SEC Contract Filing

Filing Date: 2015-09-14

Document Content:
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<TYPE>EX-10.2
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<FILENAME>d65606dex102.htm
<DESCRIPTION>EX-10.2
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.2 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>Employment Term Sheet </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Set forth
below is an outline of the management compensation terms by which the undersigned parties agree to abide. </I></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top"><B>Name:</B></TD>
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<TD VALIGN="top">Steve Borst (the &#147;Executive&#148;).</TD></TR>
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<TD VALIGN="top"><B>Position:</B></TD>
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<TD VALIGN="top">President, Chief Executive Officer and Chairman of the Board of Directors for Q Therapeutics, Inc. (the &#147;Company&#148;).</TD></TR>
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<TD VALIGN="top"><B>Effective Date:</B></TD>
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<TD VALIGN="top">Executive currently serves as the Company&#146;s Chief Financial Officer. Beginning September 9, 2015 (the &#147;<B>Effective Date</B>&#148;), Executive shall begin serving as the Company&#146;s President and Chief Executive Officer
and member of the Company&#146;s Board of Directors.</TD></TR>
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<TD VALIGN="top"><B>Base Salary:</B></TD>
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<TD VALIGN="top">$270,400.&nbsp;The base salary shall be reviewed no less frequently than annually.</TD></TR>
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<TD VALIGN="top"><B>Performance&nbsp;Bonus:</B></TD>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mutually agreeable performance-based bonus plan. Target Bonus is 35% of Base Salary.</P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">The Executive shall participate in the Company&#146;s &#147;Executive Bonus Plan&#148;
(or any successor plan), as such plan is implemented on an annual basis as approved by the Board of Directors, it being understood that the Executive&#146;s actual annual bonus, if any, shall be determined at the discretion of the Company and the
Board of Directors.</P></TD></TR>
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<TD VALIGN="top"><B>Equity Award and Vesting:</B></TD>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On the Effective Date, Executive shall be awarded an option grant under the Company&#146;s 2011 Equity Incentive Compensation Plan as
follows:</P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4.00em; text-indent:-1.50em; font-size:10pt; font-family:Times New Roman">&#149;&nbsp;&nbsp;&nbsp;&nbsp;400,000 shall vest at the rate of 28% on the one year anniversary of the grant date and
2% per month thereafter.</P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4.00em; text-indent:-1.50em; font-size:10pt; font-family:Times New Roman">&#149;&nbsp;&nbsp;&nbsp;&nbsp;100,000 upon closing an equity and/or debt financing in the cumulative amount of $10
million on or prior to June 30, 2016.</P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4.00em; text-indent:-1.50em; font-size:10pt; font-family:Times New Roman">&#149;&nbsp;&nbsp;&nbsp;&nbsp;100,000 upon first patient dosed in the Company&#146;s Phase 1 clinical trial.</P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Executive shall also be eligible for additional option awards at the discretion of the
Board of Directors.</P></TD></TR>
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<TD VALIGN="top"><B>Employee Benefits:</B></TD>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Participation in the employee benefit plans made available to senior executives of the Company generally.</P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">25 days of paid vacation each year in addition to Company paid holidays, any portion of
which can be carried over to subsequent years as long as no more than 40 days in total are accrued at any time.</P></TD></TR>