Document:

Exhibit
10.8

 

ADDENDUM
NO. 1 TO AMENDED AND RESTATED ASSET TRANSFER AGREEMENT

 

This
Addendum (“Addendum”) is entered into on this 27 day of July 2020, by and between Medigus Ltd., a company incorporated
under the laws of the state of Israel, Registration Number 51-286697-1 (“Medigus”) and ScoutCam Ltd., a company
incorporated under the laws of the state of Israel, Registration Number 51-595040-0 (“ScoutCam”). Medigus and
ScoutCam are sometimes referred to herein as a “Party” and together as the “Parties”.

 

Capitalized
terms used but not defined herein shall have the meaning ascribed to them under the Agreement (as defined below)

 

WHEREAS,
the Parties have previously entered into an Asset Transfer Agreement, dated as of March 1, 2019 (the “Prior Agreement”);

 

WHEREAS,
the Parties have replaced the Prior Agreement with the Amended and Restated Asset Transfer Agreement, dated as of December 1,
2019 (the “Agreement”); and

 

WHEREAS,
the Parties wish to amend the Agreement with respect to the transferred assets, know-how and other intellectual property rights,
used or necessary for use in connection with the Transferred Business, as further provided herein.

 

NOW,
THEREFORE, the Parties hereby agree as follows:

 

		1.	Section
                                         2.1 shall be amended and restated to read as follows:

 

“2.1.
Transfer of Assets. On the terms and subject to the conditions set forth in this Agreement, at the Closing (or with respect
to the patents listed under Section (a) of Schedule 2.1, the dates detailed therein), the Transferor shall transfer, assign, convey
and deliver to the Transferee and the Transferee shall accept and assume from the Transferor, all of the Transferor’s rights,
titles and interests in, to and under the transferred assets listed on Schedule ‎2.1 (the “Transferred Assets”),
free and clear of any Liens.

 

The
Transferred Assets shall include, in addition to the assets listed on Schedule ‎2.1, effective as of the Closing:

 

2.1.1.
all rights and title to the severance funds maintained for or on behalf of the Transferred Employees;

 

2.1.2.
all past, present and future causes of action and other enforcement rights primarily under, or on account of, the Transferee’s
Business, the Products or any of the Transferred Assets, including, without limitation, all causes of action and other enforcement
rights for damages, profits, royalties or other payments, injunctive relief, and any other remedies of any kind for past, current
and future infringement, misappropriation or any violations of any one of the rights embodied in any of the Transferred Assets;

 

2.1.3.
all of the goodwill associated with the Transferee’s Business and/or any of the Transferred Assets;

 

2.1.4.
all Documents that are primarily used or relate to the Transferee’s Business or any of the Transferred Assets;

 

2.1.5.
all other current assets of the Transferee’s Business; and

 

2.1.6.
all know how and other intellectual property rights, used or necessary for use in connection with the Transferred Business.

 

Any
rights, assets, properties and business that fall within the above definition of Transferred Assets shall be deemed a Transferred
Asset, notwithstanding the failure to list the same on any of the aforementioned lists and schedules. For the avoidance of doubt,
Section 2.2 of the Agreement shall apply mutatis mutandis to the assets included in Schedule 2.1.

 

     

     

    

 

In
the event that the Transferee neglects any of the patent assets set forth in Section (a) under Schedule 2.1, the Transferee
shall transfer back ownership of the patent family of such patent asset to Transferor, and such transfer shall not require additional
consideration and absent any additional contingencies (the “Transfer Back”). For the purpose of this Section 2, the
term neglect shall mean any act or omission, which would result in invalidation of the patent assets or cause its expiry. For
the avoidance of doubt, a decision by Transferee to cease its prosecution or participation in any invalidation proceedings against
the Transferred Assets vis-a-vis the applicable Patent Office, or failure to pay maintenance fees in connection with the Transferred
Assets shall be deemed as neglecting such Transferred Assets. In the event that IIA Approval (as defined herein), to the extent
required, cannot be reasonably obtained with respect to the Transfer Back, Transferee shall take actions which shall have the
effect of achieving the closest possible result as the Transfer Back. In the event of a Transfer Back, Transferor shall extend
a perpetual, royalty free, non-exclusive, transferable by way of merger, acquisition or sale of all or substantially all of assets,
license to Transferee for exploiting such Transferred Assets that were subject to the Transfer Back, for the purpose of commercializing,
selling, sublicensing, combining, developing, manufacturing, having manufactured with respect to any Company product or service.
The Transfer Back shall occur upon 30 days prior to a deadline for an act, which if not met, would lead to invalidation of the
patent assets or cause their expiry.

 

		2.	Schedule
                                         2.1 attached to the Agreement shall be replaced with Schedule 2.1 attached hereto.
                                         For the avoidance of doubt, the transfer of patent family 24994 described in Schedule
                                         2.1 hereto is subject to the prior approval of the Israel Innovation Authority (“IIA”
                                         and the “IIA Approval”). Medigus shall submit as soon as practicable following
                                         the date hereof an appropriate request for the grant of the IIA Approval and will use
                                         best efforts to obtain such approval as soon as possible. As a condition to the transfer,
                                         ScoutCam shall be obligated to execute an undertaking in the form acceptable to Medigus
                                         and the IIA pursuant to which ScoutCam agrees to comply with the obligations stipulated
                                         by the Law for Encouragement of Research and Development – 1984.

 

		3.	Effective
                                         as of the date hereof, Section 3.2 and Schedule 3.2 shall be deleted, and instead such
                                         Section 3.2 shall be reserved. For the avoidance of doubt, the Addendum shall not derogate
                                         from the rights and obligations derived from Section 3.2 prior to the date hereof.

 

		4.	Effective
                                         Date 

 

This
Addendum shall be in effect as of the date hereof and shall be attached to the Agreement and become an integral part thereof.

 

		5.	Reservation
                                         of Terms 

 

Except
as expressly stated in this Addendum all other terms in the Agreement shall remain unchanged unless specifically amended in accordance
with the terms of the Agreement.

 

-
Signature Pages Follow -

 

    2

     

    

 

IN
WITNESS WHEREOF, the Parties have caused their duly authorized representatives to execute this
Amendment as of the day and year first above written.

 

	 	MEDIGUS
    LTD.	 	SCOUTCAM
    LTD.
	 	 	 	 
	 	

        /s/
        Liron Carmel /s/ Tatiana Yosef
	 	/s/
    Benad Goldwasser  /s/ Yaron Silberman
	 	Signature	 	Signature
	 	 	 	 
	 	Liron
    Carmel / Tatiana Yosef	 	Benad
    Goldwasser / Yaron Silberman
	 	Printed
    Name	 	Printed
    Name
	 	 	 	 
	 	CEO
    / CFO	 	Chairman
    / CEO
	 	Title	 	Title

 

    3

     

    

Schedule
2.1

 

List
of Transferred Assets

 

[***]

 

 

4drrx-ex101_7.htm

 

 

Exhibit 10.1

 

October 12, 2020

 

Norman L Sussman, MD FAASLD

Via electronic delivery

 

Dear Norman:

 

It is a pleasure to confirm the offer extended to you to join DURECT Corporation, located at 10260 Bubb Road, Cupertino, California, 95014, as Chief Medical Officer, reporting directly to the Chief Executive Officer.  We would like your start date to be November 2, 2020, but will depend on when you successfully complete a pre-employment drug screening and background verification.  As an exempt, regular employee, your starting semi-monthly salary will be $16,666.67, which equates to $400,000.00 on an annual basis. In addition, within 30 days following your commencement of employment, you will be granted an option to purchase 200,000 shares of DURECT Common Stock.  The vesting associated with these options are as follows: Stock options shall vest as to one-fourth (1/4) of the total shares subject to the option on the one-year anniversary of the date of grant and as to one-sixteenth (1/16) of the total shares subject to the option at the end of each three-month period following the one-year anniversary of the grant. The per share exercise price for these options will be the fair market value of DURECT Corporation’s Common Stock on the date of the grant of the options.

 

Additionally, within 30 days following your commencement of employment, you will be granted an option to purchase 50,000 shares of DURECT Common Stock to be vested immediately upon the first FDA approval of a DUR-928 New Drug Application (NDA).  The per share exercise price for these options will be the fair market value of DURECT Corporation’s Common Stock on the date of the grant of the options. You will be eligible for annual equity grants commensurate with your position as Chief Medical Officer beginning calendar year 2021.

 

DURECT will provide you with a relocation allowance of $250,000.00, less applicable income and employment taxes withheld.  DURECT will reimburse you for eligible expenses you incur up to a maximum of the amount of the relocation allowance.  Eligible expenses will include (1) commute travel to and from DURECT’s offices in California, including airfare to and from California from Texas prior to your moving to California; (2) rent or hotel, rental car, etc. incurred when you travel to California to work at DURECT’s offices in California prior to your moving to California; and (3) expenses related to relocating from your home in Texas to California (or purchasing, leasing or renting a second home in California) such as travel to look at homes, moving expenses, rent, down payment on a home or condominium, mortgage payments, etc.  Any amount of such expenses you incur above the relocation allowance amount will not be reimbursed by DURECT. For clarity, business travel on behalf of the company will be reimbursed separately according to DURECT’s travel policy and will not count against the relocation allowance. As a condition of 

DURECT Corporation | 10260 Bubb Road | Cupertino, CA 95014 | 408.777.1417CONFIDENTIAL

 

receiving the relocation allowance, you agree that if you voluntarily terminate your employment (other than as a result of your death, disability or constructive termination as defined in the Change of Control policy) during the first two years with DURECT Corporation, or if your employment is terminated by DURECT Corporation for cause (as defined in the Change of Control policy), you agree that you will repay a pro-rated portion of your reimbursed eligible expenses back to the company. The prorated portion to be repaid will be calculated by multiplying the amount of reimbursed eligible expenses (only those expenses listed under eligible expenses (3) above) by a fraction, the numerator of which will be equal to twenty-four minus the number of full months you were employed since your start date, and the denominator of which is twenty-four. You will be responsible for any income and employment taxes incurred as a result of DURECT reimbursing you for these eligible expenses.

 

You will be eligible for the equivalent annual bonus that all other Chief-level employees of the Company are eligible for, which is currently 40% of your annual base salary, with a breakdown of 95% based on corporate and 5% from personal objectives.  This bonus will be subject to pro-ration based on your start date.

 

In addition, your option awards will be subject to the terms of the Company’s change of control policy, which provides for certain vesting and severance benefits for Vice Presidents and above in the event of a qualifying termination of employment in connection with or within twenty-four months following a change in control.

 

Benefits

Effective the first of the month following your start date, you will be eligible to participate in the benefits enjoyed by an indefinite term employee, including medical, dental, vision, life and disability insurances.  You will be eligible for paid holidays, vacation accrual, and sick leave.  You may elect to participate in the 401(k) savings plan, the Employee Stock Purchase Plan, and a Section 125 Cafeteria Plan according to the terms and conditions governing participation in the plans.  If the terms and conditions governing any such benefit plan differ from any provision of 

this letter, the plan documents containing these terms and conditions will govern and take precedence. The Company agrees to pay your reasonable legal expenses incurred in the negotiation of this agreement.

 

This offer is contingent upon successful completion of a background investigation and pre-employment drug screening test due to the fact that DURECT is engaged in the development and manufacture of pharmaceutical products, including controlled substances.  Your representing agency, Spencer Stuart, will conduct your background investigation.  As for your pre-employment drug screening test, you will be notified by Justifacts Credential Verification, Inc. and given instruction on how to complete the drug check verification.  This must be completed and returned prior to your start date.  

 

Authorization to Work

Federal regulations require that you establish your identity and authorization to work in this country, so this offer is necessarily contingent upon such proof.  Enclosed is a description of the 

DURECT Corporation | 10260 Bubb Road | Cupertino, CA 95014 | 408.777.1417CONFIDENTIAL

 

original documents you will be required to bring on your first day of work, at which time we will meet with you to examine the original documents and ask that you complete the required “INS” form in our presence.

 

Agreements

The enclosed “Confidential Information and Invention Assignment Agreement” must be signed by you before you start your first day of work.  Please sign both copies of the Agreement and return one copy.  You may retain the duplicate for your records.

 

Your employment at DURECT is for an unspecified period of time and your relationship with the Company is and shall continue to be at-will, as defined under applicable law, meaning that either you or DURECT may terminate your employment relationship at any time for any reason or no reason, with or without notice.

 

Please indicate that these terms and conditions are acceptable and confirm your acceptance of this offer by signing and dating the original of this letter and returning it by October 14, 2020. You may retain a duplicate for your records.

 

Congratulations on your offer to join DURECT Corporation; we look forward to working with you.  Please do not hesitate to call me directly at (408) 777-1419 if you have any questions.

 

Sincerely,

 

/s/ James E. Brown, President & CEO

James E. Brown

President and Chief Executive Officer

 

 

JEB/bs

Enclosures

 

Understood and accepted:

 

 

Signature   /s/ Norman L. Sussman, MD, FAASLDDate12-Oct-2020

       Norman Sussman, MD FAASLD

DURECT Corporation | 10260 Bubb Road | Cupertino, CA 95014 | 408.777.1417CONFIDENTIAL

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