Document:

pbyi-ex103_132.htm

Exhibit 10.3

 

[***] Certain information in this document has been excluded pursuant to Regulation S-K, Item 601(b)(10). Such excluded information is not material and would likely cause competitive harm to the registrant if publicly disclosed.

Amendment n°3 to License Agreement

This amendment n°3 (this “Amendment”) is entered into as of February 24, 2021 (the “Amendment 3 Effective Date”), by and between Puma Biotechnology, Inc., a corporation organized and existing under the laws of the State of Delaware (“Licensor”), and Pierre Fabre Medicament SAS, a corporation organized and existing under the laws of France (“Licensee”) (together with Puma, the “Parties” and each individually a “Party”), and amends the License Agreement, dated as of March 29, 2019, as amended, September 17, 2019 and November 21, 2019, respectively (the “Agreement”), by and between Licensor and Licensee.  Capitalized terms used but not defined herein have the respective meanings assigned to them in the Agreement.

Recitals

Whereas, Licensor and Licensee are parties to the Agreement pursuant to which Licensor granted to Licensee certain rights and licenses under intellectual property rights owned or controlled by Licensor to Develop and Commercialize the Product (each, as defined in the Agreement) subject to the terms and conditions set forth in the Agreement; 

Whereas, Licensor and CANbridgepharma Limited, a corporation organized and existing under the laws of Hong Kong, entered into that certain Collaboration and License Agreement, dated as of January 30, 2018 (the “CANbridge License Agreement”), pursuant to which Licensor granted to CANbridgepharma Limited certain rights and licenses to neratinib in mainland China, Hong Kong, Macao and Taiwan;

Whereas, CANbridgepharma Limited assigned its interests under the CANbridge License Agreement to its affiliate, CANbridge Biomed Limited, a corporation organized and existing under the laws of Hong Kong (“CANbridge”);

Whereas, CANbridge and Licensor also entered into other related agreements in connection with the CANbridge License Agreement, including a supply agreement dated August 22, 2019, its corresponding quality and technical agreement dated November 11, 2019, and a safety data exchange agreement dated December 9, 2019 (collectively, and together with the CANbridge License Agreement, the “CANbridge Agreements”); 

Whereas, as of the Amendment 3 Effective Date, Licensor and CANbridge are entering into that certain settlement agreement (“CANbridge Settlement Agreement”), pursuant to which Licensor and CANbridge are settling certain claims and counterclaims described therein related to the CANbridge License Agreement;

Whereas, as of the Amendment 3 Effective Date, and pursuant to that certain termination agreement (the “Termination Agreement”) between Licensor and CANbridge, Licensor and CANbridge terminated all of the CANbridge Agreements; 

Whereas, Licensee wants to obtain from Licensor certain rights and licenses under intellectual property rights owned or controlled by Licensor to develop and commercialize neratinib in mainland China, Hong Kong, Macao and Taiwan;

 

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Whereas, effective on the Amendment 3 Effective Date, CANbridge and Licensee are entering into certain agreements pursuant to which CANbridge will provide services to Licensee to implement a smooth and efficient transition from CANbridge to Licensee of the ongoing activities with respect to the Product in the China Territory, pursuant to the terms of a transition services agreement (“TSA”), a distribution agreement (“CANbridge Agreement”) and the quality agreement and the safety data exchange agreement contemplated therein (collectively, the “Ancillary Agreements”); and  

Whereas, Licensor and Licensee wish to amend the Agreement through this Amendment to include mainland China, Hong Kong, Macao and Taiwan in the Licensee Territory (as defined in the Agreement), on the terms and conditions set forth in this Amendment.

Now Therefore, the Parties agree as follows:

	
1.
	
Definitions 

The Parties mutually agree to amend the Agreement as follows, effective as of the Amendment 3 Effective Date:

	
1.1
	
The following Articles are hereby added to Article 1:   

“1.95“Amendment 3 Effective Date” shall mean February 24, 2021.”

“1.96“Anti-Corruption Laws” shall mean (a) the U.S. Foreign Corrupt Practices Act of 1977 (the “FCPA”), the U.K. Bribery Act 2010, (b) the criminal code of each China Region in the China Territory, (c) the domestic laws of the China Territory and (d) any other similar antibribery or anticorruption Laws in the applicable Licensee Territory.”   

“1.97.“China Regions” shall mean each of mainland China, Hong Kong, Macao and Taiwan.  For the purposes of the Agreement, when a reference is made to the term “country” and except as expressly stated otherwise, it shall be construed, with respect to the China Territory, as a China Region.”  

“1.98. “China Territory” shall mean the People’s Republic of China, including, for the avoidance of doubt, each of the China Regions.” 

“1.99.“Public Official or Entity” shall mean (a) an individual or entity operating in an official or public capacity on behalf of a Governmental Authority (including physicians, hospital administrators, and other healthcare professionals working for or on behalf of state-controlled healthcare organization), (b) any official or employee of a quasi-public or non-governmental international organization, (c) any employee or other person acting for or on behalf of any entity that is wholly or partially government owned or controlled by a Governmental Authority, (d) any person exercising legislative, administrative, judicial, executive, or regulatory functions for or pertaining to a Governmental Authority (including any independent regulator), (e) any political party official, officer, employee, or other person acting for or on behalf of a political party and (f) any candidate for public office.”

	
1.2
	
Article 1.33 is hereby deleted in its entirety and replaced as follows: 

“Licensee Territory” shall mean Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, 

 

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Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom, Switzerland, Albania, Bosnia-Herzegovina, Croatia, Kosovo, Republic of Macedonia, Montenegro, Serbia, Tunisia, Algeria, Morocco, Western African Countries, Middle East Countries, South Africa, Sudan, Turkey, the China Territory and any other countries as may be added from time to time pursuant to Article 2.6 or by mutual agreement.”  

	
1.3
	
Article 1.50 is hereby deleted in its entirety and replaced as follows:  

“Major Markets” shall mean [***].”   

	
1.4
	
Article 1.75 is hereby deleted in its entirety and replaced as follows:  

“Product Trademarks” shall mean: (a) the product-specific Trademarks owned or Controlled by Licensor and designated by Licensor for use with the Product in the Licensee Territory, as reflected on EXHIBIT 5; and (b) any other product-specific Trademark(s) Controlled by Licensor in connection with the distribution, marketing, promotion and sale of the Product in the Licensee Territory, or accompanying logos, trade dress or indicia of origin.”

	
1.5
	
The following Licensed Patents are added to the end of Exhibit 1 (Licensed Patents): 

	
1.6
	
The following Product Trademarks are added to the end of Exhibit 5 (Product Trademarks): 

	
2.
	
Financials  

	
2.1
	
The following Articles are hereby added to Article 6:  

“6.9. Financial Conditions with Respect to the China Territory.

6.9.1License Fee. In partial consideration of (i) the extension of the Licensee Territory to include the China Territory and (ii) Licensor’s causing CANbridge to enter into the TSA, Licensee will pay Licensor the sum of $50,000,000 within [***] ([***]) Business Days of the Amendment 3 Effective Date.   

6.9.2Milestone Payments.

(a)Development Milestone Payments. In further consideration for the exclusive rights and licenses granted by Licensor to Licensee hereunder for the China Territory, Licensee shall pay to Licensor the milestone payment set out below following the first achievement by Licensee, and/or any of its Affiliates or Sublicensees with respect to the China Territory, of the corresponding milestone event set out below with respect to the Product, in accordance with this Article 6.9.2 and the payment provisions in Article 7:  

 

		
	
Milestone Event
	
Milestone Payment

	
[***]
	
[***]

 

 

 

(b)Sales Milestone Payments. In further consideration for the exclusive rights and licenses granted by Licensor to Licensee hereunder with respect to the China 

 

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Territory, Licensee shall pay to Licensor the milestone payments set out below following the first time that the Annual Royalty Bearing Net Sales of the Product in the China Territory reach the following thresholds, in accordance with this Article 6.9.2 and the payment provisions in Article 7 (“China Territory Sales Milestones”): 

 

	
Sales Milestone Events in China Territory
	
Milestone Payment

	
 
	
 

	
[***]
	
[***]

	
[***]
	
[***]

	
[***]
	
[***]

	
[***]
	
[***]

	
[***]
	
[***]

 

(c)Articles 6.2(d) and 6.3 shall apply mutatis mutandis to this Article 6.9.   

(d)With respect to the China Territory Sales Milestones, each such China Territory Sales Milestone payment shall be payable only once, provided that if two (2) or more China Territory Sales Milestones are due and payable during the same Calendar Year, then Licensee may pay only the higher China Territory Sales Milestone payment due and payable during such Calendar Year and the payment of the lower China Territory Sales Milestone(s) would be deferred to the subsequent Calendar Year (any such deferred China Territory Sales Milestone payment amount, collectively, “Deferred China Territory Sales Milestone Amount”).  For the avoidance of doubt, if one (1) or more Sales Milestones are due and payable during the same Calendar Year with respect to Annual Royalty Bearing Net Sales in the Licensee Territory excluding the China Territory, and (1) or more China Territory Sales Milestones are due and payable during the same Calendar Year with respect to Annual Royalty Bearing Net Sales in the China Territory, then Licensee must pay the higher Sales Milestone in accordance with Article 6.2(c) for the Annual Royalty Bearing Net Sales in the Licensee Territory excluding the China Territory, on the one hand, and the higher China Territory Sales Milestone in accordance with this Article 6.9.2(d) with respect to Annual Royalty Bearing Net Sales in the China Territory, on the other hand, and may defer the Deferred Sales Milestones in the Licensee Territory excluding the China Territory and the Deferred China Territory Sales Milestones for the China Territory, respectively, to the subsequent Calendar Year in accordance with the terms of this Agreement.

6.9.3Royalties. 

(a)During the Royalty Term, Licensee shall pay to Licensor, on a [***] basis, a royalty on the Annual Royalty Bearing Net Sales of the Product in the China Territory by Licensee, its Affiliates or Sublicensees (“China Territory Royalty Payments”).  The amount of China Territory Royalty Payments shall be paid [***], at the applicable rates set forth below, based on the Annual Royalty Bearing Net Sales of the Product in the China Territory. For clarity, and notwithstanding anything to the contrary under Article 6.4(a), the Royalty Payments defined in Article 6.4 shall exclude any and all China Territory Royalty Payments.  Furthermore, the royalty rates set forth in Article 6.4(a) shall only apply to those 

 

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Annual Royalty Bearing Net Sales of the Product in the Licensee Territory excluding the China Territory by Licensee, its Affiliates or Sublicensees. 

 

		
	
Annual Royalty Bearing Net Sales in a 
Given Calendar Year in the China Territory

	
Royalty Rate

	
With respect to the portion of Annual Royalty Bearing Net Sales lower than or equal to [***] 
	
[***]%

	
With respect to the portion of Annual Royalty Bearing Net Sales higher than [***] but lower than or equal to [***]
	
[***]%

	
With respect to the portion of Annual Royalty Bearing Net Sales higher than [***]
	
[***]%

 

(b)Notwithstanding Article 6.9.3(a), [***].

(c)Articles 6.4(b) and 6.4(c) shall apply mutatis mutandis to this Article 6.9. 

(d)The adjustments set forth in Articles 6.5 and 6.6 shall apply mutatis mutandis to this Article 6.9.3.  

6.9.4.  Clarification.  The Parties hereby agree that, for the purposes of calculating the Annual Royalty Bearing Net Sales thresholds in Articles 6.2(b) and 6.4(a), the Licensee Territory shall exclude the China Territory.”   

	
2.2
	
The last sentence of Article 7.4(a) is hereby deleted and replaced by the following sentences:  

“Notwithstanding anything to the contrary in this Article 7.4(a), the Parties acknowledge and agree that Licensee will not, absent a change in Law or relevant circumstance between the date of this Agreement and the applicable date of payment, deduct or withhold from the amounts payable pursuant to Articles 6.1, 6.2, 6.4, 6.5 or 6.9 any amount in respect of any taxes provided that Licensor provides Licensee with applicable Tax Documentation establishing an exemption from withholding under Article 12 of the 1994 income tax treaty between the government of the United States and the French Republic (as amended by the 2006 protocol and the 2009 protocol).”   

 

	
3.
	
Regulatory

	
3.1
	
The following sentence is hereby added at the end of Article 4.3(c):

“Notwithstanding the foregoing, with respect to any Shared Clinical Trial initiated after the Amendment 3 Effective Date by Licensee involving Clinical Study centres or sites located both in the China Territory and the Licensee Territory excluding the China Territory (“Additional Licensee Multi-Territory Clinical Study”), Licensee shall bear [***] percent ([***]%) of the costs of the applicable Shared Development Budget and Licensor shall bear [***] percent ([***]%) of the applicable Shared Development Budget.”

 

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3.2
	
Article 4.3(e) is hereby deleted in its entirety and replaced as follows: 

“If upon completion of an Additional Clinical Study by Licensee, Licensor wishes to use any Data arising out of such Additional Clinical Study in a substantive manner by filing the same with a Regulatory Authority (either directly or by reference) in Licensor’s respective territory as the basis for obtaining new or expanded Marketing Approval for the Product for the same Indication that was the subject of such Additional Clinical Study, Licensor shall reimburse Licensee as follows: 

	
 
	
i.
	
If such Additional Clinical Study was an Additional Licensee Multi-Territory Clinical Study, then [***] percent ([***]%) of [***] percent ([***]%) of the applicable Shared Development Budget determined pursuant to Article 4.3(c) (i.e., [***]% of the Shared Development Budget); and

 

	
 
	
ii.
	
If such Additional Clinical Study was conducted only in the China Territory or only in the Licensee Territory excluding the China Territory, then [***] percent ([***]%) of [***] percent ([***]%) of the applicable Shared Development Budget determined pursuant to Article 4.3(c) (i.e., [***]% of the Shared Development Budget).

 

If upon completion of an Additional Clinical Study by Licensor, Licensee wishes to use any Data arising out of such Additional Clinical Study in a substantive manner by filing the same with a Regulatory Authority (either directly or by reference) either in the China Territory or the Licensee Territory excluding the China Territory, in each case, as the basis for obtaining new or expanded Marketing Approval for the Product for the same Indication that was the subject of such Additional Clinical Study, Licensee shall reimburse Licensor [***] percent ([***]%) of [***] percent ([***]%) of the applicable Shared Development Budget determined pursuant to Article 4.3(c) (i.e., [***]% of the Shared Development Budget).  Notwithstanding the foregoing, if Licensee wishes to use such Data for both the China Territory and the Licensee Territory excluding the China Territory, then Licensee shall reimburse Licensor [***] percent ([***]%) of [***] percent ([***]%) of the applicable Shared Development Budget determined pursuant to Article 4.3(c) (i.e., [***]% of the Shared Development Budget).”

	
3.3
	
The following Article 4.10 is hereby added to Article 4: 

“4.10.Regulatory Filings and Marketing Approvals in the China Territory. 

	
 
	
(a)
	
Licensor shall transfer or cause CANbridge or its affiliates to transfer to Licensee or its Affiliates or their designees all Regulatory Filings, Marketing Approvals and Pricing and Reimbursement Approvals, if any, for the Product in the Field in the China Territory in accordance with the timeline specified in the TSA.  

	
 
	
(b)
	
Mainland China.  Licensor shall use Commercially Reasonable Efforts to (i) take all reasonably necessary actions to remove CANbridge or its affiliates as the “local agent” in connection with any Marketing Approval and Pricing and Reimbursement Approval (if applicable) issued by the National Medical Products Administration (“NMPA”) of the mainland China for the Product, and cause CANbridge or its affiliates to comply with the foregoing, and appoint Licensee or its Affiliate as the “local agent” in connection with such Marketing Approval and Pricing and Reimbursement Approval (if applicable), and (ii) transfer such Marketing Approval and Pricing and Reimbursement Approval (if applicable) to 

 

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Licensee or its designee.  Licensee shall use Commercially Reasonable Efforts to take all reasonably necessary actions to (x) appoint itself or its Affiliate as the “local agent” of Licensor in connection with such Marketing Approval and Pricing and Reimbursement Approval (if applicable) and (y) transfer such Marketing Approval and Pricing and Reimbursement Approval (if applicable) to itself, its Affiliates or a designee.

	
 
	
(c)
	
Taiwan.  Licensee shall assess and discuss in good faith with Licensor as to whether it is commercially reasonable to (i) terminate, cancel or otherwise deregister the Marketing Authorization granted to CANbridge or its Affiliate by the Taiwan Food and Drug Administration that references PUMA’s Marketing Authorization approved by the FDA for the Product and (ii) register a new Marketing Authorization in Taiwan that references Licensee’s Marketing Approval as approved by the EMA for the Product.  If Licensee, in its reasonable discretion, determines that the above (i) and (ii) are not commercially reasonable, then Licensee may maintain the Marketing Authorization granted by the Taiwan Food and Drug Administration that references PUMA’s Marketing Authorization approved by the FDA for the Product.  

	
 
	
(d)
	
Hong Kong.  Licensee shall assess and discuss in good faith with Licensor as to whether it is commercially reasonable to (i) terminate, cancel or otherwise deregister the Marketing Authorization granted to CANbridge or its Affiliate by the Pharmacy and Poisons Board of Hong Kong that references PUMA’s Marketing Authorization approved by the FDA for the Product and (ii) register a new Marketing Authorization in Hong Kong that references Licensee’s Marketing Approval as approved by the EMA for the Product.  If Licensee, in its reasonable discretion, determines that the above (i) and (ii) are not commercially reasonable, then Licensee may maintain the Marketing Authorization granted by the Pharmacy and Poisons Board of Hong Kong that references PUMA’s Marketing Authorization approved by the FDA for the Product.

	
 
	
(e)
	
Before the applicable transfer, termination, cancelation, deregistration or registration of the applicable Marketing Approval and Pricing and Reimbursement Approvals, if any, in the applicable China Region of the China Territory, Licensor shall (i) not take or omit to take any material action or make any material communication with respect to any Regulatory Filings or such Marketing Approval and/or Pricing and Reimbursement Approvals, if any, for the Product in the relevant China Region of the China Territory without Licensee’s prior written consent unless it is required to do so under Law (in which case it shall use good faith efforts to consult with Licensee in advance of such action) and (ii) promptly transmit to Licensee any communication received from or draft of any planned communication or submission to the relevant Regulatory Authorities with respect to any such Marketing Approval and Pricing and Reimbursement Approvals, if any, and shall use good faith efforts to cause CANbridge or its affiliates to comply with the foregoing (i) and (ii).”    

	
3.4
	
The Parties shall use good faith efforts to amend the Safety Data Exchange Agreement to include the China Territory no later than [***] ([***]) Business Days after the Amendment 3 Effective Date, unless otherwise agreed by the Parties.   

 

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3.5
	
Governance. The Parties will form a specific working group dedicated to the China Territory, which will coordinate transition activities with respect to the China Territory.  

	
 
	
(a)
	
Accordingly, the following paragraph (vi) is hereby added to Article 3.2(b):     

“(vi)a Working Group dedicated to the China Territory to coordinate a smooth and efficient transition of the ongoing activities with respect to the Product in the China Territory pursuant to the TSA, and to coordinate and share information with respect to the Development and Commercialization of the Product in the China Territory, including communications with the Regulatory Authorities in the China Territory.”

	
 
	
(b)
	
The following Article 3.6 is hereby added to Article 3:

“In accordance with Section 3.2 of the TSA, Licensee shall provide Licensor with a meeting summary for each meeting held between Licensee and/or its Affiliates and CANbridge and/or its affiliates to discuss the status of the transition of the Product and related issues thereto, in accordance with the terms of the TSA, in the English language and in reasonable detail, at least [***].”

	
3.6
	
Commercialization.  The following Article 5.2 is hereby added to Article 5:

“(a)  Licensee may appoint CANbridge or one of its affiliates as its distributor in Hong Kong, Taiwan and Macao, for the purposes of (i) importing, distributing and promoting the Product and (ii) seeking and maintaining the relevant Regulatory Filings necessary for the performance of its obligation pursuant to the Ancillary Agreements, in such China Regions, and for no other purpose, and in accordance with the terms of the Ancillary Agreements, it being specified that in such event, as between Licensor and Licensee (x) CANbridge and its affiliates shall not be deemed Sublicensees but distributors for the purposes of the Agreement, including for the computation of Net Sales, notwithstanding Section 1.85, and (y) Puma consents to CANbridge or its affiliates acting as Licensee’s distributor in Hong Kong, Taiwan and Macao pursuant to this Article 5.2(a) until [***], which term may be renewed for up to [***] with Licensor’s prior written consent, which consent shall not be unreasonably withheld or delayed as long as CANbridge complies with its obligations pursuant to the CANbridge Agreement.  In no event shall CANbridge or its affiliates perform any Development activities without the prior written consent of Licensor. 

(b)  Notwithstanding the foregoing, [***].

(c) The foregoing Article 3.6(b) shall apply to any other Third Party in the event an agreement between Licensee and such Third Party contemplates similar rights and/or payment structure in Hong Kong, Taiwan and/or Macao as in the CANbridge Agreement.  In such event, Article 3.6(b) shall apply mutatis mutandis to such agreement with such Third Party. 

(d)  Licensee may appoint SPH KDL HEALTH (SHANGAI) PHARMACEUTICAL Co, LTD (“SPH”) or one of its affiliates as its distributor in mainland China for the purposes of importing and distributing the Product in such China Region, and for no other purpose, it being specified that in such event, SPH and its affiliates shall not be deemed Sublicensees but distributors for the purposes of this Agreement, including for the computation of Net Sales.

 

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(e)  As of Amendment 3 Effective Date, other than the Ancillary Agreements, there are no other agreements, contracts, letters or understandings, whether written or oral, between CANbridge or its Affiliates and Licensee or its Affiliates.  Notwithstanding anything to the contrary under this Article 5.2, Licensee shall provide Licensor any material amendments to an Ancillary Agreements or any new material agreements between Licensee and CANbridge, or any of their Affiliates, that relate to the importing, distributing and promoting of the Product in Hong Kong, Taiwan and Macao, to the extent such agreement may materially affect CANbridge’s rights and obligations and/or the financial structure of the Ancillary Agreements.”   

	
4.
	
supply and Manufacturing 

	
4.1
	
The following Article 8.5 is hereby added to Article 8: 

“8.5The Supply Agreement (and the related quality agreement) shall be amended to include the China Territory, provided that until the amendments to the applicable Regulatory Filings and/or Marketing Authorizations for the Product are approved by the applicable Governmental Authorities for a given China Region, Licensor shall supply the Finished Product to Licensee for such China Region at [***].  Licensee and Licensor shall use good faith efforts to promptly, and no later than [***] ([***]) Business Days after the Amendment 3 Effective Date, to formalize the amendment of the Supply Agreement, unless otherwise agreed by the Parties.  

	
5.
	
Termination and effect of termination 

	
5.1
	
The following is added to the end of Article 12.2:   

“Notwithstanding anything to the contrary herein, including this Article 12.2, Licensor will have the right, but not the obligation, to terminate this Agreement solely with respect to  any China Region in accordance with Section 12.7 immediately upon written notice to Licensee for any material breach of Articles 14.3(f), 14.6 and 14.7 of this Agreement that results in a material violation of the Anti-Corruption Laws by Licensee, its Affiliates, Sublicensees or contractors in such China Region, provided that if the China Region is mainland China, Licensor shall be entitled to terminate the Agreement with respect to the entire China Territory, and provided further that if the material breach is due to a Sublicensee or distributor of Licensee, Licensor shall not be entitled to terminate this Agreement with respect to the relevant China Region if Licensee immediately terminates in whole the relevant Sublicense or distribution agreement.” 

	
5.2
	
Article 12.7 is hereby deleted in its entirety and replaced as follows: 

“Termination; Partial Termination. This Agreement may not be terminated by Licensee under Article 12.4 (Termination for Convenience), 12.5 (Termination for Safety Reasons) or by either Party for cause under Article 12.2 (Termination for Material Breach) or for bankruptcy under Article 12.3 (Termination for Bankruptcy) on a country-by-country or other partial basis. Notwithstanding the foregoing, this Agreement may be terminated by Licensee under Article 12.4 (Termination for Convenience), 12.5 (Termination for Safety Reasons) or by either Party for cause under Article 12.2 (Termination for Material Breach) or for bankruptcy under Article 12.3 (Termination for Bankruptcy) for (i) the Licensee Territory excluding the China Territory or (ii) the China Territory (either (i) or (ii), a “Partial Termination”).  Upon the effective date of any Partial Termination, the Licensee Territory shall no longer include the portion(s) of the Licensee Territory set forth in the relevant termination notice.”  

 

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5.3
	
The last sentence of Article 13.1 is deleted in its entirety and replaced with the following:

“Any Partial Termination of this Agreement in accordance with Article 12.7 for any reason shall not release either Party from any liability which, at the time of such termination, has already accrued to the other Party or which is attributable to a period prior to such termination, nor will any such termination preclude either Party from pursuing all rights and remedies it may have under this Agreement, or at law or in equity, with respect to breach of this Agreement, provided that any milestone payment that is achieved under Article 6.2 or Article 6.9, as applicable, during the termination notice period shall be reduced by [***] ([***]%). For clarity, any Deferred Sales Milestone Amount and  China Territory Deferred Sales Milestone Amount shall not be subject to the foregoing reduction.”  

	
5.4
	
The last paragraph of Article 13.2(a) is deleted in its entirety and replaced with the following:  

“[***].”

	
5.5
	
Article 13.2(b) is deleted in its entirety and replaced with the following:  

“Each Party shall pay to the other Party all amounts due to the other Party with respect to the Shared Development Budget, Post-Approval Marketing Study Costs and any Deferred Sales Milestone Amount or Deferred China Territory Sales Milestone Amount, as applicable, accrued and unpaid as of the effective date of termination or expiration, within [***] ([***]) days following the effective date of termination or expiration.  For clarity, in case of a Partial Termination of this Agreement in accordance with Article 12.7, then this Article 13.2(b) shall apply solely to costs incurred with respect to the terminated portion of the Licensee Territory.”  

	
5.6
	
The following paragraphs are added to the end of Articles 13.2(c), (d), (e), (g) and (h), respectively:

“For clarity, notwithstanding anything to the contrary in this Article 13.2, in case of a Partial Termination of this Agreement in accordance with Article 12.7, then this Article 13.2(c) shall apply solely to the terminated portion of the Licensee Territory.”

“For clarity, notwithstanding anything to the contrary in this Article 13.2, in case of a Partial Termination of this Agreement in accordance with Article 12.7, then this Article 13.2(d) shall apply solely to the terminated portion of the Licensee Territory.”

“For clarity, notwithstanding anything to the contrary in this Article 13.2, in case of a Partial Termination of this Agreement in accordance with Article 12.7, then this Article 13.2(e) shall apply solely to the terminated portion of the Licensee Territory.”

“For clarity, notwithstanding anything to the contrary in this Article 13.2, in case of a Partial Termination of this Agreement in accordance with Article 12.7, then this Article 13.2(g) shall apply solely to the terminated portion of the Licensee Territory.”

“For clarity, notwithstanding anything to the contrary in this Article 13.2, in case of a Partial Termination of this Agreement in accordance with Article 12.7, then this Article 13.2(h) shall apply solely to the terminated portion of the Licensee Territory.”

 

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5.7
	
Article 13.2(f) is deleted in its entirety and replaced with the following:

“Return of Confidential Information. Within thirty (30) days after the end of the Wind-down Period upon request by Licensor, Licensee shall either return to Licensor or destroy all tangible items comprising, bearing or containing Confidential Information of Licensor, that is in Licensee’s possession, subject to Licensee’s right to keep one copy for archiving purposes, provided, that, in case of a Partial Termination of this Agreement in accordance with Article 12.7, Licensee shall either return to Licensor or destroy any Confidential Information that solely relates to the terminated portion of the Licensee Territory at Licensor’s sole option.”

	
5.8
	
Article 13.3 is deleted in its entirety and replaced with the following:

“Upon the expiration or termination of this Agreement in its entirety, all rights and obligations of the Parties under this Agreement shall terminate, or upon Partial Termination of this Agreement, all rights and obligations of the Parties solely with respect to the terminated portion of the Licensee Territory shall terminate, and in each case, except those which are expressly or by their nature set to survive such expiration or termination as well as those described in the following: Articles: 1, 2.2, 2.3(a), 2.4, 2.8, 7, 9, 10.1, 12.7, 13, 15 (solely to the extent Third Party Claims were incurred during the term of this Agreement), 17.2 through 17.8 (inclusive), 17.10 through 17.13 (inclusive).”  

	
6.
	
representations, warranties and covenants of licensee

	
6.1
	
Article 14.1(c) shall not apply to the China Territory, for which the provisions below that are more specific shall apply

	
6.2
	
The following is added as Article 14.3(f):

“To each Party’s knowledge, no officer, director, or employee of such Party or its Affiliates (an “Interested Person”), is a Public Official or Entity or Governmental Authority in the China Territory.”

	
6.3
	
The following is added as a new Article 14.6:

“14.6.Licensee with respect to itself and its Affiliates that have been or will be involved in the Development, Regulatory Filing activities and/or Commercialization of the Product in the China Territory represents, warrants to Licensor that, as of the Amendment 3 Effective Date, and Licensor represents, warrants to Licensee that, as of the Amendment 3 Effective Date, to the knowledge of such Party’s compliance department:   

	
 
	
(a)
	
neither they or their directors, officers, employees, or any Person authorized to act on its behalf  have violated any Anti-Corruption Law in the China Territory;

 

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(b)
	
neither they nor any Person acting on its behalf, has offered, given, authorized, or promised anything of value (as defined by applicable Anti-Corruption Laws), either directly or indirectly, to any Person, including to any Public Official or Entity, for the purpose of (i) improperly influencing any official act or decision; (ii) inducing performance or non-performance of any act in  violation of a lawful duty; or (iii) securing an improper benefit or business advantage, in each case ((i) – (iii)) in any manner that violates the applicable Anti-Corruption Laws in the China Territory;

	
 
	
(c)
	
they have not received any written notice, request, or citation from any Governmental Authority with respect to any alleged or suspected violation of Anti-Corruption Laws in the China Territory;

	
 
	
(d)
	
they are not under investigation or being prosecuted by a Governmental Authority with respect to any alleged or suspected violation of Anti-Corruption Laws in the China Territory;

	
6.4
	
The following is added as a new Article 14.7:  

“14.7Covenants of Licensee.  Licensee hereby covenants to Licensor that it shall, and shall cause its Affiliates, Sublicensee and contractors involved in the Development, Regulatory Filing activities and/or Commercialization of the Product in the China Territory to 

	
 
	
(a)
	
 comply in all material respects with all applicable Laws with respect to the performance of its and their activities pursuant to this Agreement in the China Territory;  

	
 
	
(b)
	
comply with the Anti-Corruption Laws (as modified or amended) in the China Territory;  

	
 
	
(c)
	
not, directly or indirectly, offer or pay, or authorize such offer or payment of, any money, or transfer anything of value (as defined by applicable Anti-Corruption Laws), for purposes of improperly seeking to influence any Public Official or Entity or Governmental Authority in any manner that violates applicable Anti-Corruption Laws in connection with this Agreement in the China Territory;

	
 
	
(d)
	
reasonably cooperate with Licensor and its Affiliates in ensuring compliance with (i) the Anti-Corruption Laws, (ii) any restrictions concerning the export of products or technical information which may be imposed upon or related to the Parties from time to time (“Export Control Laws”) and (iii) all other applicable Laws, in each case, in the China Territory;  

	
 
	
(e)
	
provide Licensor with any information reasonably requested by Licensor in connection with its efforts to ensure compliance with applicable Laws in connection with the performance of this Agreement with respect to the China Territory;

 

US-DOCS\120721418.18

US-DOCS\122453764.2

 

	
 
	
(f)
	
promptly notify Licensor if Licensee becomes aware of any material information that would reasonably suggest that there may be a violation of the Anti- Corruption Laws, Export Control Laws or any other applicable Law in connection with the performance of this Agreement or the sale of the Product in the China Territory; and

	
 
	
(g)
	
promptly following discovery, notify Licensor if (i) any Interested Person becomes a Public Official or Entity or Governmental Authority or (ii) any Public Official or Entity or Governmental Authority acquires a legal or beneficial interest in Licensee or any of its Affiliates or Sublicensees or contractors in the China Territory.”

	
6.5
	
The following is hereby added as a new Article 14.8: 

“14.8No Diversion.  Each Party hereby covenants and agrees that it and its Affiliates shall not, and it shall contractually obligate (and use Commercially Reasonable Efforts to enforce such contractual obligation) its licensees, sublicensees and contractors not to, directly or indirectly, actively promote, market, distribute, import, sell or have sold any Product, including via the Internet or mail order, to any Third Party or to any address or Internet Protocol address or the like (a) in the case of Licensee, from the China Territory to Licensor’s territory (worldwide excluding the Licensee Territory) and (b) in the case of Licensor, from Licensor’s territory to the China Territory.  Neither Party shall engage, nor permit its Affiliates, sublicensees or contractors to engage, in any advertising or promotional activities relating to any Product for use directed primarily to customers or other buyers or users of such product located in any country, region or jurisdiction in the such other Party’s territory as stated in clause (a) and (b), respectively, or solicit orders from any prospective purchaser located in any country, region or jurisdiction in the other Party’s territory, as stated in clause (a) and (b).”  

	
7.
	
Miscellaneous.

	
7.1
	
Choice of Law; Dispute Resolution.  All disputes between Licensor and Licensee arising from the rights and obligations of the Parties under this Amendment or the Agreement (whether based on contract, tort, or any other theory) shall be resolved pursuant to Article 16 and Article 17.2 of the Agreement. 

	
7.2
	
Third Party Beneficiary Rights under the Termination Agreement.  As between Licensor and Licensee, Licensor waives the right to make any claims against CANbridge in accordance with Article 5 of the Termination Agreement and Licensee shall have the sole right and benefit to make any claims against CANbridge under Article 5 of the Termination Agreement.  Licensee shall not recover more than once for the same damages, losses and/or liabilities, including any Losses, as defined under the CANbridge License Agreement as a third party beneficiary of the Termination Agreement in accordance with Section 10.10 therein, but shall be entitled to recover the full amount of such damages, losses and/or liabilities, including any Losses, to the extent permitted by the Termination Agreement.

	
7.3
	
Entire Agreement.  This Amendment, together with the Agreement, constitutes the sole and entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter.

 

US-DOCS\120721418.18

US-DOCS\122453764.2

 

	
7.4
	
Representations and Warranties.  With the exception of those set forth in Schedule 7.4 herein, each Party hereby represents and warrants to the other Party that: (a) it has the full right, power and authority to enter into this Amendment and to perform its obligations hereunder and under the Agreement as amended by this Amendment; (b) the execution of this Amendment by the individual whose signature is set forth at the end of this Amendment on behalf of such Party, and the delivery of this Amendment by such Party, have been duly authorized by all necessary action on the part of such Party; and (c) this Amendment has been executed and delivered by such Party and (assuming due authorization, execution and delivery by the other Party hereto) constitutes the legal, valid and binding obligation of such Party, enforceable against such Party in accordance with its terms.  Licensor further represents and warrants to Licensee that (i) the CANbridge Agreements have been terminated as of the Amendment 3 Effective Date, (ii) neither CANbridge nor any of its affiliates and their respective, officers, directors, successors, assigns, employees, attorneys, advisors and agents have any claims against the Licensor based upon, arising out of, related to, or in connection with any act or omission of a Party under the CANbridge Agreements prior to the Amendment 3 Effective Date.  The Licensor hereby irrevocably undertakes to indemnify and hold harmless the Licensee, its affiliates and their respective, officers, directors, successors, assigns, employees, attorneys, advisors and agents from and against any and all claims, liabilities, obligations, damages, penalties, fines, judgments, proceedings, costs, expenses and losses (including amounts paid in settlement, costs of investigation and reasonable attorney’s fees and expenses) resulting from or relating to any claim, known or unknown, asserted or unasserted having its source or origin in the CANbridge Agreements prior to the Amendment 3 Effective Date.   

	
7.5
	
Limited Effect.  Except as modified by this Amendment, all other terms and conditions of the Agreement remain in full force and effect.

	
7.6
	
Counterparts.  This Amendment may be executed in counterparts via the exchange of documents and signatures between Latham & Watkins LLP, 140 Scott Drive, Menlo Park, CA 94025, and McDermott Will & Emery LLP, 200 Clarendon Street, Floor 58, Boston, MA 02116-5021, each of which shall be deemed an original, but all of which shall constitute one and the same agreement.  Delivery of an executed counterpart of this Amendment electronically shall be as effective as delivery of an original signed counterpart of this Amendment.

[Signature page follows]

 

US-DOCS\120721418.18

US-DOCS\122453764.2

 

In Witness Whereof, the Parties have duly executed and delivered this Amendment as of the Amendment 3 Effective Date.

 

			
	
PUMA BIOTECHNOLOGY, INC.
	
 

	
 
	
 
	
 

	
By:
	
/s/ Alan H. Auerbach
	
 

	
 
	
 
	
 

	
 
	
Name: Alan H. Auerbach
	
 

	
 
	
Title: Chief Executive Officer
	
 

 

			
	
PIERRE FABRE MEDICAMENT SAS
	
 

	
 
	
 
	
 

	
By:
	
/s/ Jean-Luc Lowinski
	
 

	
 
	
 
	
 

	
 
	
Name: Jean-Luc Lowinski
	
 

	
 
	
Title: President
	
 

 

 

US-DOCS\120721418.18

US-DOCS\122453764.2trip-ex102_94.htm

 

Exhibit 10.2

TRIPADVISOR, INC. OPTION AGREEMENT

(Domestic)

THIS OPTION AGREEMENT (this “Agreement”), dated as of the grant date specified on the Grant Details referenced below (the “Grant Date”), between TripAdvisor, Inc., a Delaware corporation (the “Company”), and the employee, director or consultant of the Company or one of its Affiliates or Subsidiaries designated on the Grant Details (as defined below) (the “Eligible Individual”), describes the terms of an award of an Option to the Eligible Individual by the Company (the “Award”).  

All capitalized terms used herein, to the extent not defined, shall have the meanings set forth in the Company’s 2018 Stock and Annual Incentive Plan or any subsequent plan adopted by the Company, (in either case, the “Plan”).

	
1.
	
Award of Option
	
 

	
(a)
	
Subject to the terms and conditions of this Agreement, the Plan and the Grant Details, the Company hereby grants the Option to the Eligible Individual. Reference is made to the “Grant Details” that can be found on the equity plan website of the current professional selected by the Company to administer the Plan (the “Plan Administrator”), currently located at www.netbenefits.fidelity.com (or any successor equity administration system selected by the Company to manage the Plan from time to time). The Grant Details, which set forth the number of Shares underlying the Option, the grant price which is the per Share exercise price of the Option, the Grant Date of the Option, and the vesting schedule of the Option (among other information), are hereby incorporated by reference into, and shall be read as part and parcel of, this Agreement.   

	
(b)
	
The Option shall be a Nonqualified Option.  Unless earlier terminated pursuant to the terms of this Agreement or the Plan, the Option shall expire on the ten-year anniversary of the Grant Date. 

	
2.
	
Vesting 
	
 

	
(a)
	
Subject to (i) the terms and conditions of this Agreement, the Grant Details and the Plan, and (ii) the Eligible Individual’s continuous employment with the Company or one of its Subsidiaries or Affiliates, the Option shall vest and become exercisable on each of the vesting dates detailed in the Grant Details (such period between the date of issuance and each vesting date shall be referred to as the “Vesting Period”).  

	
(b)
	
In the event a Termination of Employment of the Eligible Individual occurs during the Vesting Period for any reason (whether or not in breach of local labor laws), the Eligible Individual’s right to receive the Award and any vesting in the Option under the Plan, if any, will terminate effective as of the date of the Termination of Employment and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law); furthermore, in the event of a Termination of Employment (whether or not in breach of local labor laws), the Eligible 

U.S. Employee – Version March 2021

 

 

 

		
Individual’s right to vest in the Award after such Termination of Employment, if any, will be measured to the date of the Termination of Employment and will not be extended by any notice period mandated under local law.  

	
3.
	
Manner of Exercise 
	
 

	
(a)
	
This Option is exercisable by delivery of an exercise notice which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised and such other representations and agreements as may be required by the Company or the Plan Administrator (the “Exercise Notice”).   The Exercise Notice shall be in the form and delivered in the manner prescribed by the Plan Administrator.  

	
(b)
	
The Exercise Notice shall be accompanied by payment of the aggregate exercise price as to all Shares in respect of which the Option is being exercised.  Payment of the aggregate exercise price may be by any of the following, or a combination thereof:  (i) cash, (ii) check, (iii) a “broker-assisted” or “same-day sale”; or (iv) another method authorized by the Company and/or the Plan Administrator. 

	
(c)
	
No Shares shall be issued pursuant to the exercise of the Option unless such issuance and exercise complies with all relevant provisions of law and the requirements of any stock exchange or quotation service upon which the Shares are then listed. 

	
4.
	
Termination of Employment

(a)Notwithstanding the provisions of Sections 2 and 3 above, in the event the Eligible Individual incurs a Termination of Employment by the Company for Cause, or the Eligible Individual voluntarily incurs a Termination of Employment within two years after any event or circumstance that would have been grounds for a Termination of Employment for Cause, the Eligible Individual’s Options (whether or not vested) shall be forfeited and cancelled in their entirety upon such Termination of Employment without any consideration being paid therefor and otherwise without any further action of the Company whatsoever.  In such event, the Company may cause the Eligible Individual, immediately upon notice from the Company, to either (i) return the Shares issued upon exercise of such Option that vested during the two-year period after the events or circumstances giving rise to or constituting grounds for such Termination of Employment for Cause or (ii) pay to the Company an amount equal to the aggregate amount, if any, that the Eligible Individual had previously realized in respect of any and all Shares issued upon exercise of such Option that vested during the two-year period after the events or circumstances giving rise to or constituting grounds for such Termination of Employment for Cause (i.e., the value of the Shares upon exercise of the Option), in each case including any dividend equivalents or other distributions received in respect of any such Option.

(b)Notwithstanding anything herein to the contrary, the Eligible Individual and Company acknowledge and agree that in the event of any conflict or inconsistency between the terms of any employment arrangement and the Plan, whichever term is more beneficial to the Eligible Individual between the Plan and the employment arrangement shall prevail.   In no event shall the Eligible Individual be entitled to the same type of benefits under both the Plan and any employment arrangement for the same event or qualifying termination.  

 

 

 

(c)For purposes of this Agreement, employment with the Company shall include employment with the Company’s Subsidiaries or Affiliates.  The Committee shall have the exclusive discretion to determine whether there has been any interruption or Termination of Employment, whether there existed Cause or whether there occurred a Change in Control.  

	
5.
	
Non-Transferability of the Option
	
 

During the Vesting Period and until as the Option is ultimately exercised as provided herein or on the website of the Plan Administrator, the Option shall not be transferable by the Eligible Individual by means of sale, assignment, exchange, encumbrance, pledge, hedge or otherwise.  

	
6.
	
Rights as a Stockholder

Except as otherwise specifically provided in this Agreement, until such time as the Option is exercised, the Eligible Individual shall not be entitled to any rights of a stockholder with respect to the Option. Notwithstanding the foregoing, if the Company declares and pays ordinary cash dividends on the Common Stock during the Vesting Period, the Eligible Individual will be entitled to such adjustments or dividend equivalents as the Company shall deem appropriate and equitable, including but not limited to adjustment to the aggregate number and kind of Shares or other securities subject to outstanding Awards and/or the exercise price of outstanding Options, which Options shall remain subject to restrictions and shall vest concurrently with the vesting of the Options upon which such dividend equivalent amounts were paid.

	
7.
	
Adjustment in the Event of Change in Stock; Change in Control
	
 

(a)In the event of (i) a stock dividend, stock split, reverse stock split, share combination or recapitalization or similar event affecting the capital structure of the Company (each, a “Share Change”), or (ii) a merger, consolidation, acquisition of property or shares, separation, spinoff, reorganization, stock rights offering, liquidation, Disaffiliation, payment of dividends other than an ordinary dividends or similar event affecting the Company or any of its Subsidiaries (each, a “Corporate Transaction”), the Committee or the Board may in its discretion make such substitutions or adjustments as it deems appropriate and equitable to the number and kind of shares of Common Stock underlying the Option.

 

(b)In the case of Corporate Transactions, such adjustments may include, without limitation (i) the cancellation of the Option in exchange for payments of cash, dividend equivalents, property or a combination thereof having an aggregate value equal to the value of such Option, as determined by the Committee or the Board in its sole discretion, (ii) the substitution of other property (including, without limitation, cash or other securities of the Company and securities of entities other than the Company) for the shares of Common Stock underlying the Option and (iii) in connection with any Disaffiliation, arranging for the assumption of the Option, or the replacement of the Option with new Awards based on other property or other securities (including, without limitation, other securities of the Company and securities of entities other than the Company), by the affected Subsidiary or Affiliate or by the entity that controls such Subsidiary or Affiliate following such Disaffiliation (as well as any corresponding adjustments to any Option that remains based upon securities of the Company). 

 

 

 

 

(c)The determination of the Committee regarding any such adjustment will be final and conclusive and need not be the same for all Participants.

8.Taxes, Fees and Withholding 

	
(a)
	
The Company agrees to pay any and all original issue taxes and stock transfer taxes that may be imposed on the issuance of shares received by an Eligible Individual in connection with the Option, together with any and all other fees and expenses necessarily incurred by the Company in connection therewith.

	
(b)
	
Regardless of any action taken by the Company, its Affiliate or Subsidiary with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), the Eligible Individual acknowledges that the ultimate liability for all Tax-Related Items legally due by him or her is and remains the Eligible Individual’s responsibility and that the Company and/or its Affiliate or Subsidiary (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including the exercise of the Option and issuance of the Shares in connection therewith, the receipt of cash or any dividends or dividend equivalents; and (2) do not commit to structure the terms of the Award or any aspect of the Option to reduce or eliminate the Eligible Individual’s liability for Tax-Related Items.

	
(c)
	
In the event that the Company, Subsidiary or Affiliate is required to withhold any Tax-Related Items as a result of the Award, vesting or exercise of the Option, or the receipt of cash or any dividends or dividend equivalents, the Eligible Individual shall pay or make adequate arrangements satisfactory to the Company, Subsidiary or Affiliate to satisfy all withholding and payment on account of obligations of the Company, Subsidiary and/or Affiliate. The obligations of the Company under this Agreement shall be conditioned on compliance by the Eligible Individual with this Section 8.  In this regard, the Eligible Individual authorizes the Company and/or its Subsidiary or Affiliate to withhold all applicable Tax-Related Items legally payable by the Eligible Individual from his or her wages or other cash compensation paid to the Eligible Individual by the Company and/or its Subsidiary or Affiliate.  Alternatively, or in addition, if permissible under local law, the Company may withhold in Shares, provided that the Company only withholds the amount of Shares necessary to satisfy the minimum withholding amount.  Finally, the Eligible Individual will pay to the Company any amount of Tax-Related Items that the Company may be required to withhold as a result of the Eligible Individual’s participation in the Plan or the Award that cannot be satisfied by the means previously described.  The Company may refuse to deliver the Shares issuable upon exercise of the Award if the Eligible Individual fails to comply with his or her obligations in connection with the Tax-Related Items as described in this Section. 

	
(d)
	
In particular, the Eligible Individual understands and acknowledges that all income to which the Eligible Individual is entitled under this Agreement is pre-tax and the Company or its Subsidiaries or Affiliates has the right to withhold and pay on behalf of the Eligible Individual any individual income tax in connection with such income in accordance with applicable law.  In the event the Company or its Subsidiaries or Affiliates is not required under applicable law to serve as the withholding agent to withhold and pay on behalf of the Eligible Individual such individual income tax, the Eligible Individual shall have sole responsibility to make such payment, in which 

 

 

 

		
case the Eligible Individual shall provide, as requested by the Company or its Subsidiaries or Affiliates from time to time, relevant tax receipts to certify full and prompt payment.  The Eligible Individual agrees to indemnify the Company and/or its Subsidiaries or Affiliates for any liability which may arise as a result of his or her failure to pay any and all taxes associated with any income derived pursuant to the Award.

9.Other Restrictions

	
(a)
	
The Award shall be subject to the requirement that, if at any time the Committee shall determine that (i) the listing, registration or qualification of the shares of Common Stock subject or related thereto upon any securities exchange or under any state or federal law, or (ii) the consent or approval of any government regulatory body is required, then in any such event, the Award shall not be effective unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.

	
(b)
	
The Eligible Individual acknowledges that the Eligible Individual is subject to the Company’s policies regarding compliance with securities laws, including but not limited to its Insider Trading Policy (as in effect from time to time and any successor policies), and, pursuant to these policies, if the Eligible Individual is on the Company’s insider list, the Eligible Individual shall be required to obtain pre-clearance from the Company’s General Counsel prior to purchasing or selling any of the Company’s securities (including in connection with the “cashless” exercise of an Option), and may be prohibited from selling such shares other than during an open trading window.  The Eligible Individual further acknowledges that, in its discretion, the Company may prohibit the Eligible Individual from selling such shares even during an open trading window if the Company has concerns over the potential for insider trading.

	
10.
	
Nature of Award

In accepting the Award, the Eligible Individual acknowledges that:

(a)the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Agreement;

(b)the Award is voluntary and occasional and does not create any contractual or other right to receive future Awards, or benefits in lieu of Awards, even if Awards have been granted repeatedly in the past; 

(c)all decisions with respect to future awards, if any, will be at the sole discretion of the Company; 

(d)the Eligible Individual’s participation in the Plan will not create a right to further employment with the Company, its Subsidiary or Affiliate and shall not interfere with the ability of the Company to terminate the Eligible Individual’s employment relationship at any time with or without Cause; 

(e)the Eligible Individual is voluntarily participating in the Plan; 

 

 

 

(f)the Award is an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company, Subsidiary,  or Affiliate, and such Award is outside the scope of the Eligible Individual’s employment contract, if any; 

(g)the Award is not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company, Subsidiary or Affiliate; 

(h)in the event that the Eligible Individual is not an employee of the Company, a Subsidiary or an Affiliate, the Award will not be interpreted to form an employment contract or relationship with the Company, a Subsidiary or Affiliate; and 

(i)in consideration of the Award, no claim or entitlement to compensation or damages shall arise from termination of the Award or diminution in value of the Award resulting from Termination of the Eligible Individual’s employment by the Company, Subsidiary or Affiliate (for any reason whatsoever and whether or not in breach of local labor laws) and the Eligible Individual irrevocably releases the Company, Subsidiary or Affiliate from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by signing this Agreement, the Eligible Individual will be deemed irrevocably to have waived his or her entitlement to pursue such claim. 

	
11.
	
No Advice Regarding Grant

The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Eligible Individual’s participation in the Plan, or his or her acquisition or sale of the underlying Shares.  The Eligible Individual is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding the Eligible Individual’s participation in the Plan, receipt of the Award and/or disposition of the Award before taking any action related to the Plan or the Award.  

	
12.
	
Notices

Any notices, communications or changes to this Agreement shall be communicated (either directly by the Company or indirectly through any of its Subsidiaries, Affiliates or the Plan Administrator) to the Eligible Individual electronically via email (or otherwise in writing) promptly after such change becomes effective.

	
13.
	
Effect of Agreement; Severability 

Except as otherwise provided hereunder, this Agreement shall be binding upon and shall inure to the benefit of any successor or successors of the Company.  The invalidity or enforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 

 

 

 

	
14.
	
Laws Applicable to Construction; Consent to Jurisdiction

(a)The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware without reference to principles of conflict of laws, as applied to contracts executed in and performed wholly within the State of Delaware.  In addition to the terms and conditions set forth in this Agreement, the Option is subject to the terms and conditions of the Plan, which are hereby incorporated by reference.

(b)Any and all disputes arising under, as a result of or out of this Agreement, including without limitation any issues involving the construction, enforcement or interpretation of any of the provisions of this Agreement, the Plan or the Plan Prospectus, shall be determined and resolved by the Committee or its authorized delegate. Such determination or resolution by the Committee or its authorized delegate will be final, binding and conclusive for all purposes. 

	
15.
	
Conflicts; Interpretation and Correction of Errors

(a)In the event of any (i) conflict between the Grant Details, this Agreement, any information posted on the system of the Plan Administrator and/or the books and records of the Company, or (ii) ambiguity in the Grant Details, this Agreement, any information posted on the system of the Plan Administrator and/or the books and records of the Company, the Plan shall control.

(b)The Committee shall have the power to interpret the Plan, this Agreement, the Grant Details, any information posted on the system of the Plan Administrator and/or the books and records of the Company, and to adopt such rules for the administration, interpretation and application of the Plan and the Award as are consistent therewith and to interpret or revoke any such rules (including, but not limited to, the determination of whether or not any Option has vested).  All actions taken and all interpretations and determinations made by the Committee in good faith shall be final and binding upon the Participant, the Company and all other interested parties.  The Committee shall not be personally responsible for any action, determination or interpretation made in good faith with respect to the Plan or this Agreement.  The Committee shall, in their absolute discretion, determine when any conditions have been fulfilled.  

(c)In the event that, due to administrative error, this Agreement does not accurately reflect an Award properly granted to the Eligible Individual pursuant to the Plan, the Company, acting through the executive compensation and benefits team, reserves the right to cancel any erroneous document and, if appropriate, to replace the cancelled document with a corrected document. 

	
16.
	
Data Privacy 

(a)The Eligible Individual understands that the Company, Subsidiary, Affiliate and/or Plan Administrator may hold certain personal information about him or her, including, but not limited to, the Eligible Individual’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, details of all options or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in the Eligible Individual’s favor, for the purpose of implementing, administering and managing the Plan (“Data”).   The Eligible 

 

 

 

Individual hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of his or her Data as described in this document by and among, as applicable, the Company and its Subsidiaries  or Affiliates for the exclusive purpose of implementing, administering and managing the Eligible Individual’s participation in the Plan.

(b)The Eligible Individual understands that Data will be transferred to the Plan Administrator, or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan.  The Eligible Individual understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country may have different data privacy laws and protections than the Eligible Individual’s country.  The Eligible Individual authorizes the Company, its Subsidiary or Affiliate, the Plan Administrator and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing the Eligible Individual’s participation in the Plan.  

(c)The Eligible Individual understands that he or she may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Eligible Individual’s local human resources representative.  The Eligible Individual understands, however, that refusing or withdrawing his or her consent may affect the Eligible Individual’s ability to participate in the Plan.  For more information on the consequences of the Eligible Individual’s refusal to consent or withdrawal of consent, the Eligible Individual understands that he or she may contact his or her local human resources representative. 

	
17.
	
Amendment 

(a)The Company may modify, amend or waive the terms of this Award, prospectively or retroactively, but no such modification, amendment or waiver shall impair the rights of the Eligible Individual without his or her consent, except as required by applicable law, NASDAQ or stock exchange rules, tax rules or accounting rules.  The waiver by either party of compliance with any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by such party of a provision of this Agreement.  

(b)This Award and payments made pursuant to this Agreement and the Plan are intended to qualify for an exemption from, or comply with, the applicable requirements of Section 409A of the Code. If the Company makes a good faith determination that any compensation provided under this Agreement is likely to be subject to the additional tax imposed by Section 409A of the Code, the Company may, to the extent it deems necessary or advisable, modify this Agreement, without the Eligible Individual’s consent, to reduce the risk that such additional tax will apply, in a manner designed to preserve the material economic benefits intended to be provided to the Eligible Individual under this Agreement (other than any diminution of such benefit that may be attributable to the time value of money resulting from a delay in the timing of payments hereunder for a period of approximately six months or such longer period as may be required).  

 

 

 

	
18.
	
Choice of Language

The Eligible Individual has received this Agreement and any other related communications and consents to having received these documents solely in English.  If, however, the Eligible Individual receives this or any other document related to the Plan translated into a language other than English and if the translated version is different than the English version in any way, the English version will control. 

	
19.
	
Electronic Delivery

The Company may, in its sole discretion, decide to deliver any documents related to the Award and participation in the Plan or future Awards that may be awarded under the Plan by electronic means or to request the Eligible Individual’s consent to participate in the Plan by electronic means.  The Eligible Individual hereby consents to receive such documents by electronic delivery and, if requested, to agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

By electronically accepting this Agreement and participating in the Plan, the Eligible Individual agrees to be bound by the terms and conditions of the Plan and this Agreement, including the Grant Details.  If Eligible Individual has not electronically accepted this Agreement on the Plan Administrator’s website within six months of the Grant Date, then this Award shall automatically by deemed accepted and Eligible Individual shall be bound by the terms and conditions in the Plan, this Agreement, including the Grant Details.

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