Document:

Exhibit 10.1

 

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

 

	
VENBIO SELECT ADVISOR   LLC, a
    	
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Delaware limited liability company,
    	
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individually and derivatively on behalf of
    	
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Immunomedics, Inc.,
    	
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C.A.   No. 2017-0108-JTL
    
	
 
    	
Plaintiff,
    	
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v.
    	
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DAVID M. GOLDENBERG, BRIAN A.
    	
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MARKISON, ROBERT FORRESTER,
    	
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JASON ARYEH, CYNTHIA L. SULLIVAN,
    	
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GEOFF COX, BOB OLIVER, SEATTLE
    	
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GENETICS, INC., a Delaware corporation, 
    	
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GREENHILL & CO., INC., a Delaware 
    	
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corporation, and GREENHILL & CO., LLC, a
    	
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New York limited liability company,
    	
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Defendants,
    	
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and
    	
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IMMUNOMEDICS, INC., a Delaware
    	
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corporation,
    	
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Nominal Defendant.
    	
 
    	
 
    

 

STIPULATION AND AGREEMENT
  OF SETTLEMENT, COMPROMISE, AND RELEASE

 

This Stipulation and Agreement of Settlement, Compromise, and Release (the “Stipulation”), dated as of November 2, 2017, is made and entered into by and among: (i) venBio Select Advisor LLC (“venBio”); (ii) Dr. David M. Goldenberg (“Goldenberg”), Cynthia L. Sullivan (“Sullivan”), and Brian A. Markison (“Markison,” and together with Goldenberg and Sullivan, the “Settling Individuals”); (iii) Greenhill & Co., Inc. and Greenhill & Co., LLC

 

 

(together, “Greenhill,” and, together with the Settling Individuals, the “Settling Group”); and (iv) Immunomedics, Inc. (“Immunomedics” or the “Company” and, together with venBio and the Settling Group, the “Settling Parties”).  This Stipulation states all of the terms of the settlement and resolution of the matters set forth herein and replaces in their entirety the binding settlement term sheet entered into by venBio, the Settling Individuals, and the Company on May 3, 2017 (the “Individual Term Sheet,” appended hereto as Exhibit 1) and the binding settlement term sheet entered into by venBio, Greenhill, and the Company on June 8, 2017 (the “Greenhill Term Sheet,” appended hereto as Exhibit 2, and together with the Individual Term Sheet, the “Settlement Term Sheets”).  The Settling Parties intend to fully and finally release, resolve, compromise, settle, and discharge the Claims as described in the Releases below in connection with (i) the action styled venBio Select Advisor LLC v. David M. Goldenberg et.al, C.A. No. 2017-0108-JTL (Del. Ch.) (the “venBio Action”), subject to the approval of the Court of Chancery of the State of Delaware (the “Court”), (ii) the action styled Goldenberg et al. v. Aghazadeh et al., C.A. No. 2017-0163-JTL (Del. Ch.) (the “Section 225 Action”), and (iii) the action styled Immunomedics, Inc. v. venBio Select Advisor LLP, et al., C.A. No. 1:17-cv-00176-LPS (the “Federal Action”) in the United States District Court for the District of Delaware (the “U.S. District Court”).  Together, the venBio Action, the Section 225 Action, and the Federal Action are referred to as the “Delaware Litigations.”  All terms capitalized herein shall, unless defined

 

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elsewhere in this Stipulation, have the meanings ascribed to them in Article I below. This Stipulation does not release, resolve, compromise, settle, or discharge any Claims by venBio or the Company against Robert Forrester (“Forrester”), Jason Aryeh (“Aryeh”), Geoffrey Cox (“Cox”), or Bob Oliver (“Oliver”) (together, the “Non-Settling Defendants”).

 

RECITALS

 

WHEREAS, on November 2, 2016, the board of directors of Immunomedics (the “Board”) set December 14, 2016 as the date for the Company’s annual meeting of stockholders (the “Annual Meeting”);

 

WHEREAS, on November 16, 2016, venBio nominated Dr. Behzad Aghazadeh (“Aghazadeh”), Dr. Khalid Islam (“Islam”), Mr. Scott Canute (“Canute”), and Mr. Peter Barton Hutt (“Hutt”) (together, the “venBio Nominees”) for election to the Board, and a proxy contest ensued (the “Proxy Contest”);

 

WHEREAS, on December 14, 2016, the Company postponed the Annual Meeting to February 16, 2017;

 

WHEREAS, on January 8, 2017, the Company’s Board was reconstituted to be comprised of Goldenberg, Markison, Forrester, Aryeh, Sullivan, Cox, and Oliver (together, the “Pre-Meeting Board”);

 

WHEREAS, on February 9, 2017, the Company entered into a transaction with Seattle Genetics, Inc. (the “Seattle Genetics Transaction” and “Seattle Genetics,” respectively);

 

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WHEREAS, on February 10, 2017, the Company publicly disclosed the Seattle Genetics Transaction and announced that the Annual Meeting would be postponed until March 3, 2017;

 

WHEREAS, on February 13, 2017, venBio commenced the venBio Action in the Court against, among others, the members of the Pre-Meeting Board;

 

WHEREAS, on February 17, 2017, the Pre-Meeting Board caused the Company to commence the Federal Action in the U.S. District Court against venBio and the venBio Nominees in connection with the Proxy Contest;

 

WHEREAS, on March 3, 2017, the Company held its annual meeting of stockholders at which each of the venBio Nominees received a majority of stockholder votes cast and, Goldenberg, Sullivan, and Markison each received a plurality of stockholder votes cast;

 

WHEREAS, on March 3, 2017, certain members of the Pre-Meeting Board initiated the Section 225 Action in the Court pursuant to 8 Del. C. § 225 against venBio and each of the venBio Nominees;

 

WHEREAS, on March 6, 2017, venBio filed its First Amended Verified Complaint in the venBio Action which, among other things added additional breach of fiduciary duties claims against the Pre-Meeting Board, including derivative claims brought on behalf of Immunomedics, and venBio renewed its application for an injunction preventing the Seattle Genetics Transaction from closing;

 

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WHEREAS, on March 9, 2017, the Court entered a temporary restraining order against the closing of the Seattle Genetics Transaction, pending a hearing on venBio’s motion for a preliminary injunction;

 

WHEREAS, on March 13, 2017, the Court entered a Status Quo Order in the Section 225 Action (the “Status Quo Order”) naming Aghazadeh, Islam, Canute, Hutt, Goldenberg, Sullivan, and Markison as the Status Quo Board of the Company (the “Status Quo Board”);

 

WHEREAS, the parties thereafter agreed upon a stipulated scheduling order in the venBio Action, which the Court entered, that set the matter for a three day trial commencing on June 19, 2017;

 

WHEREAS, the parties and several third parties undertook substantial expedited discovery, including producing approximately 59,365 documents (335,199 pages) and serving and responding to interrogatories;

 

WHEREAS, on April 19, 2017, venBio filed its Second Amended Verified Complaint in the venBio Action that, among other things, added Greenhill as a defendant based on allegations that Greenhill aided and abetted alleged breaches of fiduciary duty by the Pre-Meeting Board;

 

WHEREAS, on May 2, 2017, the Status Quo Board met and unanimously authorized a partial settlement of the venBio Action, including the execution of the Individual Term Sheet with Goldenberg, Sullivan, and Markison;

 

WHEREAS, on May 3, 2017, counsel for each of the Status Quo

 

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Board members, including the Settling Individuals, the Company, and venBio executed the Individual Term Sheet that sets forth the terms of a settlement between the Company, venBio, and the Settling Individuals that provided, among other things, for the release of all Released Claims (as defined below).  The Individual Term Sheet contemplated, among other things, that the Delaware Litigations would be stayed pending mediation with the Non-Settling Defendants and Greenhill;

 

WHEREAS, Greenhill contends that the Greenhill Engagement Letters (as defined below) provide Greenhill with a consent right regarding the partial settlement; and Greenhill was not requested to provide and did not provide, at the time that the Individual Term Sheet was executed, consent to the partial settlement;

 

WHEREAS, on May 4, 2017, the Status Quo Board and the Company submitted a stipulation and proposed order, and the Court entered an order, lifting the provisions of the Status Quo Order and confirming that the Status Quo Board is the Company’s lawful Board, provided,  however,  that if the Section 225 Action is not dismissed pursuant to the stipulation and order, the parties shall be restored to their positions in the Section 225 Action as of immediately prior to the execution of the Individual Term Sheet;

 

WHEREAS, on May 4, 2017 and May 5, 2017, orders partially staying the Delaware Litigations were entered by the Court and the U.S. District Court;

 

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WHEREAS, on May 10, 2017, the Court entered orders                 (i) approving the dismissal of Seattle Genetics from the venBio Action and       (ii) staying further proceedings in the venBio Action pending finalization of the partial settlement reflected in the Individual Term Sheet and the outcome of the mediation, except for the filing and adjudication of motions to dismiss by Cox, Forrester, Oliver, Aryeh, and Greenhill;

 

WHEREAS, on June 8, 2017, venBio, the Company, and Greenhill executed the Greenhill Term Sheet, which sets forth the terms of settlement between those parties of all existing claims asserted or that could have been asserted between them in connection with the Delaware Litigations, the Seattle Genetics Transaction, the Financing (as defined below), the Annual Meeting, the Greenhill Engagement Letters, and this Settlement (as defined below);

 

WHEREAS, Sullivan’s employment pursuant to the Fifth Amended and Restated Employment Agreement by and between Immunomedics and Sullivan, dated July 1, 2014 (the “Sullivan Employment Agreement”) (attached as Exhibit 3 hereto), ended on July 1, 2017;

 

WHEREAS, the Settling Parties intend that the Settlement will release all of the Released Claims and terminate the venBio Action as against the Settling Group, the Section 225 Action and the Federal Action as described herein with prejudice;

 

WHEREAS, the entry by the Settling Parties into this Stipulation

 

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is not, and shall not be construed as or deemed to be, evidence of an admission as to the merit or lack of merit of any claim or defense asserted in any of the Delaware Litigations,

 

NOW THEREFORE, it is hereby stipulated, consented to, and agreed in the manner set forth herein:

 

I.                                        DEFINITIONS

 

In addition to the terms defined elsewhere in this Stipulation, the following capitalized terms used in this Stipulation, shall have the meanings specified below:

 

A.            “Affiliate” means, as to any Person, another Person that controls, is controlled by, or is under common control with, such Person.

 

B.            “Arbitrable Claims” means those matters described in Article III, Section (a) below.

 

C.            “Business Day” means any day other than a day on which banks in Delaware are required or permitted to close.

 

D.            “Claims” mean any and all manner of claims, demands, rights, liabilities, losses, obligations, duties, damages, diminutions in value, costs, debts, expenses, interest, penalties, fines, sanctions, defenses, counterclaims, offsets, fees, attorneys’ fees and disbursements, expert or consulting fees and disbursements, actions, potential actions, causes of action, suits, agreements, judgments, decrees, matters, issues and controversies of any kind, nature or description whatsoever, whether

 

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disclosed or undisclosed, accrued or unaccrued, apparent or not apparent, foreseen or unforeseen, matured or not matured, suspected or unsuspected, liquidated or not liquidated, fixed or contingent, which now exist, or heretofore or previously existed, or may hereafter exist, including known claims and Unknown Claims, whether direct, derivative, individual, class, representative, legal, equitable or of any other type, or in any other capacity, whether based on state, local, foreign, federal, statutory, regulatory, common, or other law or rule (including, but not limited, to any claims under federal or state securities law, federal or state antitrust law, or under state disclosure law); provided, however, that Claims shall not include claims to enforce this Stipulation.

 

E.            “Company Counsel” shall mean all attorneys and law firms that have represented the Company, including without limitation Vinson & Elkins LLP (“V&E”) and DLA Piper (“DLA”).

 

F.             “Company Preserved Claims” shall mean all rights and claims that the Company (or its employees, representatives and Affiliates) may have against any of the Non-Settling Defendants or Company Counsel.

 

G.            “Company Released Parties” shall mean Immunomedics and its respective past, present, and future parents, subsidiaries, divisions, controlling Persons, Affiliates, predecessors, predecessors-in-interest, successors, successors-in-interest, and assigns and each and all of its and

 

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their past, present, or future trusts, trustees, executors, estates, administrators, beneficiaries, distributees, foundations, agents, employees, fiduciaries, stockholders, partners, partnerships, general or limited partners or partnerships, joint ventures, member firms, limited liability companies, corporations, principals, officers, directors, managing directors, members, managers, managing members, managing agents, financial or investment advisors, advisors, consultants, investment bankers, entities providing any fairness opinion, underwriters, brokers, dealers, financing sources, lenders, commercial bankers, attorneys, personal or legal representatives, accountants, tax advisors, and Affiliates of any of such Persons; provided, however, that Company Released Parties shall not include Company Counsel or any of the Non-Settling Defendants.

 

H.            “Current Stockholders” means all holders of record of Immunomedics stock as of the date of execution of this Stipulation.

 

I.             “Effective Date” means the first Business Day following the date the Judgment becomes Final.

 

J.             “Federal Action Released Claims” means any and all Claims that are or were or could have been alleged, asserted, or set forth in the Federal Action or in any other court, tribunal, forum, or proceeding by venBio, any of the Settling Group, the Company, or any of their respective successors and assigns, against each other, the venBio

 

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Released Parties, the Company Released Parties, or the Released Settling Group Parties, relating to or arising out of the Proxy Contest, the Annual Meeting and/or Sections 13 and 14 of the Securities Exchange Act of 1933; provided, however, that the Federal Action Released Claims shall not include claims to enforce this Stipulation or the Preserved Claims.

 

K.                                    “Final” with respect to the Judgment approving the settlement of the venBio Action means:  (1) if no appeal of the Judgment is timely filed, the expiration date of the time provided for filing or noticing any appeal under the Rules of the Court of Chancery or of any appellate court therefrom; or (2) if there is an appeal of the Judgment, (i) the date of final dismissal of all such appeals, or the final dismissal of any proceeding on certiorari or otherwise, or (ii) the date the Judgment is finally affirmed on an appeal, the expiration of the time to file a petition for a writ of certiorari or other form of review, or the denial of a writ of certiorari or other form of review, and, if certiorari or other form of review is granted, the date of final affirmance following review pursuant to that grant.  However, any appeal or proceeding seeking subsequent judicial review pertaining solely to an order issued with respect to attorneys’ fees, costs, or expenses shall not in any way delay or preclude the Judgment from becoming Final.

 

L.                                     “Financing” means the placement by or on behalf of the Company of $125 million in Series A-1 Convertible Preferred Stock.

 

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M.                                 “Greenhill Released Parties” means Greenhill & Co., Inc., Greenhill & Co., LLC, and each of their respective past, present, or future parents, subsidiaries, divisions, controlling Persons, Affiliates, predecessors, predecessors-in-interest, successors, successors-in-interest, and assigns and each and all of its and their past, present, or future trusts, trustees, executors, estates, administrators, beneficiaries, distributees, foundations, agents, employees, fiduciaries, stockholders, partners, partnerships, general or limited partners or partnerships, joint ventures, member firms, limited liability companies, corporations, principals, officers, directors, managing directors, members, managers, managing members, managing agents, financial or investment advisors, advisors, consultants, investment bankers, entities providing any fairness opinion, underwriters, brokers, dealers, financing sources, lenders, commercial bankers, attorneys, personal or legal representatives, accountants, tax advisors, and Affiliates of any of such Persons.

 

N.                                    “Judgment” means the Order and Partial Final Judgment to be entered approving the settlement of the venBio Action pursuant to Court of Chancery Rule 54(b) in all material respects (including the joint tortfeasor provisions), substantially in the form attached as Exhibit 4 hereto.

 

O.                                    “Notice” means the Notice of Pendency and Proposed Partial Settlement of Stockholder Derivative Action, Settlement Hearing, and

 

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Right to Appear, substantially in the form attached hereto as Exhibit 5.

 

P.                                      “Person” means an individual, corporation, partnership, limited liability company, limited liability partnership, joint venture, syndicate, person, trust, estate, association, organization, or other entity, including any governmental authority, and including any successor, by merger or otherwise, of any of the foregoing.

 

Q.                                    “Preserved Claims” means the Company Preserved Claims, the Settling Individual Preserved Claims, and the venBio Preserved Claims.

 

R.                                    “Released Claims” means the Federal Action Released Claims, the Section 225 Action Released Claims, and the venBio Action Released Claims.

 

S.                                      “Released Settling Group Parties” means the Released Settling Individual Parties and the Greenhill Released Parties.

 

T.                                     “Released Settling Individual Parties” means the Settling Individuals and each of their respective Affiliates, heirs, trusts, trustees, executors, estates, administrators, beneficiaries, distributees, foundations, agents, employees, fiduciaries, partners, agents, attorneys, personal or legal representatives, accountants, tax advisors, and the Affiliates of each of such Persons.

 

U.                                    “Section 225 Action Released Claims” means any and all

 

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Claims that are or were or could have been alleged, asserted, or set forth in the Section 225 Action by venBio, any of the Settling Group, the Company, or any of their respective successors and assigns, against each other, the venBio Released Parties, the Company Released Parties, or the Released Settling Group Parties, provided, however, that the Section 225 Action Released Claims shall not include claims to enforce this Stipulation.

 

V.                                    “Settlement” means the settlement contemplated by this Stipulation and its exhibits.

 

W.                                 “Settlement Hearing” means the hearing to be held by the Court to determine whether the proposed settlement of the venBio Action should be approved as fair, reasonable, and adequate to the Company;  whether the venBio Action should be dismissed with prejudice as against the Settling Group; whether to fully, finally, and forever, release, settle, and discharge the venBio Action Released Claims; whether venBio should be awarded reimbursement of its fees and expenses in connection with the venBio Action, and whether a Judgment approving the settlement of the venBio Action should be entered in accordance with the terms of this Stipulation.

 

X.                                    “Settlement Scheduling Order” means the scheduling order to be entered pursuant to Rule 23.1 of the Rules of the Court of Chancery, substantially in the form attached hereto as Exhibit 6.

 

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Y.                                    “Settling Individual Preserved Claims” means (i) all Arbitrable Claims; (ii) Goldenberg’s and Sullivan’s Claims relating to the cashless exercise of the Sullivan Options and Goldenberg Options; (iii)  Claims relating to director compensation, access to corporate information or other rights arising solely as a result of such Settling Individual’s being a director of the Company to the extent, if any, that such Claims would otherwise be considered released hereby; (iv) if (a) the Company, directly or derivatively, initiates a Company Preserved Claim against any Company Counsel and (b) such Company Counsel shall bring any third party claim, including without limitation a Claim for contribution, against any Settling Individual, all rights to counterclaims  that any of the Settling Individuals may have against such Company Counsel; and (v) any Settling Individual Claim arising under Section X(F) hereof.

 

Z.                                     “Termination Agreement” means the agreement executed on May 4, 2017, between the Company and Seattle Genetics to terminate the Seattle Genetics Transaction.

 

AA.                           “Unknown Claims” means any Claims that any of the Settling Parties do not know or suspect to exist in his, her, or its favor at the time of the release of such claims, which, if known by him, her, or it, might have affected his, her, or its decision(s) with respect to the Settlement.  With respect to any and all Released Claims, the Settling Parties stipulate and agree that the Company, venBio, and each of the

 

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Settling Group expressly waive, and shall be deemed to have waived by operation of the Judgment, any and all provisions, rights, and benefits conferred by California Civil Code § 1542 or any law of any state or territory of the United States, or principle of common law or foreign law, which is similar, comparable, or equivalent to California Civil Code § 1542, which provides:

 

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

 

BB.                           “venBio Action Released Claims” means any and all Claims that are or were or could have been alleged, asserted, or set forth in the venBio Action or in any other court, tribunal, forum, or proceeding by venBio, any of the Settling Group, or the Company (directly or derivatively), or any of their respective successors and assigns, against each other and against the venBio Released Parties, the Company Released Parties, and the Released Settling Group Parties relating to or arising from (i) the Seattle Genetics Transaction, (ii) the Termination Agreement, (iii) the Financing, (iv) the negotiation of the Settlement Term Sheets or this Settlement, (v) this Stipulation, (vi) the Annual Meeting, (vii) the Proxy Contest, and (viii) the Greenhill Engagement Letters; provided, however, that the venBio Action Released Claims shall

 

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not include claims to enforce this Stipulation or the Preserved Claims.

 

CC.                           “venBio Preserved Claims” means all rights and claims that venBio (and its employees, representatives, Affiliates, partners and/or stockholders) may have against any of the Non-Settling Defendants.

 

DD.                           “venBio Released Parties” shall mean venBio, each of the venBio Nominees, and each of their respective past, present, or future parents, subsidiaries, divisions, controlling Persons, Affiliates, predecessors, predecessors-in-interest, successors, successors-in-interest, and assigns and each and all of its and their past, present, or future trusts, trustees, executors, estates, administrators, beneficiaries, distributees, foundations, agents, employees, fiduciaries, stockholders, partners, partnerships, general or limited partners or partnerships, joint ventures, member firms, limited liability companies, corporations, principals, officers, directors, managing directors, members, managers, managing members, managing agents, financial or investment advisors, advisors, consultants, investment bankers, entities providing any fairness opinion, underwriters, brokers, dealers, financing sources, lenders, commercial bankers, attorneys, personal or legal representatives, accountants, tax advisors, and Affiliates of any of such Persons.

 

EE.                             For ease of reference, the following terms are defined elsewhere in this Stipulation:

 

1.                                      9/23/2016 Engagement Letter (page 34)

 

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2.                                      12/14/2016 Engagement Letter (page 34)

 

3.                                      Aghazadeh (page 3)

 

4.                                      Reserved

 

5.                                      Annual Meeting (page 3)

 

6.                                      Arbitration Escrow Account (page 37)

 

7.                                      Arbitrator (page 36)

 

8.                                      Aryeh (page 3)

 

9.                                      Assignment Agreement (page 23)

 

10.                               Attorneys’ Fee and Expense Award (page 49)

 

11.                               Board (page 3)

 

12.                               Canute (page 3)

 

13.                               Cause after a Change in Control (page 26)

 

14.                               Certificate Amendment (page 23)

 

15.                               Change in Control (pages 26, 37)

 

16.                               Company (page 2)

 

17.                               Confidentiality Provisions (page 35)

 

18.                               Court (page 2)

 

19.                               Cox (page 3)

 

20.                               Delaware Litigations (page 2)

 

21.                               DLA (page 9)

 

22.                               Federal Action (page 2)

 

23.                               Forrester (page 3)

 

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24.                               Goldenberg (page 1)

 

25.                               Goldenberg Deferred Payments (page 31)

 

26.                               Goldenberg Employment Agreement (page 24)

 

27.                               Goldenberg Escrow Account (page 31)

 

28.                               Goldenberg Life Insurance Policies (page 33)

 

29.                               Goldenberg Options (page 33)

 

30.                               Goldenberg Release (page 29)

 

31.                               Goldenberg Severance Payments (page 30)

 

32.                               Good Cause after a Change in Control (page 30)

 

33.                               Greenhill (page 2)

 

34.                               Greenhill Engagement Letters (page 35)

 

35.                               Greenhill Term Sheet (page 2)

 

36.                               Guaranteed Payments (page 30)

 

37.                               Hutt (page 3)

 

38.                               IBC (page 29)

 

39.                               Immunomedics (page 2)

 

40.                               Individual Term Sheet (page 2)

 

41.                               Islam (page 3)

 

42.                               Markison (page 1)

 

43.                               Non-Settling Defendants (page 3)

 

44.                               Oliver (page 3)

 

45.                               Pre-Meeting Board (page 3)

 

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46.                               Proxy Contest (page 3)

 

47.                               PSUs (page 27)

 

48.                               RSUs (page 27)

 

49.                               Seattle Genetics (page 3)

 

50.                               Seattle Genetics Transaction (page 3)

 

51.                               Section 225 Action (page 2)

 

52.                               Section 409A (page 26)

 

53.                               Settling Group (page 2)

 

54.                               Settling Individuals (page 2)

 

55.                               Settling Parties (page 2)

 

56.                               Settlement Term Sheets (page 2)

 

57.                               Status Quo Board (page 5)

 

58.                               Status Quo Order (page 5)

 

59.                               Stipulation (page 1)

 

60.                               Sullivan (page 1)

 

61.                               Sullivan Deferred Payments (page 26)

 

62.                               Sullivan Employment Agreement (page 7)

 

63.                               Sullivan Escrow Account (page 26)

 

64.                               Sullivan Options (page 27)

 

65.                               Sullivan Release (page 24)

 

66.                               Sullivan Severance Payments (page 26)

 

67.                               Term (page 33)

 

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68.          U.S. District Court (page 2)

 

69.          Valuation (page 33)

 

70.          V&E (page 9)

 

71.          venBio (page 1)

 

72.          venBio Action (page 2)

 

73.          venBio Nominees (page 3)

 

II.                                   SCOPE OF SETTLEMENT

 

A.            Dismissal of Claims and Actions.  Subject to the issuance of the Judgment and the other conditions set forth in this Stipulation, the venBio Action as against only the Settling Group and all venBio Action Released Claims asserted therein as against or by only the Settling Group, shall be finally and fully compromised, settled, released, discharged, and dismissed with prejudice.  The Section 225 Action and the Federal Action, and all Section 225 Action Released Claims and Federal Action Released Claims, shall be finally and fully compromised, settled, released, discharged, and dismissed with prejudice.

 

B.            Submission of the Settlement to the Court for Approval.  As soon as practicable after this Stipulation has been executed, the Settling Parties shall move the Court for approval of the settlement of the venBio Action in accordance with this Stipulation pursuant to Court of Chancery Rule 23.1.  The other aspects of the Settlement reflected in this Stipulation are not subject to court approval.

 

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C.            Dismissal Process.  The process to carry out the dismissals set forth in Section II(A) is as follows:

 

i.              venBio Action.  Upon the entry of the Judgment, the venBio Action as against the Settling Group (and only as against the Settling Group) shall be dismissed with prejudice, on the merits and without costs (except as provided herein).

 

ii.             Federal Action.  Upon execution of this Stipulation, the Federal Action shall be dismissed with prejudice, on the merits, and without costs (except as provided herein), by submitting a Stipulation of Dismissal in the form attached hereto as Exhibit 7.

 

iii.            Section 225 Action.  Upon execution of this Stipulation, the Section 225 Action shall be dismissed with prejudice, on the merits, and without costs (except as provided herein), through the submission of a Stipulation of Dismissal in the form attached hereto as Exhibit 8.

 

D.            Settlement Consideration.  In consideration for the dismissal of the Delaware Litigations and related claims as set forth in Section II(A), and the full and final release, settlement, and discharge of any and all Released Claims, the Settling Parties have agreed to the following consideration:

 

i.              Share Authorization.  On June 29, 2017, Goldenberg and Sullivan voted to approve an amendment to the Company’s

 

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certificate of incorporation (the “Certificate Amendment”) to increase the number of authorized common shares to 250,000,000, as agreed to in the Individual Term Sheet.

 

ii.             Intellectual Property Rights.  Each of Goldenberg and Sullivan shall immediately deliver to the Company a fully signed and executed assignment agreement in the form of Exhibits 9 and 10, respectively (each, an “Assignment Agreement”) assigning to the Company any and all rights of such Person, if any, in global intellectual property (other than express rights to royalties pursuant to existing agreements with the Company and Goldenberg’s patent application and related intellectual property related to cyber space medicine (U.S. patent application no. 13/627,176 (published as U.S. publication no. 2013/0024209 A1), titled “Virtual Doctor Interactive Cybernet System)) all as more fully set forth in the respective Assignment Agreements).  In addition to their respective Assignment Agreements, each of Goldenberg and Sullivan covenants and agrees, at the Company’s reasonable expense, and within thirty (30) days after receipt by Goldenberg or Sullivan, as applicable, of any required documentation or materials (or a longer time upon written consent of the Company, which consent shall not be unreasonably withheld), to execute or provide any and all further necessary documentation and to do all further acts reasonably requested by the Company to confirm and perfect title in and to all such assigned

 

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intellectual property.  Goldenberg and Sullivan shall provide documentation of their expenses upon request and shall obtain the Company’s written consent prior to incurring expenses that exceed $2,500.00.  Each of Goldenberg and Sullivan represents and warrants that there has been no transfer or assignment by either of them of intellectual property of which Goldenberg was an inventor during his employment at the Company other than as permitted by the Amended and Restated Employment Agreement, effective as of July 1, 2015, as further amended by Amendment No. 1 to Amended and Restated Employment Agreement effective November 30, 2015 (together, the “Goldenberg Employment Agreement”) (attached as Exhibit 14 hereto).

 

iii.            Consideration Specific to Sullivan.

 

(a)           Resignation.  Upon execution of this Stipulation, Sullivan shall (1) resign from all remaining director and officer and other positions at the Company and any of the Company’s Affiliates, if any, (2) agree to abide by all post-termination covenants and obligations set forth in the Sullivan Employment Agreement, including Sullivan’s non-compete obligations, and (3)  execute and deliver a release in the form attached hereto as Exhibit 12 (the “Sullivan Release”) as a condition to receiving the payments contemplated by this Stipulation. Commencing July 2, 2017 and continuing through the earlier of (x) the execution of this Stipulation and (y) the election and qualification of her

 

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successor or her earlier resignation or her removal as a director of the Company in accordance with Delaware law, Sullivan shall be entitled to receive fees set by the Board for all other non-employee directors (pro rata for the period of her service as a non-employee director) in accordance with Delaware law. The termination of Sullivan’s membership on the Board in accordance with Delaware law will not give rise to a claim by Sullivan for any additional compensation of any kind, including for unemployment, severance, or any other further compensation, remuneration or benefits except as provided in Article III hereof.

 

(b)           Employment Agreement Payments.

 

(1)           No later than the earlier of (A) August 31, 2017 and (B) five (5) Business Days after the execution of this Stipulation, the Company will pay to Sullivan any accrued but unpaid base salary, accrued but unpaid employee pension benefits (including without limitation any 401(k) matching payments), employee welfare benefits and incurred but unreimbursed business expenses through July 1, 2017.  Subject to the execution of this Stipulation and the execution and non-revocation of the release contemplated by Section II(D)(iii)(a)(3) and within five (5) Business Days following the deadline for revoking such release, but subject to the provisions of Section II(D)(iii)(b)(2) hereof, the Company also shall make the following payments to Sullivan in

 

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accordance with the relevant provisions of the Sullivan Employment Agreement applicable to a termination without “Cause after a Change in Control” (as defined in the Sullivan Employment Agreement):  (y) $2,058,552, representing a one-time payment equal to three times Sullivan’s annual rate of compensation, and (z) $1,029,276, representing a one-time payment equal to three times Sullivan’s target bonus, in accordance with Section 2.2(b)(i) of the Sullivan Employment Agreement (together, the “Sullivan Severance Payments”).  Sullivan’s acceptance of any payments under this Section II(D)(iii)(b)(1) shall not adversely affect her Arbitrable Claims.

 

(2)           If Sullivan is determined to be a “specified employee” for purposes of 26 U.S.C. § 409A (“Section 409A”), the Company may defer any portion of the Sullivan Severance Payments that are “nonqualified deferred compensation” within the meaning of Section 409A (such amount, the “Sullivan Deferred Payments”) for a period of six (6) months commencing, subject to execution of this Stipulation, as of July 1, 2017 (the date the Sullivan Employment Agreement expired by its terms), in which case the Company shall place the Sullivan Deferred Payments into an interest-bearing escrow account (the “Sullivan Escrow Account”), in accordance with an escrow agreement substantially in the form of Exhibit 20.  As soon as practicable after the expiration of such deferral period, and in no

 

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event more than five (5) Business Days thereafter, provided the Company is not insolvent, the Company shall pay or cause to be paid to Sullivan the Sullivan Deferred Payments, plus any interest thereon as provided by Section 2.10 of the Sullivan Employment Agreement.  For the avoidance of doubt, in the event the Company fails or refuses to pay or cause to be paid to Sullivan any Sullivan Deferred Payments, plus interest due thereupon pursuant to Section 2.10 of the Sullivan Employment Agreement, on the basis of its insolvency, Sullivan nevertheless shall continue to hold a claim against the Company and its bankruptcy estate, including funds in the Sullivan Escrow Account, for such amounts.

 

(c)           Accelerated Vesting.  Upon execution of this Stipulation, the vesting of stock options, restricted stock options (“RSUs”), performance stock options (“PSUs”), or other equity rights held by Sullivan as listed on Exhibit 13 (the “Sullivan Options”), will be accelerated as of July 1, 2017 (the date the Sullivan Employment Agreement expired by its terms) in accordance with Section 2.2(b)(v) of the Sullivan Employment Agreement.  Sullivan shall then have the earlier of (1) twenty-four (24) months from July 1, 2017 or (2) the expiration date of such Sullivan Options in which to exercise any Sullivan Options.

 

(d)           Health Insurance Payment.  The Company’s obligation to make health insurance payments to Sullivan shall be satisfied by making the payments to Goldenberg pursuant to Section

 

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II(D)(iv)(c) hereof, provided, however, that, if Sullivan is for any reason required by Court order or applicable law or regulation to make COBRA premium payments independently of Goldenberg at any time during the eighteen (18) months following July 1, 2017, the Company shall, at Sullivan’s option and upon thirty (30) days’ written notice to the Company, pay Sullivan $806.71, representing the value of one month of COBRA coverage for Sullivan, as calculated in good faith by the Company’s Chief Financial Officer, monthly, for the remainder of the 18-month period, such monthly payments to be increased or decreased if and to the extent of any increase or decrease in the aggregate monthly health insurance premiums for Sullivan.  The Company shall make each payment on or between the first and fifth Business Day of each month and shall modify the payment contemplated in II(D)(iv)(c) to Goldenberg accordingly to reflect individual coverage.

 

iv.            Consideration Specific to Goldenberg.

 

(a)           Resignation.

 

(1)           Upon execution of this Stipulation, Goldenberg shall (A)  resign from all officer and other positions at the Company and all officer and other positions at each of the Company’s Affiliates, provided, however, that he shall remain as a director of the Company until his successor is elected and qualified or until his earlier resignation or removal in  accordance with Delaware law, and that he

 

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shall remain a director of IBC Pharmaceuticals, Inc. (“IBC”), which directorship shall be coterminous with his directorship of the Company; (B) agree to abide by all post-termination covenants and obligations set forth in the Goldenberg Employment Agreement, including Goldenberg’s non-compete obligations; and (C) execute and deliver a release in the form attached hereto as Exhibit 15 (the “Goldenberg Release”) as required in the Goldenberg Employment Agreement as a condition to receiving the Goldenberg Severance Payments contemplated by Sections II(D)(iv)(b)(1)(y) and (z) of this Stipulation.

 

(2)           Commencing upon Goldenberg’s resignation from all non-director positions pursuant to Section II(D)(iv)(a)(1)(A), and for as long as he remains a non-employee director of the Company, Goldenberg shall be entitled to receive fees set by the Board for all other non-employee directors (pro rata for the period of his service as a non-employee director) in accordance with Delaware law.  The termination of Goldenberg’s membership on the Board or the board of directors of IBC by reason of the election and qualification of his successor or his earlier resignation or removal in accordance with Delaware law will not give rise to a claim by Goldenberg for unemployment, severance, or any other further compensation, remuneration or benefits of any kind except as provided in Article III.

 

(3)           Goldenberg will comply with all post-

 

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termination covenants and obligations under the Goldenberg Employment Agreement.

 

(b)           Employment Agreement Payments.

 

(1)           No later than the earlier of (A) sixty (60) days after the termination of Goldenberg’s employment and (B) five (5) Business Days after the execution of this Stipulation, the Company will pay to Goldenberg his Guaranteed Payments (as defined in Section 13(b) of the Goldenberg Employment Agreement) through the date of termination of his employment.  Subject to the execution of this Stipulation and the execution and non-revocation of the release contemplated by Section II(D)(iv)(a)(3) and within five (5) Business Days after the deadline for revoking such release, but subject to Section II(D)(iv)(b)(2) below, the Company also shall make the following payments to Goldenberg in accordance with the relevant provisions of the Goldenberg Employment Agreement, for a termination without “Good Cause after a Change in Control” (as defined in the Goldenberg Employment Agreement):  (y) $1,944,121, representing a one-time payment equal to three times Goldenberg’s annual salary, and (z) $450,000, representing a one-time payment equal to three times the minimum annual required incentive payment, in accordance with Section 13(c)(iv) of the Goldenberg Employment Agreement (the payments under clauses (y) and (z) collectively, the “Goldenberg Severance Payments”).

 

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Goldenberg’s acceptance of such payments shall not adversely affect his Arbitrable Claims.

 

(2)           If Goldenberg is determined to be a “specified employee” for purposes of Section 409A, the Company may defer any portion of the Goldenberg Severance Payments that are “nonqualified deferred compensation” within the meaning of Section 409A (such amount, the “Goldenberg Deferred Payments”) for a period of six (6) months following the date of execution of this Stipulation, in which case the Company shall place the Goldenberg Deferred Payments into an interest-bearing escrow account (the “Goldenberg Escrow Account”), in accordance with an escrow agreement substantially in the form of Exhibit 20.  As soon as practicable after the expiration of such deferral period, and in no event more than five (5) days thereafter, provided the Company is not insolvent, the Company shall pay or cause to be paid to Goldenberg the Goldenberg Deferred Payments, plus any interest thereon as provided by Section 13(f) of the Goldenberg Employment Agreement.  For the avoidance of doubt, in the event the Company fails or refuses to pay or cause to be paid to Goldenberg any Goldenberg Deferred Payments, plus interest thereupon due thereupon pursuant to Section 2.10 of the Goldenberg Employment Agreement, on the basis of its insolvency, Goldenberg nevertheless shall continue to hold a claim against the Company and its bankruptcy estate, including funds in

 

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the Goldenberg Escrow Account, for such amounts.

 

(c)           Health Insurance and Benefits Payment.  Subject to the effectiveness of the release contemplated by Section II(D)(iv)(a)(3) hereof, commencing within five (5) Business Days of the date of execution of this Stipulation, the Company shall pay Goldenberg $1,659.88, representing the value of one month of COBRA coverage for both Sullivan and Goldenberg, as calculated in good faith by the Company’s Chief Financial Officer, monthly, for a period of thirty-six (36) months, in accordance with Section 13(c)(iv)(A) of the Goldenberg Employment Agreement, such monthly payments to be increased or decreased if and to the extent of any increase or decrease in the aggregate monthly health insurance premiums for Sullivan and Goldenberg.  With the exception of the first monthly payment, which shall be paid as indicated above, the Company shall make each subsequent payment on or between the first and fifth Business Day of each month.  Pursuant to Section 13(c)(iv)(A) of the Goldenberg Employment Agreement, and, by cross-reference, Section 5(c) of the Goldenberg Employment Agreement, the Company shall also pay all other employee benefits pursuant to Section 5(c).

 

(d)           Royalty Payments; Payments on Disposition of Undeveloped Assets; Net Revenue Payments.  The Company’s obligations for royalties and other payments shall be in accordance with

 

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the Goldenberg Employment Agreement, including, without limitation Sections 4.2(a)(i), 4.2(a)(ii), 4.2(b) and 13(c)(iv) thereof, as applicable.

 

(e)           Accelerated Vesting.  Upon execution of this Stipulation, the vesting of stock options, RSUs, PSUs, or other equity rights held by Goldenberg as listed on Exhibit 16 (the “Goldenberg Options”) will be accelerated in accordance with Section 13(e)(i) of the Goldenberg Employment Agreement, the provisions of the Company’s 2006 Stock Incentive Plan, as amended, and any award agreements thereunder.  Goldenberg shall have until the earlier of (1) twenty-four (24) months following the end of the remaining balance of his “Term” (as defined in the Goldenberg Employment Agreement) and (2) the expiration date of any stock options included among such grants in which to exercise any such stock options.

 

(f)            Life Insurance Policies.  The Company and Goldenberg shall agree to an independent expert who shall be charged with determining the fair value (the “Valuation”) to the Company of the life insurance policies owned by the Company on the life of Goldenberg (the “Goldenberg Life Insurance Policies”).  The Valuation shall take into account the type of each policy, the premiums paid by the Company, and the actuarial value of each policy, and other factors typically considered by valuation experts, and shall be delivered to Goldenberg and the Company simultaneously.  Within thirty (30) days following delivery of

 

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the Valuation to Goldenberg and the Company, at Goldenberg’s option, the Company shall transfer the Goldenberg Life Insurance Policies to any transferee (including, without limitation, Goldenberg) that (1) pays the Company such fair value as determined by the Valuation; or (2) reimburses the Company for all premiums paid by the Company for such policies if the independent expert determines that the policies are such that the fair market value of the policies is measured by the premiums and fees paid.  If Goldenberg elects not to transfer one or more of the Goldenberg Life Insurance Policies in accordance with the preceding sentence, the Company will negotiate in good faith with Goldenberg to reach an agreement whereby that policy or those policies will be cancelled.

 

v.             Consideration Specific to Greenhill.

 

(a)           Termination of the Greenhill Engagement Letters and Continuation of Confidentiality.  Effective as of the Effective Date, the engagement letter dated September 23, 2016 between Greenhill & Co., LLC and the Company (the “9/23/2016 Engagement Letter,” attached hereto as Exhibit 18) and the engagement letter dated December 14, 2016 between and among Greenhill & Co., LLC, V&E, and the Company (together with amendments thereto, the “12/14/2016 Engagement Letter,” attached hereto as Exhibit 19) (together, the 9/23/2016 Engagement Letter and the 12/14/2016 Engagement Letter, the

 

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“Greenhill Engagement Letters”) are terminated, provided, however, that the Confidentiality Provisions (defined in the following sentence) shall survive termination. The “Confidentiality Provisions” are the confidentiality provisions (only) of the second paragraph of Paragraph 6 of the 9/23/2016 Engagement Letter and Paragraph 2 and the second paragraph of Paragraph 8 of the 12/14/2016 Engagement Letter.  The Releases set forth in Article IV of this Stipulation shall not affect the Greenhill Confidentiality Provisions or enforcement thereof.

 

(b)           Waiver of Fees, Reimbursement, and Indemnification.  As consideration for the Settlement (including the Releases set forth herein), Greenhill agrees to forgo and not seek any and all fees, expense reimbursement, or indemnification from the Company, except as provided for in Section II(D)(v)(d) below, including, without limitation, under (a) Paragraphs 2, 3, and 5 of the 9/23/2016 Engagement Letter and (b) Paragraphs 4, 5, and 7 of the 12/14/2016 Engagement Letter.

 

(c)           Consent to Settlement.  As further consideration for the Settlement (and the Releases set forth herein), Greenhill consents to the Settlement reflected herein, including the terms reflected in the Individual Term Sheet.

 

(d)           Limited Reimbursement of Greenhill Expenses.  After the Effective Date and within ten (10) Business Days of submission

 

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by Greenhill to the Company of appropriate documentation, the Company shall reimburse Greenhill up to $200,000 for reasonable and documented expenses that it incurred in connection with services provided under the Greenhill Engagement Letters, including legal fees and expenses incurred in connection with the defense of the venBio Action.  The Company shall not be responsible to pay or reimburse Greenhill any other amount.

 

III.                              ARBITRATION OF CERTAIN ISSUES

 

A.            The Company, Goldenberg, and Sullivan disagree regarding (i) Goldenberg’s claimed entitlement to up to 1.5 million RSUs, (ii) the portion of Goldenberg’s claimed severance relating to a three times payment based on his claimed bonus for fiscal year 2017, and (iii) Goldenberg’s and Sullivan’s claimed rights to deferred bonuses and pro rata bonuses for fiscal year 2017, and agree to arbitrate these disagreements as provided herein.

 

B.            The Company and Goldenberg and/or Sullivan shall arbitrate the disputes set forth in Section III(A) pursuant to the Delaware Rapid Arbitration Act before a single arbitrator who is a former jurist and is mutually agreed to by the parties to the arbitration (the “Arbitrator”).  The arbitration shall take place in Wilmington, Delaware, or such other location as the parties and the Arbitrator may agree.  The Arbitrator shall limit discovery to that which is reasonably necessary to resolve the parties’ disputes.  None of the Individual Term Sheet (including the

 

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exhibit thereto), this Stipulation, any of the settlement communications regarding either of them, or any statement or communication regarding any “change of control” or “Change in Control” (as defined in the Goldenberg Employment Agreement and/or the Sullivan Employment Agreement) made since the Annual Meeting on March 3, 2017 up to, but not including, the date of the initiation of the arbitration, shall be admissible in such arbitration.  The arbitral award (the “Award”) shall (1) be rendered within 120 days after the Arbitrator’s acceptance of his or her appointment; (2) be delivered in writing; (3) state the reasons for the Award; and (4) be the sole and exclusive final and binding remedy between and among the parties with respect to the disputed matters.

 

C.            The Company agrees to pay for the Arbitrator in full by paying its half of the Arbitrator’s fees and reimbursing Goldenberg and/or Sullivan for their half of the Arbitrator’s fees, such reimbursement to be paid within five (5) Business Days following receipt of Goldenberg’s and Sullivan’s invoice therefor.  This payment obligation is in addition to the Company’s payment obligations set forth in Section III(D).

 

D.            The Company agrees to pay reasonable attorneys’ fees and expenses incurred by Goldenberg and/or Sullivan in connection with the arbitration contemplated in this Article III, up to a cap of $650,000.  Upon execution of the Stipulation and the establishment of an escrow account (the “Arbitration Escrow Account”) subject to a mutually agreed

 

37

 

escrow agreement in the form of Exhibit 21, the Company shall, within five (5) Business Days thereafter, deposit $650,000 in the Arbitration Escrow Account to provide for payment of such fees and expenses.  Goldenberg and Sullivan shall be solely responsible for any fee payable to the escrow agent (which amount may be paid out of the $650,000).  To obtain payment under this subsection, counsel for Goldenberg and/or Sullivan must submit simultaneously to the escrow agent and the Company periodic invoices, each reflecting only the total amounts expended during that period along with a representation by such counsel that these costs have been reasonably expended in pursuit of the claims in the arbitration.  The escrow agent shall pay any such invoice within five (5) days after receipt of each invoice, provided, however, that such payments by the escrow agent shall not affect the Company’s subsequent ability to recover any such amounts that are later found to be unreasonable.  The Company may request additional information sufficient to allow it to assess the reasonableness of the fees and expenses reflected in any such invoice (subject to the preservation of attorney client and other privileges and attorney work product rights), but such request shall not alter or delay the escrow agent’s obligation to timely pay the invoice upon presentment.

 

E.            The Arbitrator shall, on an expedited basis, resolve any dispute over the reasonableness of legal fees and expenses incurred in

 

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connection with the arbitration and for which payment is sought pursuant to Section III(D).

 

IV.                               RELEASES

 

A.            venBio and Company Releases of Settling Group.

 

i.              Federal Action and Section 225 Action.  Effective upon entry of Orders dismissing the Federal Action and the Section 225 Action, respectively, each of Immunomedics, on behalf of itself, and, to the fullest extent permitted by law, on behalf of the Company Released Parties, and venBio, on behalf of itself, and, to the fullest extent permitted by law, on behalf of the venBio Released Parties, fully, finally, and forever, releases, settles, and discharges each of the Settling Group and the Released Settling Group Parties from and with respect to each and every Federal Action Released Claim and Section 225 Action Released Claim, and are forever barred and enjoined from commencing, instituting, prosecuting, or continuing to prosecute any Federal Action Released Claim and Section 225 Action Released Claim against any of the Settling Group or the Released Settling Group Parties.

 

ii.             venBio Action.  Effective as of the Effective Date, each of Immunomedics, on behalf of itself and to the fullest extent permitted by law, on behalf of the Company Released Parties, and venBio, on behalf of itself and on behalf of Immunomedics, and, to the fullest extent permitted by law, on behalf of the venBio Released Parties,

 

39

 

fully, finally, and forever, releases, settles, and discharges each of the Settling Group and the Released Settling Group Parties from and with respect to each and every venBio Action Released Claim, and are forever barred and enjoined from commencing, instituting, prosecuting, or continuing to prosecute any venBio Action Released Claim against any of the Settling Group or the Released Settling Group Parties.

 

B.            venBio Releases of the Company.

 

i.              Federal Action and Section 225 Action.  Effective upon entry of Orders dismissing the Federal Action and the Section 225 Action, respectively, venBio, on behalf of itself, and, to the fullest extent permitted by law, on behalf of the venBio Released Parties, fully, finally, and forever, releases, settles, and discharges the Company Released Parties from and with respect to each and every Federal Action Released Claim and Section 225 Action Released Claim, and is forever barred and enjoined from commencing, instituting, prosecuting, or continuing to prosecute any Federal Action Released Claim or Section 225 Action Released Claim against any of the Company Released Parties.

 

ii.             venBio Action.  Effective as of the Effective Date, venBio, on behalf of itself, and, to the fullest extent permitted by law, on behalf of the venBio Released Parties, fully, finally, and forever, releases, settles, and discharges the Company Released Parties from and with respect to each and every venBio Action Released Claim, and is forever

 

40

 

barred and enjoined from commencing, instituting, prosecuting, or continuing to prosecute any venBio Action Released Claim against any of the Company Released Parties, except as to Claims against the Non-Settling Defendants, for which the Company will remain a Nominal Defendant.

 

C.            Company Releases of venBio.

 

i.              Federal Action and Section 225 Action.  Effective upon entry of Orders dismissing the Federal Action and the Section 225 Action, respectively, Immunomedics on behalf of itself, and, to the fullest extent permitted by law, on behalf of the Company Released Parties, fully, finally, and forever, releases, settles, and discharges the venBio Released Parties from and with respect to each and every Federal Action Released Claim and Section 225 Action Released Claim, and is forever barred and enjoined from commencing, instituting, prosecuting, or continuing to prosecute any Federal Action Released Claim and Section 225 Action Released Claim against any of the venBio Released Parties.

 

ii.             venBio Action.  Effective as of the Effective Date, each of Immunomedics on behalf of itself, and, to the fullest extent permitted by law, on behalf of the Company Released Parties fully, finally, and forever, releases, settles, and discharges the venBio Released Parties from and with respect to each and every venBio Action Released Claim, and shall thereupon be forever barred and enjoined from

 

41

 

commencing, instituting, prosecuting, or continuing to prosecute any venBio Action Released Claim against any of the venBio Released Parties.

 

D.            Settling Individuals Releases.

 

i.              Federal Action and Section 225 Action.  Effective upon entry of Orders dismissing the Federal Action and Section 225 Action, respectively, each of the Settling Individuals, on behalf of themselves and, to the fullest extent permitted by law, on behalf of the Released Settling Individual Parties and any Person acting for or on behalf of, or claiming under, any of them, and each of them, fully, finally, and forever, releases, settles, and discharges venBio, the Company, the venBio Released Parties, and the Company Released Parties from and with respect to each and every Federal Action Released Claim and Section 225 Action Released Claim, and is forever barred and enjoined from commencing, instituting, prosecuting, or continuing to prosecute any Federal Action Released Claim or Section 225 Action Released Claim against venBio, the Company, the venBio Released Parties, and/or the Company Released Parties.

 

ii.             venBio Action.  Effective as of the Effective Date, each of the Settling Individuals, on behalf of themselves and, to the fullest extent permitted by law, on behalf of the Released Settling Individual Parties and any Person acting for or on behalf of, or claiming

 

42

 

under, any of them, and each of them, fully, finally, and forever, releases, settles, and discharges venBio, the Company, the venBio Released Parties, and Company Released Parties from and with respect to each and every venBio Action Released Claim, and is forever barred and enjoined from commencing, instituting, prosecuting, or continuing to prosecute any venBio Action Released Claim against venBio, the Company, the venBio Released Parties, and/or the Company Released Parties.

 

E.            Greenhill Releases.

 

i.              Federal Action and Section 225 Action.  Effective upon entry of Orders dismissing the Federal Action and Section 225 Action, Greenhill, on behalf of itself and, to the fullest extent permitted by law, on behalf of the Greenhill Released Parties and any Person acting for or on behalf of, or claiming under, any of them, and each of them, fully, finally, and forever, releases, settles, and discharges venBio, the Company, the venBio Released Parties, the Company Released Parties, and the Released Settling Individual Parties from and with respect to each and every Federal Action Released Claim and Section 225 Action Released Claim, and is forever barred and enjoined from commencing, instituting, prosecuting, or continuing to prosecute any Federal Action Released Claim and Section 225 Action Released Claim against venBio, the Company, the venBio Released Parties, the Company Released Parties and/or the Released Settling Individual Parties.

 

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ii.             venBio Action.  Effective as of the Effective Date, Greenhill, on behalf of itself and, to the fullest extent permitted by law, on behalf of the Greenhill Released Parties and any Person acting for or on behalf of, or claiming under, any of them, and each of them, fully, finally, and forever, releases, settles, and discharges venBio, the Company, the venBio Released Parties, the Company Released Parties, and the Released Settling Individual Parties from and with respect to each and every venBio Action Released Claim, and is forever barred and enjoined from commencing, instituting, prosecuting, or continuing to prosecute any venBio Action Released Claim against venBio, the Company, the venBio Released Parties, the Released Settling Individual Parties and/or the Company Released Parties.

 

F.            Remaining Claims.  Notwithstanding anything to the contrary contained in this Stipulation, (i) venBio, the Company, and the Settling Individuals retain the Preserved Claims, as applicable; and (ii) each Settling Party retains the right to enforce this Stipulation.

 

G.            Later Discovered Facts.  Each Settling Party acknowledges that it/he/she may discover facts in addition to or different from those now known or believed to be true with respect to the Released Claims, but that it is the intention of each of them to completely, fully, finally, and forever extinguish any and all Released Claims, known or unknown, suspected or unsuspected, which now exist, or heretofore existed, or may

 

44

 

hereafter exist, and without regard to the subsequent discovery of additional or different facts, including the Unknown Claims.

 

H.            Unknown Claims.  Each Settling Party acknowledges that the inclusion of Unknown Claims in the Released Claims was separately bargained for and is an integral part of this Settlement.

 

I.             No Liability.  The obligations incurred pursuant to this Stipulation shall be in full and final disposition of the venBio Action as against the Settling Group, the Section 225 Action in full, the Federal Action in full, and the Released Claims.  The Settling Parties intend that the Settlement eliminate all further risk and liability relating to Released Claims, and that the Settlement shall be a final and complete resolution of all disputes asserted or that could be or could have been asserted with respect to the Released Claims.

 

J.             Joint Tortfeasor Release. The foregoing Releases are executed in accordance with the provisions of 10 Del. C. § 6301, et seq., of the Uniform Contribution Among Tortfeasors Act.  Accordingly, the Settling Parties agree that, should it be determined that any Person, including, but not limited to, the Non-Settling Defendants or any Company Counsel, not released herein is jointly or severally or otherwise liable to any Company Released Party or any venBio Released Party for any Released Claim, the claim against and damages recoverable from such other Person shall be reduced by the pro rata share of the Released

 

45

 

Settling Group Parties’ liability or responsibility, if any, for such damages.  The foregoing is intended to comply with 10 Del. C. § 6304(b) so as to preclude any liability of the Settling Group and the Released Settling Group Parties to any other alleged tortfeasors, if any, for contribution or otherwise relating to (i) the Delaware Litigations, (ii) the Seattle Genetics Transaction, (iii) the Termination Agreement, (iv) the Financing, (v) the negotiation of the Settlement Term Sheets or this Settlement, (vi) this Stipulation, (vii) the Annual Meeting, (viii) the Proxy Contest and/or (ix) the Greenhill Engagement Letters.  Immunomedics and venBio further agree that the damages recoverable by them against all other alleged tortfeasors, if any, including, but not limited to, the Non-Settling Defendants or any Company Counsel shall be reduced to the extent of the pro rata share of the Released Settling Group Parties’ liability or responsibility, if any, for such damages.  The foregoing is intended to comply with 10 Del. C. § 6304(b) so as to preclude any liability of the Settling Group and/or the Released Settling Group Parties to other alleged tortfeasors, if any, for contribution or otherwise.

 

V.                                    SCHEDULING ORDER AND NOTICE IN THE VENBIO ACTION

 

A.            Promptly after the execution of this Stipulation, the Settling Parties shall jointly request entry of a Settlement Scheduling Order:  (i) approving the form and manner of Notice; (ii) setting the date and time of the Settlement Hearing and establishing the procedures and schedule

 

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for the Court’s consideration of the Settlement and venBio’s application for an award of attorneys’ fees and expenses; and (iii) continuing the stay of all further proceedings in the venBio Action, except as may be necessary to implement the Settlement.

 

B.            In accordance with the terms of the Settlement Scheduling Order to be entered by the Court, no later than ten (10) Business Days after the date of entry of the Settlement Scheduling Order, the Company shall cause the Notice to be mailed to Current Stockholders at their respective last known addresses appearing in its stockholder records.  Any and all costs with respect to the mailing of the Notice shall be paid by the Company or its insurance carriers.

 

VI.                               FINAL ORDER AND JUDGMENT

 

1.             If the Settlement of the venBio Action contemplated by this Stipulation is approved by the Court, the Settling Parties shall jointly request that the Court enter the Judgment, substantially in the form attached hereto as Exhibit 4.

 

VII.                          STAY OF VENBIO ACTION PENDING COURT APPROVAL

 

A.            On May 10, 2017, the Court stayed “all litigation activity in” the venBio Action “pending finalization of the partial settlement and the outcome of the mediation [with the Non-Settling Defendants], except for the filing and adjudication of motions to dismiss by Defendants Cox, Forrester, Oliver, Aryeh, and Greenhill and responses thereto.”  The Settling Parties agree

 

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to stay and not to initiate any other proceeding against any Settling Party other than (a) those incident to the Settlement itself and (b) the Preserved Claims pending the occurrence of the Effective Date.  The Settling Parties also agree to use their reasonable best efforts to seek the stay and dismissal of, and to oppose entry of any interim or final relief in any other proceeding against any of the Settling Parties that challenges the Settlement.

 

VIII.                     TERMINATION OF SETTLEMENT AND EFFECT THEREOF

 

A.            Effect of Disapproval, Cancellation or Termination.  In the event that (i) the settlement of the venBio Action is not approved or is modified or reversed in any material respect, (ii) this Stipulation is disapproved, canceled, or terminated pursuant to its terms, (iii) the Effective Date does not occur, or (iv) the Judgment otherwise does not become Final for any reason, then venBio, the Company, and the Settling Group (x) shall be deemed to have reverted to their respective litigation status in the venBio Action immediately prior to May 3, 2017, (y) shall negotiate a new discovery and trial schedule in good faith, and (z) shall proceed as if the Stipulation had not been executed with respect to the venBio Action, and in that event all of their respective claims and defenses as to any issue in the venBio Action shall be preserved without prejudice.

 

B.            Sections Effective Upon Execution of this Stipulation.  None of the (i) resignations and payments contemplated by Sections

 

48

 

II(D)(iii) and II(D)(iv), (ii) dismissals with prejudice of the Federal Action and the Section 225 Action contemplated by Sections II(A) and II(C), or (iii) Releases contemplated in Sections IV(A)(i), IV(B)(i), IV(C)(i), IV(D)(i), and IV(E)(i) will be reversed or revoked if (x) the Effective Date does not occur and/or (y) the Judgment otherwise does not become Final for any reason.

 

C.            Right to Terminate Settlement.  Any Settling Party has the right (but not the obligation) to terminate the settlement of the venBio Action if the Court does not enter a Judgment substantially in the form attached as Exhibit 4 hereto.

 

IX.                              NON-SETTLING DEFENDANTS IN VENBIO ACTION; COMPANY COUNSEL.

 

B.              The Settling Parties agree that this Settlement is not intended to diminish or extinguish in any way any Claims venBio or the Company has or may have against the Non-Settling Defendants. or any Claims the Company may have against Company Counsel.

 

X.                                   ATTORNEYS’ FEES AND EXPENSES; INDEMNIFICATION

 

A.            venBio’s counsel will apply to the Court for an award of reasonable attorneys’ fees and reimbursement of their litigation expenses incurred in connection with the venBio Action to be paid by the Company and/or its insurers (the “Attorneys’ Fee and Expense Award”).  Any attorneys’ fees and litigation expenses awarded to venBio’s counsel shall

 

49

 

be paid by the Company no later than five (5) Business Days after the Attorneys’ Fee and Expense Award, notwithstanding any objections thereto, potential for appeal therefrom, appeals that may be taken, or any collateral attack on the Settlement or the Attorneys’ Fee and Expense Award.  If the Settlement is terminated pursuant to the terms of this Stipulation, or if the Attorneys’ Fee and Expense Award is reversed or modified by court order and such order has become Final, the Attorneys’ Fee and Expense Award shall be promptly repaid in an amount consistent with such termination, reversal, or modification.

 

B.            The Company will pay the reasonable fees and expenses incurred by venBio’s counsel in connection with the Section 225 Action and the Federal Action within ten (10) Business Days of venBio’s or its counsel’s submission of invoices therefor to the Company.

 

C.            To the extent not covered by the Company’s insurance policies, the Company shall indemnify and reimburse Goldenberg, Sullivan, and Markison to the fullest extent permitted by law for any and all attorneys’ fees and expenses or other losses reasonably incurred by them in the Delaware Litigations.

 

D.            To the extent not covered by the Company’s insurance policies, Goldenberg and Sullivan shall be reimbursed and indemnified by the Company for reasonably incurred legal fees and expenses through execution of this Stipulation for all actions taken with respect to the

 

50

 

Delaware Litigations and the negotiation and documentation of this Stipulation.

 

E.                                     To the extent not covered by the Company’s insurance policies, the Company agrees to indemnify and hold harmless Goldenberg, Sullivan and Markison to the fullest extent permitted by law from (1) any and all Claims, including any Claims for contribution, by any party to the venBio Action, and (2) any third party claims brought by Company Counsel against any of them arising from any Company Preserved Claim brought by or on behalf of the Company against such Company Counsel, and the Company shall indemnify and advance all reasonable attorneys’ fees and expenses associated with such Claims and third party claims to the extent not covered by insurance.

 

F.                                      The indemnification agreements entered into between the Company and Goldenberg, Sullivan, and Markison on or about February 9, 2017, shall be terminated as of the Effective Date and shall not apply to acts or transactions or legal fees or expenses incurred after the Effective Date.  However, each of Goldenberg, Sullivan, and Markison shall retain and are not waiving hereby any of their rights to advancements and indemnification to the extent provided under the Company’s certificate of incorporation, its bylaws, the common law, Delaware General Corporation Law or otherwise for actions or omissions that occur (i) prior to any such individual’s resignation or termination as an officer or

 

51

 

employee and/or (ii) prior to the expiration or other termination of any director’s term of service as a director.

 

XI.                              MISCELLANEOUS PROVISIONS

 

A.                                    Exhibits.  All of the Exhibits attached hereto are material and integral parts hereof and shall be incorporated by reference as though fully set forth herein.

 

B.                                    Amendment or Modification.  This Stipulation may not be amended or modified, nor may any of its provisions be waived, except by a written instrument signed by the Settling Parties or their successors-in-interest (or their counsel).

 

C.                                    Headings.  The headings herein are used for the purpose of convenience only and are not meant to have legal effect.

 

D.                                    Agreement Not to Assert Bad Faith.  Each Settling Party agrees not to assert, whether or not for attribution, that any of the Delaware Litigations were brought, prosecuted or defended in bad faith or without a reasonable basis by any other Settling Party.

 

E.                                    Representations Regarding Settlement Negotiations.

 

i.                                          Each of the Settling Parties acknowledges and agrees that the terms of the Settlement reached between them were negotiated at arm’s-length and in good faith and reflect a settlement that was reached voluntarily, based upon adequate information and sufficient discovery, and after consultation with experienced legal counsel.

 

52

 

ii.                                       venBio represents and warrants that venBio is a stockholder of the Company and was a stockholder of the Company at all relevant times for purposes of maintaining standing in the venBio Action.

 

iii.                                    venBio represents that it has authority from the venBio Nominees to enter into the Releases on behalf of the venBio Nominees.

 

iv.                                   Each Settling Party represents and warrants that (1) none of the Released Claims has been assigned, encumbered, or in any manner transferred in whole or in part by such Settling Party or its counsel; and (2) neither such Settling Party nor its counsel will attempt to assign, encumber, or in any manner transfer, in whole or in part, any of the Released Claims.

 

F.                                     No Liability Concessions.  Each of the Settling Parties denies any and all allegations of wrongdoing, fault, liability, or damage in the Delaware Litigations.  This Stipulation is not a finding or evidence of the validity or invalidity of any claim or defense in the Delaware Litigations, any wrongdoing by any of the Settling Group, venBio, the venBio Nominees, or the Company or any damage or injury to any Settling Party.  Neither this Stipulation, nor any of the terms and provisions of this Stipulation, nor any of the negotiations or proceedings in connection therewith, nor any of the documents or statements referred to herein or therein, nor the Settlement, nor the fact of the Settlement, nor

 

53

 

the Settlement proceedings, nor any act or omission in connection with any of the foregoing:  (i) shall (a) be argued to be, used or construed as, offered, or received in evidence as, or otherwise constitute an admission, concession, presumption, proof, evidence, or a finding of any fact, liability, fault, wrongdoing, injury, or damages, or of any wrongful conduct, act, or omission on the part of any of the Released Settling Group Parties, the venBio Released Parties, or the Company Released Parties, or (b) otherwise be used to create or give rise to any finding, inference or presumption against any of the Released Settling Group Parties, the venBio Released Parties, or the Company Released Parties concerning any fact or any purported liability, fault, or wrongdoing or any injury or damage to any Person or entity, or (ii) shall otherwise be admissible, referred to or used in any proceeding of any nature, for any purpose whatsoever; provided, however, that this Stipulation and its exhibits may be introduced, referenced or otherwise used, subject to Rule 408 of the Federal Rules of Evidence, the Delaware Rules of Evidence, and any and all other state law corollaries thereto, whether in the Court or otherwise, as may be necessary to argue and establish that the Stipulation and Judgement have res judicata, collateral estoppel, or other issue or claim preclusion effect or to otherwise consummate or enforce the Settlement and Judgment or to secure any insurance rights or proceeds of any of the Released Settling Group Parties, the venBio Released Parties,

 

54

 

or the Company Released Parties or as otherwise required by law; provided further, however, that this Stipulation, the Settlement, the fact of the Settlement, and the Settlement Hearing may be introduced in any proceeding, whether in the Court or otherwise, arising out of or relating to Preserved Claims other than Arbitrable Claims; and provided further, that the exhibits to this Stipulation may be introduced, referenced or otherwise used in any proceeding, whether in the Court or otherwise, for purposes of enforcing their terms, and may also be introduced in the arbitration contemplated in Section III of this Stipulation.

 

G.                                   Extensions. Without further Order of the Court, the Settling Parties may agree to reasonable extensions of time to carry out any of the provisions of this Stipulation through written agreement signed by counsel for all Settling Parties.

 

H.                                   Confidentiality.  To the extent permitted by law, all agreements made and Orders entered during the course of or in the venBio Action or the Section 225 Action relating to the confidentiality of documents or information shall survive this Stipulation.

 

I.                                        Effect of Waiver.  The waiver by venBio, the Company, or the Settling Group of any breach of this Stipulation shall not be deemed a waiver of any other prior or subsequent breach of any provision of this Stipulation.  Any failure by any Settling Party to insist upon the strict performance by any other Settling Party of any of the provisions of this

 

55

 

Stipulation shall not be deemed a waiver of any of the provisions hereof, and such Settling Party, notwithstanding such failure, shall have the right thereafter to insist upon the strict performance of any and all provisions in this Stipulation by such other Settling Party.

 

J.                                      Entire Agreement.  This Stipulation and the Exhibits hereto constitute the entire agreement between the Settling Parties and supersede any other prior agreements among the Settling Parties with respect to the Settlement, including, without limitation, the Settlement Term Sheets.  No representation, warranty, or inducement has been made to or relied upon by any Settling Party concerning this Stipulation or its Exhibits, other than the representations, warranties, and covenants expressly set forth in such documents.

 

K.                                   Counterparts.  This Stipulation may be executed in one or more counterparts, including by facsimile and electronic mail.

 

L.                                    Best Efforts.  The Settling Parties and their respective counsel of record agree that they will use their reasonable best efforts to obtain all necessary approvals of the Court required by this Stipulation (including, but not limited to, using their reasonable best efforts to resolve any objections raised to the Settlement), and to promptly agree upon and execute all such other documentation as may be reasonably required to obtain final approval by the Court of the settlement of the venBio Action.

 

56

 

M.                                 Construction of Stipulation.  This Stipulation shall not be construed more strictly against one Settling Party than another merely by virtue of the fact that it, or any part of it, may have been prepared by counsel for one of the Settling Parties, it being recognized that this Stipulation is the result of arm’s-length negotiations between the Settling Parties, and all Settling Parties have contributed substantially and materially to its preparation.

 

N.                                    Authority.  This Stipulation will be executed by counsel to the Settling Parties, each of whom represents and warrants that he or she has been duly authorized and empowered to execute this Stipulation on behalf of such Settling Party, and that it shall be binding on such Settling Party in accordance with its terms.

 

O.                                   Successors.  This Stipulation is and shall be binding upon and shall inure to the benefit of the Settling Parties and the respective personal and legal representatives, heirs, executors, administrators, trustees, transferees, successors, and assigns of all such foregoing Persons and upon any corporation, partnership, limited liability company, or other Person into or with which any Settling Party may merge, consolidate, or reorganize, provided, however, that (i) no Settling Party shall assign or delegate its rights or responsibilities under this Stipulation without the prior written consent of the other Settling Parties, which consent shall not be unreasonably withheld, and (ii) any purported assignment not in

 

57

 

conformance with this Section XI(O) shall be null and void.

 

P.                                     Breach.  The Settling Parties agree that in the event of any breach of this Stipulation, all of the Settling Parties’ rights and remedies to enforce this Stipulation at law, equity or otherwise, are expressly reserved.  Remedies are cumulative and not exclusive.

 

Q.                                   Third Party Beneficiaries.  The venBio Released Parties, the Company Released Parties, and the Released Settling Group Parties are the only intended beneficiaries of this Stipulation and may enforce its terms.

 

R.                                    Governing Law.  This Stipulation, the Settlement, and any and all disputes arising out of or relating in any way to this Stipulation or the Settlement, whether in contract, tort or otherwise, shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to any otherwise applicable conflict of law principles.  Any action or proceeding to enforce any of the terms of the Stipulation or Settlement, or any other action or proceeding among the Settling Parties arising out of or relating in any way to this Stipulation or the Settlement, with the exception of the Arbitrable Claims governed by Article III, shall (i) be brought, heard, and determined exclusively in the Court, which shall retain jurisdiction over the Settling Parties and all such disputes (provided that, in the event that subject matter jurisdiction is unavailable in the Court, then any such action or proceeding shall be brought, heard

 

58

 

and determined exclusively in any other state or federal court sitting in Wilmington, Delaware) and (ii) shall not be litigated or otherwise pursued in any forum or venue other than the Court (or, if subject matter jurisdiction is unavailable in the Court, then in any forum or venue other than any other state or federal court sitting in Wilmington, Delaware).  Each Settling Party hereto (w) consents to personal jurisdiction in any such action (but in no other action) brought in the Court (or otherwise in Wilmington, Delaware); (x) consents to service of process by registered mail upon such party and/or such party’s agent; (y) waives any objection to venue in the Court and any claim that Delaware or this Court is an inconvenient forum; and (z) EXPRESSLY WAIVES ANY RIGHT TO DEMAND A JURY TRIAL AS TO ANY DISPUTE DESCRIBED IN THIS SECTION.

 

XII.                         LIST OF ALL EXHIBITS TO THIS STIPULATION

 

E.                                                                                     The following documents are Exhibits to this Stipulation:

 

F.                                                                                      Exhibit 1 — Individual Term Sheet

 

G.                                                                                    Exhibit 2 — Greenhill Term Sheet

 

H.                                                                                   Exhibit 3 — Sullivan Employment Agreement

 

I.                                                                                        Exhibit 4 — Form of Order and Partial Final Judgment to be entered approving the settlement of the venBio Action pursuant to Court of Chancery Rule 54(b)

 

J.                                                                                        Exhibit 5 — Form of Notice of Pendency and Proposed Partial Settlement of Stockholder Derivative Action, Settlement Hearing, and Right to Appear

 

K.                                                                                    Exhibit 6 — Form of Scheduling Order to be entered pursuant to Rule 23.1 of the Rules of the Court of Chancery

 

59

 

L.                                                                                     Exhibit 7 — Form of Federal Action Stipulation of Dismissal

 

M.                                                                                 Exhibit 8 — Form of Section 225 Action Stipulation of Dismissal

 

N.                                                                                    Exhibit 9 — Form of Goldenberg Intellectual Property Assignment Agreement

 

O.                                                                                    Exhibit 10 — Form of Sullivan Intellectual Property Assignment Agreement

 

P.                                                                                      Exhibit 11— RESERVED

 

Q.                                                                                    Exhibit 12 — Form of Sullivan Release

 

R.                                                                                    Exhibit 13 — List of Sullivan Options, PSUs and RSUs

 

S.                                                                                      Exhibit 14 — Goldenberg Employment Agreement, as amended

 

T.                                                                                     Exhibit 15 — Form of Goldenberg Release

 

U.                                                                                    Exhibit 16 — List of Goldenberg Options, PSUs and RSUs

 

V.                                                                                    Exhibit 17 — RESERVED

 

W.                                                                                 Exhibit 18 — Engagement letter dated September 23, 2016 between Greenhill & Co., LLC and the Company

 

X.                                                                                    Exhibit 19 — Engagement letter dated December 14, 2016 between and among Greenhill & Co., LLC, V&E, and the Company

 

Y.                                                                                    Exhibit 20 — Form of Escrow Agreement for Goldenberg and Sullivan Deferred Payments

 

Z.                                                                                     Exhibit 21 — Form of Escrow Agreement for Reimbursement of Arbitration Fees and Expenses

 

60

 

IN WITNESS WHEREOF, the Settling Parties hereto have caused this Stipulation to be executed by their duly authorized counsel, as of November 2, 2017.

 

	
OF COUNSEL:
    	
MORRIS,   NICHOLS, ARSHT & TUNNELL LLP
    
	
 
    	
 
    
	
SCHULTE   ROTH & ZABEL LLP
    	
/s/ David J.   Teklits
    
	
Michael E.   Swartz
    	
David J.   Teklits (#3221)
    
	
Abigail F.   Coster
    	
Kevin M.   Coen (#4775)
    
	
919 Third   Avenue
    	
Alexandra   M. Cumings (#6146)
    
	
New York,   New York 10022
    	
1201 N.   Market Street
    
	
(212)   756-2000
    	
P.O. Box   1347
    
	
 
    	
Wilmington,   Dawlare 19899
    
	
 
    	
(302)   658-9200
    
	
 
    	
 
    
	
 
    	
Attorneys for   venBio Select Advisor LLC
    
	
 
    	
 
    
	
 
    	
ABRAMS &   BAYLISS LLP
    
	
 
    	
 
    
	
 
    	
/s/ Sarah E. Delia
    
	
 
    	
A. Thompson   Bayliss (#4379)
    
	
 
    	
Sarah E.   Delia (#5833)
    
	
 
    	
Daniel J.   McBride (#6305)
    
	
 
    	
20 Montchanin   Rd., Ste. 200
    
	
 
    	
Wilmington,   Delaware 19807
    
	
 
    	
(302)   778-1000
    
	
 
    	
 
    
	
 
    	
Attorneys for   Immunomedics, Inc.
    

 

61

 

	
 
    	
MORRIS   JAMES LLP
    
	
 
    	
 
    
	
OF COUNSEL:
    	
/s/ Albert   H. Manwaring, IV
    
	
 
    	
P. Clarkson   Collins, Jr. (#739)
    
	
WILLIAMS &   CONNOLLY LLP
    	
Albert H.   Manwaring, IV (#4339)
    
	
Robert A.   Van Kirk
    	
Meghan A.   Adams (#4981)
    
	
Michael   Goldsticker
    	
500   Delaware Avenue, Suite 1500
    
	
725 Twelfth   Street, N.W.
    	
Wilmington,   Delaware 19801
    
	
Washington,   DC 20005
    	
(302)   888-6800
    
	
(202)   434-5000
    	
 
    
	
 
    	
Attorneys   for David M. Goldenberg and Cynthia L. Sullivan
    
	
 
    	
 
    
	
 
    	
DLA PIPER   LLP (US)
    
	
 
    	
 
    
	
 
    	
/s/ Ethan H.   Townsend
    
	
 
    	
John L.   Reed (#3023)
    
	
 
    	
Ethan H.   Townsend (#5813)
    
	
 
    	
Harrison S.   Carpenter (#018)
    
	
 
    	
1201 North   Market Street, Suite 2100
    
	
 
    	
Wilmington,   Delaware 19801
    
	
 
    	
(302)   468-5700
    
	
 
    	
 
    
	
 
    	
Attorneys for Brian   A. Markison
    
	
 
    	
 
    
	
 
    	
ROSS   ARONSTAM & MORITZ LLP
    
	
 
    	
 
    
	
OF COUNSEL:
    	
/s/ Garrett B.   Moritz
    
	
 
    	
Garrett B.   Moritz (#5646)
    
	
FRIED,   FRANK, HARRIS, SHRIVER & JACOBSON LLP
    	
Eric D. Selden   (#4911)
    
	
Scott B.   Luftglass
    	
100 S. West   Street, Suite 400
    
	
One New   York Plaza
    	
Wilmington,   Delaware 19801
    
	
New York,   New York 10004
    	
(302)   576-1600
    
	
 
    	
 
    
	
 
    	
Attorneys for   Greenhill & Co., Inc. and Greenhill & Co., LLC
    

 

62Exhibit 10.1

 

EXECUTION VERSION

 

VOTING AGREEMENT

 

This Agreement (this “Agreement”)
is made and entered into as of November 3, 2017, by and among Infrastructure and Energy Alternatives, LLC, a Delaware limited liability
company (“IEA”) and each of M III Sponsor I LLC, a Delaware limited liability company and M III Sponsor
I LP, a Delaware limited partnership (each a “Shareholder” and, together, the “Shareholders”).

 

RECITALS

 

A.           Concurrently
with the execution and delivery of this Agreement, IEA Energy Services LLC, a Delaware limited liability company (“IES”),
M III Acquisition Corp., a Delaware corporation (the “Buyer”), Wind Merger Sub I, Inc., a Delaware corporation
and a wholly owned subsidiary of the Buyer (“Merger Sub I”), Wind Merger Sub II, LLC, a Delaware limited liability
company and a wholly owned subsidiary of the Buyer (“Merger Sub II LLC”), IEA, Oaktree Power Opportunities Fund
III Delaware, L.P., a Delaware limited partnership, solely in its capacity as the representative of IEA, and, solely for purposes
of Section 10.3 thereof, and, to the extent related thereto, Article 12 thereof, the Shareholders, are entering into
an Agreement and Plan of Merger (as the same may be amended from time to time, the “Merger Agreement”) pursuant
to which, among other things, the Buyer, Merger Sub I, Merger Sub II LLC and IES will enter into a business combination transaction
pursuant to which Merger Sub I will merge with and into IES (the “First Merger”), with IES as the surviving
entity (the “First Surviving LLC”), and then immediately after the First Merger and as a part of an integrated
plan, the First Surviving LLC will merge with and into Merger Sub II LLC (the “Second Merger,” and together
with the First Merger, the “Mergers”), with Merger Sub II LLC as the surviving entity.

 

B.           The
Shareholders agree to enter into this Agreement with respect to (a) all common stock, par value $0.0001 per share, of Buyer
(the “Buyer Common Stock”) that the Shareholders own, beneficially (as defined in Rule 13d-3 under the Securities
Exchange Act) or of record, (b) any security convertible or exchangeable into Buyer Common Stock (together with Buyer Common
Stock, the “Subject Securities”), and (c) any additional shares of Subject Securities that such Shareholders
may hereinafter acquire.

 

C.           The
Shareholders are the beneficial or record owners, and have either sole or shared voting power over, such number of shares of Subject
Securities as are indicated opposite each of their names on Schedule A attached hereto.

 

D.           As
a condition and inducement to IEA’s willingness to enter into the Merger Agreement, IEA desires that the Shareholders agree,
and the Shareholders are willing to agree, on terms and conditions set forth herein, not to Transfer (as defined below) any of
their Subject Securities, and to vote all of their shares of Subject Securities in a manner so as to facilitate consummation of
the Mergers.

 

NOW, THEREFORE, in consideration
of the foregoing and the respective representations, warranties, covenants and agreements set forth below and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally
bound, do hereby agree as follows:

 

     

     

    

 

1.           Definitions.
Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Merger
Agreement. When used in this Agreement, the following terms in all of their tenses, cases and correlative forms shall have the
meanings assigned to them in this Section 1 or elsewhere in this Agreement.

 

“Expiration Time”
shall mean the earliest to occur of (a) the Effective Time, and (b) such date and time as the Merger Agreement shall
have been terminated validly in accordance with its terms.

 

“Transfer”
shall mean any direct or indirect offer, sale, assignment, Encumbrance, disposition, loan or other transfer (by operation of Law
or otherwise), either voluntary or involuntary, or entry into any contract, option or other arrangement or understanding with respect
to any offer, sale, assignment, Encumbrance, disposition, loan or other transfer (by operation of Law or otherwise), of any Subject
Securities or interest in any Subject Securities, excluding, for the avoidance of doubt, entry into this Agreement and the Merger
Agreement.

 

2.           Agreement
to Retain the Subject Securities.

 

2.1           No
Transfer of Subject Securities. From the date hereof until the Expiration Time, the Shareholders agree, with respect to any
Subject Securities currently or hereinafter beneficially owned or owned of record by the Shareholders, not to (a) Transfer
any such Subject Securities or (b) deposit any such Subject Securities into a voting trust or enter into a voting agreement
or arrangement with respect to such Subject Securities or grant any proxy or power of attorney with respect thereto; provided
that any Shareholder may Transfer any such Subject Securities to any Affiliate of such Shareholder if the transferee of such Subject
Securities evidences in a writing reasonably satisfactory to IEA such transferee’s agreement to be bound by and subject to
the terms and provisions hereof to the same effect as such transferring Shareholder.

 

2.2           Additional
Purchases. Each Shareholder agrees that any Subject Securities that such Shareholder purchases or otherwise hereinafter acquires
or with respect to which such Shareholder otherwise acquires sole or shared voting power after the execution of this Agreement
and prior to the Expiration Time (the “New Subject Securities”) shall be subject to the terms and conditions
of this Agreement to the same extent as if they constituted the Subject Securities set forth on Schedule A attached
hereto.

 

2.3           Unpermitted
Transfers. Any Transfer or attempted Transfer of any Subject Securities, including New Subject Securities, in violation of
this Section 2 shall, to the fullest extent permitted by Law, be null and void ab initio.

 

    	 	2	 

     

    

 

3.           Agreement
to Vote and Approve; No Redemption. Each Shareholder irrevocably and unconditionally agrees that, from and after the date hereof
until the Expiration Time (the “Voting Period”), at any meeting of the shareholders of the Buyer or any adjournment
thereof, or in connection with any action by written consent of the shareholders of the Buyer, such Shareholder shall: (a) appear
at each such meeting or otherwise cause all Subject Securities, including New Subject Securities, beneficially owned or owned of
record by such Shareholder to be counted as present thereat for purposes of calculating a quorum; and (b) vote (or cause to
be voted), in person or by proxy, or deliver a written consent (or cause a consent to be delivered) covering, the Subject Securities,
including New Subject Securities, beneficially owned or owned of record by such Shareholder, (i) in favor of the approval
of (A) the adoption of the Merger Agreement and the approval of the Mergers and the other transactions contemplated thereby,
(B) the issuance of the Buyer Common Shares and the Buyer Preferred Shares to IEA in accordance with the terms of the Merger
Agreement, (C) the election of directors effective as of the Closing, including the directors to which IEA or an Affiliate
thereof is entitled to designate pursuant to the Investor Rights Agreement, (D) the amendment and restatement of the Buyer
Charter in the form of the A&R Buyer Charter, (E) the adoption of the Certificate of Designation, (F) any proposal
to adjourn a meeting to solicit additional proxies in favor of the foregoing, and (G) any other proposals necessary or desirable
to consummate the Mergers and the other transactions contemplated by the Merger Agreement or the Ancillary Agreements (collectively,
the “Transaction Proposals”), (ii) against any Business Combination with any Person other than with IES,
and (iii) against any action that would be a breach of Buyer’s representations, warranties, covenants or agreements
in the Merger Agreement. For the avoidance of doubt, each Shareholder shall retain at all times the right to vote any Subject Securities,
including New Subject Securities, beneficially owned or owned of record by such Shareholder in such Shareholder’s sole discretion,
and without any other limitation, on any matters other than those explicitly set forth in this Section 3 that are at
any time or from time to time presented for consideration to Buyer’s shareholders. Each Shareholder irrevocably and unconditionally
agrees that, from and after the date hereof until the Expiration Time, such Shareholder shall not elect to cause the Buyer to redeem
any Subject Securities beneficially owned or owned of record by such Shareholder in connection with the Transaction Proposals.

 

4.           Representations
and Warranties of the Shareholders. Each Shareholder hereby represents and warrants to IEA as follows:

 

4.1           Authority;
Binding Obligation. Such Shareholder has all requisite organizational power and authority to execute, deliver and perform this
Agreement. The execution by such Shareholder of this Agreement and the performance of its obligations hereunder have been duly
and validly authorized by all required limited liability company or limited partnership, as applicable, action on the part of such
Shareholder, and no other proceedings on the part of such Shareholder are required to authorize this Agreement or to perform such
Shareholder’s obligations hereunder. This Agreement has been duly executed and delivered by such Shareholder and assuming
that this Agreement constitutes the legal, valid and binding obligation of the other parties thereto, constitutes the legal, valid
and binding obligation of such Shareholder, enforceable against such Shareholder in accordance with its terms, except to the extent
that the enforceability thereof may be limited by the Equitable Exceptions.

 

4.2           Ownership
of the Subject Securities. As of the date hereof, such Shareholder (a) is the beneficial or record owner of the shares
of Subject Securities indicated on Schedule A hereto opposite such Shareholder’s name, free and clear of any
and all Encumbrances, other than those created by this Agreement or as disclosed on Schedule A, and (b) has sole
voting power over all of the shares of Subject Securities beneficially owned or owned of record by such Shareholder. As of the
date hereof, such Shareholder does not own, beneficially or of record, any capital stock or other securities of the Buyer other
than the shares of Subject Securities set forth on Schedule A opposite the Shareholder’s name. As of the date
hereof, such Shareholder does not own, beneficially or of record, any rights to purchase or acquire any shares of capital stock
or other securities of the Buyer except as set forth on Schedule A opposite such Shareholder’s name.

 

    	 	3	 

     

    

 

4.3           No
Inconsistent Agreement. As of the date hereof, except for that certain letter agreement, dated July 7, 2016, between Buyer,
the Shareholders, Cantor Fitzgerald & Co., Mohsin Y. Meghji, Osbert Hood, Philip Marber, Suleman E. Lunat, Brian Griffith and
Andrew L. Farkas with respect to certain shares of Buyer Common Stock held by each of them, such Shareholder (a) has not entered
into any voting agreement, voting trust or similar agreement (other than this Agreement) with respect to any of the Subject Securities
indicated on Schedule A hereto opposite such Shareholder’s name, (b) has not granted a proxy, consent or power
of attorney with respect to any such Subject Securities, and (c) has not taken any action that would reasonably be expected
to constitute a breach hereof, make any representation or warranty of such Shareholder contained herein untrue or incorrect or
have the effect of preventing or disabling such Shareholder from performing any of its obligations under this Agreement.

 

4.4           No
Defaults or Conflicts. Neither the execution and delivery of this Agreement, or the performance by such Shareholder of its
obligations hereunder (a) results in any violation of the applicable organizational documents of such Shareholder, (b) conflicts
with, or results in a breach of any of the terms or provisions of, or constitutes a default under any material agreement or instrument
to which such Shareholder is a party or by which it is bound or to which the Subject Securities owned of record or beneficially
by such Shareholder is subject; or (c) violates any existing applicable Law, judgment, order or decree of any Governmental
Authority having jurisdiction over such Shareholder or the Subject Securities owned of record or beneficially by such Shareholder.

 

4.5           No
Governmental or other Authorization Required; Consents. Except for filings with the SEC under the Exchange Act and such other
reports under, and such other compliance with, the Exchange Act as may be required in connection with this Agreement, no authorization
or approval or other action by, and no notice to or filing with, any Governmental Authority or any other Person will be required
to be obtained or made by such Shareholder in connection with the due execution, delivery and performance by such Shareholder of
this Agreement.

 

4.6           Litigation.
As of the date of this Agreement, there are no Actions pending or, to the knowledge of such Shareholder, threatened against such
Shareholder, before any Governmental Authority that would prevent, impair or delay such Shareholder from performing its obligations
hereunder.

 

5.           Representations
and Warranties of IEA. IEA hereby represents and warrants to each Shareholder as follows:

 

5.1           Authority;
Binding Obligation. IEA has all requisite organizational power and authority to execute, deliver and perform this Agreement.
The execution by IEA of this Agreement and the performance of its obligations hereunder have been duly and validly authorized by
all required limited liability company action on the part of IEA, and no other proceedings on the part of IEA are required to authorize
this Agreement or to perform IEA’s obligations hereunder. This Agreement has been duly executed and delivered by IEA and
assuming that this Agreement constitutes the legal, valid and binding obligation of the other parties thereto, constitutes the
legal, valid and binding obligation of IEA enforceable against IEA in accordance with its terms, except to the extent that the
enforceability thereof may be limited by the Equitable Exceptions.

 

    	 	4	 

     

    

 

5.2           No
Defaults or Conflicts. Neither the execution and delivery of this Agreement or the performance by IEA of its obligations hereunder
(a) results in any violation of the applicable organizational documents of IEA, (b) conflicts with, or results in a breach
of any of the terms or provisions of, or constitutes a default under any material agreement or instrument to which IEA is
a party, or (c) violates any existing applicable Law, judgment, order or decree of any Governmental Authority having jurisdiction
over IEA.

 

6.           Exclusivity.
During the period from the date of the Merger Agreement to the Expiration Time, no Shareholder shall take, nor shall any Shareholder
permit any of their respective Affiliates or Representatives to take, whether directly or indirectly, any action to solicit, initiate,
continue or engage in discussions or negotiations with, or enter into any agreement with, or encourage, respond, provide information
to or commence or continue due diligence with respect to, any Person concerning, relating to or which is intended or is reasonably
likely to give rise to or result in, any Business Combination Proposal other than with IES, IEA and their respective Affiliates
and Representatives. Each Shareholder shall, and each shall cause its respective Affiliates and Representatives to, immediately
cease any and all existing discussions or negotiations with any Person conducted prior to the date hereof with respect to, or which
is reasonably likely to give rise to or result in, a Business Combination Proposal. During the period from the date of the Merger
Agreement to the earlier of the Closing Date and the termination of the Merger Agreement in accordance with Article 10 thereto,
if any Shareholder or any of their respective Affiliates or any of their respective Representatives receives any inquiry or proposal
with respect to a Business Combination Proposal, then such Shareholder shall promptly (and in no event later than 24 hours after
such Shareholder becomes aware of such inquiry or proposal) advise IEA orally and in writing of such inquiry or proposal (including
the identity of the Person making such inquiry or submitting such proposal, and the terms thereof) and shall not respond to any
such inquiry or proposal.

 

7.           Termination.
This Agreement shall terminate and shall have no further force or effect immediately as of and following the Expiration Time; provided,
however, that the provisions of Section 12 shall survive any termination of this Agreement. Notwithstanding
anything else contained herein, such termination shall not relieve any party from liability for any breach of this Agreement by
the party prior to such termination.

 

8.           Notice
of Certain Events.

 

8.1           Notices
to IEA. Each Shareholder shall notify IEA promptly of (a) any fact, event or circumstance that has caused, or reasonably
be expected to cause or constitute, a breach in any material respect of the representations and warranties of such Shareholder
under this Agreement, or (b) the receipt by such Shareholder of any notice or other communication from any Person alleging
that the consent of such Person is or may be required in connection with this Agreement; provided, however, that
the delivery of any notice pursuant to this Section 8.1 shall not limit or otherwise affect the remedies available
to IEA.

 

    	 	5	 

     

    

 

8.2           Notices
to Shareholders. IEA shall notify each Shareholder promptly of (a) any fact, event or circumstance that has caused, or
reasonably be expected to cause or constitute, a breach in any material respect of the representations and warranties of IEA under
this Agreement, or (b) the receipt by IEA of any notice or other communication from any Person alleging that the consent of
such Person is or may be required in connection with this Agreement; provided, however, that the delivery of any
notice pursuant to this Section 8.2 shall not limit or otherwise affect the remedies available to each Shareholder.

 

9.           Capacity;
Fiduciary Duties. Notwithstanding anything in this Agreement to the contrary, but without limitation of any obligations under
the Merger Agreement, (a) each Shareholder is entering into this Agreement solely in its capacity as the record holder or
beneficial owner of shares of Subject Securities and not, if applicable, in such Shareholder’s (or any Affiliate of such
Shareholder’s) capacity as an officer or director of the Buyer, and (b) nothing herein will be construed to limit or
affect any action or inaction by any Shareholder or any representative of any Shareholder, as applicable, serving on the board
of directors of the Buyer or any Subsidiary or as an officer or fiduciary of the Buyer or any Subsidiary of the Buyer acting in
such Person’s capacity as a director, officer, employee or fiduciary of the Buyer or any Subsidiary of the Buyer.

 

10.          No
Partnership, Agency or Joint Venture. This Agreement is intended to create a contractual relationship between each Shareholder
and IEA and is not intended to create, and does not create, any agency, partnership, joint venture or any like relationship between
the parties hereto.

 

11.          No
Ownership Interest. Nothing contained in this Agreement shall be deemed to vest in IEA any direct or indirect ownership or
incidence of ownership of or with respect to any Shareholder’s shares of Subject Securities. All rights, ownership and economic
benefits of and relating to any such Shareholder’s shares of Subject Securities shall remain vested in and belong to such
Shareholder. Nothing in this Agreement shall be interpreted as creating or forming a “group” with any other Person,
including with IEA, for the purposes of Rule 13d-5(b)(1) of the Exchange Act or for any other similar provision of applicable law.

 

12.          Miscellaneous.

 

12.1         Severability.
If any term, provision, agreement, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be
invalid, void or unenforceable, the remainder of the terms, provisions, agreements, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal
substance of the obligations contemplated hereby is not affected in any manner materially adverse to any party hereto. Upon such
a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the
parties as closely as possible in a reasonably acceptable manner so that the obligations contemplated hereby may be consummated
as originally contemplated to the fullest extent possible.

 

    	 	6	 

     

    

 

12.2         Binding
Effect and Assignment. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their
permitted successors and assigns. No party to this Agreement may assign or delegate, by operation of law or otherwise, all or any
portion of its rights, obligations or liabilities under this Agreement without the prior written consent of the other parties to
this Agreement. Any purported assignment in violation of this Section 12.2 shall be void.

 

12.3         Amendment.
This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties hereto.

 

12.4         Specific
Performance; Injunctive Relief. The parties agree that irreparable damage would occur in the event that the parties hereto
do not perform the provisions of this Agreement in accordance with its terms or otherwise breach such provisions. Accordingly,
the parties acknowledge and agree that the parties shall be entitled to an injunction, specific performance and other equitable
relief to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof, this being in addition
to any other remedy to which they are entitled at law or in equity. Each of the parties agrees that it will not oppose the granting
of an injunction, specific performance or other equitable relief on the basis that the other parties have an adequate remedy at
law or an award of specific performance is not an appropriate remedy for any reason at law or equity. Any party seeking an injunction
or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement shall
not be required to provide any bond or other security in connection with any such order or injunction.

 

12.5         Notices.
Any notice or other communication required or permitted under this Agreement shall be deemed to have been duly given and made if
(a) in writing and served by personal delivery upon the party for whom it is intended, (b) delivered by facsimile or
electronic mail with receipt confirmed (including by receipt of confirmatory electronic mail from recipient), or (c) delivered
by certified mail, registered mail, courier service, return-receipt received to the party at the address set forth below, with
copies sent to the Persons indicated:

 

		(a)	if to IEA, to

 

Infrastructure and Energy Alternatives,
LLC

c/o GFI Energy Group of Oaktree Capital Management, L.P.

11611 San Vicente Boulevard, Suite 710

Los Angeles, CA 90049

Attention: Ian Schapiro

   Peter Jonna

Fax: (310) 442-0540

Email: ischapiro@oaktreecapital.com

    pjonna@oaktreecapital.com

 

with a copy to (which shall not constitute notice):

 

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

 

    	 	7	 

     

    

 

New York, New York 10019-6064

Attention: Kenneth M. Schneider

   Ellen N. Ching

Facsimile: (212) 757-3990

Email: kschneider@paulweiss.com

   eching@paulweiss.com

 

		(b)	if to any Shareholder, to

 

c/o M-III Partners, L.P.

3 Columbus Circle

New York, New York 10019

Attention: Mohsin Y. Meghji

Facsimile: (212) 531-4532

Email: mmeghji@miiipartners.com

 

with a copy to (which shall not constitute notice):

 

Kirkland & Ellis LLP

300 North LaSalle

Chicago, Illinois 60654

Attention: Richard J. Campbell, P.C.

   Carol Anne Huff

   Facsimile: (312) 862-2200

Email: richard.campbell@kirkland.com

    chuff@kirkland.com

 

- and -

 

M-III Partners, LP

3 Columbus Circle

New York, New York 10019

Attention: Charles Garner

Facsimile: (212) 531-4532

Email: cgarner@miiipartners.com

 

12.6         Governing
Law and Jurisdiction. This Agreement and any claim or controversy hereunder shall be governed by and construed in accordance
with the Laws of the State of Delaware without giving effect to the principles of conflict of laws thereof.

 

12.7         Consent
to Jurisdiction and Service of Process. Any legal action, suit or proceeding arising out of or relating to this Agreement may
only be instituted in any state or federal court in the State of Delaware, and each party waives any objection which such party
may now or hereafter have to the laying of the venue of any such action, suit or proceeding, and irrevocably submits to the jurisdiction
of any such court in any such action, suit or proceeding.

 

    	 	8	 

     

    

 

12.8         WAIVER
OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT (WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 12.8.

 

12.9         Entire
Agreement. This Agreement (including Schedule A attached hereto (which is deemed for all purposes to be part of this
Agreement)) and the Merger Agreement contain all of the terms, conditions and representations and warranties agreed upon or made
by the parties relating to the subject matter of this Agreement and supersedes all prior and contemporaneous agreements, negotiations,
correspondence, undertakings and communications of the parties or their Representatives, oral or written, respecting such subject
matter.

 

12.10         Waiver.
Waiver of any term or condition of this Agreement by any party shall only be effective if in writing, and shall not be construed
as a waiver of any subsequent breach or failure of the same term or condition, or a waiver of any other term or condition of this
Agreement.

 

12.11         Counterparts.
This Agreement may be signed in any number of counterparts with the same effect as if the signatures to each counterpart were upon
a single instrument, and all such counterparts together shall be deemed an original of this Agreement. Facsimile signatures or
signatures received as a pdf attachment to electronic mail shall be treated as original signatures for all purposes of this Agreement.

 

12.12         Headings.
The headings contained in this Agreement are intended solely for convenience and shall not affect the rights of the parties to
this Agreement.

 

12.13         Interpretation.
The parties have participated in the drafting and negotiation of this Agreement and if an ambiguity or question of interpretation
should arise, this Agreement shall be construed as if drafted jointly by the parties thereto and no presumption of burden of proof
shall arise favoring or burdening either party by virtue of the authorship of any provision in this Agreement.

 

12.14         Further
Assurances. From the date hereof until the Expiration Time, , each of the parties hereto shall execute such documents and perform
such further acts as may be reasonably required to carry out the provisions hereof and the actions contemplated hereby.

 

    	 	9	 

     

    

 

12.15         Expenses.
Except as set forth in the Merger Agreement, all costs and expenses incurred in connection with this Agreement shall be paid by
the party incurring such costs and expenses.

 

[Signature page follows]

 

    	 	10	 

     

    

 

IN WITNESS WHEREOF, the parties
hereto have executed and delivered this Agreement as of the date first above written.

 

	 	IEA:
	 	 
	 	INFRASTRUCTURE AND ENERGY ALTERNATIVES, LLC
	 	 	 
	 	By:	/s/ John P. Roehm
	 	 	Name: John. P. Roehm
	 	 	Title: President

 

[Signature Page to
Voting Agreement]

 

     

     

    

 

	 	SHAREHOLDERS:
	 	 
	 	M III SPONSOR I LLC,
	 	 	 
	 	By:	Mohsin Y. Meghji
	 	 	Name: Mohsin Y. Meghji
	 	 	Title: Managing Member
	 	 	 
	 	M III SPONSOR I LP
	 	 	 
	 	By: M III Acquisition Partners I Corp.
	 	Its: General Partner
	 	 	 
	 	By:	Mohsin Y. Meghji
	 	 	Name: Mohsin Y. Meghji
	 	 	Title: Chief Executive Officer

 

[Signature Page to Voting
Agreement]

 

     

     

    

 

SCHEDULE A

 

	Name	 	Address for Notice	 	Common Stock	 	 	Warrants	 
	M III Sponsor I LLC	 	c/o M-III Partners, 3 Columbus Circle, 15th Floor, New York, New York, 10019	 	 	3,777,475	 	 	 	290,000	 
	M III Sponsor I LP	 	c/o M-III Partners, 3 Columbus Circle, 15th Floor, New York, New York, 10019	 	 	272,525	 	 	 	50,000	 
	TOTAL	 	 	 	 	4,050,000	 	 	 	340,000

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