EMPLOYMENT AGREEMENT Between GeoVax Labs, Inc. and Robert McNally
Exhibit 10.1
Between
GeoVax Labs, Inc. and ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
01 April 2008
This EMPLOYMENT AGREEMENT (the “Agreement”) by and between GEOVAX LABS, INC., a Georgia Corporation
(“GeoVax” or “Company”), and ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ (“Employee”; and with the Company, collectively, the
“Parties”), is entered into and effective as of: 01 APRIL 2008 (the “Effective Date”).
Therefore, in consideration of the mutual covenants and agreements set forth herein, the Employee
is hereby employed by the Company under the terms of this Agreement, and Employee accepts such
employment.
1. Employee shall serve as PRESIDENT & CEO (Chief Executive Officer) of the Company and shall
perform the following duties (“Employee Duties”): such duties as are customary for someone in that
position and duties that may be reasonably assigned from time to time by the Chairman and/or the
Company’s Board of Directors (BOD).
Employee Duties include but are not limited to: overall management of the Company and related
corporate functions, business contracts and other activities that arise from time to time.
The President/CEO (“P/CEO”) has overall responsibility for the Company, plans and guides the
operations, sets specific company goals and objectives and devises strategies and formulates
policies to ensure that objectives are met. Corporate goals and policies are overseen by the
Chairman and the board of directors. P/CEO is the direct contact for all press, public relations
and fund raising activities of the company.
The P/CEO is held accountable for the accuracy of financial reporting, corporate governance,
internal controls, and financial reporting. Additional responsibilities include planning, financial
and operational budgets, purchasing, hiring, training, quality control, day-to-day activities,
overall performance inclusive of manufacturing, contracts, sales, purchasing, finance, personnel
and human resources activities, training, administrative services, computer and information
systems, property management, transportation and legal services. Raising required funds to sustain
the Company both short and long term are critical additional responsibilities.
P/CEO retains overall accountability for GeoVax as a publicly held corporation and the board of
directors ultimately is accountable for the success or failure of the enterprise. The person in
this position reports to the Chairman and to the board of directors.
2. Term of Agreement. The term of Employee’s employment under this Agreement commences on or about
01 April 2008 and shall continue until the termination of Employee’s employment with the Company as
provided herein. The Company may terminate this Agreement upon at least 60 days prior written
notice to Employee, and such termination shall be effective on the termination date described in
such notice (or such earlier time as the Company and Employee may agree). Notwithstanding the
foregoing, the termination of this Agreement shall not terminate the Company’s obligation to make
any payments to Employee for services performed and expenses incurred prior to the date of such
termination, or as set forth below; and shall not terminate Employee’s obligations under Section
14, 15 and 16 below.
3. Base Salary. The Company shall pay Employee $200,000 annually, payable at least monthly, with
annual reviews. Performance and salary reviews are at the discretion of the Chairman and/or board
of directors and may occur more often than annually in line with job responsibility changes.
4. Performance Reviews. Performance reviews will be conducted at least annually by the Chairman
and/or the board of directors.
5. Annual Bonus Potential. An annual fiscal year bonus will be considered and recommended, if
appropriate and approved by the Chairman and the board of directors. The actual amount shall be at
the discretion of the board of directors based on Employee’s and the Company’s performance and
achievement.
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6. Equity Stock Incentive. The Company shall periodically (at least once per year) consider the
grant of stock options or other equity awards to Employee under the Company’s then current stock
award plan. These awards will have an expiration date and vesting schedule which will be
determined by the board of directors.
7. Moving Expenses. N/A
8. Temporary Living Expense. N/A
9. Travel Expenses. The Company shall reimburse Employee for usual and customary business travel
expenses reasonably incurred in the performance of Employee’s Duties, based on receipted expense
reports, including mileage reimbursement at the IRS standard rate for such reimbursement for all
general business use of personal auto. Employee will use best efforts to minimize all travel and
travel expenses and use alternative less expensive forms of travel when possible. (Not inclusive of
home to office travel unless than more than 50 miles one way.)
10. Other Business Expenses. N/A
11. Benefits. Employee will be entitled to the following benefits in line with the Company’s
ongoing benefits program administered by the Company, through an HR employment agency (Administaff
Services, Inc.) or other company selected benefits administrator. Benefit details are provided in
an information packet available from the Company.
| a. | Life Insurance Benefits: $50,000 in term life insurance. Additional insurance is available through the HR agency at employee expense. | ||
| b. | Long-Term Disability Insurance: As provided | ||
| c. | Medical & Dental Insurance: As provided | ||
| d. | Vacation: Four (4) weeks paid vacation per calendar year — if not fully taken, up to one week may be carried over to the following year. | ||
| e. | Holidays: Nine (9) paid holidays. | ||
| f. | Retirement Plan: A Company 401(k) Retirement Plan that allows Employee to contribute up to 15% of salary on a pre-tax basis up to a maximum as prescribed under federal law. Employer matching and/or profit contribution will be at the discretion of the Company and approved annually by the board of directors. Company matching is currently $0.25 for each $1.00 of employee 401(k) contribution up to a maximum. (See Plan for details.) Waiting period is 6 months post hiring date. |
12. Termination Provision — Non Voluntary.
| a. | For Cause. If Employee is terminated for cause, Employee’s employment, compensation and benefits will terminate immediately (unless otherwise provided by law), and Employee shall not receive any severance payments. | ||
| b. | Without Cause. If Employee is terminated without cause, Employee must be given 30 days notice, and his salary will continue to be paid for 1 week for each full year of service. |
13. Termination Provision — Voluntary. Employee may voluntarily terminate his employment on 60
day written notice to the Company, and Employee’s employment, compensation and benefits will
terminate on the effective date of termination (unless otherwise provided by law), and Employee
shall not receive any severance payments.
14. Record Keeping and Payment. Employee shall keep and file with the Company an expense report
for all business expenses for which Employee seeks reimbursement, and Employee shall be reimbursed
for such documented business expenses, as approved by the Company’s Chief Financial Officer within
thirty (30) days of submitting a request for reimbursement.
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15. Restrictive Covenants. Employee acknowledges that the restrictions contained herein are
reasonable and necessary to protect the legitimate business interests of the Company, and will not
impair or infringe upon his right to work or earn a living after his employment with the Company
ends. The restrictions imposed herein shall apply during Employee’s employment with the Company
and, except for the longer period specified below for the protection of Trade Secrets, thereafter
for a period of two (2) years after the termination of employment for any reason (the “Restricted
Period”).
| a. | Trade Secrets and Confidential Information. Employee represents and warrants that: |
| (i) | he is not subject to any agreement that would prevent him from performing Employee’s Duties for the Company or otherwise complying with this Agreement, and | ||
| (ii) | he is not subject to or in breach of any non-disclosure agreement, including any agreement concerning trade secrets or confidential information owned by any other party. |
Employee agrees that he will not:
| (i) | use, disclose, or reverse engineer the Trade Secrets or the Confidential Information (as defined below), except as authorized by the Company; nor | ||
| (ii) | during his employment with the Company, use, disclose, or reverse engineer (a) any confidential information or trade secrets of any former employer or third party, or (b) any works of authorship developed in whole or in part by him during any former employment or for any other party, unless authorized in writing by the former employer or third party; nor | ||
| (iii) | upon his resignation or termination retain Trade Secrets or Confidential Information, including any copies existing in any form (including electronic form), which are in his possession or control, nor destroy, delete, or alter the Trade Secrets or Confidential Information without the Company’s consent. Notwithstanding the above, such information may be disclosed to authorized representatives of the US government in federal grant applications and to third parties in connection with licensing, financing and other commercial agreements, in each case to the extent the failure to provide such information would materially prejudice the Company’s ability to secure the grant or enter into the desired commercial relationship, and provided that in each case Employee uses his best efforts to cause the person(s) receiving such information to protect its confidentiality and limit its use, including securing a written confidentiality agreement where possible. |
The obligations under this subsection 15.a shall:
| (i) | with regard to the Trade Secrets, remain in effect as long as the information constitutes a trade secret under applicable law, and | ||
| (ii) | with regard to the Confidential Information, remain in effect during the Restricted Period. |
| b. | “Confidential Information” means information of the Company, to the extent not considered a Trade Secret under applicable law, that |
| (i) | relates to the business of the Company, | ||
| (ii) | possesses an element of value to the Company, | ||
| (iii) | is not generally known to the Company’s competitors, and | ||
| (iv) | would damage the Company if disclosed. |
Confidential Information includes, but is not limited to,
| (i) | future business plans, | ||
| (ii) | the composition, description, schematic or design of products, future products or equipment of the Company, | ||
| (iii) | communication systems, audio systems, system designs and related documentation, | ||
| (iv) | advertising or marketing plans, | ||
| (v) | information regarding independent contractors, employees, clients and customers of the Company, and | ||
| (vi) | information concerning the Company’s financial structure and methods and procedures of operation. |
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Confidential Information shall not include any information that is or becomes generally
available to the public other than as a result of an unauthorized disclosure, has been
independently developed and disclosed by others without violating this Agreement or the
legal rights of any party, or otherwise enters the public domain through lawful means.
| c. | “Trade Secrets” means information of the Company, and its licensors, suppliers, clients and customers, without regard to form, including, but not limited to, technical or non-technical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, or a list of actual or potential customers or suppliers which is not commonly known by or available to the public and which information derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. | ||
| d. | Non-Solicitation of Customers and Business Partners. During the Restricted Period, Employee will not solicit any customer of the Company, or any for-profit or not-for-profit enterprise in a commercial or research relationship with the Company, on his own behalf or on behalf of any other person or entity, for the purpose of providing any goods or services competitive with the business of the Company as described in the Company’s Business Plan or thereafter (the “Business”), or for the purpose of diverting the benefits of any such relationship away from the Company. The restrictions set forth in this Section apply only to the customers and enterprises with which Employee had interaction: |
| (i) | in an effort to establish, maintain, and/or further a business relationship on behalf of the Company, and | ||
| (ii) | which occurs during the last year of Employee’s employment with the Company (or during his employment if employed less than a year) |
| e. | Non-Recruitment of Employees. During the Restricted Period, Employee will not, directly or indirectly, solicit, recruit or induce any employee of the Company or any affiliate of the Company either to terminate his or her employment relationship with the Company, or work for any other person or entity engaged in a business like the Business. |
16. Work Product. Employee’s Duties may include creation of inventions in areas directly or
indirectly related to the business of the Company or to a line of business that the Company may
reasonably be interested in pursuing. All Work Product (as defined below) shall constitute work
made for hire. If:
| a. | any of the Work Product may not be considered work made for hire, or | ||
| b. | ownership of all right, title, and interest to the legal rights in and to the Work Product will not vest exclusively in the Company, then, without further consideration, Employee assigns all presently-existing Work Product to the Company, and agrees to assign, and automatically assigns, all future Work Product to the Company. |
The Company will have the right to obtain and hold in its own name copyrights, patents, design
registrations, proprietary database rights, trademarks, rights of publicity, and any other
protection available in the Work Product. At the Company’s request, Employee will perform, during
or after his employment with the Company, any acts to transfer, perfect and defend the Company’s
ownership of the Work Product, including, but not limited to:
| a. | executing all documents (including a formal assignment to the Company) necessary for filing an application or registration for protection of the Work Product (an “Application”), | ||
| b. | explaining the nature of the Work Product to persons designated by the Company, | ||
| c. | reviewing Applications and other related papers, or | ||
| d. | providing any other assistance reasonably required for the orderly prosecution of Applications. Employee will provide the Company with a written description of any Work Product in which he is involved (solely or jointly with others) and the circumstances surrounding the creation of such Work Product. |
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“Work Product” means
| a. | any data, databases, materials, documentation, computer programs, inventions (whether or not patentable), designs, and/or works of authorship, including but not limited to, discoveries, ideas, concepts, properties, formulas, compositions, methods, programs, procedures, systems, techniques, products, improvements, innovations, writings, pictures, and artistic works, and | ||
| b. | any subject matter protected under patent, copyright, proprietary database, trademark, trade secret, rights of publicity, confidential information, or other property rights, including all worldwide rights therein, that is or was conceived, created or developed in whole or in part by Employee while employed by the Company and that either; |
| (i) | is created within the scope of his employment, | ||
| (ii) | is based on, results from, or is suggested by any work performed within the scope of his employment, | ||
| (iii) | is directly or indirectly related to the business of the Company or a line of business that the Company may reasonably be interested in pursuing, | ||
| (iv) | has been or will be paid for by the Company, or | ||
| (v) | was created or improved in whole or in part by using the Company’s time, resources, data, facilities, or equipment |
| 17. | Arbitration. |
| a. | Any controversy, claim or dispute arising from, out of or relating to this Agreement, or any breach thereof, including but not limited to any dispute concerning the scope of this arbitration clause, claims based in tort or contract, claims for discrimination under federal, state or local law, and/ or claims for violation of any federal, state or local law (any such controversy, claim or dispute being referred to herein as a “Claim”) shall be resolved in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association then in effect. Such arbitration shall take place in Atlanta, Georgia. The arbitrator’s award shall be final and binding upon both parties. | ||
| b. | A demand for arbitration shall be made within a reasonable time after the Claim has arisen. In no event shall the demand for arbitration be made after the date when an institution of legal and/or equitable proceedings based on such Claim would be barred by the applicable statute of limitations. Each party to the arbitration will be entitled to be represented by counsel and shall have the right to subpoena witnesses and documents for the arbitration hearing. The arbitrator shall be experienced in employment arbitration and licensed to practice law in the state of Georgia. The arbitrator shall have the authority to hear and grant a motion to dismiss and/ or motion for summary judgment, applying the standards governing such motions under the Federal Rules of Civil Procedure. | ||
| c. | Except as otherwise awarded by the arbitrator, each party shall pay the fees of its respective attorneys, the expenses of its witnesses and any other expenses connected with presenting its Claim or defense. To the extent permitted by law, the prevailing party shall be entitled to receive, in addition to all other relief, payment of all expenses of litigation and arbitration, including attorney’s fees. | ||
| d. | The parties indicate their acceptance of the foregoing arbitration requirement by initialing below: |
| /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇ | /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ | |
| For the Company | Employee |
18. Miscellaneous. This Agreement constitutes the entire agreement between the Parties concerning
the subject matter of this Agreement. This Agreement supersedes any prior communications,
agreements or understandings, whether oral or written, between the Parties relating to the subject
matter of this Agreement. This Agreement may not be amended or modified except in writing signed by
both Parties. This Agreement shall be assignable to, and shall inure to the benefit of, the
Company’s successors and assigns, including, without limitation, successors through merger,
consolidation, or sale of a majority of the Company’s assets. Employee shall not have the right to
assign Employee’s rights or obligations under this Agreement, except as permitted under the laws of
descent and distribution. The laws of the State of Georgia shall govern this Agreement.
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The Parties hereto have executed this Agreement as of the day and year first written below.
GEOVAX LABS, INC
Name:
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▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ / CFO & Secretary | ||
Signature:
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/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ | ||
Date:
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March 20, 2008 | ||
Name:
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▇▇▇▇ ▇. ▇▇▇▇▇▇▇ / Director — Chairman, BOD Compensation Committee | ||
Signature:
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/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇ | ||
Date:
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March 20, 2008 | ||
EMPLOYEE |
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Name:
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ | ||
Signature:
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/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ | ||
Date:
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March 20, 2008 | ||
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