EXHIBIT 10.25
EMPLOYMENT
AGREEMENT
THIS AGREEMENT by and among APP
Pharmaceuticals, Inc., a Delaware corporation (the “
Company ”), Christopher Bryant (the “
Executive ”) and, solely for the purposes of
guaranteeing the Company’s obligations under Section 5
of this Agreement, Fresenius SE, a societas europaea, organized
under the laws of Germany (the “Parent”) is dated
May 15, 2009;
WHEREAS, on September 10, 2008,
the Company became an indirect subsidiary of the Parent;
WHEREAS, the Company desires to have
the Executive serve as the Company’s Chief Scientific
Officer, on the terms and conditions set forth in this
Agreement;
WHEREAS, the Executive desires to
accept such service, subject to the terms and conditions of this
Agreement.
NOW, THEREFORE, in consideration of
the premises and mutual covenants contained herein and for other
good and valuable consideration, the receipt and sufficiency of
which is mutually acknowledged, the Company and the Executive
(individually, a “ Party ” and together, the
“ Parties ”) agree as follows:
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1.
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Effective
Date . The “
Effective Date ” shall mean May 15,
2009.
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2.
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Employment
Period . The Company
hereby agrees to employ the Executive, and the Executive hereby
agrees to be employed by the Company, subject to the terms and
conditions of this Agreement, for a period commencing on the
Effective Date and ending on December 31, 2011, unless earlier
terminated as provided herein. Notwithstanding the foregoing,
commencing on January 1, 2012 and each January 1
thereafter (each, an “Extension Effective Date”), the
term of this Agreement shall be extended, without further action by
the Company or the Executive, for successive periods of twelve
months each, unless either Party shall have given three
(3) months’ advance notice to the other Party, in the
manner set forth in Section 8(b) below, prior to the Extension
Effective Date in question, that the term of this Agreement that is
in effect at the time such notice is given is not to be extended or
further extended, as the case may be (the period of such employment
to be called the “ Employment Period
”).
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(a)
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Position and
Duties .
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(i)
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During the
Employment Period, the Executive shall serve as the Chief
Scientific Officer of the Company, with such duties and
responsibilities as are commensurate with such position, and shall
report directly to the Chief Executive Officer of the Company. The
Executive’s principal location of employment shall be at the
principal headquarters of the Company in Schaumburg, Illinois;
provided , however , that the Executive may be
required under reasonable business circumstances to travel outside
of the principal location of employment in connection with
performing his duties under this Agreement.
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(ii)
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The Executive
agrees that during the Employment Period, he shall devote all of
his business time, energies and talents to serving as the
Company’s Chief Scientific Officer, and shall perform his
duties conscientiously and faithfully subject to the lawful
directions of the Chief Executive Officer of the Company, and in
accordance with each of the corporate governance and ethics
guidelines, conflict of interests policies, and codes of conduct of
the Company.
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(iii)
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During the
Employment Period, the Executive shall not, without the prior
written consent of the Chief Executive Officer of the Company:
(A) render or perform services of a business, professional or
commercial nature other than to or for the Company or any of its
affiliates or subsidiaries, either alone or as an employee,
consultant, director, officer or partner of another business entity
(including serving on boards of directors), whether or not for
compensation or (B) plan or otherwise take any preliminary
steps, either alone or in concert with others, to establish or
engage in any business activity that would compete with the current
or proposed businesses of the Company or any of its affiliates or
subsidiaries.
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(i)
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Base
Salary . As compensation
for the performance by the Executive of his obligations hereunder,
during the Employment Period, the Company shall pay the Executive a
base salary at an annual rate of $300,000 (the “ Base
Salary ”). The Base Salary shall be payable in accordance
with the Company’s regularly established payroll practice.
The Company shall conduct an annual review of the Base Salary and
may increase or decrease such Base Salary in its sole discretion,
based on the performance of the Executive and the
Company.
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(ii)
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Annual
Bonus . With respect to
each calendar year during the Employment Period including 2009, the
Executive shall be eligible to receive a cash bonus of up to fifty
percent (50%) of Base Salary, based on the achievement of the
Company targets and Executive’s functional business unit
objectives (“Annual Bonus”). Fifty percent
(50%) of Executive’s bonus target will be based on
achievement of the Company revenue and earnings targets,
established by Company goals, and fifty percent (50%) will be
based upon Executive’s achievement of the goals for new
product development and deliveries as agreed upon in
Executive’s approved functional business unit objectives. The
Annual Bonus will be payable in a single lump sum cash payment not
later than March 15 following the conclusion of the calendar
year in which the Annual Bonus is earned. The Bonus payment
for the calendar year 2009 will be prorated per the Company
Management Bonus plan
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(iii)
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Vacation . During the Employment Period, the Executive
shall be entitled to four (4) weeks of paid vacation for each
calendar year or ratable part thereof. In addition, the Executive
shall be entitled to all paid holidays typically granted to
executive officers of the Company generally.
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(iv)
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Benefits and
Perquisites . The
Executive shall be entitled to participate on a comparable basis in
all employee benefit plans and to all perquisites which shall be
made available from time to time to executive officers of the
Company generally (including, but not limited to equity-based and
other long-term incentive plans, qualified and non-qualified
retirement and deferred compensation plans, medical, dental and
other welfare plans, and executive short-term disability insurance,
and executive long-term disability insurance and supplemental
income protection, health club reimbursement, estate and financial
planning services and supplemental life insurance). The Executive
acknowledges and agrees that the Company may, in its discretion,
terminate at any time or modify from time to time any such employee
benefit plans or perquisites.
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(v)
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Company
Automobile Lease . The
Executive shall be entitled to an automobile lease allowance during
the Employment Period at the Company’s expense in an amount
not to exceed $1,000 per month.
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(vi)
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Expenses . During the Employment Period, the Executive
shall be eligible for prompt reimbursement for business expenses
reasonably incurred by the Executive in accordance with the
policies of the Company as may be in effect from time to time for
executive officers of the Company generally.
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4.
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Termination
of Employment .
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(a)
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Death . The Executive’s employment shall
terminate automatically upon the Executive’s death during the
Employment Period.
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(b)
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Disability . If the Executive experiences a Disability
(within the meaning of the applicable disability plan, program or
arrangement of the Company, as in effect from time to time) during
the Employment Period, the Company may provide the Executive with a
Notice of Termination in accordance with Section 4(f) below of
its intention to terminate the Executive’s employment. In
such event, the Executive’s employment with the Company shall
terminate immediately upon the receipt of such Notice of
Termination by the Executive.
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(c)
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Cause . The Executive’s employment may be
terminated by the Company during the Employment Period other than
for Cause upon the Company providing a Notice of Termination to the
Executive of its intention to so terminate the Executive’s
employment in accordance with Section 4(f) below. The
Executive’s employment may be terminated by the Company for
Cause if (A) the Company provides the Executive with a Notice
of Termination in accordance with Section 4(f) of this
Agreement within 30 days after the initial occurrence or existence
of an event or circumstance set forth in this Section 4(c),
which notice shall specifically identify the event or circumstance
that the Company believes constitutes Cause and (B) the
Executive fails to correct the circumstance or event so identified
within 60 days after the receipt of such notice. For purposes of
this Agreement, “ Cause ” shall mean:
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(i)
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the
Executive’s dishonesty, willful misconduct or gross
negligence in the performance of his duties to the Company or any
of its affiliates or subsidiaries;
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(ii)
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the
Executive’s willful material misrepresentation at any time to
the Company or any of its affiliates or subsidiaries;
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(iii)
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the
Executive’s intentional failure or refusal to perform his
reasonably assigned duties;
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(iv)
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the
Executive’s commission of any felony, or any other crime
(whether or not a felony) involving dishonesty, fraud or breach of
trust;
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(v)
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the
Executive’s willful or grossly negligent failure to comply
with any written rules, regulations, policies or procedures of the
Company or any of its affiliates or subsidiaries; or
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(vi)
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the
Executive’s material breach of the provisions of
Section 6 of this Agreement.
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(d)
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Good
Reason . The
Executive’s employment may be voluntarily terminated by the
Executive with Good Reason if (A) an event or circumstance set
forth in the clauses of this Section 4(d) below shall have
occurred and the Executive provides the Company with a Notice of
Termination in accordance with Section 4(f) below within 30
days after the Executive has knowledge of the initial occurrence or
existence of such event or circumstance, which notice shall
specifically identify the event or circumstance that the Executive
believes constitutes Good Reason and (B) the Company fails to
correct the circumstance or event so identified within 90 days
after the receipt of such notice. For purposes of this Agreement,
“ Good Reason ” shall mean, without the
Executive’s express written consent, the occurrence of any of
the following circumstances:
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(i)
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There is a
reduction in the Executive’s status or responsibilities which
represents a material and adverse change from the Executive’s
overall status or responsibilities, taken as a whole, in reference
to the status or responsibilities contemplated by
Section 3(a);
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(ii)
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The Executive
is required to be based at any place outside of fifty
(50) mile radius from Schaumburg, Illinois without his written
consent, except for travel that is reasonably necessary in
connection with the Company’s business;
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(iii)
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Any material
breach of the Agreement by the Company, including but not limited
to, the failure to pay or provide compensation and benefits in
accordance with Section 3 (b) hereof;
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(iv)
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Delivery by the
Company of a notice of non-extension pursuant to Section 2;
or
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(v)
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Any failure by
the Successor to assume and agree to perform the Company’s
obligations hereunder.
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(e)
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Voluntary
Termination . The
Executive may voluntarily terminate his employment under this
Agreement without Good Reason upon the Executive providing a Notice
of Termination to the Company of his intention to so terminate his
employment in accordance with Section 4(f) below and such
termination shall not be deemed to be a breach of this
Agreement.
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(f)
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Notice of
Termination . Any
termination of the Executive’s employment by the Company or
by the Executive (other than death) shall be communicated by a
written notice (“ Notice of Termination ”) to
the other Party hereto in accordance with Section 8(b) below.
The “ Date of Termination ” shall mean
(i) if the Executive’s employment is terminated by the
Executive’s death, the date of his death, (ii) if the
Executive’s employment is terminated by the Company for Cause
or Disability, the date specified in the Notice of Termination and
(iii) if the Executive’s employment is terminated under
any circumstances other than those described in clause (i) or
(ii) immediately preceding, the date specified in the Notice
of Termination which shall not be less than 90 days from the date
such Notice of Termination is given.
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(g)
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Resignation
from All Positions .
Notwithstanding any other provision of this Agreement, upon the
termination of the Executive’s employment for any reason,
unless otherwise requested by the Company, the Executive shall
immediately resign from all positions that he holds or has ever
held with the Company or any of its affiliates or subsidiaries (and
with any other entities with respect to which the Company has
requested the Executive to perform services). The Executive hereby
agrees to execute any and all documentation to effectuate such
resignations upon request by the Company, but he shall be treated
for all purposes as having so resigned upon the Date of
Termination, regardless of when or whether he executes any such
documentation.
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5.
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Obligations
of the Company upon Termination .
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(a)
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Good Reason;
Other Than for Cause . If
during the Employment Period, (A) the Company shall terminate
the Executive’s employment other than for Cause, death or
Disability or (B) the Executive shall terminate employment
with Good Reason:
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(i)
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the Company
shall pay to the Executive within 30 days after the Date of
Termination the sum of (1) the Executive’s accrued but
unpaid Base Salary and any accrued but unpaid Annual Bonus through
the Date of Termination and the Executive’s business expenses
that are reimbursable pursuant to Section 3(b)(vi) but have
not yet been reimbursed by the Company as of the Date of
Termination (collectively, the “ Obligations
”);
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(ii)
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the Company
shall pay to the Executive an amount equal to the sum of
(A) 1.5 times the Executive’s then-current Base Salary
at the highest rate in effect during the 12 – month period
immediately preceding the Date of Termination and (B) 30% of
the Annual Bonus paid or payable to the Executive for the most
recently completed calendar year, payable in substantially equal
installments in accordance with the Company’s regularly
established payroll practice during the twelve (12) month
period following immediately the Date of Termination;
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(iii)
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the Company
shall continue to provide the benefits (Health and Dental Insurance
only) to the Executive set forth in Section 3(b)(iv) above
during the twelve (12) month period following the Date of
Termination; and
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(iv)
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Except with
respect to payments and benefits under Sections 5(a)(i), all
payments and benefits to be provided under this Section 5(a)
shall be subject to the Executive’s execution and
non-revocation of a general release of claims in favor of the
Company and its affiliates and subsidiaries.
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(b)
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Cause; Other
than for Good Reason. If
the Executive’s emp
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