EMPLOYMENT AGREEMENT
EMPLOYMENT
AGREEMENT (this "Agreement") effective as of June 1, 2006
between BioForce Nanosciences Holdings, Inc (the "Company"), a
Nevada
corporation, and Kerry M. Frey (the "Employee"), a resident of the
State of
Illinois.
WHEREAS,
the Company wishes to employ the Employee to render services
for
the Company on the terms and conditions set forth in this Agreement
and the
Employee wishes to be retained and employed by the Company on such
terms and
conditions.
NOW,
THEREFORE, in consideration of the premises, the mutual
agreements
set forth below and other good and valuable consideration, the
receipt and
adequacy of which are hereby acknowledged, the parties agree as
follows:
1.
Employment. The Company hereby employs the Employee, and the
Employee
accepts such employment and agrees to perform services for the
Company, for the
period and upon the other terms and conditions set forth in this
Agreement.
2. Term.
Unless terminated at an earlier date in accordance with Section
9
of this Agreement, the term of the Employee's employment hereunder
shall be for
a period of three years, commencing on June 1, 2006. Thereafter,
the term of
this Agreement shall be automatically extended for successive
one-year periods
unless either party objects to such extension by written notice to
the other
party at least 30 days prior to the expiration of the initial term
or any
extension term.
3.
Position and Duties.
(a)
Service with Company. During the term of the Employee's
employment,
the Employee agrees to serve as Chief Operating Officer of the
Company. The
position reports to the President & Chief Executive
Officer.
(b)
Performance of Duties. The Employee agrees to serve the Company
faithfully and to the best of his ability during his employment by
the Company.
The Employee hereby confirms that he is under no contractual
commitments
inconsistent with his obligations set forth in this Agreement and
that during
the term of this Agreement, he will not render or perform services
for any other
corporation, firm, entity or person which are inconsistent with the
provisions
of this Agreement, unless agreed to by the Board of Directors.
While he remains
employed by the Company, the Employee may participate in reasonable
charitable
activities, personal business activities and personal investment
activities so
long as such activities do not interfere with the performance of
his obligations
under this Agreement.
<PAGE>
4.
Compensation.
(a) Base
Salary. As compensation in full for all services to be rendered
by the Employee under this Agreement, the Company shall pay to the
Employee a
base salary of $165,000 per year, less deductions and withholdings,
which salary
shall be paid on a monthly basis in arrears in accordance with the
Company's
normal payroll procedures and policies. The compensation payable to
the Employee
during each year after the first year of the Employee's employment
shall be
$185,000 for year two and $205,000 for year three.
(b)
Additional Compensation. In the course of the employee's normal
activities the employee may achieve key milestones related to, for
example, fund
raising, patents, sales, and other business goals. At its
discretion the Board
may award additional compensation for accomplishments of this
nature.
(c)
Participation in Benefit Plans. While he is employed by the
Company,
the Employee shall also be eligible to participate in all employee
benefit plans
or programs of the Company to the extent that the Employee meets
the
requirements for each individual plan. The Company provides no
assurance as to
the adoption or continuance of any particular employee benefit plan
or program,
and the Employee's participation in any such plan or program shall
be subject to
the provisions, rules and regulations applicable thereto. The costs
for
participation by the employee and his family shall be paid for by
the Company.
(d)
Expenses. The Company will pay or reimburse the Employee for
all
reasonable and necessary out-of-pocket expenses incurred by him in
the
performance of his duties under this Agreement, subject to the
Company's normal
policies for expense verification.
(e)
Vacation. While he is employed by the Company, the Employee shall
be
entitled to five weeks paid vacation time for the first calendar
year. Vacation
time will increase by one week on the start of the second year of
this agreement
and by one week on the start of the third year of this agreement.
Unused
vacation may be carried forward to use in subsequent years.
5.
Confidential Information. Except as permitted or directed by
the
Company's Board of Directors, during the term of his employment or
at any time
thereafter, the Employee shall not divulge, furnish or make
accessible to anyone
or use in any way (other than in the ordinary course of the
business of the
Company) any confidential or secret knowledge or information of the
Company that
the Employee has acquired or become acquainted with or will acquire
or become
acquainted with prior to the termination of the period of his
employment by the
Company (including employment by the Company or any affiliated
companies prior
to the date of this Agreement), whether developed by himself or by
others,
concerning any trade secrets, confidential or secret designs,
processes,
formulae, plans, devices or material (whether or not patented or
patentable)
directly useful in any aspect of the business of the Company, any
customer or
supplier lists of the Company, any confidential or secret
development or
research work of the Company, or any other confidential information
or secret
aspects of the business of the Company. The Employee acknowledges
that the
above-described knowledge or information constitutes a unique and
valuable asset
of the Company and represents a substantial investment of time and
expense by
the Company, and that any disclosure or other use of such knowledge
or
information other than for the sole benefit of the Company would be
wrongful and
-2-
<PAGE>
would cause harm to the Company. Both during and after the term of
his
employment, the Employee will refrain from any acts or omissions
that would
reduce the value of such knowledge or information to the Company.
The foregoing
obligations of confidentiality shall not apply to any knowledge or
information
that is now published or which subsequently becomes generally
publicly known in
the form in which it was obtained from the Company, other than as a
direct or
indirect result of the breach of this Agreement by the
Employee.
6.
Ventures. If, during the term of his employment the Employee is
engaged
in or associated with the planning or implementing of any project,
program or
venture involving the Company and a third party or parties, all
rights in such
project, program or venture shall belong to the Company. Except as
approved by
the Company's Board of Directors, the Employee shall not be
entitled to any
interest in such project, program or venture or to any commission,
finder's fee
or other compensation in connection therewith other than the
compensation to be
paid to the Employee as provided in this Agreement.
7.
Non-competition Covenant.
(a)
Agreement Not to Compete. During the term of his employment with
the
Company and for a period of one year after the termination of such
employment
(whether such termination is with or without cause, or whether such
termination
is occasioned by the Employee or the Company), he shall not
directly engage in
competition with the Company.
(b)
Geographic Extent of Covenant. The obligations of the Employee
under
section 7(a) shall apply to any geographic area in which the
Company (i) has
engaged in business during the term of this Agreement through
production,
promotional, sales or marketing activity, or otherwise, or (ii) has
otherwise
established its goodwill, business reputation or any other customer
or supplier
relations.
(c)
Limitation of Covenant. Ownership by the Employee, as a passive
investment of less than ten percent of the outstanding shares of
capital stock
of any corporation listed on a national securities exchange or
publicly traded
shall not constitute a breach of this Section 7.
(e)
Acknowledgment. The Employee agrees that the restrictions and
agreements contained in this Section 7 are reasonable and necessary
to protect
the legitimate interests of the Company.
(f) Blue
Pencil Doctrine. If the duration or geographical extent of, or
business activities covered by, this Section 7 are in excess of
what is valid
and enforceable under applicable law, then such provision shall be
construed to
cover only that duration, geographical extent or activities that
are valid and
enforceable.
-3-
<PAGE>
8. Patent
and Related Matters.
(a)
Disclosure and Assignment. The Employee will disclose in writing
to
the Company complete information concerning each and every
invention, discovery,
improvement, device, design, apparatus, practice, process, method
or product,
whether patentable or not, made, developed, perfected, devised,
conceived or
first reduced to practice by the Employee, either solely or in
collaboration
with others, during the term of this Agreement relating either
directly to the
business, products, practices or techniques of the Company
("Developments"). The
Employee, to the extent that he has the legal right to do so,
hereby
acknowledges that any and all of the Developments are the property
of the
Company and hereby assigns and agrees to assign to the Company any
and all of
the Employee's right, title and interest in and to any and all of
the
Developments. At the request of the Company, the Employee will
confer with the
Company and its representatives for the purpose of disclosing all
Developments
to the Company as the Company shall reasonably request during the
period of the
Employee's employment with the Company.
(b)
Limitation on Sections 8. The provisions of Section 8 shall not
apply
to any Development meeting the following conditions:
(i) such Development was developed entirely on the Employee's
own
time;
(ii) such Development does not relate (A) directly to the
business
of the
Company or (B) to the Company's actual or demonstrably
anticipated
research
or development.
(c)
Assistance of the Employee. Upon request and without further
compensation therefore, but at no expense to the Employee, the
Employee will do
all lawful acts, including but not limited to, the execution of
papers and
lawful oaths and the giving of testimony, that in the opinion of
the Company,
may be necessary or desirable in obtaining, sustaining, reissuing,
extending and
enforcing United States and foreign copyrights and Letters Patent,
including but
not limited to, design patents, on the