Document:

Exhibit
10.16

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (the “Agreement”)
is made as of this 22nd day of November, 2010, by and between
NewLink Genetics Corporation (the “Company”), and Kenneth
Lynn (“Executive”) (collectively, the “Parties”).

 

WHEREAS, the Company wishes to continue to employ Executive
and to assure itself of the continued services of Executive on the terms set
forth herein;

 

WHEREAS, Executive wishes to be so employed under the terms
set forth herein;

 

WHEREAS, Executive and the Company are parties to an offer
letter dated 1/18/2008.

 

WHEREAS, the Parties desire to amend and restate the offer
letter to reflect certain additional and revised terms of Executive’s
employment; and

 

WHEREAS, the Parties intend that this Agreement shall supersede
and replace any similar agreements that presently exist or may have previously
existed between the Parties regarding the terms of Executive’s employment with
the Company.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual promises and
covenants contained herein, it is hereby agreed by and between the Parties
hereto as follows:

 

1.                                      EMPLOYMENT.  The Company will continue to
employ Executive and Executive shall continue to serve the Company in the
capacity of Executive Vice President, Business Development (“EVP, BD”).

 

2.                                      AT-WILL
EMPLOYMENT.  It is understood and
agreed by the Company and Executive that this Agreement does not contain any
promise or representation concerning the duration of Executive’s employment
with the Company. Executive specifically acknowledges that his employment with
the Company is at-will and may be altered or terminated by either Executive or
the Company at any time, with or without cause and/or with or without
notice.  The nature, terms or conditions
of Executive’s employment with the Company cannot be changed by any oral
representation, custom, habit or practice, or any other writing.  In addition, that the rate of salary, any
bonuses, paid time off, other compensation, or vesting schedules are stated in
units of years or months or weeks does not alter the at-will nature of the
employment, and does not mean and should not be interpreted to mean that
Executive is guaranteed employment to the end of any period of time or for any
period of time. In the event of conflict
between this disclaimer and any other statement, oral or written, present or
future, concerning terms and conditions of employment, the at-will relationship
confirmed by this disclaimer shall control. 
This at-will status cannot be altered except in a writing signed by
Executive and approved by the Board of Directors of the Company (the “Board of
Directors”).

 

 

3.                                      DUTIES.  Executive shall continue to render exclusive,
full-time services to the Company as its EVP, BD.  Executive shall report to Chief Executive
Officer.  Executive shall perform
services under this Agreement primarily at the Ames or Des Moines, Iowa,
offices of the Company, and from time to time at such other locations as is
necessary to perform the duties of EVP, BD under this Agreement.  Subject to the terms of this Agreement,
Executive’s responsibilities, working conditions and duties may be changed,
added to or eliminated during his employment at the sole discretion of the
Chief Executive Officer.  During
Executive’s employment with the Company he shall devote his best efforts and
his full business time, skill and attention to the performance of his duties on
behalf of the Company.

 

4.                                      POLICIES
AND PROCEDURES.  Executive
agrees that he is subject to and will comply with the policies and procedures
of the Company, as such policies and procedures may be modified, added to or
eliminated from time to time at the sole discretion of the Company, except to
the extent any such policy or procedure specifically conflicts with the express
terms of this Agreement.  Executive
further agrees and acknowledges that any written or oral policies and
procedures of the Company do not constitute contracts between the Company and
Executive.

 

5.                                      BASE
SALARY.  For all
services rendered and to be rendered hereunder, the Company agrees to pay to
the Executive, and the Executive agrees to accept a salary of $243,338
per annum (“Base Salary”) which
will be paid periodically in accordance with normal Company payroll practices
and shall be subject to such deductions or withholdings as the Company is
required to make pursuant to law, or by further agreement with the
Executive.  Executive’s salary shall be
subject to annual review and adjustment by the Board of Directors.

 

6.                                      STOCK
OPTIONS.  Executive
was previously granted options to purchase 210,000 shares of Company
common stock.  Except
as expressly modified by this Agreement, the vesting schedule and all other
terms, conditions and limitations of the options will be governed by the
Company’s 2000 and/or 2009 Equity Incentive Plans (the “Plans”)
and in the stock option grant notices and stock option agreements approved by
the Board and entered into by Executive.

 

7.                                      BONUS.  Executive
may be eligible to receive an annual performance bonus of up to 40% of
his Base Salary subject to employment taxes, withholding and deductions (“Bonus”) based upon Executive’s achievements
of certain milestones and performance objectives established by the Company (“Variable Incentive Bonus Plan”).  Except as expressly provided otherwise
herein, Executive must remain employed with the Company throughout the
applicable bonus year in order to be eligible for any Bonus.  The Board of Directors or the Compensation
Committee, in its sole discretion, shall determine the extent to which
Executive has achieved the performance targets upon which Executive’s Bonus is
based, and the amount of Bonus to be paid to Executive, if any.  Bonuses are not earned until they are
approved in writing by the Board of Directors or Compensation Committee.

 

8.                                      OTHER
BENEFITS.  While employed by the
Company as provided herein:

 

(a)                                  Executive
Benefits.  The
Executive shall be entitled to all benefits to which other executive officers
of the Company are entitled, on terms comparable thereto, including, without
limitation, participation in pension and profit sharing plans, 401(k) plan,

 

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group insurance policies and plans, medical, health,
vision, and disability insurance policies and plans, and the like, which may be
maintained by the Company for the benefit of its executives. The Company
reserves the right to alter and amend the benefits received by Executive from
time to time at the Company’s discretion.

 

(b)                                  Expense
Reimbursement.  The
Executive shall receive, against presentation of proper receipts and vouchers,
reimbursement for direct and reasonable out-of-pocket expenses incurred by him
in connection with the performance of his duties hereunder, according to the
policies of the Company.

 

(c)                                  Vacation.  Executive will be entitled to twenty (20)
vacation days, which will accrue in monthly increments.

 

9.                                      CONFIDENTIAL INFORMATION, RIGHTS AND DUTIES.

 

(a)                                                          Proprietary
Information.  Executive reaffirms and
agrees to execute and abide by the Company’s Proprietary Information and Inventions
Agreement (the “Proprietary Information
Agreement”), attached hereto as Exhibit A.

 

(b)                                                          Exclusive
Property.  Executive
agrees that all Company-related business procured by the Executive, and all
Company-related business opportunities and plans made known to Executive while
employed by the Company, are and shall remain the permanent and exclusive
property of the Company.

 

(c)                                                          Non-Competition and Non-Solicitation. 
Executive agrees that for a period of one year following his last day
of employment with the Company, he shall continue to comply with the
non-competition and non-solicitation obligations set forth in the Proprietary
Information Agreement.

 

10.                               TERMINATION.  Executive and the Company each acknowledge
that either party has the right to terminate Executive’s employment with the
Company at any time for any reason whatsoever, with or with out cause or
advance notice pursuant to the following:

 

(a)                                  Termination
by Death or Disability. 
Subject to applicable state or federal law, in the event that Executive
shall die during his employment hereunder or become permanently disabled, as
evidenced by notice to the Company and Executive’s inability to carry out his
job responsibilities for a continuous period of more than six months, Executive’s
employment and the Company’s obligation to make payments hereunder shall
terminate on the date of his death, or the date upon which, in the sole
determination of the Board of Directors, Executive has become permanently
disabled.  Vesting of all options shall
cease on the date of such termination.

 

(b)                                  Voluntary
Resignation by Executive.  In
the event that Executive voluntarily terminates his employment with the
Company, the Company’s obligation to make payments hereunder shall cease upon
such termination, except the Company shall pay Executive any salary earned but
unpaid prior to termination, any benefits accrued prior to termination, all 

 

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accrued
but unused vacation, and any business expenses that were incurred but not
reimbursed as of the date of termination. 
Vesting of all options shall cease on the date of such termination.

 

(c)                                  Termination
for Cause.  In the event
that Executive is terminated by the Company for Cause (as defined below), the
Company’s obligation to make payments hereunder shall cease upon the date of
receipt by Executive of written notice of such termination (the “Termination Date”), except the Company
shall pay Executive any salary earned but unpaid prior to the Termination Date,
any benefits accrued prior to termination, all accrued but unused vacation and
any business expenses that were incurred but not reimbursed as of the date of
termination.  Vesting of all options
shall cease on the Termination Date.

 

(d)                                  Termination
by the Company without Cause or for Good Reason.  In the event Executive’s employment is
terminated without Cause (as defined herein) or due to death or disability (as
provided in Section 10(a)) or Executive resigns for Good Reason (as
defined herein) and upon the execution of a Release by Executive and written
acknowledgment of Executive’s continuing obligations under the Proprietary
Information Agreement, Executive shall be entitled to receive the equivalent of
six (6) months of his Base Salary as in effect immediately
prior to the termination date, payable on the same basis and at the same time
as previously paid and subject to employment tax withholdings and deductions,
commencing on the first regularly scheduled pay date following the Effective
Date of the Release.  Provided that
Executive is eligible for and timely elects continuation of his health
insurance pursuant to COBRA, for a period of six (6) months
following a termination without Cause, the Company shall also reimburse
Executive for the cost of COBRA premiums to be paid in order for Executive to
maintain medical insurance coverage that is substantially equivalent to that
which Executive received immediately prior to the termination provided, however, that the Company’s
obligation to pay Executive’s COBRA premiums will cease immediately in the
event Executive becomes eligible for group health insurance during the six
(6) month period, and Executive hereby agrees to promptly notify
the Company if he becomes eligible to be covered by group health insurance in
such event (the salary continuation and COBRA reimbursement are collectively
referred to as the “Severance Benefits”).

 

(e)                                  Definition of Cause.  For purposes of
this Agreement, “Cause” means (i) the Executive’s incompetence
or failure or refusal to perform satisfactorily any duties reasonably required
of the Executive by the Company (other than by reason of Disability); (ii) the
Executive’s violation of any law, rule or regulation (other than traffic
violations, misdemeanors or similar offenses) or cease-and-desist order, court
order, judgment, regulatory directive or agreement; (iii) the commission
or omission of or engaging in any act or practice which constitutes a material
breach of the Executive’s fiduciary duty to the Company, involves personal
dishonesty on the part of the Executive or demonstrates a willful or continuing
disregard for the best interests of the Company; or (iv) the Executive’s
engaging in dishonorable or disruptive behavior, practices or acts which would
be reasonably expected to harm or bring disrepute to the Company, its business
or any of its customers, Executives or vendors.

 

(f)                                    Definition of Good Reason.  For purposes of
this Agreement, “Good Reason” means that one or more of the following is
undertaken without Executive’s express written consent: (i) a reduction in
Executive’s Base Salary, bonus (if any) or benefits that would 

 

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substantially diminish the
aggregate value of Executive’s compensation and benefits without Executive’s
consent; or (ii) the assignment to Executive of duties that are
substantially and materially inconsistent with the position held by Executive
prior to the Change in Control and that are not a reasonable advancement of
Executive’s position within the Company.

 

11.                               CHANGE IN CONTROL BENEFITS.

 

(a)                                  Change of Control Termination.  If within the
thirteen (13) months immediately following a Change in Control or the one (1) month
immediately preceding a Change in Control: 
(i) Executive is involuntarily terminated by the Company (or its
successor entity) other than for Cause or (ii) Executive voluntarily
terminates his employment with the Company (or its successor entity) for Good
Reason (either constituting a “Change of
Control Termination”), and in each case Executive signs a Release
and written acknowledgment of Executive’s continuing obligations under the
Proprietary Information Agreement, Executive shall be entitled to the
equivalent of six (6) months of his Base Salary as in effect
immediately prior to the Change of Control Termination Date, payable on the
same basis and at the same time as previously paid and subject to employment
tax withholdings and deductions, commencing on the first regularly scheduled
pay date following the Effective Date of the Release.  Provided that Executive is eligible for and
timely elects continuation of his health insurance pursuant to COBRA, for a
period of six (6) months following a Change in Control
Termination, the Company shall also reimburse Executive for the cost of COBRA
premiums to be paid in order for Executive to maintain medical insurance
coverage that is substantially equivalent to that which Executive received
immediately prior to the termination provided,
however, that the Company’s obligation to pay Executive’s COBRA
premiums will cease immediately in the event Executive becomes eligible for
group health insurance during the six (6) month period, and
Executive hereby agrees to promptly notify the Company if he becomes eligible
to be covered by group health insurance in such event (the salary continuation
and COBRA reimbursement are collectively referred to as the “Change in Control Severance
Benefits”).

 

In
addition, the Company will vest one-hundred percent (100%) of the
shares subject to Executive’s options and such vesting shall occur upon the
occurrence of the Change of Control in the case of a Change of Control
Termination occurring prior to the Change in Control or upon termination in the
case of a Change of Control Termination occurring after the Change of Control.  All
other terms and conditions set forth in the options, the Plan, and the
applicable stock option agreements shall remain in full force and effect.

 

(b)                                  Definition
of Change in Control.  For
purposes of this Agreement, “Change of Control”
of the Company has the same definition as set forth in the Company’s 2009
Equity Incentive Plan.

 

12.                               CODE SECTION 409A
COMPLIANCE.  Because of
the uncertainty of the application of Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”), to payments pursuant to this Agreement,
including, without limitation, payments pursuant to Sections 11 and 12 hereof,
Executive agrees that if any such payments are subject to the provisions of Section 409A
of the Code by reason of this Agreement, or any part thereof, being considered
a “nonqualified deferred compensation plan” pursuant to Section 409A of
the Code, 

 

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then such payments shall be made in accordance with,
and this Agreement automatically shall be amended to comply with, Section 409A
of the Code, including, without limitation, any necessary delay of six (6) months
applicable to payment of deferred compensation to a “specified Executive” (as
defined in Section 409A(2)(B)(i) of the Code) upon separation from
service. In the event that a six month delay is required, on the first
regularly scheduled pay date following the conclusion of the delay period the
Executive shall receive a lump sum payment in an amount equal to six (6) months
of Executive’s Base Salary and thereafter, any remaining Severance Benefits
shall be paid on the same basis and at the same time as previously paid and
subject to employment tax withholdings and deductions.

 

13.                               MISCELLANEOUS.

 

(a)                                  Taxes.  Executive agrees to be
responsible for the payment of any taxes due on any and all compensation, stock
option, or benefit provided by the Company pursuant to this Agreement.  Executive agrees to indemnify the Company and
hold the Company harmless from any and all claims or penalties asserted against
the Company for any failure to pay taxes due on any compensation, stock option,
or benefit provided by the Company pursuant to this Agreement.  Executive expressly acknowledges that the
Company has not made, nor herein makes, any representation about the tax consequences
of any consideration provided by the Company to Executive pursuant to this
Agreement.

 

(b)                                  Modification/Waiver.  This Agreement may not be
amended, modified, superseded, canceled, renewed or expanded, or any terms or
covenants hereof waived, except by a writing executed by each of the parties
hereto or, in the case of a waiver, by the party waiving compliance.  Failure of any party at any time or times to
require performance of any provision hereof shall in no manner affect his or
its right at a later time to enforce the same. 
No waiver by a party of a breach of any term or covenant contained in
this Agreement, whether by conduct or otherwise, in any one or more instances
shall be deemed to be or construed as a further or continuing waiver of agreement
contained in the Agreement.

 

(c)                                  Successors
and Assigns.  This Agreement shall be
binding upon and shall inure to the benefit of any successor or assignee of the
business of the Company.  This Agreement
shall not be assignable by the Executive.

 

(d)                                  Notices.  All notices given hereunder
shall be given by certified mail, addressed, or delivered by hand, to the other
party at his or its address as set forth herein, or at any other address
hereafter furnished by notice given in like manner.  Executive promptly shall notify Company of
any change in Executive’s address.  Each
notice shall be dated the date of its mailing or delivery and shall be deemed
given, delivered or completed on such date.

 

(e)                                  Governing
Law; Personal Jurisdiction and Venue.  This Agreement and all
disputes relating to this Agreement shall be governed in all respects by the
laws of the State of Iowa as such laws are applied to agreements between Iowa
residents entered into and performed entirely in Iowa.  The Parties acknowledge that this Agreement
constitutes the minimum contacts to establish personal jurisdiction in Iowa and
agree to Iowa court’s exercise of personal jurisdiction.

 

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(f)                                    Entire
Agreement.  This Agreement together with
the Exhibits A and B attached hereto, set forth the entire agreement and
understanding of the parties hereto with regard to the employment of the
Executive by the Company and supersede any and all prior agreements,
arrangements and understandings, written or oral, pertaining to the subject
matter hereof.  No representation,
promise or inducement relating to the subject matter hereof has been made to a
party that is not embodied in these Agreements, and no party shall be bound by
or liable for any alleged representation, promise or inducement not so set
forth.

 

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IN WITNESS WHEREOF, the parties have each duly
executed this Employment Agreement as of the day and year first above written.

 

	
   

  	
  NEWLINK
  GENETICS CORPORATION

  
	
   

  	
   

  
	
   

  	
  /s/
  Gordon Link

  
	
   

  	
  Print
  Name:

  	
  Gordon
  Link

  
	
   

  	
  Its:

  	
  CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
  /s/
  Kenneth Lynn

  
	
   

  	
  Print
  Name:

  	
  Kenneth
  Lynn

  

 

 

Exhibit A

 

NEWLINK GENETICS

 

EMPLOYEE PROPRIETARY INFORMATION, INVENTIONS,

NON-COMPETITION, AND NON-SOLICITATION AGREEMENT

 

This
Employee Proprietary Information, Inventions, Non-competition, and
Non-solicitation Agreement (“Agreement”) is made in consideration for my
employment or continued employment by NEWLINK GENETICS
(the “Company”), and the compensation now and hereafter paid to me.  I hereby agree as follows:

 

1.             NONDISCLOSURE.

 

1.1          Recognition
of Company’s Rights; Nondisclosure.  At all times during my employment and for a
period of five (5) years thereafter, I will hold in confidence and
will not use, except for the benefit of the Company, or disclose, lecture upon
or publish any of the Company’s Proprietary Information (defined below), except
as such disclosure or use may be proper in connection with the performance of
my responsibilities as an officer and employee of the Company, or unless an
officer of the Company expressly authorizes such in writing, and provided that
I may disclose specific Proprietary Information to the limited extent such
disclosure is required by law, regulation, rule, act, or order of any
governmental authority or agency, subject to the condition that I give the
Company sufficient advance written notice of such required disclosure to permit
it to seek a protective order or other similar order with respect to such
Proprietary Information and thereafter disclose only the minimum Proprietary
Information required to be disclosed.  I
hereby assign to the Company any rights I may have or acquire in such
Proprietary Information and recognize that all Proprietary Information shall be
the sole property of the Company and its assigns.

 

1.2          Proprietary
Information.  The term “Proprietary
Information” shall mean any and all confidential and/or proprietary knowledge,
data or information of the Company.  By
way of illustration but not limitation or expansion, “Proprietary Information”
includes (a) tangible and intangible information relating to antibodies
and other biological materials, cell lines, samples of assay components, media
and/or cell lines and procedures and formulations for producing any such assay
components, media and/or cell lines, formulations, products, processes,
know-how, designs, formulas, methods, developmental or experimental work,
clinical data, improvements, discoveries, plans for research, new products,
marketing and selling, business plans, budgets and unpublished financial
statements, licenses, prices and costs, suppliers and customers, and
information regarding the skills and compensation of other employees of the
Company; (b) trade secrets, inventions, mask works, processes, formulas,
source and object codes, data, programs, other works of authorship, know-how,
improvements, discoveries, developments, designs and techniques (hereinafter
collectively referred to as “Inventions”); (c) information regarding plans
for research, development, new products, marketing and selling, business plans,
budgets and unpublished financial statements, licenses, prices and costs, suppliers
and customers; and (d) information regarding the skills and compensation
of other employees of the Company. 
Notwithstanding the foregoing, “Proprietary Information” shall not
include knowledge, data or information that ceases to be maintained by the Company
as confidential and/or proprietary, or which is otherwise published or
rightfully acquired by me from a source under no obligation of confidentiality
to the Company.  Moreover, it is
understood that, at all times, I am free to use information which is
generally known in the trade or industry, which is not gained as result of a
breach of this Agreement, and my own, skill, knowledge, know-how and experience
to whatever extent and in whichever way I wish.

 

1.3          Third
Party Information.  I
understand, in addition, that the Company has received and in the future will
receive from third parties confidential or proprietary information (“Third
Party Information”) subject to a duty on the Company’s part to maintain the
confidentiality of such information and to use it only for certain limited
purposes.  During the term of my
employment and thereafter, I will hold Third Party Information in due
confidence and will not, except in the proper performance of my 

 

1

 

responsibilities as an officer and employee of the
Company or as otherwise compliant with the Company’s agreement with the third
party, disclose to anyone or use Third Party Information unless expressly
authorized by an officer of the Company in writing.

 

1.4          No
Improper Use of Information of Prior Employers and Others.  I will not in the course of my employment
with the Company improperly use or disclose any confidential information or
trade secrets, if any, of any former employer or any other person to whom I
have an obligation of confidentiality.

 

2.             ASSIGNMENT
OF INVENTIONS.

 

2.1          Proprietary
Rights.  The term “Proprietary
Rights” shall mean all trade secret, patent, copyright, mask work
and other intellectual property rights throughout the world.

 

2.2          Prior
Inventions.  Inventions,
if any, patented or unpatented, which I made prior to the commencement of my
employment with the Company are excluded from the scope of this Agreement.  To the best of my knowledge, I have not,
alone or jointly with others, conceived, developed or reduced to practice or
caused to be conceived, developed or reduced to practice prior to the
commencement of my employment with the Company any patentable invention or
proprietary technology related to the Company’s business as now conducted or
anticipated to be conducted in the Company’s current business plan.

 

2.3          Assignment
of Inventions.  Subject to
Sections 2.4, and 2.6, I hereby assign and agree to assign in the future
(when any such Inventions or Proprietary Rights are first reduced to practice
or first fixed in a tangible medium, as applicable) to the Company upon its
request all my reasonably assignable right, title and interest in and to any
and all Inventions (and all Proprietary Rights with respect thereto) whether or
not patentable or registrable under copyright or similar statutes, made or
conceived or reduced to practice by me, either alone or jointly with others, in
the course of and directly related to my employment with the Company.  Inventions assigned to the Company, or to a
third party as directed by the Company pursuant to this Section 2, are
hereinafter referred to as “Company Inventions.”

 

2.4          Nonassignable
Inventions.  This
Agreement will not be deemed to require assignment of any invention which
qualifies for protection under a Specific Inventions Law, if applicable, or
which was developed entirely on my own time without using the Company’s
equipment, supplies, facilities, or trade secrets and which neither directly
relates to the Company’s actual or anticipated business, research or
development, nor resulted from work performed by me for the Company.

 

2.5          Obligation
to Keep Company Informed. During the period of my employment and for
six months after the last day of my employment with the Company, I will
promptly disclose to the Company fully and in writing all patent applications
filed by me or on my behalf as a named inventor.  At the time of each such disclosure, I
will advise the Company in writing of any Invention that I believe qualifies
for protection under the provisions of a Specific Inventions Law or is
otherwise subject to Section 2.4, and I will at that time provide to the
Company in writing reasonable evidence to substantiate that belief.  The Company will keep in confidence and will
not use for any purpose or disclose to third parties without my consent any
confidential information disclosed in writing to the Company pursuant to this
Agreement relating to Inventions that qualify fully for protection under a
Specific Inventions Law or are otherwise subject to Section 2.4.  I will preserve the confidentiality of any
Invention that does not qualify for protection under a Specific Inventions Law
or is otherwise not subject to Section 2.4.

 

2.6          Government
or Third Party.  I also
agree to assign to a third party, including without limitation the United
States, as directed by the Company all my right, title and interest in and to
any particular Invention to the limited extent that such Invention is otherwise
subject to Section 2.3 as qualified by Section 2.4 or any other
applicable provision of this Agreement.

 

2.7          Works
for Hire.  I
acknowledge that all original works of authorship which are made by me (solely
or jointly with others) within the scope of my employment and which are
protectable by copyright are “works made for hire,” pursuant to United States
Copyright Act (17 U.S.C., Section 101).

 

2.8          Enforcement
of Proprietary Rights.  I
will reasonably assist the Company in every proper way to obtain, and from time
to time enforce, United States and foreign Proprietary Rights relating to
Company Inventions in any and all countries. 
To that end I will execute, verify and deliver such documents and
perform such other acts (including appearances as a witness) as the Company may
reasonably request 

 

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and I am reasonably able to provide for use in
applying for, obtaining, perfecting, evidencing, sustaining and enforcing such
Proprietary Rights and the assignment thereof. 
In addition, I will execute, verify and deliver assignments of such
Proprietary Rights to the Company or its designee.  My obligation to assist the Company with
respect to Proprietary Rights relating to such Company Inventions in any and
all countries shall continue beyond the termination of my employment, but the
Company shall compensate me at a reasonable rate after my termination for the
time actually spent by me at the Company’s request on such assistance, which
shall not in any event require an unreasonable commitment of my time or
interfere with the fulfillment of my other obligations .

 

In
the event the Company is unable for any reason, after reasonable effort, to
secure my signature on any document needed in connection with the actions
specified in the preceding paragraph, I hereby irrevocably designate and
appoint the Company and its duly authorized officers and agents as my agent and
attorney in fact, which appointment is coupled with an interest, to act for and
in my behalf to execute, verify and file any such documents and to do all other
lawfully permitted acts to further the purposes of the preceding paragraph with
the same legal force and effect as if executed by me.  I hereby waive and quitclaim to the Company
any and all claims, of any nature whatsoever, which I now or may hereafter have
for infringement of any Proprietary Rights assigned hereunder to the Company.

 

3.             NO
CONFLICTS OR SOLICITATION.  I
acknowledge that during my employment I will have access to and knowledge of
Proprietary Information.  To protect the
Company’s Proprietary Information, I agree that during the period of my
employment by the Company I will not, without the Company’s express written
consent, engage in any other employment or business activity directly related
to allogeneic cell-based cancer immunotherapy or indoleamine 2,3 dioxygenase
(IDO) pathway inhibition, nor will I engage in any other activities which
conflict with my obligations to the Company. 
For the period of my employment by the Company and continuing until one
year after my last day of employment with the Company, I will not (a) directly
or indirectly induce any employee of the Company to terminate or negatively
alter his or her relationship with the Company or (b) solicit the business
of any client or customer of the Company (other than on behalf of the Company)
or (c) induce any supplier, vendor, consultant or independent contractor
of the Company to terminate or negatively alter his, her or its relationship
with the Company.  If any restriction set
forth in this Section is found by any court of competent jurisdiction to
be unenforceable because it extends for too long a period of time or over too
great a range of activities or in too broad a geographic area, it shall be
interpreted to extend only over the maximum period of time, range of activities
or geographic area as to which it may be enforceable.

 

4.             COVENANT
NOT TO COMPETE.  I
acknowledge that during my employment I will have access to and knowledge of
Proprietary Information.  To protect the
Company’s Proprietary Information, I agree that during my employment with
the Company whether full-time or half-time and for a period of one year after
my last day of employment with the Company, I will not directly or
indirectly engage in (whether as an employee, consultant, proprietor, partner,
director or otherwise), or have any ownership interest in, or participate in
the financing, operation, management or control of, any person, firm,
corporation or business that engages in a “Restricted Business” in a “Restricted
Territory” (as defined below).  It is
agreed that ownership of (i) no more than one percent (1%) of the
outstanding voting stock of a publicly traded corporation, or (ii) any
stock I presently own shall not constitute a violation of this provision.

 

4.1          Reasonable.  I agree and acknowledge that the time
limitation on the restrictions in this paragraph, combined with the geographic
scope, is reasonable.  I also acknowledge
and agree that this paragraph is reasonably necessary for the protection of
Company’s Proprietary Information as defined in paragraph 1.2 herein, that
through my employment I shall receive adequate consideration for any loss of
opportunity associated with the provisions herein, and that these provisions
provide a reasonable way of protecting Company’s business value which will be imparted
to me.  If any restriction set forth in
this paragraph 4 is found by any court of competent jurisdiction to be
unenforceable because it extends for too long a period of time or over too
great a range of activities or in too broad a geographic area, it shall be
interpreted to extend only over the maximum period of time, range of activities
or geographic area as to which it may be enforceable.

 

4.2          As used herein,
the terms:

 

(i)            “Restricted
Business” shall mean any business engaged in the discovery, development, or
commercialization of cancer immunotherapies that 1) incorporate (1,3)Galactosyl
as an 

 

3

 

immunostimulatory
agent or 2) target the indoleamine 2,3 dioxygenase pathway in competition with
the Company during or upon termination of my employment.

 

(ii)           “Restricted
Territory” shall mean any state, county, or locality in the United States in
which the Company conducts business and any other country, city, state,
jurisdiction, or territory in which the Company does business.

 

5.             RECORDS.  I agree to keep and maintain adequate and
current records (in the form of notes, sketches, drawings and in any other form
that may be required by the Company) of all Proprietary Information developed
by me and all Inventions made by me in the course of my employment at the
Company, which records shall be available to and remain the sole property of
the Company at all times.

 

6.             NO
CONFLICTING OBLIGATION.  I
represent that my performance of all the terms of this Agreement and as an
employee of the Company does not and will not breach any agreement to keep in
confidence information acquired by me in confidence or in trust prior to my
employment by the Company.  I have not
entered into, and I agree I will not enter into, any agreement either written
or oral in conflict herewith.

 

7.             RETURN
OF COMPANY MATERIALS.  When I
leave the employ of the Company, I will deliver to the Company any and all
drawings, notes, memoranda, specifications, devices, formulas, and documents, together
with all copies thereof, and any other material containing or disclosing any
Company Inventions, Third Party Information or Proprietary Information of the
Company.  I further agree that any
property situated on the Company’s premises and owned by the Company, including
disks and other storage media, filing cabinets or other work areas, is subject
to inspection by Company personnel at any time with or without notice.

 

8.             LEGAL
AND EQUITABLE REMEDIES. 
Because my services are personal and unique and because I may have
access to and become acquainted with the Proprietary Information of the
Company, the Company shall have the right to enforce this Agreement and any of
its provisions by injunction, specific performance or other equitable relief,
without bond and without prejudice to any other rights and remedies that the
Company may have for a breach of this Agreement.

 

9.             NOTICES.  Any notices required or permitted hereunder
shall be given to the appropriate party at the address specified below or at
such other address as the party shall specify in writing.  Such notice shall be deemed given upon
personal delivery to the appropriate address or if sent by certified or
registered mail, three days after the date of mailing.

 

10.          NOTIFICATION
OF NEW EMPLOYER.  In the
event that I leave the employ of the Company, I hereby consent to the
notification of my new employer of my rights and obligations under this
Agreement.

 

11.          GENERAL
PROVISIONS.

 

11.1        Governing
Law; Consent to Personal Jurisdiction and Exclusive Forum.  This Agreement will be governed by and
construed according to the laws of the State of Iowa as such laws are applied
to agreements entered into and to be performed entirely within Iowa between
Iowa residents.  I hereby expressly
understand and consent that my employment is a transaction of business in the
State of Iowa and constitutes the minimum contacts necessary to make me subject
to the personal jurisdiction of the federal courts located in the State of
Iowa, and the state courts located in the County of Story, Iowa, for any
lawsuit filed against me by Company arising from or related to this
Agreement.  I agree and acknowledge that
any controversy arising out of or relating to this Agreement or the breach
thereof, or any claim or action to enforce this Agreement or portion thereof,
or any controversy or claim requiring interpretation of this Agreement must be
brought in a forum located within the State of Iowa.  No such action may be brought in any forum
outside the State of Iowa.  Any action
brought in contravention of this paragraph by one party is subject to dismissal
at any time and at any stage of the proceedings by the other, and no action
taken by the other in defending, counter claiming or appealing shall be
construed as a waiver of this right to immediate dismissal.  A party bringing an action in contravention
of this paragraph shall be liable to the other party for the costs, expenses
and attorney’s fees incurred in successfully dismissing the action or
successfully transferring the action to the federal courts located in the State
of Iowa, or the state courts located in the County of Story, Iowa.

 

11.2        Severability.  In case any one or more of the provisions
contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect the other provisions 

 

4

 

of this Agreement, and this Agreement shall be
construed as if such invalid, illegal or unenforceable provision had never been
contained herein.  If moreover, any one
or more of the provisions contained in this Agreement shall for any reason be
held to be excessively broad as to duration, geographical scope, activity or
subject, it shall be construed by limiting and reducing it, so as to be
enforceable to the extent compatible with the applicable law as it shall then
appear.

 

11.3        Successors
and Assigns.  This
Agreement will be binding upon my heirs, executors, administrators and other
legal representatives and will be for the benefit of the Company, its
successors, and its assigns.

 

11.4        Survival.  The provisions of this Agreement shall
survive the termination of my employment and the assignment of this Agreement
by the Company to any successor in interest or other assignee.

 

11.5        Employment.  I agree and understand that my employment is
at-will which means I or the company each have the right to terminate my
employment at will, with or without advanced notice and with or without cause.  I further agree and understand that nothing
in this Agreement shall confer any right with respect to continuation of
employment by the Company, nor shall it interfere in any way with my right or
the Company’s right to terminate my employment at any time, with or without
cause.

 

11.6        Waiver.  No waiver by the Company of any breach of
this Agreement shall be a waiver of any preceding or succeeding breach.  No waiver by the Company of any right under
this Agreement shall be construed as a waiver of any other right.  The Company shall not be required to give
notice to enforce strict adherence to all terms of this Agreement.

 

11.7        Entire
Agreement.  The
obligations pursuant to Sections 1 through 4 and Sections 6 and 7 (including
all subparts) of this Agreement shall apply to any time during which I was
previously employed, or am in the future employed, by the Company as a
consultant if no other agreement governs nondisclosure and assignment of
inventions during such period.  This
Agreement is the final, complete and exclusive agreement of the parties with
respect to the subject matter hereof and supersedes and merges all prior
discussions between us.  No modification
of or amendment to this Agreement, nor any waiver of any rights under this
Agreement, will be effective unless in writing and signed by the party to be
charged.  Any subsequent change or
changes in my duties, salary or compensation will not affect the validity or
scope of this Agreement

 

This
Agreement shall be effective as of the first day of my employment with the
Company, namely: February 25, 08.

 

I HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS.  I HAVE COMPLETELY FILLED OUT EXHIBIT A
TO THIS AGREEMENT.

 

	
  Dated:

  	
  04/05/10

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Kenneth Lynn

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
  Kenneth Lynn

  	
   

  
	
  Printed Name

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ACCEPTED AND AGREED TO:

  	
   

  
	
   

  	
   

  
	
  /s/ Nicholas Vahanian

  	
   

  

 

5

 

EXHIBIT A

 

	
  TO:

  	
  NEWLINK
  GENETICS

  	
   

  
	
   

  	
   

  	
   

  
	
  FROM:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SUBJECT:

  	
  Previous
  Inventions

  	
   

  

 

1.             Except as
listed in Section 2 below, the following is a complete list of all
inventions or improvements relevant to the subject matter of my employment by NEWLINK GENETICS that have been made or conceived or first
reduced to practice by me alone or jointly with others prior to my engagement
by the Company:

 

o            No inventions or
improvements.

 

o            See below:

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

o            Additional sheets attached.

 

2.             Due to a prior
confidentiality agreement, I cannot complete the disclosure under Section 1
above with respect to inventions or improvements generally listed below, the
proprietary rights and duty of confidentiality with respect to which I owe to
the following party(ies):

 

	
   

  	
   

  	
  Invention or Improvement

  	
   

  	
  Party(ies)

  	
   

  	
  Relationship

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

o            Additional sheets attached.

 

A-1

 

EXHIBIT B

 

RELEASE

 

In
exchange for the consideration provided to me by this Agreement that I am not
otherwise entitled to receive, I hereby generally and completely release
the Company and its directors, officers, Executives, shareholders, partners,
agents, attorneys, predecessors, successors, parent and subsidiary entities,
insurers, affiliates, and assigns from any and all claims, liabilities and
obligations, both known and unknown, that arise out of or are in any way
related to events, acts, conduct, or omissions related to my employment with
the Company or the termination of that employment, including, but not limited
to: (1) all claims related to my compensation or benefits from the
Company, including salary, bonuses, commissions, vacation pay, expense
reimbursements, severance pay, fringe benefits, stock, stock options, or any
other ownership interests in the Company; (2) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good
faith and fair dealing; (3) all tort claims, including claims for fraud,
defamation, emotional distress, and discharge in violation of public policy;
and (4) all federal, state, and local statutory claims, including claims
for discrimination, harassment, retaliation, attorneys’ fees, or other claims
arising under the federal Civil Rights Act of 1964 (as amended), the federal
Americans with Disabilities Act of 1990, the federal Age Discrimination in
Employment Act of 1967 (as amended) (“ADEA”), and the Iowa state law (as
amended).  Notwithstanding the foregoing, nothing
contained in this Release is intended to release the Company from any claim
arising out of or with regard to: (i) any payment to be made to me by the
Company in connection the termination of employment as contemplated by the
Employment Agreement, or (ii) any statutory obligation that the Company
may have with regard to the continuation of benefits.

 

[IF
APPLICABLE] ADEA Waiver and Release.  I acknowledge that I am knowingly and
voluntarily waiving and releasing any rights I may have under the ADEA, as
amended.  I also acknowledge that the
consideration given for the waiver and release in the preceding paragraph
hereof is in addition to anything of value to which I was already
entitled.  I further acknowledge that I
have been advised by this writing, as required by the ADEA, that:  (a) my waiver and release does not apply
to any rights or claims that may arise after the execution date of this
Agreement; (b) I have been advised that I have the right to consult with
an attorney prior to executing this Agreement; (c) I have been given
twenty-one (21) days to consider this Agreement; (d) I have seven (7) days
following the execution of this Agreement by the parties to revoke the
Agreement; and (e) this Agreement will not be effective until the date
upon which the revocation period has expired, which will be the eighth day
after this Agreement is executed by you, provided that the Company has also
executed this Agreement by that date (“Effective Date”).  The parties acknowledge
and agree that revocation by you of the ADEA Waiver and Release is not
effective to revoke your waiver or release of any other claims pursuant to this
Agreement.

 

 

	
  By:

  	
   

  	
   

  	
  Date:Exhibit 10.17

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (the “Agreement”)
is made as of this 22nd day of November, 2010, by and between
NewLink Genetics Corporation (the “Company”), and Jay
Ramsey (“Executive”) (collectively, the “Parties”).

 

WHEREAS, the Company wishes to continue to employ Executive
and to assure itself of the continued services of Executive on the terms set
forth herein;

 

WHEREAS, Executive wishes to be so employed under the terms
set forth herein; and

 

WHEREAS, the Parties intend that this Agreement shall
supersede and replace any similar agreements that presently exist or may have
previously existed between the Parties regarding the terms of Executive’s
employment with the Company.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual promises and
covenants contained herein, it is hereby agreed by and between the Parties
hereto as follows:

 

1.             EMPLOYMENT.  The Company will continue to
employ Executive and Executive shall continue to serve the Company in the
capacity of Quality Assurance and Quality Control Officer (“QA/QC”).

 

2.             AT-WILL
EMPLOYMENT.  It is understood and
agreed by the Company and Executive that this Agreement does not contain any
promise or representation concerning the duration of Executive’s employment
with the Company. Executive specifically acknowledges that his employment with
the Company is at-will and may be altered or terminated by either Executive or
the Company at any time, with or without cause and/or with or without notice.  The nature, terms or conditions of Executive’s
employment with the Company cannot be changed by any oral representation,
custom, habit or practice, or any other writing.  In addition, that the rate of salary, any
bonuses, paid time off, other compensation, or vesting schedules are stated in
units of years or months or weeks does not alter the at-will nature of the
employment, and does not mean and should not be interpreted to mean that
Executive is guaranteed employment to the end of any period of time or for any
period of time. In the event of conflict
between this disclaimer and any other statement, oral or written, present or
future, concerning terms and conditions of employment, the at-will relationship
confirmed by this disclaimer shall control. 
This at-will status cannot be altered except in a writing signed by
Executive and approved by the Board of Directors of the Company (the “Board of
Directors”).

 

3.             DUTIES.  Executive shall continue to render exclusive,
full-time services to the Company as its QA/QC.  Executive shall report to Chief Executive
Officer.  Executive shall perform
services under this Agreement primarily at the Ames or Des Moines, Iowa,
offices of the Company, and from time to time at such other locations as is
necessary to perform the duties of QA/QC under this Agreement.  Subject to the terms of this Agreement,
Executive’s responsibilities, working conditions and duties may be changed,
added to or eliminated during 

 

 

his employment at the sole discretion of the Chief
Executive Officer.  During Executive’s employment
with the Company he shall devote his best efforts and his full business time,
skill and attention to the performance of his duties on behalf of the Company.

 

4.             POLICIES
AND PROCEDURES.  Executive
agrees that he is subject to and will comply with the policies and procedures
of the Company, as such policies and procedures may be modified, added to or
eliminated from time to time at the sole discretion of the Company, except to
the extent any such policy or procedure specifically conflicts with the express
terms of this Agreement.  Executive
further agrees and acknowledges that any written or oral policies and
procedures of the Company do not constitute contracts between the Company and
Executive.

 

5.             BASE
SALARY.  For all
services rendered and to be rendered hereunder, the Company agrees to pay to
the Executive, and the Executive agrees to accept a salary of $240,000
per annum (“Base Salary”) which
will be paid periodically in accordance with normal Company payroll practices
and shall be subject to such deductions or withholdings as the Company is
required to make pursuant to law, or by further agreement with the
Executive.  Executive’s salary shall be
subject to annual review and adjustment by the Board of Directors.

 

6.             STOCK
OPTIONS.  Executive
was previously granted options to purchase 160,000 shares of Company
common stock.  Except
as expressly modified by this Agreement, the vesting schedule and all other
terms, conditions and limitations of the options will be governed by the
Company’s 2000 and/or 2009 Equity Incentive Plans (the “Plans”)
and in the stock option grant notices and stock option agreements approved by
the Board and entered into by Executive.

 

7.             BONUS.  Executive may be eligible to receive an
annual performance bonus of up to 25% of his Base Salary subject to
employment taxes, withholding and deductions (“Bonus”) based upon Executive’s achievements of certain
milestones and performance objectives established by the Company (“Variable Incentive Bonus Plan”).  Except as expressly provided otherwise
herein, Executive must remain employed with the Company throughout the
applicable bonus year in order to be eligible for any Bonus.  The Board of Directors or the Compensation
Committee, in its sole discretion, shall determine the extent to which
Executive has achieved the performance targets upon which Executive’s Bonus is
based, and the amount of Bonus to be paid to Executive, if any.  Bonuses are not earned until they are
approved in writing by the Board of Directors or Compensation Committee.

 

8.             OTHER
BENEFITS.  While employed by the
Company as provided herein:

 

(a)           Executive
Benefits.  The
Executive shall be entitled to all benefits to which other executive officers
of the Company are entitled, on terms comparable thereto, including, without
limitation, participation in pension and profit sharing plans, 401(k) plan,
group insurance policies and plans, medical, health, vision, and disability
insurance policies and plans, and the like, which may be maintained by the
Company for the benefit of its executives. The Company reserves the right to
alter and amend the benefits received by Executive from time to time at the
Company’s discretion.

 

2

 

(b)           Expense
Reimbursement.  The
Executive shall receive, against presentation of proper receipts and vouchers,
reimbursement for direct and reasonable out-of-pocket expenses incurred by him
in connection with the performance of his duties hereunder, according to the
policies of the Company.

 

(c)           Vacation.  Executive will be entitled to twenty (20)
vacation days, which will accrue in monthly increments.

 

9.             CONFIDENTIAL
INFORMATION, RIGHTS AND DUTIES.

 

(a)                   Proprietary
Information.  Executive reaffirms and
agrees to execute and abide by the Company’s Proprietary Information and
Inventions Agreement (the “Proprietary
Information Agreement”), attached hereto as Exhibit A.

 

(b)                   Exclusive
Property.  Executive
agrees that all Company-related business procured by the Executive, and all
Company-related business opportunities and plans made known to Executive while
employed by the Company, are and shall remain the permanent and exclusive
property of the Company.

 

(c)                   Non-Competition and Non-Solicitation. 
Executive agrees that for a period of one year following his last day
of employment with the Company, he shall continue to comply with the
non-competition and non-solicitation obligations set forth in the Proprietary
Information Agreement.

 

10.          TERMINATION.  Executive and the Company each acknowledge
that either party has the right to terminate Executive’s employment with the
Company at any time for any reason whatsoever, with or with out cause or
advance notice pursuant to the following:

 

(a)           Termination
by Death or Disability. 
Subject to applicable state or federal law, in the event that Executive
shall die during his employment hereunder or become permanently disabled, as
evidenced by notice to the Company and Executive’s inability to carry out his
job responsibilities for a continuous period of more than six months, Executive’s
employment and the Company’s obligation to make payments hereunder shall
terminate on the date of his death, or the date upon which, in the sole
determination of the Board of Directors, Executive has become permanently
disabled.  Vesting of all options shall
cease on the date of such termination.

 

(b)           Voluntary
Resignation by Executive.  In
the event that Executive voluntarily terminates his employment with the
Company, the Company’s obligation to make payments hereunder shall cease upon
such termination, except the Company shall pay Executive any salary earned but
unpaid prior to termination, any benefits accrued prior to termination, all
accrued but unused vacation, and any business expenses that were incurred but
not reimbursed as of the date of termination. 
Vesting of all options shall cease on the date of such termination.

 

(c)           Termination
for Cause.  In the event
that Executive is terminated by the Company for Cause (as defined below), the
Company’s obligation to make payments hereunder 

 

3

 

shall
cease upon the date of receipt by Executive of written notice of such
termination (the “Termination Date”),
except the Company shall pay Executive any salary earned but unpaid prior to
the Termination Date, any benefits accrued prior to termination, all accrued
but unused vacation and any business expenses that were incurred but not
reimbursed as of the date of termination. 
Vesting of all options shall cease on the Termination Date.

 

(d)           Termination
by the Company without Cause or for Good Reason.  In the event Executive’s employment is
terminated without Cause (as defined herein) or due to death or disability (as
provided in Section 10(a)) or Executive resigns for Good Reason (as
defined herein) and upon the execution of a Release by Executive and written
acknowledgment of Executive’s continuing obligations under the Proprietary
Information Agreement, Executive shall be entitled to receive the equivalent of
six (6) months of his Base Salary as in effect immediately
prior to the termination date, payable on the same basis and at the same time
as previously paid and subject to employment tax withholdings and deductions,
commencing on the first regularly scheduled pay date following the Effective
Date of the Release.  Provided that
Executive is eligible for and timely elects continuation of his health
insurance pursuant to COBRA, for a period of six (6) months
following a termination without Cause, the Company shall also reimburse
Executive for the cost of COBRA premiums to be paid in order for Executive to
maintain medical insurance coverage that is substantially equivalent to that
which Executive received immediately prior to the termination provided, however, that the Company’s
obligation to pay Executive’s COBRA premiums will cease immediately in the
event Executive becomes eligible for group health insurance during the six
(6) month period, and Executive hereby agrees to promptly notify
the Company if he becomes eligible to be covered by group health insurance in
such event (the salary continuation and COBRA reimbursement are collectively
referred to as the “Severance Benefits”).

 

(e)           Definition
of Cause.  For purposes of
this Agreement, “Cause” means (i) the Executive’s incompetence
or failure or refusal to perform satisfactorily any duties reasonably required
of the Executive by the Company (other than by reason of Disability); (ii) the
Executive’s violation of any law, rule or regulation (other than traffic
violations, misdemeanors or similar offenses) or cease-and-desist order, court
order, judgment, regulatory directive or agreement; (iii) the commission
or omission of or engaging in any act or practice which constitutes a material
breach of the Executive’s fiduciary duty to the Company, involves personal
dishonesty on the part of the Executive or demonstrates a willful or continuing
disregard for the best interests of the Company; or (iv) the Executive’s
engaging in dishonorable or disruptive behavior, practices or acts which would
be reasonably expected to harm or bring disrepute to the Company, its business
or any of its customers, Executives or vendors.

 

(f)            Definition
of Good Reason.  For purposes of
this Agreement, “Good Reason” means that one or more of the following is
undertaken without Executive’s express written consent: (i) a reduction in
Executive’s Base Salary, bonus (if any) or benefits that would substantially
diminish the aggregate value of Executive’s compensation and benefits without
Executive’s consent; or (ii) the assignment to Executive of duties that
are substantially and materially inconsistent with the position held by
Executive prior to the Change in Control and that are not a reasonable
advancement of Executive’s position within the Company.

 

4

 

11.          CHANGE IN
CONTROL BENEFITS.

 

(a)           Change of Control Termination.  If within the
thirteen (13) months immediately following a Change in Control or the one (1) month
immediately preceding a Change in Control: 
(i) Executive is involuntarily terminated by the Company (or its
successor entity) other than for Cause or (ii) Executive voluntarily
terminates his employment with the Company (or its successor entity) for Good
Reason (either constituting a “Change of
Control Termination”), and in each case Executive signs a Release
and written acknowledgment of Executive’s continuing obligations under the
Proprietary Information Agreement, Executive shall be entitled to the
equivalent of six (6) months of his Base Salary as in effect
immediately prior to the Change of Control Termination Date, payable on the
same basis and at the same time as previously paid and subject to employment
tax withholdings and deductions, commencing on the first regularly scheduled
pay date following the Effective Date of the Release.  Provided that Executive is eligible for and
timely elects continuation of his health insurance pursuant to COBRA, for a
period of six (6) months following a Change in Control
Termination, the Company shall also reimburse Executive for the cost of COBRA
premiums to be paid in order for Executive to maintain medical insurance
coverage that is substantially equivalent to that which Executive received
immediately prior to the termination provided,
however, that the Company’s obligation to pay Executive’s COBRA
premiums will cease immediately in the event Executive becomes eligible for
group health insurance during the six (6) month period, and
Executive hereby agrees to promptly notify the Company if he becomes eligible
to be covered by group health insurance in such event (the salary continuation
and COBRA reimbursement are collectively referred to as the “Change in Control Severance
Benefits”).

 

In
addition, the Company will vest one-hundred percent (100%) of the
shares subject to Executive’s options and such vesting shall occur upon the
occurrence of the Change of Control in the case of a Change of Control
Termination occurring prior to the Change in Control or upon termination in the
case of a Change of Control Termination occurring after the Change of Control.  All
other terms and conditions set forth in the options, the Plan, and the
applicable stock option agreements shall remain in full force and effect.

 

(b)           Definition
of Change in Control.  For
purposes of this Agreement, “Change of Control”
of the Company has the same definition as set forth in the Company’s 2009
Equity Incentive Plan.

 

12.          CODE SECTION 409A
COMPLIANCE.  Because of
the uncertainty of the application of Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”), to payments pursuant to this Agreement,
including, without limitation, payments pursuant to Sections 11 and 12 hereof,
Executive agrees that if any such payments are subject to the provisions of Section 409A
of the Code by reason of this Agreement, or any part thereof, being considered
a “nonqualified deferred compensation plan” pursuant to Section 409A of
the Code, then such payments shall be made in accordance with, and this
Agreement automatically shall be amended to comply with, Section 409A of
the Code, including, without limitation, any necessary delay of six (6) months
applicable to payment of deferred compensation to a “specified Executive” (as
defined in Section 409A(2)(B)(i) of the Code) upon separation from
service. In the event that a six month delay is required, on the first
regularly scheduled pay date following 

 

5

 

the conclusion of the delay period the Executive
shall receive a lump sum payment in an amount equal to six (6) months of
Executive’s Base Salary and thereafter, any remaining Severance Benefits shall
be paid on the same basis and at the same time as previously paid and subject
to employment tax withholdings and deductions.

 

13.          MISCELLANEOUS.

 

(a)           Taxes.  Executive agrees to be
responsible for the payment of any taxes due on any and all compensation, stock
option, or benefit provided by the Company pursuant to this Agreement.  Executive agrees to indemnify the Company and
hold the Company harmless from any and all claims or penalties asserted against
the Company for any failure to pay taxes due on any compensation, stock option,
or benefit provided by the Company pursuant to this Agreement.  Executive expressly acknowledges that the
Company has not made, nor herein makes, any representation about the tax
consequences of any consideration provided by the Company to Executive pursuant
to this Agreement.

 

(b)           Modification/Waiver.  This Agreement may not be
amended, modified, superseded, canceled, renewed or expanded, or any terms or
covenants hereof waived, except by a writing executed by each of the parties
hereto or, in the case of a waiver, by the party waiving compliance.  Failure of any party at any time or times to
require performance of any provision hereof shall in no manner affect his or
its right at a later time to enforce the same. 
No waiver by a party of a breach of any term or covenant contained in
this Agreement, whether by conduct or otherwise, in any one or more instances
shall be deemed to be or construed as a further or continuing waiver of
agreement contained in the Agreement.

 

(c)           Successors
and Assigns.  This Agreement shall be
binding upon and shall inure to the benefit of any successor or assignee of the
business of the Company.  This Agreement
shall not be assignable by the Executive.

 

(d)           Notices.  All notices given hereunder
shall be given by certified mail, addressed, or delivered by hand, to the other
party at his or its address as set forth herein, or at any other address
hereafter furnished by notice given in like manner.  Executive promptly shall notify Company of
any change in Executive’s address.  Each
notice shall be dated the date of its mailing or delivery and shall be deemed
given, delivered or completed on such date.

 

(e)           Governing
Law; Personal Jurisdiction and Venue.  This Agreement and all
disputes relating to this Agreement shall be governed in all respects by the
laws of the State of Iowa as such laws are applied to agreements between Iowa
residents entered into and performed entirely in Iowa.  The Parties acknowledge that this Agreement
constitutes the minimum contacts to establish personal jurisdiction in Iowa and
agree to Iowa court’s exercise of personal jurisdiction.

 

(f)            Entire
Agreement.  This Agreement together with
the Exhibits A and B attached hereto, set forth the entire agreement and
understanding of the parties hereto with regard to the employment of the
Executive by the Company and supersede any and all prior agreements,
arrangements and understandings, written or oral, pertaining to the subject
matter hereof.  No

 

6

 

representation,
promise or inducement relating to the subject matter hereof has been made to a
party that is not embodied in these Agreements, and no party shall be bound by
or liable for any alleged representation, promise or inducement not so set
forth.

 

7

 

IN WITNESS WHEREOF, the parties have each duly
executed this Employment Agreement as of the day and year first above written.

 

	
   

  	
  NEWLINK
  GENETICS CORPORATION

  
	
   

  	
   

  
	
   

  	
  /s/
  Gordon Link

  
	
   

  	
  Print
  Name:

  	
  Gordon
  Link

  
	
   

  	
  Its:

  	
  CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  William Jay Ramsey

  
	
   

  	
  Print
  Name:

  	
  William
  Jay Ramsey

  
					

 

 

 

Exhibit A

 

NEWLINK GENETICS CORPORATION

 

MANAGER, EXECUTIVE PERSONNEL OR
ASSISTANTS’

PROPRIETARY INFORMATION, INVENTIONS,

NON-COMPETITION, AND NON-SOLICITATION AGREEMENT

 

This
Manager, Executive Personnel or Assistants’ Proprietary Information, Inventions,
Non-competition, and Non-solicitation Agreement (“Agreement”) is made in
consideration for my employment or continued employment by NEWLINK
GENETICS CORPORATION (the “Company”), and the compensation now and
hereafter paid to me.  I hereby agree as
follows:

 

1.             NONDISCLOSURE.

 

1.1          Recognition of
Company’s Rights; Nondisclosure.  At all times during my employment and
thereafter, I will hold in strictest confidence and will not disclose,
use, lecture upon or publish any of the Company’s Proprietary Information
(defined below), except as such disclosure, use or publication may be required
in connection with my work for the Company, or unless an officer of the Company
expressly authorizes such in writing.  I
will obtain Company’s written approval before publishing or submitting for
publication any material (written, verbal, or otherwise) that relates to my
work at Company and/or incorporates any Proprietary Information.  I hereby assign to the Company any rights I
may have or acquire in such Proprietary Information and recognize that all
Proprietary Information shall be the sole property of the Company and its
assigns.

 

1.2          Proprietary
Information.  The term “Proprietary Information” shall mean any and all
confidential and/or proprietary knowledge, data or information of the
Company.  By way of illustration but not
limitation, “Proprietary Information” includes (a) tangible and intangible
information relating to antibodies and other biological materials, cell lines,
samples of assay components, media and/or cell lines and procedures and
formulations for producing any such assay components, media and/or cell lines,
formulations, products, processes, know-how, designs, formulas, methods,
developmental or experimental work, clinical data, improvements, discoveries, plans
for research, new products, marketing and selling, business plans, budgets and
unpublished financial statements, licenses, prices and costs, suppliers and
customers, and information regarding the skills and compensation of other
employees of the Company; (b) trade secrets, inventions, mask works,
ideas, processes, formulas, source and object codes, data, programs, other
works of authorship, know-how, improvements, discoveries, developments, designs
and techniques (hereinafter collectively referred to as “Inventions”);
(c) information regarding plans for research, development, new products,
marketing and selling, business plans, budgets and unpublished financial
statements, licenses, prices and costs, suppliers and customers; and (d) information
regarding the skills and compensation of other employees of the Company.  Notwithstanding the foregoing, it is
understood that, at all such times, I am free to use information which is
generally known in the trade or industry, which is not gained as result of a
breach of this Agreement, and my own, skill, knowledge, know-how and experience
to whatever extent and in whichever way I wish.

 

1.3          Third Party
Information.  I
understand, in addition, that the Company has received and in the future will
receive from third parties confidential or proprietary information (“Third
Party Information”) subject to a duty on the Company’s part to maintain the
confidentiality of such information and to use it only for certain limited
purposes.  During the term of my
employment and thereafter, I will hold Third Party Information in the
strictest confidence and will not disclose to anyone (other than Company
personnel who need to know such information in connection with their work for
the Company) or use, except in connection with my work for the Company, Third
Party Information unless expressly authorized by an officer of the Company in
writing.

 

1.4          No Improper Use of
Information of Prior Employers and Others.  During my employment by the Company I will
not improperly use or disclose any confidential information or trade secrets,
if any, of any former employer or any other person to whom I have an obligation
of confidentiality, and I will not bring onto the premises of the Company any 

 

1

 

unpublished documents or any property belonging to
any former employer or any other person to whom I have an obligation of
confidentiality unless consented to in writing by that former employer or
person.  I will use in the performance of
my duties only information which is generally known and used by persons with
training and experience comparable to my own, which is common knowledge in the
industry or otherwise legally in the public domain, or which is otherwise
provided or developed by the Company.

 

2.             ASSIGNMENT OF
INVENTIONS.

 

2.1          Proprietary Rights.  The term “Proprietary Rights”
shall mean all trade secret, patent, copyright, mask work and other
intellectual property rights throughout the world.

 

2.2          Prior Inventions.  Inventions, if any, patented or unpatented,
which I made prior to the commencement of my employment with the Company are
excluded from the scope of this Agreement. 
To preclude any possible uncertainty, I have set forth on Exhibit A (Previous Inventions) attached hereto a
complete list of all Inventions that I have, alone or jointly with others,
conceived, developed or reduced to practice or caused to be conceived,
developed or reduced to practice prior to the commencement of my employment
with the Company, that I consider to be my property or the property of third
parties and that I wish to have excluded from the scope of this Agreement
(collectively referred to as “Prior Inventions”).  If disclosure of any such Prior Invention
would cause me to violate any prior confidentiality agreement, I
understand that I am not to list such Prior Inventions in Exhibit A but am
only to disclose a cursory name for each such invention, a listing of the
party(ies) to whom it belongs and the fact that full disclosure as to such
inventions has not been made for that reason. 
A space is provided on Exhibit A for such purpose.  If no such disclosure is attached, I
represent that there are no Prior Inventions. 
If, in the course of my employment with the Company, I incorporate
a Prior Invention into a Company product, process or machine, the Company is
hereby granted and shall have a nonexclusive, royalty-free, irrevocable,
perpetual, worldwide license (with rights to sublicense through multiple tiers
of sublicensees) to make, have made, modify, use and sell such Prior
Invention.  Notwithstanding the foregoing, I
agree that I will not incorporate, or permit to be incorporated, Prior
Inventions in any Company Inventions without the Company’s prior written
consent.

 

2.3          Assignment of
Inventions.  Subject to
Sections 2.4, and 2.6, I hereby assign and agree to assign in the future
(when any such Inventions or Proprietary Rights are first reduced to practice
or first fixed in a tangible medium, as applicable) to the Company all my
right, title and interest in and to any and all Inventions (and all Proprietary
Rights with respect thereto) whether or not patentable or registrable under
copyright or similar statutes, made or conceived or reduced to practice or
learned by me, either alone or jointly with others, during the period of my
employment with the Company.  Inventions
assigned to the Company, or to a third party as directed by the Company
pursuant to this Section 2, are hereinafter referred to as “Company
Inventions.”

 

2.4          Nonassignable
Inventions.  I recognize
that, in the event of a specifically applicable state law, regulation, rule, or
public policy (“Specific Inventions Law”), this Agreement will not be deemed to
require assignment of any invention which qualifies fully for protection under
a Specific Inventions Law by virtue of the fact that any such invention was,
for example, developed entirely on my own time without using the Company’s
equipment, supplies, facilities, or trade secrets and neither related to the
Company’s actual or anticipated business, research or development, nor resulted
from work performed by me for the Company. 
In the absence of a Specific Inventions Law, the preceding sentence will
not apply.

 

2.5          Obligation to Keep
Company Informed.  During the
period of my employment and for six months after the last day of my employment
with the Company, I will promptly disclose to the Company fully and in
writing all Inventions authored, conceived or reduced to practice by me, either
alone or jointly with others.  In
addition, I will promptly disclose to the Company all patent applications
filed by me or on my behalf within a year after termination of employment.  At the time of each such disclosure, I
will advise the Company in writing of any Inventions that I believe fully
qualify for protection under the provisions of a Specific Inventions Law; and I
will at that time provide to the Company in writing all evidence necessary to
substantiate that belief.  The Company
will keep in confidence and will not use for any purpose or disclose to third
parties without my consent any confidential information disclosed in writing to
the Company pursuant to this Agreement relating to Inventions that qualify
fully for protection under a Specific Inventions Law.  I will preserve the confidentiality of 

 

2

 

any Invention that does not fully qualify for
protection under a Specific Inventions Law.

 

2.6          Government or Third
Party.  I also agree to assign all my
right, title and interest in and to any particular Invention to a third party,
including without limitation the United States, as directed by the Company.

 

2.7          Works for Hire.  I acknowledge that all original works of
authorship which are made by me (solely or jointly with others) within the
scope of my employment and which are protectable by copyright are “works made
for hire,” pursuant to United States Copyright Act (17 U.S.C., Section 101).

 

2.8          Enforcement of
Proprietary Rights.  I will
assist the Company in every proper way to obtain, and from time to time
enforce, United States and foreign Proprietary Rights relating to Company
Inventions in any and all countries.  To
that end I will execute, verify and deliver such documents and perform such
other acts (including appearances as a witness) as the Company may reasonably
request for use in applying for, obtaining, perfecting, evidencing, sustaining
and enforcing such Proprietary Rights and the assignment thereof.  In addition, I will execute, verity and
deliver assignments of such Proprietary Rights to the Company or its
designee.  My obligation to assist the
Company with respect to Proprietary Rights relating to such Company Inventions
in any and all countries shall continue beyond the termination of my
employment, but the Company shall compensate me at a reasonable rate after my
termination for the time actually spent by me at the Company’s request on such
assistance.

 

In
the event the Company is unable for any reason, after reasonable effort, to
secure my signature on any document needed in connection with the actions
specified in the preceding paragraph.  I
hereby irrevocably designate and appoint the Company and its duly authorized
officers and agents as my agent and attorney in fact, which appointment is
coupled with an interest, to act for and in my behalf to execute, verify and
file any such documents and to do all other lawfully permitted acts to further
the purposes of the preceding paragraph with the same legal force and effect as
if executed by me.  I hereby waive and
quitclaim to the Company any and all claims, of any nature whatsoever, which I
now or may hereafter have for infringement of any Proprietary Rights assigned
hereunder to the Company.

 

3.             NO CONFLICTS OR
SOLICITATION.  I
acknowledge that during my employment I will have access to and knowledge of Proprietary
Information.  I also acknowledge that
during my employment with the Company, I have held and/or will hold a
management or executive position or am, or will be, an assistant to a manager
or executive.  To protect the Company’s
Proprietary Information, I agree that during the period of my employment
by the Company I will not, without the Company’s express written consent,
engage in any other employment or business activity directly related to the
business in which the Company is now involved or becomes involved, nor will I
engage in any other activities which conflict with my obligations to the
Company.  To protect the Company’s
Proprietary Information, and because of the position in the Company that I hold, I
agree that during my employment with the Company whether full-time or part-time
and for a period of one year after my last day of employment with the Company, I
will not (a) directly or indirectly solicit or induce any employee of the
Company to terminate or negatively alter his or her relationship with the
Company or (b) directly or indirectly solicit the business of any client
or customer of the Company (other than on behalf of the Company) or (c) directly
or indirectly induce any client, customer, supplier, vendor, consultant or
independent contractor of the Company to terminate or negatively alter his, her
or its relationship with the Company.  I
agree that the geographic scope of the non-solicitation should include the “Restricted
Territory” (as defined below).

 

4.             If any
restriction set forth in this Section is found by any court of competent
jurisdiction to be unenforceable because it extends for too long a period of
time or over too great a range of activities or in too broad a geographic area,
it shall be interpreted to extend only over the maximum period of time, range
of activities or geographic area as to which it may be enforceable.

 

5.             COVENANT NOT TO
COMPETE.  I acknowledge that during my
employment I will have access to and knowledge of Proprietary Information.  I also acknowledge that during my employment
with the Company, I have held and/or will hold a management or executive
position or am, or will be, an assistant to a manager or executive.  To protect the Company’s Proprietary
Information, and because of the position in the Company that I may hold, I
agree that during my employment with the Company whether full-time or part-time
and for a period of one year after my last day of employment with the 

 

3

 

Company, I will not directly or indirectly
engage in (whether as an employee, consultant, proprietor, partner, director or
otherwise), or have any ownership interest in, or participate in the financing,
operation, management or control of, any person, firm, corporation or business
that engages in a “Restricted Business” in a “Restricted Territory” (as defined
below).  It is agreed that ownership of (i) no
more than one percent (1%) of the outstanding voting stock of a publicly traded
corporation, or (ii) any stock I presently own shall not constitute a
violation of this provision.

 

5.1          Reasonable.  I agree and acknowledge that the time
limitation on the restrictions in this paragraph, combined with the geographic
scope, is reasonable.  I also acknowledge
and agree that this paragraph is reasonably necessary for the protection of
Company’s Proprietary Information as defined in paragraph 1.2 herein, that
through my employment I shall receive adequate consideration for any loss of
opportunity associated with the provisions herein, and that these provisions
provide a reasonable way of protecting Company’s business value which will be
imparted to me.  If any restriction set
forth in this paragraph 4 is found by any court of competent jurisdiction to be
unenforceable because it extends for too long a period of time or over too
great a range of activities or in too broad a geographic area, it shall be
interpreted to extend only over the maximum period of time, range of activities
or geographic area as to which it may be enforceable.

 

5.2          As used herein,
the terms:

 

(i)            “Restricted
Business” shall mean any business engaged in areas similar to those the Company
is pursuing, including but not limited to: [add description]
and companies engaged in substantially similar development or commerce that
competes with, or is perceived to be a competitor of, the Company’s products or
services, whether current or planned.

 

(ii)           “Restricted
Territory” shall mean any state, county, or locality in the United States in
which the Company conducts business and any other country, city, state,
jurisdiction, or territory in which the Company does business.

 

6.             RECORDS.  I agree to keep and maintain adequate and
current records (in the form of notes, sketches, drawings and in any other form
that may be required by the Company) of all Proprietary Information developed
by me and all Inventions made by me during the period of my employment at the
Company, which records shall be available to and remain the sole property of
the Company at all times.

 

7.             NO CONFLICTING
OBLIGATION.  I represent
that my performance of all the terms of this Agreement and as an employee of
the Company does not and will not breach any agreement to keep in confidence
information acquired by me in confidence or in trust prior to my employment by
the Company.  I have not entered into,
and I agree I will not enter into, any agreement either written or oral in
conflict herewith.

 

8.             RETURN OF COMPANY
MATERIALS.  When I
leave the employ of the Company, I will deliver to the Company any and all
drawings, notes, memoranda, specifications, devices, formulas, and documents,
together with all copies thereof, and any other material containing or
disclosing any Company Inventions, Third Party Information or Proprietary
Information of the Company.  I further
agree that any property situated on the Company’s premises and owned by the
Company, including disks and other storage media, filing cabinets or other work
areas, is subject to inspection by Company personnel at any time with or
without notice.

 

9.             LEGAL AND EQUITABLE
REMEDIES.  Because my
services are personal and unique and because I may have access to and become
acquainted with the Proprietary Information of the Company, the Company shall
have the right to enforce this Agreement and any of its provisions by injunction,
specific performance or other equitable relief, without bond and without
prejudice to any other rights and remedies that the Company may have for a
breach of this Agreement.

 

10.          NOTICES.  Any notices required or permitted hereunder
shall be given to the appropriate party at the address specified below or at
such other address as the party shall specify in writing.  Such notice shall be deemed given upon
personal delivery to the appropriate address or if sent by certified or
registered mail, three days after the date of mailing.

 

11.          NOTIFICATION OF NEW
EMPLOYER.  In the
event that I leave the employ of the Company, I hereby consent to the
notification of my new employer of my rights and obligations under this
Agreement.

 

4

 

12.          GENERAL PROVISIONS.

 

12.1        Governing Law; Consent
to Personal Jurisdiction and Exclusive Forum.  This Agreement will be governed by and
construed according to the laws of the State of Iowa as such laws are applied
to agreements entered into and to be performed entirely within Iowa between
Iowa residents.  I hereby expressly
understand and consent that my employment is a transaction of business in the
State of Iowa and constitutes the minimum contacts necessary to make me subject
to the personal jurisdiction of the federal courts located in the State of
Iowa, and the state courts located in the County of Story, Iowa, for any
lawsuit filed against me by Company arising from or related to this
Agreement.  I agree and acknowledge that
any controversy arising out of or relating to this Agreement or the breach
thereof, or any claim or action to enforce this Agreement or portion thereof,
or any controversy or claim requiring interpretation of this Agreement must be
brought in a forum located within the State of Iowa.  No such action may be brought in any forum
outside the Stare of Iowa.  Any action
brought in contravention of this paragraph by one party is subject to dismissal
at any time and at any stage of the proceedings by the other, and no action
taken by the other in defending, counter claiming or appealing shall be
construed as a waiver of this right to immediate dismissal.  A party bringing an action in contravention
of this paragraph shall be liable to the other party for the costs, expenses
and attorney’s fees incurred in successfully dismissing the action or
successfully transferring the action to the federal courts located in the State
of Iowa, or the state courts located in the County of Story, Iowa.

 

12.2        Severability.  In case any one or more of the provisions
contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect the other provisions of this Agreement, and this
Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein. 
If moreover, any one or more of the provisions contained in this
Agreement shall for any reason be held to be excessively broad as to duration,
geographical scope, activity or subject, it shall be construed by limiting and
reducing it so as to be enforceable to the extent compatible with the
applicable law as it shall then appear.

 

12.3        Successors and Assigns.  This Agreement will be binding upon my heirs,
executors, administrators and other legal representatives and will be for the
benefit of the Company, its successors, and its assigns.

 

12.4        Survival.  The provisions of this Agreement shall
survive the termination of my employment and the assignment of this Agreement
by the Company to any successor in interest or other assignee.

 

12.5        Employment.  I agree and understand that my employment is
at-will which means I or the company each have the right to terminate my
employment at will, with or without advanced notice and with or without
cause.  I further agree and understand
that nothing in this Agreement shall confer any right with respect to
continuation of employment by the Company, nor shall it interfere in any way
with my right or the Company’s right to terminate my employment at any time,
with or without cause.

 

12.6        Waiver.  No waiver by the Company of any breach of
this Agreement shall be a waiver of any preceding or succeeding breach.  No waiver by the Company of any right under
this Agreement shall be construed as a waiver of any other right.  The Company shall not be required to give
notice to enforce strict adherence to all terms of this Agreement.

 

12.7        Entire Agreement.  The obligations pursuant to Sections 1
through 4 and Sections 6 and 7 (including all subparts) of this Agreement shall
apply to any time during which I was previously employed, or am in the future
employed, by the Company as a consultant if no other agreement governs
nondisclosure and assignment of inventions during such period.  This Agreement is the final, complete and
exclusive agreement of the parties with respect to the subject matter hereof
and supersedes and merges all prior discussions between us.  No modification of or amendment to this
Agreement, nor any waiver of any rights under this Agreement, will be effective
unless in writing and signed by the party to be charged.  Any subsequent change or changes in my
duties, salary or compensation will not affect the validity or scope of this
Agreement

 

This
Agreement shall be effective as of the first day of my employment with the
Company, namely:
                              ,
            .

 

5

 

I HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS.  I HAVE COMPLETELY FILLED OUT EXHIBIT A
TO THIS AGREEMENT.

 

	
  Dated:

  	
  12/4/2001

  	
   

  
	
   

  	
   

  
	
  /s/
  William Jay Ramsey

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
  William
  Jay Ramsey

  	
   

  
	
  Printed
  Name

  	
   

  
	
   

  	
   

  
	
  ACCEPTED
  AND AGREED TO:

  	
   

  
	
   

  	
   

  
	
  /s/
  Nicholas Vahanian

  	
   

  

 

6

 

EXHIBIT A

 

	
  TO:

  	
  NewLink
  Genetics Corporation

  	
   

  
	
   

  	
   

  	
   

  
	
  FROM:

  	
  W.
  Jay Ramsey

  	
   

  
	
   

  	
   

  	
   

  
	
  DATE:

  	
  12/4/2001

  	
   

  
	
   

  	
   

  	
   

  
	
  SUBJECT:

  	
  Previous
  Inventions

  	
   

  

 

1.           Except
as listed in Section 2 below, the following is a complete list of all
inventions or improvements relevant to the subject matter of my employment by NewLink Genetics Corporation that have been made or
conceived or first reduced to practice by me alone or jointly with others prior
to my engagement by the Company:

 

	
  o

  	
  No
  inventions or improvements.

  
	
   

  	
   

  
	
  x

  	
  See
  below:

  
	
   

  	
   

  
	
   

  	
  Existing
  U.S. Patents

  
	
   

  	
   

  
	
   

  	
  E4
  of 4 mediated anti-tumor and anti-inflammatory effects

  
	
   

  	
   

  
	
   

  	
  Transcomplementation
  mediated adenovirus gene delivery

  
	
   

  	
   

  
	
   

  	
  Integrase
  fusion protein mediated gene transfer and insertion

  
	
   

  	
   

  
	
  x

  	
  Additional
  sheets attached.

  

 

2.             Due
to a prior confidentiality agreement, I cannot complete the disclosure
under Section 1 above with respect to inventions or improvements generally
listed below, the proprietary rights and duty of confidentiality with respect
to which I owe to the following party(ies):

 

	
   

  	
  Invention or Improvement

  	
   

  	
  Party(ies)

  	
   

  	
  Relationship

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

o            Additional sheets attached.

 

A-1

 

EXHIBIT A

 

	
  TO:

  	
  NewLink
  Genetics Corporation

  	
   

  
	
   

  	
   

  	
   

  
	
  FROM:

  	
  W.
  Jay Ramsey

  	
   

  
	
   

  	
   

  	
   

  
	
  DATE:

  	
  12/4/2001

  	
   

  
	
   

  	
   

  	
   

  
	
  SUBJECT:

  	
  Previous
  Inventions

  	
   

  

 

1.             Except
as listed in Section 2 below, the following is a complete list of all
inventions or improvements relevant to the subject matter of my employment by NewLink Genetics Corporation that have been made or
conceived or first reduced to practice by me alone or jointly with others prior
to my engagement by the Company:

 

	
  o

  	
  No
  inventions or improvements.

  
	
   

  	
   

  
	
  x

  	
  See
  below:

  
	
   

  	
   

  
	
   

  	
  Gene
  therapy for congenital adrenal hyperplasia via correction

  
	
   

  	
   

  
	
   

  	
  of
  inherited metabolic defects

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  o

  	
  Additional
  sheets attached.

  

 

2.             Due
to a prior confidentiality agreement, I cannot complete the disclosure
under Section 1 above with respect to inventions or improvements generally
listed below, the proprietary rights and duty of confidentiality with respect
to which I owe to the following party(ies):

 

	
   

  	
  Invention or Improvement

  	
   

  	
  Party(ies)

  	
   

  	
  Relationship

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
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o            Additional sheets attached.

 

A-1

 

EXHIBIT B

 

RELEASE

 

In
exchange for the consideration provided to me by this Agreement that I am not
otherwise entitled to receive, I hereby generally and completely release
the Company and its directors, officers, Executives, shareholders, partners,
agents, attorneys, predecessors, successors, parent and subsidiary entities,
insurers, affiliates, and assigns from any and all claims, liabilities and
obligations, both known and unknown, that arise out of or are in any way
related to events, acts, conduct, or omissions related to my employment with
the Company or the termination of that employment, including, but not limited
to: (1) all claims related to my compensation or benefits from the
Company, including salary, bonuses, commissions, vacation pay, expense
reimbursements, severance pay, fringe benefits, stock, stock options, or any
other ownership interests in the Company; (2) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good
faith and fair dealing; (3) all tort claims, including claims for fraud,
defamation, emotional distress, and discharge in violation of public policy;
and (4) all federal, state, and local statutory claims, including claims
for discrimination, harassment, retaliation, attorneys’ fees, or other claims
arising under the federal Civil Rights Act of 1964 (as amended), the federal
Americans with Disabilities Act of 1990, the federal Age Discrimination in
Employment Act of 1967 (as amended) (“ADEA”), and the Iowa state law (as
amended).  Notwithstanding the foregoing, nothing
contained in this Release is intended to release the Company from any claim
arising out of or with regard to: (i) any payment to be made to me by the
Company in connection the termination of employment as contemplated by the
Employment Agreement, or (ii) any statutory obligation that the Company
may have with regard to the continuation of benefits.

 

[IF APPLICABLE] ADEA Waiver and Release.  I acknowledge that I am knowingly and
voluntarily waiving and releasing any rights I may have under the ADEA, as
amended.  I also acknowledge that the
consideration given for the waiver and release in the preceding paragraph
hereof is in addition to anything of value to which I was already
entitled.  I further acknowledge that I
have been advised by this writing, as required by the ADEA, that:  (a) my waiver and release does not apply
to any rights or claims that may arise after the execution date of this
Agreement; (b) I have been advised that I have the right to consult with
an attorney prior to executing this Agreement; (c) I have been given
twenty-one (21) days to consider this Agreement; (d) I have seven (7) days
following the execution of this Agreement by the parties to revoke the
Agreement; and (e) this Agreement will not be effective until the date
upon which the revocation period has expired, which will be the eighth day
after this Agreement is executed by you, provided that the Company has also
executed this Agreement by that date (“Effective Date”).  The parties acknowledge
and agree that revocation by you of the ADEA Waiver and Release is not
effective to revoke your waiver or release of any other claims pursuant to this
Agreement.

 

 

	
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  Date:

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