Document:

agen-ex101_124.htm

EXHIBIT 10.1

		
	
DATED FEBRUARY 1, 2016
	
 

	
AGENUS UK LIMITED

 

and

 

ALEX DUNCAN

 

 

	
CONTRACT OF EMPLOYMENT

	
 

 

 

 

 

 

 

 

 

	
 

 

 

 

 

 

 

 

 

 

 

5 New Street Square | London EC4A 3TW

Tel +44 (0)20 7300 7000

Fax +44 (0)20 7300 7100

DX41 London

www.taylorwessing.com

 

 

 

CONTRACT OF EMPLOYMENT

	
1.
	
Parties

	
(1)
	
AGENUS UK LIMITED having its place of business at Unit 315 Phase 5, Cambridge Science Park, Milton Road, Cambridge CB4 0FZ, United Kingdom (the "Employer"); and

	
(2)
	
ALEX DUNCAN of 15 Cambridge Road, Girton, Cambridge CB30PN, United Kingdom (the "Executive").

	
2.
	
Date of Employment

	
2.1
	
The Executive's employment will commence on February 1, 2016.

	
2.2
	
The Executive's period of continuous employment for the purposes of the Employment Rights Act 1996 commenced on 8 January 2015.

	
3.
	
Nature of Employment

	
3.1
	
The Executive is employed as Chief Technology Officer.

	
3.2
	
The Executive shall carry out such duties as shall from time to time be assigned to him by the Employer and shall use his best endeavours to promote, protect and develop the interests of the Employer.

	
3.3
	
The Executive will initially report to and liaise with (i) Robert Stein, President of R&D, for research and development responsibilities and (ii) Garo Armen, CEO, for manufacturing and quality systems responsibilities (his "Line Managers"). The Line Managers may be altered at the discretion of the Employer.

	
3.4
	
Unless the Employer agrees otherwise in writing, the Executive agrees that he will spend the whole of his time and attention on the Employer's business during normal working hours and that during the term of his employment with the Employer he will not engage in any other employment, occupation, consulting or other business activity.

	
3.5
	
The Executive shall report to the Employer his own wrongdoing and any wrongdoing or proposed wrongdoing of any employee or director of the Employer immediately on becoming aware of it. The Executive shall also report to the Employer:

	
 
	
(a)
	
the plans of any other senior employee to leave the Employer (whether alone or in concert with any other employee);

	
 
	
(b)
	
the plans of any other senior employee (whether alone or in concert with any other employee) to join a competitor or to establish a business in competition with the Employer;

	
 
	
(c)
	
the misuse by any employee of any confidential information (as defined in the Executive's Confidentiality and Proprietary Information Deed) belonging to the Employer;

	
3.6
	
There are no collective agreements applicable to the Executive's employment.

	
4.
	
Right to work in the UK

	
4.1
	
The Executive warrants that he has the unrestricted right to work in the United Kingdom without any additional immigration approvals and that he has provided the Employer with 

 

 

		
all necessary assistance to enable the Employer to comply with its duties under the Immigration Asylum and Nationality Act 2006. The Executive undertakes to notify the Employer immediately if any such right ceases, or is reasonably expected to cease during his employment and to immediately provide the Employer with written details of changes to his personal circumstances that might affect his immigration permission.

	
4.2
	
In order for the Employer to comply with its duties to prevent illegal working, if the Executive is a sponsored migrant under the Points Based System, the Executive is required to notify the Employer in writing within five working days of any change in the Executive's personal contact details (home address, home telephone number and mobile telephone number).

	
4.3
	
The Executive undertakes to provide on request, and if necessary at least once in every 12 month period, the Executive's original passport and other satisfactory documentary evidence of his right to work in the UK. The Executive also undertakes to ensure that he will maintain a valid passport to enable him to travel on business abroad as required by the Employer. The Executive acknowledges that the Employer is currently working to obtain a work visa to permit the Executive to work part-time at the Employer's office in the United States. The Executive agrees to fully cooperate and to promptly provide any information reasonably requested by the Employer and/or its counsel to help obtain such work visa. The Executive acknowledges that his continuing employment with the Employer is conditional on compliance with the obligations and the other duties in this clause, and that failure to comply to the Employer's satisfaction may result in disciplinary action under the Employer's Disciplinary Procedure.

	
4.4
	
By accepting employment pursuant to this Contract of Employment, the Executive warrants and agrees that, except as may otherwise be agreed to by the Employer in writing:

	
 
	
(a)
	
he is under no employment contract, bond, proprietary information agreement, invention agreement, confidentiality agreement or other obligation which would breach or be in conflict with the terms and conditions of his employment with the Employer  or this Contract of Employment, or otherwise encumber his performance of duties assigned to him by the Employer;

	
 
	
(b)
	
he has not signed or committed to any employment or consultant duties or other obligations which would divert his full attention from the duties assigned to him by the Employer under his employment with the Employer; and

	
 
	
(c)
	
he is currently in good health and will pass any medical examination necessary for the establishment of his benefits package.

	
5.
	
Remuneration

	
5.1
	
Basic Salary

	
 
	
(a)
	
The Executive shall be paid a basic annual salary of £202,771.80 which shall be paid monthly in arrears and shall be subject to deduction of income tax, national insurance and other applicable legal deductions and shall be deemed to accrue from day to day based on a 5 day working week.

	
 
	
(b)
	
Salaries are normally paid by direct transfer to the Executive's bank account on the twenty-fifth day of the month except that, where such day does not fall on a working day, payment will be made on the next working day, all in accordance with the Employer's payroll policies.

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5.2
	
Benefits

	
 
	
(a)
	
The Executive and the Executive's spouse and dependents under the age of 18 shall be entitled to participate in the Employer's private medical insurance scheme to be established or such other private medical insurance scheme as the Employer may make available from time to time.

	
 
	
(b)
	
The Executive will be entitled to participate in such permanent health insurance scheme as the Employer shall put in place.

	
 
	
(c)
	
The Executive shall be entitled to participate in such life assurance scheme as the Employer shall put in place and at the rate of four times the Executive's basic annual salary.

	
 
	
(d)
	
To the extent that any of the benefits are taxable the Executive will be responsible for all those liabilities.

	
 
	
(e)
	
Participation in any insurance based benefit (including private medical insurance, life assurance and permanent health insurance) is subject to the relevant policy terms and conditions from time to time in force, is conditional on the Executive and/or the Executive's spouse and/or dependents satisfying any applicable requirements of the insurer and being accepted at normal rates of premium. The Employer shall have no liability to pay any benefit to the Executive unless it receives payment from the insurer.

	
 
	
(f)
	
The Employer reserves the right to amend, alter or cease to provide (without compensation) any benefit (including any commission plan, bonus or incentive based pay) at any time.

	
 
	
(g)
	
Nothing in this agreement shall constrain or prevent the Employer from terminating the Executive's employment, notwithstanding that the Executive is or may be entitled to receive benefit payments or other benefits under any permanent health insurance scheme from time to time in force and such entitlement shall be diminished or cease to exist as a result of the termination of his employment.

	
6.
	
Pension

The Employer shall pay annual contributions to a personal pension scheme nominated by the Executive and registered in accordance with Part 4 of the Finance Act 2004. The Executive shall provide to the Employer such particulars of the personal pension scheme which is to apply for the purposes of this clause and such other information relating to his pension arrangements as the Employer may reasonably require from time to time. The contribution shall be paid to the personal pension scheme in equal monthly instalments and shall be an annual amount equal to 10 per cent of the Executive's basic annual salary only (excluding bonus and other benefits).

	
7.
	
Bonus

The Executive will be entitled to participate in the Agenus Inc. Management Incentive Plan. The Executive's target annual bonus will be 30% of his basic annual salary. Actual annual payouts under the plan are at the sole and absolute discretion of the Employer, are based on company and individual performance, and have historically ranged from 0%-200% of target. The rules of the plan do not form part of the Executive's contract of employment and the Employer reserves the right to vary or terminate the plan at any time.

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8.
	
Expenses

	
8.1
	
The Executive shall be reimbursed all reasonable expenses properly incurred in the discharge of the Executive's duties in accordance with this contract and subject to any other instructions or regulations issued by the Employer from time to time, including without limitations, the Agenus Inc. Travel & Expense Policy and Procedures, as may be updated from time to time (the "Travel & Expense Policy"). As a pre-condition of payment, the Executive will be expected to produce vouchers, receipts, or other evidence of the expenses in respect of which the Executive claims reimbursement in accordance with the Travel & Expense Policy.

	
8.2
	
The Executive must not without the prior written authorisation of the Board or in breach of any applicable legislation directly or indirectly seek, receive or obtain, in respect of the performance of his duties or of any goods or services sold or purchased or other business transacted (whether or not by the Executive) by or on behalf of the Employer or any of the Employer's group companies, any personal benefits, discount, rebate, commission, bribe, kickback or other inducement ("Inducement") (whether in cash or in kind). In the event that the Executive or any person on the Executive's behalf directly or indirectly receives any such Inducement, the Executive must immediately account to the Employer for the amount so received.

	
8.3
	
Pending the Executive's receipt of a work visa as contemplated by clause 8.6 below, the Employer shall cover the cost of monthly flights from the United Kingdom to the United States for the Executive for the purposes of carrying out the Executive's duties in accordance with this contract. All such flights shall be in accordance with the Travel & Expense Policy.

	
8.4
	
The Executive shall be reimbursed up to a maximum of $2,500 (USD) per month for all reasonable lodging, meal and travel expenses properly incurred in the discharge of the Executive's duties in the United States in accordance with this contract and subject to any other instructions or regulations issued by the Employer from time to time, including without limitation, the Travel & Expense Policy.

	
8.5
	
The Executive will be entitled to receive, and the Employer will cover the cost of, tax advisory services through Global Tax Network (or such other organisation as the Employer may elect at its sole and absolute discretion from time to time) up to the value of $5,000 (USD) per annum.

	
8.6
	
The Employer will pay all reasonable costs associated with obtaining an appropriate work visa for the United States to enable the Executive to carry out his duties in accordance with this contract. The Executive agrees to fully cooperate and to promptly provide any information reasonably requested by the Employer and/or its counsel to help obtain any such work visa.

	
9.
	
Place of Work

	
9.1
	
The Executive's primary place of work will initially be at Unit 315 Phase 5, Cambridge Science Park, Milton Road, Cambridge CB4 0FZ, United Kingdom.

	
9.2
	
In addition, the Executive will be required to work in Jena, Germany and Basel, Switzerland on an as-needed basis as instructed by the Employer. Once an appropriate work visa is obtained for the Executive to enable him to carry out his duties in accordance with this contract in the United States, the Executive will be required to work approximately two weeks per calendar month in the United States as requested by the Employer.

	
9.3
	
In addition, the Executive will be required to work at such other places as the Employer may from time to time specify for the performance of the Executive's duties and shall 

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travel to such parts of the world as the Employer may direct or authorise. If the Employer requires the Executive to work outside the United Kingdom for a consecutive period of more than one month it will provide him with written details of any terms and conditions which may apply to that work and his return to the United Kingdom.

	
10.
	
Hours of Work

	
10.1
	
The normal working hours of the Executive will be from 9 a.m. to 6 p.m. on Mondays to Fridays. The Executive will be entitled to an hour's lunch break during each working day.

	
10.2
	
In addition the Executive shall be required to work at such other times as the Employer may reasonably require to meet the needs of the business. The Executive will not receive additional payment for such further work. The Executive accepts that by signing this agreement he has agreed that regulation 4(1) of the Working Time Regulations 1998 shall not apply. The Executive may terminate his agreement to this provision by giving six months' notice in writing.

	
11.
	
Holidays

	
11.1
	
Annual Holidays

	
 
	
(a)
	
The Executive's annual paid holiday entitlement is 30 working days in each holiday year. Holiday entitlement will accrue pro-rata to each completed month of employment.

	
 
	
(b)
	
The Executive is required to submit a holiday request form to his Line Managers for approval for all periods of leave. The times at which annual holidays may be taken are at the discretion of the Employer, and not more than 10 days may be taken at any one time.

	
 
	
(c)
	
The holiday year runs from 1 January to 31 December.

	
 
	
(d)
	
It is not permitted to carry forward holiday entitlement from one holiday year to the next nor will payments in lieu be made in respect of holiday not taken in the relevant holiday year.

	
 
	
(e)
	
The Executive must ensure that there is no unnecessary overlapping with the holidays of other staff who would be responsible for the Executive's duties whilst he is on holiday.

	
 
	
(f)
	
Holiday pay on termination of employment will be calculated by establishing the number of days holiday accrued in the holiday year up to the date of termination and subtracting from this the number of days taken during the current holiday year. The number of days remaining, if any, will be paid.

	
11.2
	
Bank Holidays and Public Holidays

In addition to annual holidays the Executive shall be entitled to paid holidays on all statutory and public U.K. bank holidays together with any additional holidays awarded by the Employer.

	
12.
	
Sickness or Injury

	
12.1
	
Subject to the Executive's compliance with  the  Employer's  sickness  absence procedures (as amended from time to time) he shall continue to receive his full salary and  contractual benefits (other than any bonus  or  performance-related  benefits) ("Company Sick Pay") during any period of absence due to any sickness or injury which prevents the Executive from carrying out his duties for up to an aggregate of two weeks 

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in any 52 week period. Such payment shall be inclusive of any statutory sick pay due in accordance with applicable legislation in force at the time of absence.

	
12.2
	
Any further payment will be at the discretion of the Employer.

	
12.3
	
If the Executive is prevented by sickness from performing his duties properly, he shall report this fact promptly to his Line Managers, or another manager if the Line Managers are not available, before 10.00a.m. on the first day of sickness together with an estimate of the period of absence envisaged. Any change in the estimated period of absence must be notified as soon as possible.

	
12.4
	
If the absence continues for more than 5 continuous working days a "fit-note" from the Executive's doctor should be submitted explaining the nature of the sickness or injury.

	
12.5
	
During all periods of absence due to sickness or injury the Executive should keep the Employer informed as to his likely date of return.

	
12.6
	
The Executive agrees to consent to medical examinations (at the Employer's expense) by a medical practitioner nominated by the Employer at any time during his employment should the Employer so require. The Executive agrees that any report produced in connection with any such examination may be disclosed to the Employer and the Employer may discuss the contents of the report with the relevant medical practitioner and otherwise, as appropriate.

	
12.7
	
A Form SC2 (Self Certification of Sickness) is required in all cases of uncertified sickness.

	
12.8
	
If the Executive is absent for more than 12 weeks in any 12 month period due to sickness or injury then the Employer is entitled to terminate the employment.

	
13.
	
Parental Leave/Paternity Leave

	
13.1
	
Employees with the requisite period of service may be entitled to statutory parental leave and/or paternity leave.

	
13.2
	
Full details of the relevant regulations and entitlements may be obtained on request from the Line Managers.

	
14.
	
Health and Safety

The Executive is bound to comply with the duties imposed by the Health and Safety at Work Act 1974 or any substitution thereof or amendment or alteration thereto ("the

Act") and the Health and Safety Regulations made or to be made under the Act and in particular with the duties set out under section 7 of the Act which require an employee to:

	
 
	
(a)
	
take reasonable care for the health and safety of him or herself and of others who may be affected by his acts or omissions at work;

	
 
	
(b)
	
as regards any duty imposed on the Employer or any other person, co-operate with the Employer so far as is necessary to enable that duty to be performed or complied with.

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15.
	
Notice of Termination

	
15.1
	
In order to terminate the employment under this contract the Executive is required to give to the Employer, and the Employer is required to give to the Executive six months' written notice of termination.

	
15.2
	
The Employer reserves the right to pay the relevant net basic salary in lieu of notice.

	
15.3
	
After notice has been served by the Employer or the Executive, the Employer may:

	
 
	
(a)
	
require the Executive to carry out no duties; or

	
 
	
(b)
	
require the Executive to remain away from the office; or

	
 
	
(c)
	
require the Executive not to have any communication with any existing or prospective customers of the Employer in relation to the business of the Employer; or

	
 
	
(d)
	
require the Executive to carry out such duties as the Employer may require Provided that such duties are of a standard appropriate to the Executive's job description,

and in each case the Employer will continue to pay the Executive salary and provide all other benefits arising under this agreement during the period of notice except that, notwithstanding any other terms of this agreement, bonus or other performance related benefits shall not accrue. During such period of notice, the Executive shall remain an employee of the Employer and will continue to be bound by the terms and conditions of his employment.

	
16.
	
Summary Dismissal

	
16.1
	
In the following circumstances, which are intended by way of example only of what may be regarded as gross misconduct, and not by way of a complete list, the Executive will be dismissed summarily by written notice to operate from the date of such notice and the Executive will not be entitled to any further payment under his terms of employment except such sum as has accrued and is due at the date of termination:

	
 
	
(a)
	
refusing to carry out any proper direction given  in  the  course  of  the employment;

	
 
	
(b)
	
improperly divulging to any third party any confidential or non-public information regarding the Employer, its employees or any person with whom the Employer deals;

	
 
	
(c)
	
committing any act or divulging any information which is contrary to or damages the interests or objectives of the Employer;

	
 
	
(d)
	
committing any criminal offence which in the opinion of the Employer makes the Executive unsuitable for the type of work that the Executive is employed to do or may reasonably be expected to do or which makes him unacceptable to other employees;

	
 
	
(e)
	
dishonest conduct;

	
 
	
(f)
	
violent, obscene or abusive behaviour towards other employees or officers of the Employer;

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(g)
	
serious or wilful breach of the Executive's duties or of any of Employer's policies generally applicable to all employees;

	
 
	
(h)
	
if the warranties given by the Executive at clause 4 are found to be misleading or incorrect;

	
 
	
(i)
	
attending the Employer's premises or engaging in the Employer's business whilst under the influence of alcohol or unlawful drugs;

	
 
	
(j)
	
any breach of the Bribery Act; or

	
 
	
(k)
	
if the Executive fails or ceases to meet the requirements of, or is guilty of a serious breach of the rules of, any regulatory body or any other entity whose consent or approval is required to enable the Executive to undertake all or any of his duties.

	
16.2
	
Any other serious or irreparable act or omission by the Executive may be regarded as gross misconduct where such act or omission is, in the reasonable opinion of the Employer likely to (or has) cause(d) serious harm to the business or reputation of the Employer.

	
17.
	
Disciplinary Procedure

	
17.1
	
This disciplinary procedure does not form part of the Executive's contract of employment (save and only to the extent that it may from time to time be required to do so by law). The Employer accepts that it is in the interests of good relations with its staff to ensure that there is a fair and proper disciplinary procedure.

	
17.2
	
Any Executive who departs from normally expected standards or who violates the Employer's rules will be liable to disciplinary action.

	
17.3
	
If disciplinary action which may lead to disciplinary measures is to be taken against the Executive (other than suspension under (d) and (e) below or issuing of a warning – where modified procedures may apply), the following procedure will normally apply. The Executive will receive a letter setting out the alleged conduct or other circumstances and inviting the Executive to attend a disciplinary hearing. The hearing will be set at a time and date to allow the Executive time to consider the allegations against him.  At the disciplinary hearing (which the Executive must take all reasonable steps to attend) the Executive will be given the opportunity to respond to the issues raised. The decision on the hearing will be notified to the Executive after the hearing, along with details of the right to appeal. The Executive will have the right to be accompanied to any disciplinary hearing and subsequent appeal by a colleague or trade union official.

	
17.4
	
The Employer reserves the right to suspend the Executive on full pay pending investigation where the Employer has reasonable grounds to believe that the Executive's continued employment might be prejudicial to the Employer's business or other employees.

	
17.5
	
The Employer reserves the right to suspend the Executive without pay and benefits as a disciplinary measure.

	
17.6
	
Disciplinary action will vary in accordance with the seriousness of the Executive's offence. Minor instances of wrongdoing may result in a verbal or written warning. More serious offences or repeated infringements may result in a final written warning. The most serious offences or repeated infringements following a final written warning may result in dismissal with or without notice.

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17.7
	
The Executive may appeal against any disciplinary action taken. The Executive will then be invited to attend an appeal hearing (and must take all reasonable steps to do so). Following any such appeal, the Executive will be informed of the outcome.

	
18.
	
Grievance Procedure

	
18.1
	
It is expected that most grievances may be resolved informally. However, if the Executive wishes to raise a formal grievance relating to his employment he should raise it in the first instance in writing with his Line Managers setting out the nature of the grievance.  The Line Managers will then invite the Executive to a hearing to discuss the grievance. The hearing will be scheduled to allow time for the Employer to consider the issues raised. After the meeting, the Employer will inform the Executive of the decision and of his right to appeal.

	
18.2
	
If the grievance is not satisfactorily resolved in this way then the Executive may appeal the matter in writing. The Executive will be invited to an appeal hearing, following which the Employer shall communicate that decision in writing to the Executive. The appeal decision shall be final.

	
18.3
	
This policy does not form part of the contract of employment, save and only to the extent expressly required by law. If the Executive wishes, he may be accompanied at either or both hearings by a colleague or trade union official.

	
19.
	
Sexual Harassment

	
19.1
	
Agenus Inc. considers that sexual harassment in the workplace is unacceptable and will treat all complaints seriously.

	
19.2
	
An Executive who feels that he has been subjected to sexual harassment should raise the matter with his Line Managers under the terms of the grievance procedure set out in clause 18 above.

	
19.3
	
An Executive who is found to be the perpetrator of harassment will be liable to disciplinary action under the terms of the disciplinary procedure set out in clause 18 above. The Employer may exercise its discretion as to the disciplinary measures which will be taken, depending on the nature of the conduct.

	
20.
	
Data Protection

	
20.1
	
The Executive agrees that personal data relating to the Executive (including sensitive personal  data  such  as  medical  details)  may  to  the  extent  that  it  is  reasonably

necessary in connection with the Executive's employment or the business of the Employer:

	
 
	
(a)
	
be  collected  and  held  (in  hard  copy  and  computer  readable  form)  and processed by the Employer; and

	
 
	
(b)
	
be disclosed to:

	
 
	
(i)
	
other employees of the Employer and the Employer's group companies;

	
 
	
(ii)
	
any other persons as may be reasonably necessary (such as third party benefit providers or administrators) or as authorised by the Executive; or

	
 
	
(iii)
	
as otherwise required or permitted by law.

	
20.2
	
This consent applies regardless of the country to which the data is to be transferred.

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Where the disclosure or transfer is to a destination outside the European Economic Area, the Employer shall take reasonable steps to ensure that the Executive's personal data continues to be adequately protected, though the Executive may no longer have rights under data protection law.

	
20.3
	
The Employer may, from time to time, monitor the Executive's use of the internet and of email communications received, created, stored, sent or forwarded by the Executive on equipment provided by the Employer to the Executive for the performance of his duties where reasonably necessary to check facts relevant to the business, ensure compliance with Employer policies and procedures and investigate or detect unauthorised use of the Employer's system.

	
20.4
	
If the Executive has any queries regarding the Executive's personal data, these should be raised with the Line Managers.

	
21.
	
Deductions

	
21.1
	
The Executive consents to the deduction from any sum otherwise payable to the Executive by reason of his employment (or its termination) the value of any claim of whatever nature and in whatever capacity that the Employer may bona fide have against the Executive, including but not limited to:

	
 
	
(a)
	
overpayment of wages;

	
 
	
(b)
	
overpayment in respect of expenses incurred by the Executive in carrying out his duties;

	
 
	
(c)
	
loans which the Employer may from time to time make to the Executive; and

	
 
	
(d)
	
advances on wages which the Employer may from time to time make to the Executive.

	
21.2
	
The Executive further consents that the Employer has the right to deduct from the employee's salary or other sums due to the Executive a sum in respect of accrued holiday entitlement if at the date of termination of the Executive's employment he has taken in excess of his accrued holiday entitlement.

	
22.
	
As part of the Executive's employment with the Employer, he has and will be exposed to, and provided with, valuable confidential .and/or trade secret information concerning the Employer and its present and prospective clients. As a result, in order to protect the Employer's legitimate business Interests, you agree, as a condition of your employment, to enter into a Confidentiality and Proprietary Information Deed.' This document is enclosed for your review and execution by the first day of your employment.

	
23.
	
Choice of Law

This contract shall be governed by and construed in accordance with the law of England and Wales and each party to this agreement submits to the non-exclusive jurisdiction of the courts and tribunals of England and Wales.

 

SIGNED by Garo H. Armen, Sole Director.

For and on behalf of the Employer

/s/ Garo H. Armen.......................Date: February 1, 2016...................

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SIGNED by the Executive

/s/ Alex Duncan..........................Date: February 1, 2016...................

 

 

11agen-ex102_121.htm

EXHIBIT 10.2

CHANGE OF CONTROL AGREEMENT

This Change of Control Agreement (this “Agreement”) is made the 1st day of February 2016 by and between Agenus Inc., a Delaware corporate having its place of business at 3 Forbes Road, Lexington, MA 02421, U.S.A. (the “Company”), and Alex Duncan of 15 Cambridge Road, Girton, Cambridge CB30PN, United Kingdom (the “Executive”).

WHEREAS, the Company desires to offer certain compensation and benefits to Executive in the event of a Change of Control (as defined below), subject to the terms and conditions set forth in this Agreement and the contract of employment and confidentiality and proprietary information deed made between the Company and the Executive.

NOW, THEREFORE, the Company and Executive hereby agree as follows:

	
 
	
1.
	
Definitions. For purposes of this Agreement, the following definitions apply:

a.“Affiliates” means all persons and entities directly or indirectly controlling, controlled by or under common control with the Company, where control may be by either management authority or equity interest.

b.“Cause”, as determined by the Company, means: (i) a reason justifying summary dismissal set out at clause 17 (Summary Dismissal) of the Executive's contract of employment; or (ii) material breach by Executive of any provision of this Agreement; or (iii) other conduct by Executive that is materially harmful to the business, interests or reputation of the Company or any of its Affiliates.

c.“Change in Control” shall mean: (A) the acquisition by any Organization of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of the common stock of the Company; provided, however, that for purposes of this subsection (A), an acquisition shall not constitute a Change in Control if it is: (i) by a Benefit Plan sponsored or maintained by the Company or an entity controlled by the Company or (ii) by an entity pursuant to a transaction that complies with clauses (i), (ii) and (iii) of subsection (C) of this Section 1(c); or (B) individuals who, as of June 2, 2005, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to June 2, 2005 whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (or a majority of the members of a nominating committee who are members of the Incumbent Board) shall be treated as a member of the Incumbent Board unless he/she assumed office as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of an Organization other than the Board; or (C) consummation of a merger or consolidation involving the Company, or a sale or other disposition of all or substantially all of the assets of the Company, (a “transaction”) in each case unless, immediately following such transaction, (i) the beneficial owners of the common stock of the 

Company outstanding immediately prior to such transaction beneficially own, directly or indirectly, more than 50% of the combined voting power of the outstanding voting securities of the entity resulting from such transaction (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries), (ii) no Organization (excluding any entity resulting from such transaction or any Benefit Plan of the Company or such entity resulting from such transaction) beneficially owns, directly or indirectly, 50% or more of the combined voting power of the then outstanding voting securities of such entity and (iii) at least a majority of the members of the board of directors or similar board of the entity resulting from such transaction were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such transaction; or (D) approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. For purposes of the foregoing: “Benefit Plan” means any employee benefit plan, including any related trust; “Board” means the Board of Directors of the Company; “Exchange Act” means the Securities Exchange Act of 1934, as amended; and “Organization” means any individual, entity or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act).

d.“Good Reason” means (i) material reduction in Executive’s base salary, benefits, duties or responsibilities; or (ii) relocation of Executive’s principal office, without his consent, to a location more than thirty (30) miles from its location on the day prior to the Change in Control.

e.“Person” means an individual, a corporation, an association, a partnership, an estate, a trust and any other entity or organization, other than the Company or any of its Affiliates.

f.“Products” mean all products planned, researched, developed, under development, tested, manufactured, sold, licensed, leased or otherwise distributed or put into use by the Company or any of its Affiliates, together with all services provided or planned by the Company or any of its Affiliates, during Executive’s employment.

	
 
	
2.
	
Change of Control.

a.If a Change of Control occurs, on the date of such Change in Control, fifty-percent (50%) of any stock options or shares of restricted stock of the Company previously granted or issued to the Executive that are outstanding and unvested as of the date of the Change in Control shall become vested, exercisable and, in the case of shares of restricted stock, no longer subject to forfeiture, provided that Executive is employed by the Company (or any wholly-owned subsidiary of the Company) on the date of such Change in Control.

b.If a Change of Control occurs and, within eighteen (18) months following such Change of Control, the Company (or any wholly-owned subsidiary of the Company, as applicable) terminates Executive’s employment other than for Cause, or such Executive terminates his employment for Good Reason, then the Company shall, pay to the Executive in one lump sum an amount equal to (A) twelve (12) months base salary at 

the rate in effect on the date of termination, plus (B) the higher of (x) Executive’s target incentive bonus for the year in which Executive’s employment is terminated, or (y) the actual incentive bonus paid to Executive, if any, under the applicable Executive incentive plan for the last full fiscal year preceding the year in which Executive’s employment is terminated; and shall also, until the conclusion of a period of twelve (12) months following the date of termination continue to contribute to the premium cost of Executive’s participation in the applicable health insurance plans at the same rate that it contributes for active employees, provided that Executive is entitled to continue such participation under applicable law and plan terms, and provided further that Executive pays his portion of the premium cost. If the Company concludes that the foregoing arrangement could result in additional taxes or penalties for either the Executive or the Company on account of the rules under Section 105(h) of the Internal Revenue Code or applicable local legislation, then in lieu of this continued subsidized coverage, the Executive shall be provided with an additional severance payment equal to the value of this employer-provided subsidy for the twelve (12) month period, plus an additional lump-sum payment in an amount sufficient, after giving effect to all federal, state and other taxes with respect to such additional payment, to make Executive whole for all taxes (including withholding taxes) on such payment.  In addition, in the event the Company (or any wholly-owned subsidiary of the Company, as applicable) terminates Executive’s employment other than for Cause, or Executive terminates his employment for Good Reason within eighteen (18) months following a Change of Control, then (I) any outstanding unvested options granted or issued to the Executive as of the date of the Change in Control shall become vested and shall be exercisable for ninety (90) days following termination of the Executive’s employment, (II) any shares of unvested restricted stock of the Company granted or issued to the Executive as of the date of the Change in Control shall become vested and no longer subject to forfeiture, and (III) the Company will provide Executive with an outplacement benefit in the form of a lump-sum payment of $10,000 plus an additional lump-sum payment in an amount sufficient, after giving effect to all federal, state and other taxes with respect to such additional payment, to make Executive whole for all taxes (including withholding taxes) on such outplacement assistance benefit.

c.All payments required to be made by the Company hereunder to Executive or his dependents, beneficiaries, or estate will be reduced by any tax, payroll deductions or other amounts required to be withheld by the Company under applicable law.

d.Payment(s) by the Company and contributions to the cost of Executive’s continued participation in the Company’s group health insurance that may be due Executive under Section 2(b) shall constitute the entire obligation of the Company to Executive. In order to receive any payments or other benefits under Section 2(b), Executive must execute a General Release of Claims in a form acceptable to the Company.

e.Except for health insurance coverage continued pursuant to Section 2(b), benefits shall terminate pursuant to the terms of the applicable benefit plans based on the date of termination of Executive’s employment without regard to any continuation of base salary or other payment to Executive following such date of termination.

f.The obligation of the Company to make payments to or on behalf of Executive under Section 2(b) is expressly conditioned upon Executive’s continued full performance of obligations under this Agreement. Executive recognizes that, except as expressly provided in Section 2(b), no compensation is earned by, or in any way owing to, Executive after termination of employment.

g.Any lump-sum payments to be made to the Executive hereunder shall be made as soon as administratively practicable and in any event no later than 2  1 / 2  months after the end of the year in which the Executive becomes entitled to such payment. Under this Agreement, all payments which are to be made upon termination of Executive’s employment shall only be made if such termination also meets the criteria to be considered a “separation from service” as such term is defined under Section 409A of the Internal Revenue Code and is subject to the Executive executing a valid settlement agreement or relevant document to waive all contractual and statutory claims that the Executive may have against the Company under the legislation of England and Wales or any other applicable jurisdiction in which the Executive has performed the duties set out in the Executive's contract of employment in relation to or arising out of his employment or its termination.

h.To the extent any payment hereunder shall be required to be delayed until six months following separation from service to comply with the “specified employee” rules of Section 409A of the Internal Revenue Code, it shall be delayed (but not more than is required) to comply with such rules and shall promptly after such delay be paid with interest at a reasonable market rate as determined by the Company.

3.Participation.  In exchange for the Executive to be entitled to the benefits provided by this Agreement, the Executive hereby agrees to the following:

a.Non-competition. While Executive is employed by the Company (or any wholly-owned subsidiary of the Company) and for the greater of (i) twelve (12) months after his employment terminates or (ii) the period during which Executive is receiving payments under this Agreement (the “Non-Competition Period”), Executive shall not, directly or indirectly, whether as owner, partner, investor, consultant, agent, employee, co-venturer or otherwise, compete with the Company or any of its Affiliates or undertake any planning for any business competitive with the Company or any of its Affiliates. Specifically, but without limiting the foregoing, Executive agrees not to engage in any manner in any activity that is directly or indirectly competitive with the business of the Company or any of its Affiliates as conducted or under consideration at any time during Executive’s employment. Restricted activity includes without limitation accepting employment or a consulting position with any Person who is, or at any time within twelve (12) months prior to termination of Executive’s employment has been, a competitor or a customer of the Company or any of its Affiliates. For the purposes of this Section 3(a), the business of the Company and its Affiliates shall include all Products and Executive’s undertaking shall encompass all items, products and services that may be used in substitution for Products. The foregoing shall not prohibit Executive’s passive ownership of two percent (2%) or less of the equity securities of any publicly traded company. Executive agrees that, during his employment with the Company or any Affiliate of the Company, he will not undertake any outside activity, whether or not competitive with the 

business of the Company or its Affiliates, that could reasonably give rise to a conflict of interest or otherwise interfere with his duties and obligations to the Company or any of its Affiliates.

b.Non-solicitation. Executive further agrees that while he is employed by the Company or any Affiliate of the Company and thereafter during the Non-Competition Period, Executive will not hire or attempt to hire any employee of the Company or any of its Affiliates, assist in such hiring by any Person, encourage any such employee to terminate his or her relationship with the Company or any of its Affiliates, or solicit or encourage any customer or vendor of the Company or any of its Affiliates to terminate its relationship with them, or, in the case of a customer, to conduct with any Person any business or activity which such customer conducts or could conduct with the Company or any of its Affiliates.

c.Conflicting Agreements. Executive hereby represents and warrants that the execution of this Agreement and the performance of his obligations hereunder will not breach or be in conflict with any other agreement to which Executive is a party or is bound. In addition, except where specifically provided in this Agreement, nothing in this Agreement is intended to replace, amend or modify any other agreement between the Company and Executive, and to the extent such other agreements contain similar provisions to those provided for in this Agreement, such provisions shall be in addition to the provisions provided herein and shall remain in effect.

d.Notification Requirement. Until the conclusion of the Non-Competition Period Executive shall give notice to the Company of each new business activity he plans to undertake, at least twenty-one (21) days prior to beginning any such activity. Such notice shall state the name and address of the Person for whom such activity is undertaken and the nature of Executive’s business relationship(s) and position(s) with such Person. Executive shall provide the Company with such other pertinent information concerning such business activity as the Company may reasonably request in order to determine Executive’s continued compliance with this Agreement.

e.Enforcement of Covenants. Executive acknowledges that he has carefully read and considered all the terms and conditions of this Agreement, including the restraints imposed upon him pursuant to this Agreement. Executive agrees that said restraints are necessary for the reasonable and proper protection of the Company and its Affiliates and that each and every one of the restraints is reasonable in respect to subject matter, length of time and geographic area. Executive further acknowledges that, were he to breach any of his covenants contained in this Agreement, the damage to the Company would be irreparable. Executive therefore agrees that the Company, in addition to any other remedies available to it, shall be entitled to preliminary and permanent injunctive relief against any breach or threatened breach by Executive of any of said covenants, without having to post bond. The parties further agree that, in the event that any provision of this Agreement shall be determined by any court of competent jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic area or too great a range of activities, such provision shall be deemed to be modified to permit its enforcement to the maximum extent permitted by applicable law.

	
 
	
4.
	
Miscellaneous.

a.Amendment. This Agreement may be modified, amended, or supplemented only by means of a written instrument signed by the Company and Executive.

b.Entire Agreement.  This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes any and all prior or contemporaneous oral and prior written agreements and understandings.

c.Counterparts.  This Agreement may be executed in counterparts, which, when taken together, shall constitute one agreement. If any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the Party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

d.Governing Law. This Agreement shall be construed and enforced under and be governed in all respects by the laws of the Commonwealth of Massachusetts, without regard to the conflict of laws principles thereof.

[Remainder of Page Intentionally Left Blank]

 

 

 

EXECUTED as a DEED)

for and on behalf of)

AGENUS INC.)

by: Garo H. Armen) /s/ Garo H. Armen

 

CEO

 

in the presence of:) /s/ Evan D. Kearns

 

name:Evan Kearns

 

address: 71 Emerson Road, Needham, MA 02492

 

occupation:  Attorney

 

 

 

EXECUTED as a DEED)

by the EXECUTIVE) /s/ Alex Duncan

in the presence of:)

 

name:Andrea M. Drury/s/ Andrea M. Drury

 

address: 36 W. Shore Dr., Ashburnham, MA 01430

 

occupation: Notary Public

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