NeoPharm, Inc. Executive Employment Term Sheet with Ronald E. Pauli
This agreement outlines the terms of employment for Ronald E. Pauli as Executive Vice President, Chief Financial Officer, and Secretary of NeoPharm, Inc. It specifies an at-will employment relationship with a base salary of $240,000 per year, a $50,000 sign-on bonus, eligibility for annual and overachievement bonuses, and stock options. Benefits include vacation, car allowance, insurance, and 401(k) participation. If terminated without cause after six months or within a year of a change of control, Mr. Pauli will receive six months of base salary. He must also sign a confidentiality and non-compete agreement.
Exhibit 10.1
NEOPHARM, INC.
Term Sheet
for
Ronald E. Pauli
| Position | Executive Vice President, Chief Financial Officer* and Secretary* | ||
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| Term | Employment at will. | ||
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| Base Salary | $240,000 per year (“Base Salary”) | ||
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| Sign-On Bonus | $50,000 | ||
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| Annual Bonus | Eligibility for: | ||
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| • | Target Bonus up to a maximum of 30% of Base Salary upon attaining agreed upon Milestones. |
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| • | Overachievement Bonus (in lieu of Target Bonus) up to a maximum of 50% of Base Salary. |
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| Stock Options | Options to acquire 75,000 shares of common stock at the fair market value on the date of grant, with vesting in four equal installments on each of the first four anniversaries of the date of grant, or upon a change of control as defined in the 2006 Equity Incentive Plan (a “Change of Control”). | ||
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| Benefits | • | 4 weeks vacation | |
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| • | $500/month car allowance | |
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| • | Participation in 401(k) Plan | |
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| • | Life and Health insurance under current Company policies | |
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| • | Disability coverage on same basis as currently provided to Company’s senior officers | |
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| • | All other standard benefits | |
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| Severance Benefits | Upon termination of employment by the Company, without cause, at any time after the six (6) month anniversary of hire, or within twelve (12) months after a Change of Control, Base Salary will be continued for six (6) months. | ||
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| Restrictive Covenants | Employee agrees to execute the Company’s standard employee Confidentiality and Non-Compete Agreement. | ||
Acknowledged and agreed to
This 4th day of August, 2006
/s/Ronald E. Pauli
Ronald E. Pauli
*Upon resignation of current CFO and Secretary becoming effective
