Document:

eq-ex1018_169.htm

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, 

MARKED BY [***], HAS BEEN OMITTED BECAUSE EQUILLIUM, INC. 

HAS DETERMINED THE INFORMATION (I) IS NOT MATERIAL AND 

(II) WOULD LIKELY CAUSE COMPETITIVE HARM TO 

EQUILLIUM, INC. IF PUBLICLY DISCLOSED.

 

Exhibit 10.18

THIRD AMENDMENT TO

COLLABORATION AND LICENSE AGREEMENT

This Third Amendment to Collaboration and License Agreement (“Amendment”) is made and entered into effective as of December 10, 2019 (the “Amendment Date”), by and between Equillium, Inc., a corporation organized under the laws of the State of Delaware, USA, with its principal office at 2223 Avenida de la Playa, Suite 108, La Jolla, California 92037, USA (“Equillium”), and Biocon Limited, a company incorporated and existing under the laws of India and having its registered office at 20th KM, Hosur Road, Electronics City P.O. Bangalore 560 100, India (“Biocon”).

Recitals

Whereas, Equillium and Biocon (as successor-in-interest to Biocon’s Affiliate, Biocon SA) are parties to that certain Collaboration and License Agreement dated May 22, 2017 (the “Original Agreement”), as amended by that certain First Amendment to Collaboration and License Agreement dated September 28, 2018, and that certain Second Amendment to Collaboration and License Agreement dated April 22, 2019 (collectively with the Original Agreement, the “Agreement”);

Whereas, Equillium and Biocon have entered into a Letter Agreement dated August 28, 2019 (the “Letter Agreement”), with respect to certain matters relating to the Biocon Territory as set forth in detail in the Letter Agreement;

Whereas, Equillium desires to expand the Equillium Territory, and, in recognition of Equillium’s progress to date in developing Product and in securing funding for such development, Biocon is willing to expand the Equillium Territory, to include Australia and New Zealand; and

Whereas, the parties now wish to amend the Agreement as expressly set forth herein.

Agreement

Now, Therefore, in consideration of the foregoing premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Equillium and Biocon hereby agree as follows:

1.Defined Terms. Capitalized terms used but not otherwise defined in this Amendment shall have the meanings provided in the Agreement.

2.Biocon Territory. Australia and New Zealand are hereby deleted from Exhibit C to the Original Agreement.

3.Equillium Territory. Section 1.41 of the Original Agreement is hereby amended and restated to read in its entirety as follows:

“1.41 “Equillium Territory” shall mean: (a) the US, including its territories and possessions, and Canada (collectively, the “North American Territory”); and (b) Australia and New Zealand (collectively, the “AUS/NZ Territory”).”

4.Royalties Payable by Equillium. The table of royalty rates applicable to tiers of aggregate annual Net Sales in the Equillium Territory in Section 5.4(a) of the Original Agreement is hereby replaced with the following tables of (a) royalty rates applicable to tiers of aggregate annual Net Sales by Equillium and its Affiliates and Sublicensees in the North American Territory and (b) royalty rates applicable to tiers of aggregate annual Net Sales by Equillium and its Affiliates (but not by Sublicensees) in the AUS/NZ Territory, respectively:

 

	
Tiers of Aggregate Annual Net Sales by Equillium and its Affiliates
	
 
	
 

	
and Sublicensees in North American Territory
	
 
	
Royalty Rate

	
 
	
 
	
 

	
That portion of aggregate annual Net Sales of Products by Equillium and its Affiliates and Sublicensees in the North American Territory in a calendar year that is less than or equal to $[***] million
	
 
	
[***]%

	
 
	
 
	
 

	
That portion of aggregate annual Net Sales of Products by Equillium and its Affiliates and Sublicensees in the North American Territory in a calendar year that is greater than $[***] million and less than or equal to $[***] billion.
	
 
	
[***]%

	
 
	
 
	
 

	
That portion of aggregate annual Net Sales of Products by Equillium and its Affiliates and Sublicensees in the North American Territory in a calendar year that is greater than $[***] billion and less than or equal to $[***] billion
	
 
	
[***]%

	
 
	
 
	
 

	
That portion of aggregate annual Net Sales of Products by Equillium and its Affiliates and Sublicensees in the North American Territory in a calendar year that is greater than $[***] billion
	
 
	
[***]%

	
 
	
 
	
 

	
Tiers of Aggregate Annual Net Sales by Equillium and its Affiliates
	
 
	
 

	
(but not by Sublicensees) in AUS/NZ Territory
	
 
	
Royalty Rate

	
 
	
 
	
 

	
That portion of aggregate annual Net Sales of Products by Equillium and its Affiliates (but not by Sublicensees) in the AUS/NZ Territory in a calendar year that is less than or equal to $[***] million
	
 
	
[***]%

	
 
	
 
	
 

	
That portion of aggregate annual Net Sales of Products by Equillium and its Affiliates (but not by Sublicensees) in the AUS/NZ Territory in a calendar year that is greater than $[***] million and less than or equal to $[***] million
	
 
	
[***]%

	
 
	
 
	
 

	
That portion of aggregate annual Net Sales of Products by Equillium and its Affiliates (but not by Sublicensees) in the AUS/NZ Territory in a calendar year that is greater than $[***] million and less than or equal to $[***] million
	
 
	
[***]%

	
 
	
 
	
 

	
That portion of aggregate annual Net Sales of Products by Equillium and its Affiliates (but not by Sublicensees) in the AUS/NZ Territory in a calendar year that is greater than $[***] million
	
 
	
[***]%

2.

	

 

5.Sublicensing of AUS/NZ Territory Rights. In the event that Equillium enters into any agreement granting a Third Party a sublicense under the Equillium License to develop and commercialize ITO and Products in the Field in the AUS/NZ Territory (an “AUS/NZ Territory Sublicense”), any upfront payment received by Equillium from the applicable Sublicensee for such AUS/NZ Territory Sublicense under such agreement shall first be used to reimburse Equillium for the documented reasonable out-of-pocket costs, including, without limitation, travel costs and legal fees and costs, incurred by Equillium in the negotiation of such agreement, including the term sheet for such definitive license agreement (“Equillium AUS/NZ Transaction Costs’"). Equillium shall inform Biocon in writing of the amount of such Equillium AUS/NZ Transaction Costs and provide copies of reasonable supporting documentation for such Equillium AUS/NZ Transaction Costs to Biocon. Equillium shall pay to Biocon: (a) [***]% of the remainder of such upfront payment (after reimbursement of Equillium AUS/NZ Transaction Costs) within [***] days after receipt of such upfront payment and determination of the amount of Equillium AUS/NZ Transaction Costs to be deducted therefrom; and (b) [***]% of each other payment received by Equillium from such Sublicensee for the AUS/NZ Territory Sublicense (including, without limitation, royalty payments with respect to Net Sales of Products by such Sublicensee in the AUS/NZ Territory) under such agreement within [***] days after receipt of such payment.

6.Effectiveness of Agreement. Except as expressly amended by this Amendment, the Agreement shall remain in full force and effect in accordance with its terms.

7.Counterparts. This Amendment may be executed in counterparts, each of which shall be deemed an original document, and all of which, together with this writing, shall be deemed one instrument. This Amendment may be executed by facsimile or PDF signatures, which signatures shall have the same force and effect as original signatures.

[Signature page follows.]

 

 

3.

	

 

 

In Witness Whereof, the parties have duly executed this Third Amendment to Collaboration and License Agreement as of the Amendment Date.

 

	
Equillium, Inc.
	
 
	
Biocon Limited

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Bruce D. Steel
	
 
	
1. By:
	
 
	
/s/ Siddhath Mittal

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Name:
	
 
	
Bruce D. Steel
	
 
	
Name:
	
 
	
SIDDHATH MITTAL

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Title:
	
 
	
President and Chief Business Officer
	
 
	
Title:
	
 
	
PRESIDENT - FINANCE

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
2. By:
	
 
	
/s/ Kiran Mazumdar - Shaw

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Name:
	
 
	
KIRAN MAZUMDAR - SHAW

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Title:
	
 
	
CHAIR PERSON & MANAGING DIRECTOR.

 

 

4.eq-ex1019_351.htm

 

Exhibit 10.19

Equillium, Inc.

 

January 19, 2018

Christine Zedelmayer

12463 Rancho Bernardo Rd, Suite 127

San Diego, CA 92128

 

	
Re:
	
Employment Terms

 

Dear Christine:

 

Equillium, Inc. (the “Company”) is pleased to offer you the position of Vice President of Operations on the following terms.

 

You will report to the Chief Executive Officer. Your home office will be at our offices located  in La Jolla, California, and you may also be required to work at other offices and locations from time to time as required to perform your job duties. The Company may change your position, duties and work location from time to time in its discretion.

 

The Company’s regular business hours are from 8:00 a.m. to 5:00 p.m., Monday through Friday. As an exempt salaried employee, you will be expected to work additional hours, including evenings and weekends, as required to perform your job duties, and you will not be eligible for overtime pay.

 

Your base salary will be at the annualized rate of $230,000, less required and designated payroll deductions and withholdings, paid semi-monthly.

 

You will be eligible to earn an annual discretionary performance-based bonus at an annual target amount of thirty percent (30%) of your then current base salary, based on the attainment of individual and Company objectives to be determined and approved by the Company. The Company’s payment, and the amount, of any such bonus shall be in the sole discretion of the Company. No amount of bonus is guaranteed, and, in addition to the other  conditions  for earning any such bonus, you must remain an employee in good standing of the Company on the date the bonus is determined and paid.

 

Pursuant to the Company’s equity incentive plan (“Equity Plan”) and subject to approval by the Company’s Board of Directors (the “Board”), you will be provided with stock option awards to purchase shares of the Company’s common stock (the “Options”) equal to 0.5% of the Company’s outstanding shares at the time of the Options grant, at the sole discretion of the Board. The Options will have a per share exercise price at no less than the fair market value of the Company’s common stock as of the date of grant as determined by the Board, and will be governed in full by the terms and conditions of the Equity Plan and your associated stock option agreements.

You will be eligible to participate in the Company’s standard employee benefits (pursuant to the terms and conditions of the benefit plans and applicable policies), as they may be terminated or changed from time to time within the Company’s discretion.

150708522 v

 

 

As a Company employee, you will be expected to comply with Company policies and procedures, which will be provided to you. As a condition of employment, you must read, sign and comply with the enclosed Employee Confidential Information and Invention Assignment Agreement (“Confidential Information Agreement”), which, among other provisions, prohibits any unauthorized use or disclosure of Company proprietary, confidential or trade secret information.

 

In your work for the Company, you will be prohibited from using or disclosing any confidential, proprietary or trade secret information or other property of any former employer or third party to whom you have an obligation of confidentiality. Rather, you will be required to use only information that is generally known and used by persons with training and experience comparable to your own, is common knowledge in the industry or otherwise legally in the public domain, or is otherwise provided or developed by the Company. You agree that you will not bring onto Company premises or use in your work for the Company any confidential, proprietary or trade secret information or other property belonging to any former employer or third party that you are not authorized to use and disclose. You represent further that you have disclosed to the Company in writing any agreement you may have with any third party (e.g., a former employer) that may limit your ability to perform your duties to the Company, or that could present  a conflict of interest with the Company, including but not limited to disclosure (and a copy) of any contractual restrictions on solicitations or competitive activities. By accepting employment with the Company, you are representing that you will be able to perform your job duties within these parameters, and that you are not in unauthorized possession or control of any confidential, proprietary or trade secret information or other property of any former employer or third party.

 

Your employment relationship with the Company will be at will. You may terminate your employment with the Company at any time and for any reason whatsoever simply by notifying the Company. Likewise, the Company may terminate your employment at any time, with or without cause or advance notice. Your employment at-will status can only be changed in a written agreement signed by you and the Board of Directors of the Company.

 

As required by law, this offer is subject to satisfactory proof of your identity and right to work in the United States. Additionally, this offer is subject to you providing satisfactory professional references to the Company. Further, this offer is conditioned on completion, with results satisfactory to the Company, of a required pre-employment background check. You must timely provide all information and documents required to complete that process.

 

To ensure the rapid and economical resolution of disputes that may arise in connection with your employment with the Company, you and the Company both agree that any and all disputes, claims, or causes of action, in law or equity, including but not limited to statutory claims, arising from or relating to the enforcement, breach, performance, or interpretation of this letter agreement, your employment with the Company, or the termination of your employment with the Company, will be resolved pursuant to the Federal Arbitration Act, 9 U.S.C. §1-16, and to the fullest extent permitted by law, by final, binding and confidential arbitration conducted by JAMS, Inc. (“JAMS”) or its successors by a single arbitrator. The arbitration will be held in San Diego, California, or such other location as then-agreed by the parties. Both you and the Company acknowledge that by agreeing to this arbitration procedure, you each waive the right to resolve any such dispute through a trial by jury or judge or administrative proceeding. Any such arbitration proceeding will be governed by JAMS’ then applicable rules and procedures for employment disputes, which can be found at 

150708522 v

 

http://www.jamsadr.com/rules-clauses/ and which will be provided to you upon request. In any such proceeding, the arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision including the arbitrator’s essential findings and conclusions and a statement of the award. You and the Company each shall be entitled to all rights and remedies that either would be entitled to pursue in a court of law. Nothing in this Agreement is intended to prevent either the Company or you from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration pursuant to applicable law. The Company shall pay all filing fees in excess of those which would be required if the dispute were decided in a court of law, and shall pay the arbitrator’s fees and any other fees or costs unique to arbitration. Any awards or orders in such arbitrations may be entered and enforced as judgments in the federal and state courts of any competent jurisdiction.

 

This letter agreement, together with your Confidential Information Agreement, will form the complete and exclusive statement of your employment agreement with the Company. The terms in this letter agreement supersede any other agreements, promises or representations made to you by anyone, whether oral or written, regarding the subject matters hereof. This letter agreement cannot be changed except in a written agreement signed by you and the Board of Directors of the Company, with the exception of those changes expressly reserved to the Company’s discretion in this letter agreement. This letter agreement is governed by the laws of the state of California, without reference to conflicts of law principles. If any provision of this letter agreement shall be held invalid or unenforceable in any respect, such invalidity or unenforceability shall not affect the other provisions of this letter agreement, and such provision will be reformed, construed and enforced so as to render it valid and enforceable consistent with the general intent of the parties insofar as possible under applicable law. With respect to the enforcement of this letter agreement, no waiver of any right hereunder shall be effective unless it is in writing.

 

Please sign and date this letter and the enclosed Confidential Information Agreement, and return them to me if you decide to accept employment with the Company under the terms described above. If you accept our offer, we would like you to no later than February 1, 2018.

 

We look forward to your favorable reply and to a productive and enjoyable working relationship. Sincerely,

/s/ Daniel M. Bradbury

Chief Executive Officer

Accepted:

 

 

	
 
	
 
	
January 25, 2018

	
/s/ Christine Zedelmayer
	
 
	
Date

 

Attachments: Employee Confidential Information and Inventions Assignment Agreement

150708522 v

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