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EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT (this "Agreement"), effective as of August
13, 2007,
between BioForce Nanosciences Holdings, Inc (the "Company"), a
Nevada
corporation, and Gregory D. Brown (the "Employee"), a resident
of the State of
Iowa.
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 expire
May 31, 2009. 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 this Agreement, the
Employee
shall serve as the Executive Vice President, Chief Financial
Officer and
Treasurer of the Company, or in such other executive capacity as
may be assigned
to the Employee, and shall perform all duties commensurate with
the Employee's
position and as may be assigned to the Employee by the Chairman
of the Board of
Directors or the Chief Executive Officer of the Company or such
other person(s)
as may be designated by the Board of Directors of the Company
(the "Board"). The
Employee shall report to the Chairman of the Board or the Chief
Executive
Officer or such other person(s) as may be designated by the
Board and shall at
all times keep the Chairman of the Board and the Chief Executive
Officer (or
such other officer as the Chairman of the Board, the Chief
Executive Officer or
the Board may designate from time to time) promptly and fully
informed (in
writing if so requested) of the Employee's conduct and of the
business or
affairs of the Company, and provide such explanations of the
Employee's conduct
as may be required.
(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
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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.
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
minimum monthly salary of $12,916.67 per month, less deductions
and
withholdings, which salary shall be paid in twice monthly
increments in arrears
or otherwise as in accordance with the Company's normal payroll
procedures and
policies.
(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. The
Employee shall receive a one time bonus of up to $25,000 if an
equity financing
is closed in 2007, with the exact amount of the bonus to be
determined by and at
the discretion of the Chief Executive Officer.
(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.
The Employee acknowledges that as specified in his employment
offer letter dated
December 27, 2006, he has received a stock option grant whereby
he has the
option to purchase 300,000 shares of Company stock vesting in
equal annual 1/3
increments starting January 17, 2007, at an exercise price equal
to the fair
market value as defined in the stock option plan governing the
grant. The
Employee also acknowledges that he has received up to $10,000 in
reasonable
moving and incidental expenses associated with his relocation to
Ames, Iowa.
(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 four weeks paid vacation time per calendar year.
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
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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
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.
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(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.
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
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