Document:

Exhibit 10.23

 

NAPO PHARMACEUTICALS, INC.

185 Berry Street, Suite 1300

San Francisco, CA 94107

 

Dated as of October 10, 2014

 

Nantucket Investments Limited

 

Re:                             Non-Disturbance of License Agreement

 

Ladies and Gentlemen:

 

This letter is in reference to that certain License Agreement by and between Napo Pharmaceuticals, Inc. (“Napo”) and Jaguar Animal Health, Inc. (“Jaguar”), dated January 27, 2014, as the same may have been or hereafter may be amended, restated, supplemented, or otherwise modified from time to time (the “License Agreement”), wherein among other things Napo has granted to Jaguar a License (as that term is defined in Section 2.1 of the License Agreement) to certain intellectual property and other rights that are owned by Napo (the “Napo Intellectual Property”).  Jaguar shall be a third party beneficiary hereto.  Capitalized terms used herein but not defined shall have the meanings given thereto in the Financing Agreement (as defined immediately below).

 

Napo is party to that certain Financing Agreement, dated as of October 10, 2014 (the “Financing Agreement”) by and among Napo, as borrower, the lenders from time to time as parties thereto (each a “Lender” and collectively, the “Lenders”), and Nantucket Investments Limited (“Nantucket”), as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “Collateral Agent”), and Nantucket, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “Administrative Agent” and together with the Collateral Agent, collectively, the “Agent”), which agreement amends, restates, converts and continues certain financial obligations of Napo to Nantucket existing as of the date hereof (such obligations being more fully described in the Financing Agreement and defined as the “Existing Financial Obligations”) as and into the Term Loan under the Financing Agreement.

 

Pursuant to that certain security agreement entered into by Napo and Nantucket in connection with the Existing Financial Obligations, as the same may have been or hereafter may be amended, restated, supplemented or otherwise modified from time to time (the “Original Security Agreement”), Napo has granted to Nantucket a security interest in certain assets of Napo, including the Napo Intellectual Property and the proceeds thereof to secure the Existing Financial Obligations.  In connection with the Financing Agreement, Napo has entered into (i) a reaffirmation agreement (the “Reaffirmation Agreement”), pursuant to which Napo has, among other things, confirmed, ratified and reaffirmed the security interests granted to Nantucket pursuant to the Original Security Agreement, and (ii) a Pledge and Security Agreement (the “New Security Agreement”, and together with the Original Security Agreement as amended and reaffirmed by the Reaffirmation Agreement, the “Security Agreements”), pursuant to which

 

 

Napo has granted in favor of Nantucket as Collateral Agent for the benefit of the Secured Parties a security interest in all of its assets securing the Obligations.

 

By executing this letter, Agent acknowledges and agrees to the following:

 

Agent hereby warrants and represents that (i) it is authorized as Agent on behalf of the Lenders to enter into and perform under this letter agreement and (ii) Jaguar may rely upon this letter with respect to the rights granted to Jaguar in accordance with the License Agreement, and Agent shall be estopped from denying the truth of the facts contained herein.

 

As of the Restatement Effective Date, the terms, conditions and covenants set forth in those certain financing agreements between Napo and Nantucket giving rise to the Existing Financial Obligations (the “Existing Financing Agreements”) have been amended, restated, converted and continued pursuant to the Financing Agreement.  As of the date hereof, Napo (x) is not in breach or violation of any term or covenant under the Financing Agreement, the Security Agreements or any other Loan Document and (y) has at all times been in compliance with all of its obligations, financial and otherwise, under the Existing Financing Agreements and related agreements and documentation.

 

Notwithstanding any provision to the contrary contained in the Financing Agreement, Security Agreements, or any other Loan Document or any other claim or defense Agent may have from time to time thereunder or at law, Agent covenants and agrees (i) subject to Agent’s right to terminate the License Agreement following an Enforcement (as defined below) in accordance with this Non-Disturbance Letter Agreement, the Napo Intellectual Property licensed under the License Agreement shall remain subject to the License Agreement and the License Agreement shall survive in accordance with its terms, and the rights of Jaguar or Napo under the License Agreement shall not be altered, notwithstanding any transfer of or sale or other disposition of the Napo Intellectual Property including without limitation in connection with any enforcement of the Financing Agreement, Security Agreements, or any other Loan Document or by operation of law and (ii) in the event Agent exercises any of its rights or remedies as a secured party under any of the Security Agreements, the Financing Agreement or any other Loan Document, including without limitation those rights or remedies under the Original Security Agreement or otherwise by judicial enforcement (collectively referred to as “Enforcement”), or transfers in lieu of such Enforcement, and in so doing affects the Napo Intellectual Property or any other property that is subject to the License Agreement (such property being hereinafter collectively referred to as the “Assets”), it shall do so pursuant to the following terms, conditions and restrictions:

 

1.                                      Neither Agent nor any acquirer of the Napo Intellectual Property may terminate, whether by operation of law or otherwise, the License Agreement, or take any action that interferes with Jaguar’s rights under the License Agreement other than for Jaguar’s non-payment to Napo (or any successor licensor) of any amount owed under the License Agreement (after giving effect to any applicable cure periods under the License Agreement), it being understood that, without limiting Agent’s obligations as set forth in paragraph 3 below, Agent shall not have any obligation or liability with respect to any such acquirer’s compliance with the terms of this paragraph 1.

 

 

2.             To the extent Agent exercises any Enforcement with respect to or affecting the Assets or any transfer in lieu of Enforcement, Agent covenants and agrees to be subject to, and bound by, all of the terms and conditions of the License Agreement applicable to Napo.

 

3.             Agent shall transfer the License Agreement contemporaneously with, and as appurtenant to, the Assets.  Further, any party acquiring the Assets or any interest therein in connection with Agent’s Enforcement or any transfer in lieu of Enforcement, whether such acquisition is from Agent, or a party acquiring the Assets or an interest in the Assets from a subsequent acquirer from Agent, shall be bound by the terms of the License Agreement and this letter, and shall acquire such Assets or interest in such Assets subject to the License Agreement and this letter.  Prior to or contemporaneously with such acquisition, each such acquiring party shall be required to sign an acknowledgment evidencing its agreement to be bound by the terms hereof and the License Agreement.

 

This letter shall inure to the benefit of, and shall be binding upon, the parties hereto, including but not limited to third party beneficiary Jaguar, and their respective successors and assigns, including but not limited to successors and assigns of Jaguar, and any sublicensees of Jaguar to the extent permitted under the License Agreement.  Except as expressly provided herein, the execution, delivery and effectiveness of this letter shall not operate as an amendment or waiver of any right, power or remedy of Agent or the Lenders under the Financing Agreement, the Security Agreements or any other Loan Document, nor constitute an amendment or waiver of any provision (except as otherwise specified therein) of the Financing Agreement, the Security Agreements or any other Loan Document, nor constitute a waiver of, or consent to, any Default or Event of Default hereafter arising under the Financing Agreement, the Security Agreements or any other Loan Document, and Agent and the Lenders expressly reserve all of their rights and remedies under the Financing Agreement, the Security Agreements and the other Loan Documents, under applicable law or otherwise existing as of the Restatement Effective Date.  This letter may not be amended except by mutual written consent of Napo, Agent and Jaguar as a third party beneficiary hereof.  This letter is governed by the laws of the State of New York without giving effect to conflict of law principles thereof.  Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Financing Agreement.

 

Agent hereby authorizes Jaguar or Napo to file a short form notice of this non-disturbance letter with the PTO and any other filing office within or outside the United States as Napo shall determine to be appropriate in its sole discretion.   The content of the notice shall state the following: Subject to Agent’s right to terminate the License Agreement following an Enforcement in accordance with the Non-Disturbance Letter Agreement, the Napo Intellectual Property licensed under the License Agreement shall remain subject to the License Agreement and the License Agreement shall survive in accordance with its terms, and the rights under the License Agreement shall not be altered, notwithstanding any transfer of or sale or other disposition of the Napo Intellectual Property including without limitation in connection with any enforcement of the Financing Agreement, Security Agreements, or any other Loan Document or by operation of law.

 

 

Please sign and return a copy of this letter to Napo as acknowledgement and consent to the foregoing.  This letter may be executed in counterparts, all of which taken together shall be regarded as one and the same instrument.

 

	
 
    	
Sincerely,
    
	
 
    	
 
    
	
 
    	
Napo   Pharmaceuticals Inc.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lisa A. Conte
    
	
 
    	
Name:   
    	
Lisa   A. Conte
    
	
 
    	
Title:
    	
Interim   Chief Executive Officer
    
	
 
    	
 
    	
 
    

 

Acknowledged and Agreed to this 10th day of October, 2014.

 

Nantucket Investments Limited, as Administrative Agent and Collateral Agent

 

	
 
    	
 
    	
 
    
	
By:
    	
/s/ Mark   Woodall
    	
 
    
	
Name:   Mark Woodall
    	
 
    
	
Title:   DirectorExhibit 10.24

 

 

29 September 2014

 

Dear Charlie,

 

This letter, once signed by you, will constitute the agreement between you and Jaguar Animal Health, Inc. (“Company”) regarding the terms of your separation from employment with the Company (hereinafter the “Agreement”). Thank you for all of your contributions over the years.

 

On September 16th you resigned from the Company and stated that your last day would be Friday, Sept. 19, 2014. However, to allow for time to transition your responsibilities, we have agreed that you will remain with the Company through October 17, 2014 in a reduced capacity and at a reduced salary.

 

Your responsibilities will include:

 

·                  Create a detailed list of questions and responses that you anticipate the Company will receive from potential investors

·                  Provide commentary on every page of the Company’s business model (in excel)

·                  Work with Company staff and or an excel consultant to restructure Jaguar’s business model

·                  Additional tasks as needed to help identify and transition your work to others at the Company

 

The details of your separation from the Company are as follows:

 

1. In a phone conversation on September 16, 2014, with Lisa Conte, you resigned, effective Friday, Sept. 19, 2014, from your position as Executive Vice President, Finance, and Chief Financial Officer, Treasurer and Secretary of the Company. In a meeting on September 18, 2014, with John Kallassy, you agreed that you would remain with the Company in a reduced role and that you would be compensated at fifty percent (50%) of your previous base salary. You will no longer be an officer of Jaguar, your new title will be “Finance”, and your last day of work for the Company will be October 17, 2014. You can perform your work at your home office but may be asked to meet with Company representatives as needed. On the last day of your engagement with the Company, you will confirm that you have deleted all Company files from your Company issued laptop and the Company will issue you paperwork transferring ownership of that laptop to you. Before leaving the Company you will return all other Company property and confirm that you do not possess any other Company property.

 

Jaguar Animal Health, Inc. · 185 Berry Street, Suite 1300 · San Francisco, CA 94107

Tel: +1 (415) 371-8300 · Fax: +1 (415) 371-8311 · www.jaguaranimalhealth.com

 

 

 

2. The claims you are releasing in this Agreement do not include any claims for earned wages, bonuses, commission pay, or paid time off/vacation days. Your accrued paid time

 

off, as shown in the table below, totals $10,727.78. You will not accrue additional paid time off after September 16th, 2014. By signing below, you acknowledge you have been paid or understand that you will be paid your earned salary, accrued vacation pay, and any applicable bonuses or commissions through the effective date of your termination.

 

	
Time off Accrual
    
	
 
    	
 
    	
 
    	
 
    
	
Pay periods
    	
 
    	
14.5
    	
 
    
	
Hours accrued per pay period
    	
 
    	
7.69
    	
 
    
	
Hourly rate
    	
 
    	
$
    	
122.60
    	
 
    
	
Vacation taken (24 hours*$122.60)
    	
 
    	
$
    	
(2,942.31
    	
)
    
	
Total
    	
 
    	
$
    	
10,727.78
    	
 
    

 

3. As an accommodation to you and as a show of good will on your part, the Company has agreed to employ you through October 17th on a limited basis and for the responsibilities listed above and at fifty percent (50%) of your base salary. Accordingly, you will be paid four thousand nine hundred and eight dollars and eighty-five cents ($4,908.85) per two-week pay period, less applicable payroll taxes and other authorized deductions. The Company will continue to pay any insurance that it had previously paid on your behalf until the last day of your engagement with the Company. You agree to immediately sign the Employment, Confidential Information, Invention Assignment and Arbitration Agreement (“Confidentiality Agreement”), attached hereto as Exhibit A, which you received but didn’t sign at the time of your initial term of employment by the Company. Your agreement to the terms of the Confidentiality Agreement does not entitle you to any additional benefits or compensation of any kind beyond what is described in this Agreement. You understand and agree that this employment is extended to you in exchange for your signature and release pursuant to the terms of this Agreement.

 

4. By signing this Agreement you agree and acknowledge that you have relinquished all authority with regard to the operation of the Company, including, without limitation, signature authority you may possess for any of the Company’s bank accounts.

 

5. By signing below you waive and release any and all claims you have or might have against the Company that are the result of any act or failure to act that occurred before the effective date of this Agreement.

 

The claims you are releasing include, but are not limited to, discrimination, harassment, retaliation, or privacy claims arising under federal, state, and local statutory or common

 

Jaguar Animal Health, Inc. · 185 Berry Street, Suite 1300 · San Francisco, CA 94107

Tel: +1 (415) 371-8300 · Fax: +1 (415) 371-8311 · www.jaguaranimalhealth.com

 

 

 

law, such as the First and Fourteenth Amendments to the United States Constitution, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age Discrimination in Employment Act, Article I of the California Constitution, the California Fair Employment and Housing Act, the California Family Rights Act, the California Labor Code, the Wage Orders of the California Industrial Welfare Commission, and the California Unfair Business Practices law (Cal. Bus. and Prof. Code Sec. 17200, et seq.).

 

6. You further understand that the claims you are releasing include any and all claims you have or might have against the Company that are the result of any act or failure to act that occurred before the effective date of this Agreement, whether or not you presently are aware that you have such a claim. This includes your express waiver of any claims that would otherwise be covered by Section 1542 of the California Civil Code, which states:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

This does not include any claims that arise from acts or events occurring after the date of this Agreement, or any claim to enforce the terms of this Agreement.

 

7. As part of your overall compensation from your employment with the Company, you were granted stock options (grant date April 2014) and restricted stock units (“RSUs”) (grant date June 2014). You acknowledge and agree that (a) no portion of the stock options or RSUs granted to you by the Company are vested as of the date of this letter and will not be vested as of your scheduled employment termination date of October 17, 2014; and (b) such unvested stock options and RSUs will expire and be forfeited by you on the date of your termination of employment with the Company.

 

8. It is the Company’s sincere desire that you sign this Agreement knowingly and voluntarily, without coercion or duress. By signing below, you acknowledge that in accordance with the federal Older Workers Benefit Protection Act of 1990, you have been made aware that: (a) you have the right to consult with an attorney before signing this Agreement and are advised to do so; (b) you have 21 days from the date you are presented with this Agreement to consider the release of your claims; and (c) you have seven days after signing this Agreement to revoke your consent. If you revoke your consent to this Agreement, you will be ineligible to receive the additional payment described in Paragraph 3, above and you will not be allowed to retain your Company issued laptop.

 

9. The effective date of this Agreement is the date that you sign below.

 

Jaguar Animal Health, Inc. · 185 Berry Street, Suite 1300 · San Francisco, CA 94107

Tel: +1 (415) 371-8300 · Fax: +1 (415) 371-8311 · www.jaguaranimalhealth.com

 

 

 

10. This Agreement is executed in the State of California, will be governed by the laws of California, and constitutes the entire agreement between the parties. If any provision of this Agreement is deemed illegal or unenforceable, the remaining provisions will still be fully binding and enforceable.

 

By signing below, you acknowledge that you have read and understand the terms of this Agreement, and that it is your intent to release any claims you have or may have against the Company, as described above, in exchange for adequate consideration offered to you by the Company. You also acknowledge that you either have consulted an attorney regarding this Agreement or you have elected not to consult an attorney, and are therefore knowingly and voluntarily entering into this Agreement.

 

 

	
Signed:
    	
/s/   Charles Thompson
    	
 
    
	
 
    	
Charles   Thompson
    	
 
    
	
 
    	
 
    
	
Date:   10/02/2014
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
For   Jaguar Animal Health, Inc.:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Signed:
    	
/s/   Lisa A. Conte
    	
 
    
	
 
    	
Lisa   A. Conte, CEO
    	
 
    
	
 
    	
 
    
	
Date:   09/30/2014
    	
 
    

 

Jaguar Animal Health, Inc. · 185 Berry Street, Suite 1300 · San Francisco, CA 94107

Tel: +1 (415) 371-8300 · Fax: +1 (415) 371-8311 · www.jaguaranimalhealth.com

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}]]