NeoPharm, Inc. Executive Employment Term Sheet with Timothy Walbert
This agreement outlines the terms of employment for Timothy Walbert as Executive Vice President of Commercial Operations at NeoPharm, Inc. He will receive a base salary of $240,000 per year, a $50,000 sign-on bonus, and is eligible for annual bonuses based on performance. He will also receive stock options, various benefits, and severance pay if terminated without cause after six months or following a change of control. Mr. Walbert must sign a confidentiality agreement as a condition of employment.
Exhibit 10.1
NEOPHARM, INC.
Term Sheet
for
Timothy Walbert
| Position |
| Executive Vice President Commercial Operations |
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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 equal to 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 1998 Equity Incentive Plan, as amended (a “Change of Control”). |
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| Benefits |
| • 4 weeks vacation • $500/month car allowance • Participation in 401(k) Plan • Life and Health insurance under current Company policies • Disability coverage on same basis as currently provided to Company’s senior officers • All other standard Company 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 12 months after a Change of Control, Base Salary will be continued for 6 months. |
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| Restrictive Covenants |
| Employee agrees to execute the Company’s standard employee Confidentiality Agreement. |
Acknowledged and agreed to
this 17th day of January 2006.
| /s/ Timothy P. Walbert |
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| Timothy P. Walbert | |
