Document:

Exhibit

Exhibit 10.23
MUTUAL RELEASE AGREEMENT
THIS MUTUAL RELEASE AGREEMENT (the “Agreement”) is made as of February 11, 2018 (the “Signing Date”) by and between Axovant Sciences, Inc. (“Axovant”),  Roivant Sciences, Inc. (“Roivant”) and David Hung (“Hung”) (collectively, the “Parties”).
RECITALS
WHEREAS, Roivant is an Affiliate of, and under common control with, Axovant (with the term “Affiliate” having the meaning given it in Rule 405 of the U.S. Securities and Exchange Commission); 
WHEREAS, Hung has been employed by Axovant as Axovant’s President and Chief Executive Officer pursuant to that certain Employment Agreement dated as of April 7, 2017 between Hung and Axovant (the “Employment Agreement”);
WHEREAS, Hung has served as an Advisor to Roivant pursuant to that certain Advisor Agreement dated as of June 1, 2017 between Hung and Roivant (the “Advisor Agreement”); and 
WHEREAS, Hung’s last day of employment with Axovant will be February 11, 2018 (the “Separation Date”) pursuant to that certain Separation Agreement dated the Signing Date between Hung and Axovant (the “Separation Agreement”); 
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the Parties hereby covenant and agree as follows effective as of the Separation Date:
AGREEMENT
1.         TERMINATION OF ADVISOR AGREMENT AND EMPLOYMENT AGREEMENT.   Each of Roivant and Hung acknowledges and agrees that the Advisor Agreement terminated by its terms as of the Separation Date.  Each of Roivant, Axovant and Hung acknowledges and agrees that the Employment Agreement shall be terminated, effective as of the Hung Release Effective Date (as such term is defined below).

2.         MUTUAL RELEASE OF CLAIMS.

          (a)        Hung Release of Claims.  Hung hereby generally and completely releases Axovant and Roivant, along with each of their parents, subsidiaries, successors, predecessors, Affiliates, officers, directors, agents, servants, employees, attorneys, shareholders, insurers and assigns (collectively, the “Hung Released Parties”), of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorney’s fees, damages, indemnities and obligations of every kind and nature, in law, equity or otherwise, known and unknown, suspected and unsuspected, arising out of or in any way related to agreements, events, acts or conduct at any time prior to and including the Signing Date (the “Hung Released Claims”). The Hung Released Claims include, without limitation: (i) all claims directly or indirectly arising from Hung’s employment with Axovant or the termination of that employment relationship, Hung’s advisor relationship with Roivant or the termination of that advisory relationship, or Hung’s relationships with any of the Released Parties stemming from Hung’s employment or advisory role as applicable or the termination of such relationships; (ii) claims or demands related to salary, bonuses, fees, retirement contributions, profit-sharing rights, incentive compensation, stock, stock options or any other ownership or equity interests with respect to the Hung Released Parties, or any other form of compensation or benefit; and (iii) claims pursuant to any federal, state or local law, statute or cause of action in any jurisdiction related to Hung’s employment by Axovant or Hung’s independent contractor services for Roivant, including, without limitation, the federal Civil Rights Act of 1964, the federal Americans with Disabilities Act of 1990, tort law, contract law, wrongful discharge, discrimination, harassment, fraud, defamation, emotional distress and breach of the implied covenant of good faith and fair dealing.  

              (b)         ADEA Waiver.  Hung also specifically acknowledges that Hung is  knowingly and voluntarily waiving and releasing any rights Hung may have under ADEA; and that the consideration given under this Agreement and the Separation Agreement for this waiver and release is in addition to anything of value to which Hung is already entitled.  Hung further acknowledges that Hung has been advised by this writing, as required by the ADEA, that: (i) Hung’s waiver and release do not apply to any rights or claims that may arise on or after the date Hung executes this Agreement; (ii) Hung should consult with an attorney prior to executing this Agreement (although Hung may choose voluntarily not to do so); (iii) Hung has twenty-one (21) days to consider this Agreement (although Hung may choose voluntarily to execute it earlier); (iv) Hung has seven (7) days following the date Hung signs this Agreement to revoke Hung’s acceptance of it (by written revocation notice to the Chief Financial Officer of Axovant received within the 7-day revocation period); and (v) this Agreement shall not be effective until the eighth day after Hung has signed it, provided that the revocation period has expired unexercised (the “Hung Release Effective Date”).

            (c)       Notwithstanding any of the foregoing or any other agreement, Hung is not hereby releasing any of the following claims (the “Excluded Claims”): (i) any rights or claims for indemnification or insurance (including, but not limited to, directors and officers insurance) Hung may have pursuant to the charter, bylaws or operating agreements of the Hung Released Parties, or under applicable law; (ii) any rights that are not waivable as a matter of law; (iii) any vested compensation, equity or benefits rights under the Employment Agreement, the Advisor Agreement, any equity plans of the Hung Released Parties, any option grant notices or award agreements, or other equity award agreements and retirement plans (the “Compensation Arrangements”); (iv) any claims arising under the Compensation Arrangements after the Separation Date; (vii) any claims arising under this Agreement, the Separation Agreement or the Advisor Agreement (or any agreements referenced therein, to the extent such agreements survive following the Signing Date); or (viii) any claims arising after the Signing Date, including without limitation any claims for breach of this Agreement.  Hung hereby represents and warrants that, other than the Excluded Claims, Hung is not aware of any claims that Hung has or may have against any of the Hung Released Parties that are not included in the Hung Released Claims.

            (d)      Axovant and Roivant Released Claims.  Axovant and Roivant each hereby generally and completely release Hung of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorney’s fees, damages, indemnities and obligations of every kind and nature, in law, equity or otherwise, known and unknown, suspected and unsuspected, arising out of or in any way related to agreements, events, acts or conduct at any time prior to and including the Signing Date; provided, however, that this release shall not extend to: (i) any claims arising after the Signing Date, including without limitation any claims for breach of this Agreement; (ii) any claims arising under this Agreement, the Separation Agreement or the Advisor Agreement (or any agreements referenced therein, to the extent such agreements survive following the Signing Date); or (iii) any rights that are not waivable as a matter of law.

3.       MUTUAL NON-DISPARAGEMENT.  Effective as of the Hung Release Effective Date, so long as Roivant and Axovant have executed this Agreement:  (a) Hung agrees not to disparage any of (i) Axovant, Axovant Sciences Ltd., Roivant, Roivant Sciences Ltd., (ii) any person known to Hung to be a member of the board of directors, officer or employee of any of the foregoing entities, or (iii) any entity known to Hung to be a controlled Affiliate of any of the foregoing entities in any manner reasonably expected to be harmful in any material respect to its or their business, business reputation or personal reputation; and (b) in turn, each of Axovant and Roivant agrees that none of (i) Axovant, Axovant Sciences Ltd., Roivant, Roivant Sciences Ltd., (ii) any of the members of their respective boards of directors, (iii) any of their respective officers, or (iv) any of their respective controlled Affiliates shall disparage Hung in any manner reasonably expected to be harmful in any material respect to Hung, his business reputation or his personal reputation.  Notwithstanding the foregoing, nothing herein shall prevent (i) Hung, Axovant or Roivant from engaging in any other lawful communications reasonably necessary or advisable to implement this Agreement or to enforce any rights or obligations under the Separation Agreement or the Advisor Agreement, as applicable, or (ii) any person or entity from responding truthfully, accurately and fully to any question, inquiry or request for information when required by legal process or in connection with any government agency or governmental commission investigation or proceeding.  In addition, nothing in this Agreement shall limit Hung’s right to discuss his employment by Axovant with the Equal Employment Opportunity Commission, other federal government agency or similar state or local agency or to discuss the terms and conditions of his employment by Axovant with others to the extent expressly permitted by Section 7 of the National Labor Relations Act.  For avoidance of doubt, the Parties specifically understand and agree that this mutual non-disparagement obligation continues after the Hung Release Effective Date.

4.         COVENANT NOT TO SUE.  Each of the Parties agrees and covenants not to sue or to assert claims against any person or entity released in this Agreement for any claim released in this Agreement.

5.         ARBITRATION.  To aid in the rapid and economical resolution of any disputes that may arise under or related to this Agreement, the Parties agree that any and all disputes, claims, or demands in any way arising from or relating to the terms of this Agreement and its execution, performance, breach or termination (including but not limited to statutory, contractual, constitutional, or common law claims) shall be resolved, to the fullest extent permitted by law, by final, binding and confidential arbitration in New York, New York in accordance with the Dispute Resolution provisions set forth in the Separation Agreement. The Parties acknowledge that by agreeing to this arbitration procedure, they waive the right to resolve any such dispute, claim or demand through a trial by jury or judge or by administrative proceeding.  

6.        RELIEF FOR BREACH.  The Parties’ obligations under this Agreement are of a unique character that gives them particular value; breach of any of such obligations may result in irreparable and continuing damage to Axovant,  Roivant or Hung, as applicable, for which there will be no adequate remedy at law; and, in the event of such breach, Axovant,  Roivant or Hung, as applicable, may be entitled to injunctive relief and/or a decree for specific performance, and such other and further relief as may be proper (including monetary damages if appropriate, to the extent determined by the arbitrator in accordance with Section 5 above). In addition, in the event it is finally determined pursuant to the arbitration provisions above, that any Party has materially breached any of their respective obligations set forth in this Agreement, then such Party shall immediately waive any rights to receive any further benefits under this Agreement, the Separation Agreement and/or the Advisor Agreement, to the extent applicable; and if the breaching Party is (i) Hung, then Axovant shall be entitled to recover from Hung all amounts paid to Hung under the Separation Agreement and, Roivant may immediately terminate the Advisor Agreement and the Option Award (as such term is defined in the Advisor Agreement) pursuant to the terms of the Option Award (as such term is defined in the Advisor Agreement)shall immediately expire and/or (ii) Roivant and/or Axovant, then, pursuant to the terms of the Advisor Agreement and Option Award (as such term is defined in the Advisor Agreement), the options granted in the Option Award (as such term is defined in the Advisor Agreement) shall (to the extent not previously vested) become immediately fully vested and the Advisor Agreement shall immediately terminate and be of no further force and effect; and Hung shall be immediately released from all obligations under the Separation Agreement (and all agreements referenced therein).  

7.     MISCELLANEOUS.  This Agreement (along with any agreements referenced herein (and any agreements referenced in such agreements), to the extent the same shall survive execution of this Agreement) constitutes the complete, exclusive, and final embodiment of the entire agreement between the Parties relating to the subject matter hereof and supersedes all prior or contemporaneous oral or written agreements or representations concerning such subject matter.  It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises or representations.  This Agreement may only be changed or amended by mutual written agreement of authorized representatives of the Parties.  This Agreement will bind the heirs, personal representatives, successors and assigns of each Party, and inure to the benefit of the Parties, and their respective heirs, personal representatives, successors and assigns.  The failure to enforce any breach of this Agreement shall not be deemed to be a waiver of any other or subsequent breach.  For purposes of construing this Agreement, any ambiguities shall not be construed against either party as the drafter.  If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the provision in question will be modified so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as possible.  This Agreement will be deemed to have been entered into and will be construed and enforced in accordance with the laws of the State of New York.  This Agreement may be executed in counterparts that shall be deemed to be part of one original, and facsimile, .PDF and electronic signatures shall be equivalent to original signatures.

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SIGNATURES ON NEXT PAGE.]

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first written above.

ROIVANT SCIENCES, INC.
	
		
	By:
	/s/ Allen Waxman

	Name:
	Allen Waxman 

	Title:
	General Counsel

AXOVANT SCIENCES, INC.

	
		
	By:
	/s/ Stephen Mohr

	Name:
	Stephen Mohr

	Title:
	General Counsel

DAVID HUNG

                        
	
		
	/s/ David HungExhibit

Exhibit 10.24

AXOVANT SCIENCES, INC.
EMPLOYMENT AGREEMENT
This Employment Agreement (this “Agreement”) is entered into as of February 13, 2018, by and between Pavan Cheruvu (the “Executive”) and Axovant Sciences, Inc. (the “Company”).  
RECITALS
A.    The Company desires the association and services of the Executive and his skills, abilities, background and knowledge, and is willing to engage the Executive’s services on the terms and conditions set forth in this Agreement.
B.    The Executive desires to be in the employ of the Company, and is willing to accept such employment on the terms and conditions set forth in this Agreement.
C.    This Agreement supersedes any and all prior and contemporaneous oral or written employment agreements or arrangements between the Executive and the Company or any predecessor thereof.

AGREEMENT
In consideration of the foregoing, the parties agree as follows:
1.EMPLOYMENT BY THE COMPANY.

1.1          Position; Duties.  Subject to the terms and conditions of this Agreement, the Executive shall hold the position of Chief Executive Officer.  In this position, the Executive will have the duties and authorities normally associated with a chief executive officer of a company.  The Executive will report to, and be subject to the direction of, the Board of Directors of the Company (the “Board”). The Executive shall devote the Executive’s full business energies, interest, abilities and productive time to the proper and efficient performance of the Executive’s duties under this Agreement; provided, however, that the Executive may devote reasonable periods of time to (a) serving on the board of directors of other corporations subject to the prior approval of the Board, and (b) engaging in charitable or community service activities, so long as none of the foregoing additional activities materially interfere with the Executive’s duties under this Agreement.  

 
1.2       Service to Affiliates. It is understood and agreed that the Executive’s duties may include providing services to or for the benefit of the Company’s affiliates, including, but not limited to, Axovant Sciences, Ltd. (the “Parent”), provided, that the Executive agrees that he will not provide any services from within the United States for the Parent or any affiliate of the Parent that is organized in a jurisdiction outside the United States. The Executive will not become an employee of the Parent, and the Executive’s activities in respect of services to the Parent shall be strictly ministerial and shall not involve conducting any of the Parent’s business activities from within the United States, including day-to-day management or other operational activities of the Parent.  With respect to the foregoing, at all times while employed hereunder, the Executive shall also be the Principal Executive Officer, as defined under Section 16a-1(f) of the Exchange Act, of Axovant Sciences Ltd. (“ASL”) (the “ASL PEO”), but for the avoidance of doubt Executive will not become an employee of ASL.

1.3       Location of Employment. The Executive’s principal place of employment shall be the Company’s offices located in New York, NY. The Executive understands that his duties may require periodic business travel, including but not limited to travel to the United Kingdom for ASL Board meetings and to Basel, Switzerland for Axovant Sciences GmbH business. 

1.4       Policies and Procedures.  The employment relationship between the parties shall be governed by this Agreement and by the policies and practices established by the Company and/or its Board.  In the event that the terms of this Agreement differ from or are in conflict with the Company’s policies or practices, this Agreement shall govern and control.

1.5            Exclusive Employment; Agreement not to Participate in Company’s Competitors.  Subject to Section 1.1 and 1.2 above, except with the prior written consent of the Board, the Executive will not during his employment with the Company undertake or engage in any other employment, occupation or business enterprise.  During the Executive’s employment, the Executive agrees not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known by the Executive to be adverse or antagonistic to the Company, its business, or prospects, financial or otherwise, or in any company, person, or entity that is, directly or indirectly, in competition with the business of the Company. Ownership by the Executive in professionally managed funds over which the Executive does not have control or discretion in investment decisions, or, an investment of less than two percent (2%) of the outstanding shares of capital stock of any corporation with one or more classes of its capital stock listed on a national securities exchange or publicly traded on a national securities exchange or in the over-the-counter market shall not constitute a breach of this Section.

1.6     Start Date.  The Executive’s employment with the Company shall commence on February 11, 2018 (the “Start Date”). 

2.AT-WILL EMPLOYMENT. 

The Executive’s employment relationship with the Company is, and shall at all times remain, at-will. This means that either the Executive or the Company may terminate the employment relationship at any time,  with or without Cause (as defined below) or advance notice; provided, however, however, the Executive must provide the Company at least three (3) months’ advance written notice of the Executive’s intention to resign from employment (except for a resignation for Good Reason, in which case such procedure shall be governed by the terms set forth in the definition of Good Reason) and the Company shall provide the Executive written notice in the event of a termination of the Executive’s employment by the Company without Cause. 

		
	3.
	COMPENSATION AND BENEFITS.

3.1         Salary. The Company shall pay the Executive a base salary at the annualized rate of $500,000 (the “Base Salary”), less payroll deductions and all required withholdings, payable in regular periodic payments in accordance with the Company’s normal payroll practices.  The Base Salary shall be prorated for any partial year of employment on the basis of a 365-day year.  The Base Salary shall be subject to periodic review and may be adjusted from time to time in the Board’s discretion.  

3.2       Annual Performance Bonus.  Each fiscal year, starting with the fiscal year ending in March 31, 2019, the Executive will be eligible to earn an annual discretionary cash bonus (the “Annual Performance Bonus”) with a target bonus opportunity equal to 60% of the Executive’s Base Salary, based on the Board’s assessment of both the Executive’s individual performance and overall Company performance.  For the avoidance doubt, the Executive will not be eligible for a bonus or any pro-rated amount for the fiscal year ending March 31, 2018.  In order to earn and receive the Annual Performance Bonus, the Executive must remain employed by the Company through and including the last day of the applicable fiscal year, which will be on March 31st of the year following the year for which the Annual Performance Bonus relates.  The Annual Performance Bonus, if any, will be paid no later than thirty (30) days following the end of the Company’s fiscal year or by April 30th.  The Annual Performance Bonus payable, if any, shall be prorated for the initial year of employment (on the basis of a 365-day year) or prorated if the Company’s review or assessment of the Executive’s performance covers a period that is less than a full fiscal year. The determination of whether the Executive has earned a bonus and the amount thereof shall be determined by the Board (and/or a committee thereof) in its sole discretion.  The Board (and/or a committee thereof) reserves the right to modify the bonus criteria from year to year.  

3.3       Equity.  

(a)Subject to the terms of the Parent’s 2015 Equity Incentive Plan as amended (the “Plan”) and approval of the grant by the board of directors of the Parent (the “Parent Board”), the Executive will be granted an award of 1,940,185 stock options covering Parent common stock (the “Option Award”). The Option Award will be subject to a 4-year vesting period, with (i) twenty-five percent (25%) of the Option Award vesting on the one-year anniversary of the Start Date and (ii) the balance of the Option Award vesting in a series of twelve (12) successive equal quarterly installments measured from the first anniversary of the Start Date, provided the Executive is employed by the Company on each such vesting date. The exercise price of the Option Award shall be the closing price of the Parent’s common stock as reported on The Nasdaq Global Select Market on February 13, 2018.  The Option Award will be governed by the Plan and other documents issued in connection with the grant and will expire and cease to be exercisable on the ten (10) year anniversary of the Start Date. Upon a Change of Control (as defined in the Plan), any unvested portion of the Option Award shall immediately vest in full.

(b)The Executive will be eligible to receive additional discretionary annual equity incentive grants starting with the fiscal year ending March 31, 2019, that will vest over a 4-year vesting period in amounts commensurate with the Executive’s position as Chief Executive Officer. For the avoidance of doubt, Executive will not be eligible for an annual equity incentive grant for the fiscal year ending March 31, 2018.

3.4      Benefits and Insurance.  The Executive shall, in accordance with Company policy and the terms of the applicable plan documents, be eligible to participate in benefits under any benefit plan or arrangement that may be in effect from time to time and made available to similarly situated Company executives (including, but not limited to, being named as an officer for purposes of the Company’s Directors & Officers insurance policy).  The Company reserves the right to modify, add or eliminate benefits from time to time.  The Executive shall be entitled to vacation each year, in addition to sick leave and observed holidays in accordance with the policies and practices of the Company.  Vacation may be taken at such times and intervals as the Executive shall determine, subject to the business needs of the Company.  

3.5    Expense Reimbursements.  The Company will reimburse the Executive for all reasonable business expenses that the Executive incurs in conducting his duties hereunder, pursuant to the Company’s usual expense reimbursement policies.  Reimbursement will be made as soon as practicable following receipt from the Executive of reasonable documentation supporting said expenses.

		
	4.
	PROPRIETARY INFORMATION OBLIGATIONS.

As a condition of employment, the Executive agrees to execute and abide by the Company’s Employee Non-Disclosure and Inventions Assignment Agreement (“NDA”).

5.TERMINATION OF EMPLOYMENT.
  
 5.1          Termination Without Cause Or Resignation For Good Reason. If the Executive’s employment with the Company is terminated by the Company without Cause or the Executive resigns for Good Reason (as defined below), then the Company shall pay the Executive any earned but unpaid Base Salary through the date of termination, at the rates then in effect, less standard deductions and withholdings.  In addition, if the Executive furnishes to the Company an executed waiver and release of claims in a form to be provided by the Company, which may include an obligation for the Executive to provide reasonable transition assistance (the “Release”) that is nonrevocable prior to the Release Date (as defined below), and if the Executive allows the Release to become effective in accordance with its terms, then the Executive shall receive one times (1x) the sum of the (i) Executive’s then current Base Salary and (ii) the Executive’s target Annual Performance Bonus opportunity in respect of the calendar year in which the termination of employment occurs.  The severance amount shall be paid to the Executive in a single lump sum within ten (10) days following the Release Date and will be subject to required withholding.

5.2      Other Termination.  If the Executive resigns his employment at any time without Good Reason or the Executive’s employment is terminated by the Company at any time for Cause or due to death or Disability (as defined below), the Company shall pay the Executive (or his estate) any Base Salary through the date of such resignation or termination, at the rates then in effect, less standard deductions and withholdings. In addition, in the event of a termination due to death or Disability, the Executive (or his estate) will be paid an amount equal to the Executive’s target bonus amount for the year in which such termination occurs prorated to the date of such termination. The Company shall thereafter have no further obligations to the Executive, except as may otherwise be required by law.  

5.3      Definitions.  For purposes of this Agreement, the following terms shall have the following meanings:

(a)“Cause” shall mean the occurrence of any of the following, the Executive’s: (i) conviction of any felony or any crime involving moral turpitude or dishonesty, (ii) participation in a fraud against the Company, (iii) willful and material breach of the Executive’s duties and obligations under this Agreement or any other agreement between the Executive and the Company or its affiliates that has not been cured (if curable) within thirty (30) days after receiving written notice from the Board of such breach, (iv) intentional and material damage to the Company’s property, or (v) violation of any law, rule or regulation (collectively, “Law”) relating in any way to the business or activities of the Company or its subsidiaries or affiliates, or other Law that is violated during the course of the Executive’s performance of services hereunder that results in the Executive’s arrest, censure, or regulatory suspension or disqualification, including, without limitation, the Generic Drug Enforcement Act of 1992, 21 U.S.C. § 335(a), or any similar legislation applicable in the United States or in any other country where the Company intends to develop its activities.

(b)“Disability” shall mean the Executive’s inability to perform his duties and responsibilities hereunder, with or without reasonable accommodation, due to any physical or mental illness or incapacity, which condition has continued for a period of 180 days (including weekends and holidays) in any consecutive 365-day period.  

(c)“Good Reason” shall mean the occurrence of any of the following events without the Executive’s consent: (i) a material reduction of the Executive’s Base Salary as initially set forth herein or as the same may be increased from time to time, provided, however, that if such reduction occurs in connection with a Company-wide decrease in executive officer team compensation, such reduction shall not constitute Good Reason provided that it is a reduction of a proportionally like amount or percentage affecting the entire executive team not to exceed 10%; (ii) material reduction in the Executive’s authority, duties or responsibilities, as compared to the Executive’s authority, duties or responsibilities immediately prior to such reduction; or (iii) a change in the Executive’s principal location of employment, resulting in an increase in the Executive’s one-way driving distance by more than fifty (50) miles from the Executive’s then current principal residence on file with the Company; provided, however, any resignation by the Executive shall only be deemed for Good Reason pursuant to this definition if: (1) the Executive gives the Company written notice of the Executive’s intent to terminate for Good Reason within ninety (90) days following the first occurrence of the condition(s) that he believes constitute(s) Good Reason, which notice shall describe such condition(s); (2) the Company fails to remedy such condition(s) within thirty (30) days following receipt of the written notice (the “Cure Period”); and (3) the Executive voluntarily terminates his employment within thirty (30) days following the end of the Cure Period.  

(d)A “Change of Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

(i) A merger or consolidation in which the Company is a constituent party (or a subsidiary of the Company is a constituent party and the Company issues shares of its capital stock pursuant to such merger or consolidation), other than a merger or consolidation in which the voting securities of the Company outstanding immediately prior to such merger or consolidation continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation; or 

(ii)Any transaction or series of related transactions in which an excess of fifty percent (50%) of the Company’s voting power is transferred, other than the sale by the Company of stock in transactions the primary purpose of which is to raise capital for the Company’s operations and activities; or 

(iii)A sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company. 

Notwithstanding the foregoing definition, the term Change of Control will not include (x) a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company or Parent, or (y) a liquidation or dissolution ancillary to or in connection with an assignment for the benefit of creditors, a bankruptcy proceeding, appointment of receiver or similar proceeding or transaction.
5.4       “Release Date” shall mean the date that is fifty-five (55) days following the date of the Executive’s termination.

5.5         Effect of Termination.  The Executive agrees that should his employment be terminated for any reason, he shall be deemed to have resigned from any and all positions with the Company, including, but not limited to, his position on the Board and Parent Board, as applicable.  

5.6       Section 409A Compliance.  

(a)       It is intended that any benefits under this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), provided under Treasury Regulations Sections 1.409A‐1(b)(4), and 1.409A‐1(b)(9), and this Agreement will be construed to the greatest extent possible as consistent with those provisions, and to the extent not so exempt, this Agreement (and any definitions hereunder) will be construed in a manner that complies with Section 409A.  For purposes of Section 409A (including, without limitation, for purposes of Treasury Regulations Section 1.409A‐2(b)(2)(iii)), the Executive’s right to receive any installment payments under this Agreement (whether severance payments, if any, or otherwise) shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment. A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Section 409A and, for purposes of any such provision of this Agreement, references to a “resignation,” “termination,” “termination of employment” or like terms shall mean separation from service.  Notwithstanding any provision to the contrary in this Agreement, if Executive is deemed by the Company at the time of a separation from service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i), and if any  payments or benefits that the Executive becomes entitled to under this Agreement on account of such separation from service are deemed to be “deferred compensation,” then to the extent delayed commencement of any portion of such payments or benefits is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) and the related adverse taxation under Section 409A, such payments shall not be provided prior to the earliest of (i) the expiration of the six-month period measured from the date of separation from service, (ii) the date of Executive’s death or (iii) such earlier date as permitted under Section 409A without the imposition of adverse taxation.  Upon the first business day following the expiration of such period, all payments deferred pursuant to this paragraph shall be paid in a lump sum, and any remaining payments due shall be paid as otherwise provided herein.  No interest shall be due on any amounts so deferred.

(b)      With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, and (iii) such payments shall be made on or before the last day of the Executive’s taxable year following the taxable year in which the expense was incurred. The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Code Section 409A but do not satisfy an exemption from, or the conditions of, Code Section 409A.

5.7        Section 280G.  

(a)        If any payment or benefit (including payments and benefits pursuant to this Agreement) that the Executive would receive in connection with a Change of Control or other transaction (the “Transaction”) from the Company or otherwise (“Transaction Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Company shall cause to be determined, before any amounts of the Transaction Payment are paid to the Executive, which of the following two alternative forms of payment would result in the Executive’s receipt, on an after-tax basis, of the greater amount of the Transaction Payment notwithstanding that all or some portion of the Transaction Payment may be subject to the Excise Tax: (1) payment in full of the entire amount of the Transaction Payment (a “Full Payment”), or (2) payment of only a part of the Transaction Payment so that the Executive receives the largest payment possible without the imposition of the Excise Tax (a “Reduced Payment”).  For purposes of determining whether to make a Full Payment or a Reduced Payment, the Company shall cause to be taken into account the value of all applicable federal, state and local income and employment taxes and the Excise Tax (all computed at the highest applicable marginal rate, net of the maximum reduction in federal income taxes which could be obtained from a deduction of such state and local taxes).  If a Reduced Payment is made, (x) the Executive shall have no rights to any additional payments and/or benefits constituting the Transaction Payment, and (y) reduction in payments and/or benefits shall occur  in  the  manner  that  results  in  the  greatest  economic benefit to  the Executive  as determined in this paragraph. If more than one method of reduction will result in the same economic benefit, the portions of the Transaction Payment shall be reduced pro rata.

(b)      Notwithstanding the foregoing, in the event that no stock of the Company is readily tradeable on an established securities market or otherwise (within the meaning of Section 280G of the Code) at the time of the Change of Control of the Company, the Company shall cause a vote of shareholders to be held to approve the portion of the Transaction Payments that equals or exceeds three times (3x) the Executive’s “base amount” (within the meaning of Section 280G of the Code) (the “Excess Parachute Payments”) in accordance with Treas. Reg. §1.280G-1, and the Executive shall cooperate with such vote of shareholders, including the execution of any required documentation subjecting the Executive’s entitlement to all Excess Parachute Payments to such shareholder vote. In the event that the Company does not cause a vote of shareholder to be held to approve all Excess Parachute Payments, the provisions set forth in Section 5.7(a) of this Agreement shall apply.

(c)     Unless the Executive and the Company otherwise agree in writing, any determination required under this section shall be made in writing by the Company’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon the Executive and the Company for all purposes.  For purposes of making the calculations required by this section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The Accountants shall provide detailed supporting calculations to the Company and the Executive as requested by the Company or the Executive. The Executive and the Company shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this section.  The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this section.

6.ARBITRATION. 

Except as otherwise set forth below in connection with equitable remedies, any dispute, claim or controversy arising out of or relating to this Agreement or the Executive’s employment with the Company (collectively, “Disputes”), including, without limitation, any dispute, claim or controversy concerning the validity, enforceability, breach or termination of this Agreement, if not resolved by the parties, shall be finally settled by arbitration in accordance with the then-prevailing Employment Arbitration Rules and Procedures of JAMS, as modified herein (“Rules”). The requirement to arbitrate covers all Disputes (other than disputes which by statute are not arbitrable) including, but not limited to, claims, demands or actions under the Age Discrimination in Employment Act (including Older Workers Benefit Protection Act); Americans with Disabilities Act; Civil Rights Act of 1866; Civil Rights Act of 1991; Employee Retirement Income Security Act of 1974; Equal Pay Act; Family and Medical Leave Act of 1993; Title VII of the Civil Rights Act of 1964; Fair Labor Standards Act; Fair Employment and Housing Act; and any other law, ordinance or regulation regarding discrimination or harassment or any terms or conditions of employment.  There shall be one arbitrator who shall be jointly selected by the parties.  If the parties have not jointly agreed upon an arbitrator within twenty (20) calendar days of respondent’s receipt of claimant’s notice of intention to arbitrate, either party may request JAMS to furnish the parties with a list of names from which the parties shall jointly select an arbitrator.  If the parties have not agreed upon an arbitrator within ten (10) calendar days of the transmittal date of such list, then each party shall have an additional five (5) calendar days in which to strike any names objected to, number the remaining names in order of preference, and return the list to JAMS, which shall then select an arbitrator in accordance with the Rules.  The place of arbitration shall be New York, New York.  By agreeing to arbitration, the parties hereto do not intend to deprive any court of its jurisdiction to issue a pre-arbitral injunction, including, without limitation, with respect to the NDA. The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16.  Judgment upon the award of the arbitrator may be entered in any court of competent jurisdiction. The arbitrator shall: (a) have authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be available under applicable law in a court proceeding; and (b) issue a written statement signed by the arbitrator regarding the disposition of each claim and the relief, if any, awarded as to each claim, the reasons for the award, and the arbitrator’s essential findings and conclusions on which the award is based. The Company shall pay all administrative fees of JAMS in excess of $435 (a typical filing fee in court) and the arbitrator’s fees and expenses.  Each party shall bear its or his own costs and expenses (including attorney’s fees) in any such arbitration and the arbitrator shall have no power to award costs and attorney’s fees except as provided by statute or by separate written agreement between the parties. In the event any portion of this arbitration provision is found unenforceable by a court of competent jurisdiction, such portion shall become null and void leaving the remainder of this arbitration provision in full force and effect.  The parties agree that all information regarding the arbitration, including any settlement thereof, shall not be disclosed by the parties hereto, except as otherwise required by applicable law.
7.GENERAL PROVISIONS. 

                        7.1          Representations and Warranties.  

(a)  The Executive represents and warrants that the Executive is not restricted or prohibited, contractually or otherwise, from entering into and performing each of the terms and covenants contained in this Agreement, and that the Executive’s execution and performance of this Agreement will not violate or breach any other agreements between the Executive and any other person or entity. The Executive represents and warrants that the Executive is not subject to any confidentiality, non-competition agreement or any other similar type of restriction that could restrict in any way the Executive’s hiring by the Company and the performance of the Executive’s expected job duties with the Company. 

(b)  The Company and its affiliates do not wish to incorporate any unlicensed or unauthorized material, or otherwise use such material in any way in connection with, its and their respective products and services. Therefore, the Executive hereby represents, warrants and covenants that he has not and will not disclose to the Company or its affiliates, use in their business, or cause them to use, any information or material which is a trade secret, or confidential or proprietary information, of a third party, including, but not limited to, any former employer, competitor or client, unless the Company or its affiliates have a right to receive and use such information or material.

(c)  The Executive represents and warrants that the Executive is not debarred and has not received notice of any action or threat with respect to debarment under the provisions of the Generic Drug Enforcement Act of 1992, 21 U.S.C. § 335(a) or any similar legislation applicable in the United States or in any other country where the Company intends to develop its activities. The Executive understands and agrees that this Agreement is contingent on the Executive’s submission of satisfactory proof of identity and legal authorization to work in the United States, as well as verification of auditor independence.

 7.2        Advertising Waiver.  The Executive agrees to permit the Company, and persons or other organizations authorized by the Company, to use, publish and distribute advertising or sales promotional literature concerning the products and/or services of the Company in which the Executive’s name and/or pictures of the Executive appear.  The Executive hereby waives and releases any claim or right the Executive may otherwise have arising out of such use, publication or distribution.

 7.3      Miscellaneous.  This Agreement, along with the NDA and any applicable equity awards that have been granted, constitutes the complete, final and exclusive embodiment of the entire agreement between the Executive and the Company with regard to its subject matter.  It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties or representations.  This Agreement may not be modified or amended except in a writing signed by both the Executive and a duly authorized officer or member of the Board.  This Agreement will bind the heirs, personal representatives, successors and assigns of both the Executive and the Company, and inure to the benefit of both the Executive and the Company, and to his and its heirs, successors and assigns.  If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the provision in question will be modified so as to be rendered enforceable.  This Agreement will be deemed to have been entered into and will be construed and enforced in accordance with the laws of the State of New York as applied to contracts made and to be performed entirely within New York.  Any ambiguity in this Agreement shall not be construed against either party as the drafter.  Any waiver of a breach of this Agreement shall be in writing and shall not be deemed to be a waiver of any successive breach. This Agreement may be executed in counterparts and facsimile signatures will suffice as original signatures.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above.
AXOVANT SCIENCES, INC.	
		
	By:
	/s/ Gregory Weinhoff 

	Name:
	Gregory Weinhoff 

	Title:
	CFO

	Date: 
	Feb 13, 2018

ACCEPTED AND AGREED: 
	
		
	 
	/s/ Pavan Cheruvu

	 
	Pavan Cheruvu

	Date: 
	Feb 13, 2018

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