Document:

EX-10.14

 

Exhibit 10.14

May 31, 2007

Winton G. Gibbons

1889 Maple Avenue, W-3

Evanston, IL 60201

Dear Winton,

We are pleased to offer you employment with Nanosphere, Inc. as Senior Vice President of Business
Development reporting to me. Nanosphere is a fast-paced technology company that will provide you
opportunities for professional achievement and personal growth. We are pleased that you will join
the senior management team and will share in our vision to be recognized worldwide as a leader in
providing biodiagnostic assays to improve the cost and quality of medical care and to advance
medical research.

Your first day of employment is to be June 18, 2007 or as we may otherwise mutually agree. This
offer is contingent upon satisfactory reference diligence and you signing the Company’s Employment
Agreement a copy of which is attached.

Terms of Employment

	1.	 	Your salary will be $250,000.00 annually (paid biweekly) and you will receive annual
performance reviews or more frequently as commensurate with performance.
	 
	2.	 	You will participate in a senior management incentive bonus program with an annual target
bonus of $90,000. This program is developed by the chief executive officer and approved by
the Board of Directors. Each year key operating objectives will be established and
performance will be measured against those to determine the appropriate award. The current
system is based upon both company and individual performance targets with the assessment of
each multiplied together to determine final awards. All awards receive final approval from
the Board of Directors.
	 
	3.	 	You will receive options to purchase 5,000,000 shares of the Company’s common stock at fair
market value in accordance with the Nanosphere Incentive Stock Plan. Vesting on those shares
will be as follows:

	 	a.	 	2,500,000 shares will be subject to the Company’s cliff-vested, performance
accelerated option plan, a copy of which is attached.
	 
	 	b.	 	2,500,000 shares will vest at the rate of 25% on each of the four
anniversaries of the award.

 

 

			
	 	 	 
	Winton G. Gibbons/page 2
	 	May 31, 2007

	4.	 	You will be eligible to receive two weeks vacation leave and five personal days, which will
be pro-rated according to your hire date.
	 
	5.	 	You will receive a performance evaluation after approximately nine months with a view toward
adjusting both your cash compensation and stock option/equity position in the company to a
level commensurate with your performance and the position with respect to comparables in the
industry.
	 
	6.	 	In the event the Company terminates your employment for reasons other than Cause, you will be
entitled to a severance amount equivalent to five months base salary plus a prorated
calculation of your annual bonus.
	 
	 	 	“Cause” shall be defined as follows:

“Cause” means (i) any felony conviction or admission of guilt, (ii) any breach or
nonobservance by Employee of any material covenant set forth herein, (iii) any willful,
intentional or deliberate disobedience or neglect by Employee of the lawful and reasonable
orders or directions of the Chief Executive Officer or Board of Directors of the Company;
provided that the Chief Executive Officer or Board of Directors of the Company has given
Employee written notice of such disobedience or neglect and Employee has failed to cure
such disobedience or neglect within a period reasonable under the circumstances, or (iv)
any willful or deliberate misconduct by employee that is materially injurious to the
Company.

For future information, Nanosphere administers salary increases through an annual common merit
review program based on a “pay for performance” philosophy.

The term of your employment is “at will”, which means that you or the Company may end your
employment at any time and for any reason. The first ninety days of your employment will be
considered an introductory period.

As long as you are an employee of the company, Nanosphere will provide access to a variety of
benefits including health care.

Authorization to Work: In order to comply with federal regulations to authorize to work in the
United States (Immigration Reform Act of 1986), you will be required to present certain documents
on the first day of your employment. Upon your acceptance of this offer, we will provide you a
government Form I-9 explaining the types of documents you may submit.

 

 

			
	 	 	 
	Winton G. Gibbons/page 3
	 	May 31, 2007

Employment Agreement: A condition of your employment is that you sign the enclosed Company
Employment Agreement. Please return a signed copy along with your acceptance of this offer.

Also included in this letter is an offer to you to self-disclose as a person with a disability. It
is a government requirement that Nanosphere provides this opportunity to you, and your completion
of the form is strictly voluntary. Any information you provide is confidential. Upon your
acceptance of this offer, we will forward an invitation to disclose to you.

Winton, we are confident that you will make a significant contribution to Nanosphere and are
excited to have you as a member of our team. We are strongly committed to our employees and are
also confident that your acceptance of employment will provide you with an excellent opportunity to
enhance your professional and personal goals.

Please indicate your written acceptance by signing this letter and returning it to me at your
earliest convenience. If you have any questions, please do not hesitate to contact me at
847-400-9119.

We look forward to seeing you at Nanosphere! Congratulations!

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sincerely,

	 	 	 	 	 	 	 	Accepted by:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/
William P. Moffitt III
	 	 	 	 	 	 	 	/s/ Winton G. Gibbons	 	 	 	 	 	 
	 

William P. Moffitt

President & CEO

	 	 
	 	 

(Date)
	 	 
	 	 

Winton G. Gibbons
	 	 
	 	 

(Date)
	 	 

Enclosure: Nanosphere Employment Agreement

 

 

	 	 	 
	Nanosphere, Inc.
	 	 
	4088 Commercial Avenue
	 	 
	Northbrook, IL 60062

	 	Agreement

     In consideration of my employment and the compensation paid to me by Nanosphere, Inc., a
Delaware corporation headquartered in Illinois, any of its affiliated companies, successors or
assigns (together, “Nanosphere”), I acknowledge and agree as follows:

Background

A.     Nanosphere has offered me a position of employment.

B.     As a consequence of my position with Nanosphere, I will have access and become exposed to
certain information of Nanosphere of a confidential or proprietary nature.

C.     I understand that my use or disclosure of Nanosphere’s confidential or proprietary information,
or my involvement or participation in a business that is competitive with Nanosphere, would have a
material adverse impact on Nanosphere and its value.

Terms of Agreement

1.     Confidentiality.

     (a)     I acknowledge that the technical, scientific and business information, procedures and
techniques developed or acquired by Nanosphere are among its most valuable assets and that,
during the
term of my employment by Nanosphere, I will have access to some or all of this information,
these
procedures or these techniques. Consequently, in order to further protect the legitimate
interests of
Nanosphere, I hereby agree that I will not at any time, directly or indirectly, disclose to
anyone, or use or
otherwise exploit for my own benefit or for the benefit of anyone other than Nanosphere, any
Proprietary
Information (as defined below), except as may be reasonably required in the ordinary course of
my
performance of my duties and responsibilities on behalf of Nanosphere. I further agree that in
no event
shall I disclose any Proprietary Information to anyone outside of Nanosphere without the
express prior
written permission of Nanosphere. However, this Agreement shall not be construed to prohibit
me from
disclosing any Proprietary Information to my personal agents and representatives that
reasonably need to
know this information in order to advise me (including, but not limited to, my legal counsel
and financial
consultants), provided that I shall inform them of the confidential nature of the Proprietary
Information
and these agents and representatives agree to be bound by the terms of this Agreement.

     (b)     As used in this Agreement, the term “Proprietary Information” means all non-public
information relating to Nanosphere and its business, including without limitation all
technical or scientific
information; diagnostics; information regarding research and development efforts, developments
in
chemistry, intensification procedures, linking techniques and procedures, methodologies,
procedures,
systems, devices, business concepts, software, hardware, processes, “know how” and other
intellectual
property, scientific data and insights, manufacturing information, quality data, operating
techniques,
marketing methods, financial information, demographic and trade area information, product
applications,
market penetration techniques, plans or schedules, regulatory strategies, customer profiles,
preferences, or
statistics, itemized costs, development plans, product information, pricing
information, sourcing
information, and all other related trade secrets or confidential or proprietary information of
Nanosphere or

 

 

any affiliate of Nanosphere or any third party to whom Nanosphere owes an obligation of confidence.

     (c)     I agree to deliver to Nanosphere at the termination of my employment, or at any other
time Nanosphere may request, all memoranda, notes, plans, records, reports, files, data
(including original
data), disks, electronic media and other documents or other materials (and all copies thereof)
relating to
the business of Nanosphere which I may then possess or have under my control.

     (d)     I understand that my obligations under this Section 1 of this Agreement shall survive any
termination of my employment by Nanosphere and shall terminate with regard to any Proprietary
Information only when (i) the Proprietary Information becomes generally available to the
public on a non-confidential basis (other than by my breach of my obligations under this Agreement), including
from a
third party provided that the third party is not in breach of an obligation of confidentiality
with respect to
the Proprietary Information; (ii) the use or disclosure of the Proprietary Information is
approved for
release by written authorization of Nanosphere; or (iii) the Proprietary Information is
required to be
disclosed by proper order of a court of competent jurisdiction after adequate notice to permit
Nanosphere
to seek a protective order for the Proprietary Information. If this occurs I agree to approve
and support
Nanosphere’s request for such a protective order.

     (e)     I understand that Nanosphere does not seek any confidential information that I may have
acquired from a previous employer, and I shall not disclose any of this information to
Nanosphere.

2.     Restrictive Covenants.

     (a)     Non-Competition. As a separate covenant under this Agreement, I agree that during
the
period commencing upon the date I was hired and ending one (1) year after the cessation of my
employment with Nanosphere (the “Restricted Period”), I shall not, directly or indirectly,
compete in any
manner or capacity (e.g., as an advisor, principal, agent, consultant, partner, member, joint
venturer,
officer, director, employee, equity holder, lender, or otherwise) with Nanosphere in the area
of
biodiagnostics using nanoparticles or any other business conducted or under research and/or
development
by Nanosphere as to which I performed services or acquired Proprietary Information.

     (b)     Geographic Extent of Covenant. My obligations under Section 2 shall apply to: (i)
any
geographic area in which, or as to which, I performed services for Nanosphere; (ii) any
geographic area in
which Nanosphere has engaged in or has directed its business prior to the cessation of my
employment
through the presence of its offices, laboratories or research facilities, the providing of its
services, conduct
of its development, promotional, sales or marketing activities or otherwise; or (iii) any
geographic area in
which Nanosphere has otherwise established its goodwill, business reputation, or customer
relationships.
I acknowledge that my duties relate to Nanosphere’s technology, on which Nanosphere’s entire
business
is based, and consequently, that the geographic scope of my duties will extend across the
geographic area
in which Nanosphere does, or directs, its business.

     (c)     Limitations of Covenant. Nanosphere agrees that I shall not be deemed to have
violated
any provision of this Agreement solely as a result of me either: (i) maintaining direct or
indirect
ownership as a passive investment of less than 1% (in the aggregate) of the outstanding shares
of capital
stock or other equity interest of any corporation listed on a national securities exchange or
publicly traded
on an automated quotation system, or (ii) engaging in a business that incidentally serves a
competing
business, so long as such services do not in and of themselves constitute a breach of this
Agreement and
are not targeted at that competing business’ activities that are competitive with Nanosphere.

     (d)     No Solicitation. During the Restricted Period and each as a separate covenant
under this
Agreement, I shall not: (i) induce or attempt to induce any employee of Nanosphere to leave
the employ

2

 

of Nanosphere, or in any way interfere adversely with the relationship between that employee and
Nanosphere; (ii) induce or attempt to induce any employee of Nanosphere to work for, render
services or provide advice to or supply confidential business information or trade secrets of
Nanosphere to, any other person; (iii) employ, or otherwise pay for services rendered by any
employee of Nanosphere in any enterprise competitive with Nanosphere; (iv) induce or attempt to
induce any customer, supplier, licensee, licensor or other business relation of Nanosphere to
cease doing business with Nanosphere or in any way interfere with the relationship between that
customer, supplier, licensee, licensor or other business relation and Nanosphere; or (v) directly
or indirectly solicit, sell or render competing services or target any entity that competes with
any business conducted or under research and/or development by Nanosphere prior to the expiration
of the Restricted Period.

3.     Indirect Competition. As a separate covenant under this Agreement, I shall not,
directly or
indirectly, assist or encourage any other person in carrying out, directly or indirectly, any
activity that
would be prohibited by this Agreement, if that activity were carried out by me, either directly or
indirectly. In particular, but without limiting the generality of the foregoing, I agree that I
will not,
directly or indirectly, induce any other employee of Nanosphere to carry out, directly or
indirectly, any of
these activities.

4.     Injunctive Relief. I agree that (i) the restrictions and agreements contained in this
Agreement are
reasonable in time, scope and territory and are necessary to protect the legitimate interests of
Nanosphere
including its interest in protecting its Proprietary Information, and (ii) any violation of this
Agreement
will cause irreparable harm to Nanosphere that would not be quantifiable and for which no adequate
remedy would exist at law. Accordingly, without limiting the remedies available to Nanosphere,
injunctive relief shall be available for any violation of this Agreement in addition to any other
rights
Nanosphere may have at law or in equity.

5.     Assignment of Work Product. Except as expressly provided in this Agreement, Nanosphere
alone shall be entitled to all benefits, profits and results arising from or incidental to my
employment with
Nanosphere. I agree that any work product, inventions, methods, processes, designs, software,
apparatuses, compositions of matter, procedures, improvements, property, data,
documentation,
information or materials that I (either jointly or solely) prepared, conceived, discovered, reduced
to
practice, developed or created during, in connection with, for the purpose of, related to, or as a
result of,
my employment with, or the business of, Nanosphere (the “Work Product”) shall be owned exclusively
and perpetually by Nanosphere. I agree to disclose promptly all Work Product to Nanosphere. I
hereby
unconditionally and irrevocably transfer and assign to Nanosphere all right, title and interest
(including all
patent, copyright, trade secret and any other intellectual property rights) I currently have (or in
the future
may have) by operation of law or otherwise in or to any Work Product. I have identified on the last
page
of this Agreement all developments, inventions and works in which I have any right, title or interest,
which were made, conceived or written in whole or in part by me prior to my employment with
Nanosphere and which relate to the business of Nanosphere. If I do not have any developments,
inventions or works to identify, I will so state by writing “none” on the following line: ___.
Notwithstanding the foregoing provisions of this paragraph, I understand and am hereby notified
that this Agreement with respect to the assignment of my rights in inventions shall not apply to
any invention that was developed entirely on my own time and for which no equipment, supplies,
facilities or trade secret information of Nanosphere was used, unless (i) the invention relates to
the business of Nanosphere or to Nanosphere’s actual or demonstrably anticipated research or
development, or (ii) the invention results from any work performed by me for Nanosphere. I am not a
party to any agreement which would limit my ability to assign Work Product as provided for in this
paragraph.

6.     Copyright. I acknowledge that all Work Product that may be copyrighted shall be deemed,
to the
extent permitted by law, “works made for hire” as defined in the U. S. Copyright Act, 17 U.S.C.A. §101

3

 

et
seq. To the extent any Work Product is not a “work made for hire” under the Copyright Act, I
agree to waive my “moral rights” in the Work Product, and further agree to and hereby assign to
Nanosphere all of my right, title and interest (including copyright) in the Work Product.

7.     Further Assurances. I agree at any time during or after my employment with Nanosphere
to
execute and deliver to Nanosphere any transfers, assignments, documents or other instruments and
take
any other actions which Nanosphere may deem necessary or appropriate to vest complete and perpetual
title and ownership of any Work Product and all associated rights (including all patent rights)
exclusively
in Nanosphere or its nominee. I understand and Nanosphere agrees that if I am not employed by
Nanosphere at the time I am requested to execute any document or take any other action under this
paragraph, I shall receive fifty dollars ($50.00) for the execution of each document, and one
hundred and
fifty dollars ($150.00) per day of each day or portion of a day spent at the request of Nanosphere
in the
performance of acts pursuant to this paragraph, plus reimbursement for any out-of-pocket expenses
incurred by me at Nanosphere’s request in connection with these activities.

8.     Employment at Will. I understand and agree that this Agreement is not a guarantee of
my
continued employment or rate of compensation for any period. My employment is at will, which means
that I am free to terminate my employment at any time, for any reason, and that Nanosphere retains
the
same rights with respect to my employment.

9.     Severability. I understand that whenever possible, each provision of this Agreement
shall be
interpreted in a manner as to be effective and valid under applicable law. However, if the duration
or
geographical extent of, or business activities covered by, this Agreement are in excess of what is
valid
and enforceable under applicable law, then that provision shall be construed to cover only that
duration,
geographical extent or activities that are valid and enforceable. I acknowledge the uncertainty of
the law
in this respect and expressly stipulate that this Agreement is to be given the construction that
renders its
provisions valid and enforceable to the maximum extent (not exceeding its express terms) possible
under
applicable law. Further, if any provision of this Agreement is held to be prohibited by or invalid
under
applicable law, that provision will be ineffective only to the extent of the prohibition or
invalidity,
without invalidating the remainder of that provision or the remaining provisions of this Agreement.

10.     Notices. Any notice to either of the parties must be in writing and shall be deemed
sufficiently
given if: (a) given by personal delivery; (b) mailed by United States registered or certified mail,
postage
prepaid; or (c) sent by overnight air courier service, with proof of receipt, to the address set
forth on the
signature page.

11.     Governing Law and Venue. I agree that the construction, validity and interpretation
of this
Agreement and the performance of the obligations it imposes shall be governed by the internal laws,
without regard to conflicts of laws principles, of the State of Illinois. The parties agree that
any litigation
in any way relating to this Agreement will be venued only in the State of Illinois, Cook County
Circuit
Court, or the United States District Court for the Northern District of Illinois. I and Nanosphere
hereby
consent to the personal jurisdiction of these courts and waive any objection that this venue is
inconvenient
or improper.

12.     Amendment and Waiver. This Agreement may not be amended or waived except in a writing
executed by the party against which the amendment or waiver is sought to be enforced.

13.     Survival. I agree and acknowledge that the provisions of this Agreement shall
survive the
termination of my employment with Nanosphere and remain in full force and effect in accordance with
their terms.

4

 

14.     Complete Agreement. I agree that this Agreement contains the complete agreement between
Nanosphere and myself regarding my ability to engage in activities competitive or potentially
competitive with Nanosphere and/or any of its affiliates. This Agreement supersedes any prior
understandings, agreements or representations by or between
Nanosphere and myself, written or oral,
which may have related to the subject matter of this Agreement in any way.

Date:     6/8/07          

	 	 	 
	EMPLOYEE

	 	NANOSPHERE, INC.
	
 

	 	By:

 

	 
	 	 
	Name: Winton Gibbons

	 	Name: William P. Moffitt
	 
	 	 
	 

	 	Title: President and Chief Executive Officer
	 
	 	 
	 

	 	Date: May 31, 2007
	 
	 	 
	 
	 	 
	Address for Notices:

	 	Address for Notices:
	 
	 	 
	1889 Maple Ave, #W3

	 	4088 Commercial Avenue
	 

	 	 
	Evanston, IL 60201

	 	Northbrook, IL 60062
	 

	 	 
	 
	 	 
	 
 

	 	  

5EX-10.15

 

Exhibit
10.15

CONFIDENTIAL SEVERANCE AGREEMENT AND GENERAL RELEASE

     This Confidential Severance Agreement and General Release (the “Agreement”) is made and
entered into by and between Nanosphere, Inc. (the “Company”) and Stephen Wasko (“Employee”)
(collectively, “the Parties”).

     This Agreement sets forth the terms and conditions pursuant to which the Employee is
separating from employment with the Company.

     1. Separation
of Employment. In consideration of the foregoing, and for other
good and valuable consideration, the sufficiency of which is hereby acknowledged, the Employee
shall separate from employment with the Company effective June 30, 2007 (the “Separation Date”) and
shall resign his position as vice president of finance, treasurer, secretary and chief financial
officer effective as of June 4,2007.

     2. Severance Pay. From the day immediately following the Separation Date
through
November 30,2007 (the “Severance Period”), the Company will pay Employee an amount equal to the
base salary at the rate as of the Separation Date ($7,846.15 per pay period) that
Employee would have received had Employee remained in the employ of the Company during the
Severance Period on a full-time basis, less all ordinary deductions for local, state and federal
taxes which are required by law to be withheld and any other deductions previously authorized by
Employee related to participation in employee benefit plans in which
Employee is enrolled as
of the Separation Date, as discretionary severance pay (“Severance Pay”), which amount shall
be distributed in accordance with the Company’s regular payroll schedule. If at the end of the
Severance Period, Employee is without employment and not self-employed whereby self-employment
equals or exceeds an amount that reasonably replaces the “Severance Pay”, the Company will pay
Employee additional Severance Pay on a month-by-month basis for a period not to exceed the earlier
of 3 months or such time as Employee has found full-time employment or becomes
self-employed, as described immediately above, provided that the Employee can demonstrate to the
Company’s satisfaction that he has made reasonable efforts to obtain employment.

     3. Group Health Insurance Benefits. From the Separation Date through the earliest
of (i) the end of the Severance Period, as it may be extended per Section 2 above, or
(ii) the date on which Employee becomes covered as the primary insured under another
group health plan with no pre-existing condition limitation or exclusion, Employee shall be
entitled to Company paid group heath insurance coverage under the Company’s group health insurance
plan (as such plan, and employee benefit cost sharing structure, is then in effect and as it may be
amended at any time and from time to time during the period of
coverage). Employee agrees to notify
the Company if prior to the end of the Severance Period, as it may be extended per Section 2 above,
Employee becomes covered as the primary insured under another group health plan with no pre-
existing condition limitation or exclusion. The
period during which Employee is being provided with health insurance pursuant to this
Agreement shall be credited against Employee’s period of COBRA coverage, if any. If Employee is
entitled to continuing health insurance coverage under COBRA, the costs associated with Employee’s
election of COBRA benefits after termination of any health insurance coverage provided by the
Company pursuant to this Agreement shall be the Employee’s responsibility.

 

 

     4. Stock Options. Vesting of stock options held by Employee will cease on June 1,
2007 in accordance with the Company’s stock option agreements and plan. The Company extends the
option deadline for exercise by Employee until December 31,2007.

     5. No Further Obligations. Except for the obligations expressly set forth in this
Agreement, the Company shall make no further payments or contributions on behalf of the Employee or
Employee’s family members, whether for salary, vacation, sick days, life insurance, long term
disability insurance or any other form of insurance or for any other compensation or benefits
following the Separation Date.

     6. Release. For and in consideration of the Severance Pay, the payments and other benefits
provided for in this Agreement, and the other covenants of the Company made herein, Employee agrees
that by executing this Agreement Employee does hereby, on behalf of Employee, Employee’s heirs,
executors, administrators, representatives, successors and assigns, irrevocably and unconditionally
release and forever discharge the Company, all affiliated or related entities, successors,
predecessors, assigns or representatives, and any present and former officers, directors, trustees,
board members, employees, agents, attorneys, and insurers, and all persons acting for, by, through,
under or in concert with any of them (hereinafter “Released Parties”), of and from any and all
claims, demands, liabilities, actions, causes of action, rights, obligations, suits, debts,
accounts, claims for attorneys’ fees, interest, expenses and costs, damages, judgments, and
executions of any nature whatsoever, which Employee, Employee’s heirs, executors, administrators,
representatives, successors, or assigns, had, now have, or may hereafter have, from the beginning
of time to the date hereof, against any of the Released Parties, whether based on federal or state
statute, common law, rule or regulation, whether in law or in equity, contract or tort, whether
liquidated or unliquidated, whether known or unknown, related to Employee’s employment with the
Company and/or the termination therefrom. This general release includes but is not limited to
claims arising out of or in connection with: (i) any allegation that the Company wrongfully or
unlawfully terminated, discharged, or laid off Employee; (ii) any allegation of violation of the
Age Discrimination in Employment Act, the Americans with Disabilities Act, Title VII of
the Civil Rights Act of 1964, as amended, the Civil Rights Acts of 1866, 1871, and 1991, including Sections 1981 and 1983 of the Civil Rights Act, the Worker’s Adjustment and Retraining Notification Act, the National Labor
Relations Act, the Rehabilitation Act of 1973, the Corporate and Criminal Fraud Accountability Act
of 2002, Title VIII of the Sarbanes-Oxley Act of 2002, the Illinois Human Rights Act,
and the Illinois Whistleblower Act; (iii) any allegation of defamation, intentional or
negligent infliction of emotional distress, workplace harassment, discrimination, or retaliation,
invasion of privacy, violation of public policy, negligence, or any other tort; (iv) any allegation
of a breach of any contract of employment, express or implied, or of a violation of any Company
policy or procedure, the provisions of the Constitution of the United States or of any other state,
and/or any other law, rule, regulation or ordinance pertaining to employment and/or the termination
of employment; and/or (v) any other statutory or common law cause of action. This release is not
intended to release any claim arising out of any breach by the Company of any of the
terms and conditions of this Agreement, Employee’s right to challenge the validity of this
Agreement, or any claims that cannot be waived or released as a matter of law.

     7. Covenant Not To Sue. Employee covenants and agrees that Employee will not file any lawsuit
against any of the Released Parties with respect to any claims that Employee

- 2 -

 

may have up to and including the date of this Agreement. The Parties agree that to the extent,
if any, Employee may have an unwaivable right to file or participate in a claim or charge against
any of the Released Parties, this Agreement shall not be intended to waive such a right. However,
even if Employee has a right to file or participate in a claim or charge against any of the
Released Parties, Employee agrees that Employee shall not obtain, and hereby waives Employee’s
right to, any relief of any kind from such a claim or charge.

     8. No Admission. Employee understands and agrees that the payment of monies and
other consideration set forth in this Agreement does not constitute an admission of liability or
violation of any applicable law, regulation, or agreement, and in fact the Released Parties
expressly deny any such liability or violation.

     9. Return of Property. Employee agrees, to the extent Employee has previously
failed to do so, to return immediately all documents, reports, files, financial information,
customer lists, keys, credit cards, keycards, employee identification cards, pagers, remote
computer access tokens, computers, programs, software and discs, including, but not by way of
limitation, those programs, software, and discs generated during Employee’s employment with the
Company, and all other items which are the property of the Company, or contain information which
belongs to the Company or any of the Released Parties. Employee agrees that Employee will not
retain any copies, duplicates, reproductions or excerpts of any of the foregoing.

     10. Confidentiality of Agreement. Employee agrees to keep the terms and existence of this
Agreement strictly confidential and agrees that Employee will not
disclose to anyone (including but not limited to any current or former employee of the
Company) any information concerning the existence and terms of this Agreement or the negotiations
specifically leading to this Agreement, except as may be required to consult with legal counsel or
for tax or accounting consultation or advice or unless required to do so by court order
or subpoena, or as otherwise required by law. Employee assumes responsibility for any disclosure by
anyone Employee informs, pursuant to this paragraph, about the existence and terms of this
Agreement or the negotiations specifically leading to this Agreement. Employee further acknowledges
and agrees that the covenants made in this paragraph are material to this Agreement, and violation
of the terms of this paragraph by Employee will result in damages to the Company which are
difficult to assess. In such an event, pursuit of both monetary and injunctive relief are
appropriate, and that the Company’s entitlement to injunctive relief shall be in addition to any
monetary damages.

     11. Proprietary Information. Employee hereby agrees that Employee shall not use
for Employee’s own benefit or for the benefit of any third party, nor shall Employee disclose to
any third party any proprietary, non-public, or otherwise confidential information of or regarding
the Company or its operations, products, manufacturing processes or procedures, services, financial
information, data, or reports, pricing, customers, prospective customers, suppliers, or employees,
computer programs, marketing information and procedures, including but not limited to sales,
pricing policies, operational methods, business plans and plans for future development, and other
business information which is not readily available to the public.

     12. Prior Agreements. Employee affirms Employee’s awareness of and obligations under
Employee’s Agreement with the Company dated October 22, 2003 and his Employment Offer dated October
1, 2003, including but not limited to, the non-competition,

- 3 -

 

non-solicitation and confidentiality covenants contained therein. Employee acknowledges that his
obligations under these agreements survive the termination of his employment with the Company.

     13. Non-Disparagement. Employee agrees that Employee will not say, write or cause
to be said or written any statement that is, directly or indirectly (by implication or otherwise),
disparaging to the Company.

     14. No Reemployment. Employee agrees to waive any employment rights with any of the Released
Parties that Employee might otherwise have now or in the future, including reinstatement or
reemployment. Employee agrees that Employee will not apply for employment with the Company or with
any of its divisions, subsidiaries, or successors, at any time in the future.

     15. Compensation Paid. Employee acknowledges that he is not entitled to any
other compensation except as specifically set forth in this Agreement.

     16. Prior Charges or Complaints. Employee represents that if Employee has filed, with any
administrative agency or court, any complaint or charge against the Company or any of the Released
Parties involving any events up to and including the date of this Agreement, Employee has disclosed
such complaint or charge, in writing, to the Company’s Human Resources Department.

     17. Non-Assignment. Employee represents that Employee has not assigned or otherwise
transferred to any party any claim that is being released pursuant to this Agreement.

     18. Outstanding Expenses and Other Advances. Employee represents that Employee has
submitted all outstanding expenses and has cleared all advances. Employee acknowledges that any
advances that are unaccounted for shall be offset against the Severance Pay described above.

     19. No Other Promises. Employee represents that in executing this Agreement, no
promise or inducement has been made to Employee except as set forth in this Agreement and that
Employee is entering into this Agreement without any threat or coercion and without reliance on any
statement or representation, written or oral, made by any person representing the Company, except
as expressly set forth in this Agreement.

     20. Entire
Agreement. This Agreement constitutes the entire and complete agreement
between the parties. No other promises or agreements, either express or implied, shall be binding
unless in writing and signed by all parties.

     21. Severability. Each of the terms of this Agreement is deemed severable in whole
or in part and if any term or provision, or the application
thereof, in any circumstance should be illegal, invalid, or unenforceable, the remaining terms and
provisions shall not be affected thereby and shall remain in full force and effect.

     22. Governing Law. Except to the extent preempted by federal law, this Agreement
is made and entered into in the State of Illinois and in all respects the rights and obligations of

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the parties shall be interpreted, enforced, and governed in accordance with the laws of the State
of Illinois which are applicable to contracts made and to be performed in that state and without
regard to the principles of conflict of laws. Any and all lawsuits, legal actions or proceedings
against either party arising out of this Agreement or Employee’s employment with the Company shall
be brought in any court of appropriate jurisdiction sitting in the City of Chicago, Illinois and
each party hereby submits to and accepts the exclusive jurisdiction of such courts for the purpose
of such suit, legal action or proceeding. Each party hereby irrevocably waives any
objection it may now have or hereafter have to this choice of venue of any suit, legal action or
proceeding in any such court and further waives any claim that any suit, legal action
or proceeding brought in any such court has been brought in an inappropriate forum.

     23. Successors and Assigns. This Agreement shall be binding on and inure to the
benefit of the parties and their legal representatives, transferees, successors and assigns.

     24. Employee Acknowledgement. Employee acknowledges that Employee has entered into this
Agreement freely and voluntarily, and that Employee has had adequate time to read this Agreement
and to consult with Employee’s attorney on its terms and to reflect upon the consequences of
Employee’s execution thereof. Employee acknowledges that the Company offered Employee twenty-one
(21) days within which to consider this Agreement, and that the Company advises
Employee to consult with an attorney prior to executing this Agreement. The Parties agree that the
twenty-one day period started on the date that Employee first received this Agreement from the
Company, and that any changes made to the Agreement since that date, whether material or
immaterial, have not restarted the running of the twenty-one day period. Further, Employee
is advised that Employee has seven (7) days following Employee’s
execution of the Agreement to revoke it, and this Agreement shall not become effective or
enforceable until this seven-day revocation period has expired. Any such revocation must be in
writing and delivered to William P. Moffitt, President and Chief Executive Officer at
Nanosphere, Inc., 4088 Commercial Avenue, Northbrook, Illinois, 60062,
within such seven-day period. In the event Employee exercises Employee’s right
of revocation, this Agreement shall be null and void.

	 	 	 	 	 	 	 
	NANOSPHERE, INC.	 	STEPHEN WASKO
	 
	 	 	 	 	 	 
	By:	 		 	
	 	 	 	 	 
	 	 	 	 	Stephen Wasko
	 
	 	 	 	 	 	 
	Its:

	 	CEO
	 	Dated:
	 	June 4, 2007
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Dated:

	 	June 4, 2007	 	 	 	 
	 

	 	 	 	 	 	 

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