) Plan).

 

•                                          Other
benefits at the discretion of the Company.

 

In addition, upon your acceptance of this offer, you will be awarded
stock options to purchase 170,000 shares of Photogen Technologies, Inc.’s
common stock at an exercise price equal to the closing price per share on the
date of our acquisition of the Imagent
business, under a four-year ratable vesting schedule.  These options are subject to an Option Award Agreement, which you
will be required to sign after joining the Company.

 

You acknowledge and agree that your employment with Photogen is based
on the mutual consent of the Company and yourself.  Therefore, either the Company or you are free to terminate the
employment at will.  This means that you
are free to quit at any time and that the Company is free to terminate your
employment for any reason, with or without cause, and with or without notice,
at any time.  You also acknowledge and
agree that the Company has the right to change your compensation, duties,
assignments, responsibilities or geographical location of your job at any time,
with or without cause.  No
representative of the Company has the authority to make any contrary oral
agreement and the at-will nature of the employment relationship with the
Company may only be altered by a writing executed by the Company’s President.

 

If the Company terminates you for any reason other than for cause, the
Company will pay you severance according to its policy in effect at that
time.  All severance payments will be
paid on a bi-weekly basis in accordance with the Company’s regular payroll
schedule.  Notwithstanding the
foregoing, the Company reserves its right to amend or terminate its severance
policy at any time and from time to

 

2

 

time.  If the Company does
terminate its severance policy, you will be notified of such termination.  If you terminate your employment or are
terminated for cause, the Company will not make any severance payments.  “Cause” means:

 

•                                          Willful
failure or refusal to perform your duties hereafter where such duties are not
performed to the Company’s reasonable satisfaction within thirty (30) days
after written notice to you (and termination shall be effective as of the end
of such 30-day period); or

 

•                                          Conviction
of, or pleading of guilty or nolo contendre to, any criminal offense or the
commission by the Employee of any act involving dishonesty, embezzlement,
fraud, breach of trust or moral turpitude (and termination shall be effective
upon written notice to you).

 

As a condition of your employment, you are also required to sign the
enclosed Employee Confidentiality, Inventions and Non-competition Agreement
(“Confidentiality Agreement”).  You must
also provide proof of citizenship or of your ability to be employed in the
United States.

 

Please signify your acceptance of our offer by signing and dating this
letter and the Confidentiality Agreement and returning the originals to me by
the date of the closing of the acquisition, after which time, this offer
expires.  The other copies are for your
records.

 

We look forward to you joining the Photogen team.

 

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Taffy Williams

  	
   

  
	
   

  	
  Taffy Williams, Ph.D.

  
	
   

  	
  President and Chief Executive Officer

  

 

	
  ACCEPTED BY:

  
	
   

  
	
   

  
	
  /s/ Jack DeFranco

  	
   

  
	
   

  
	
  Printed name: 

  	
  JACK DeFRANCO

  	
   

  
	
   

  
	
  Dated:

  	
  06/09/03

  	
   

  
				

 

 

Encl.:   Employee Confidentiality, Inventions and
Non-Competition Agreement

 

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