Document:

Exhibit 10.8

 

APREA AB

 

AND

 

LARS ABRAHMSÉN

 

 

EMPLOYMENT AGREEMENT

 

 

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”) is entered into on this day between

 

(1)                                                    Aprea AB, Reg. No. 556631-2285,  Nobels väg 3, 171 65 Solna, a company duly incorporated and organised under the laws of Sweden, (the “Company”); and

 

(2)                                                    Lars Abrahmsén,                  ,             , 114 22 Stockholm (the “Employee”).

 

1                                                            Commencement date and term of employment

 

1.1                                                  The employment, effective with this agreement, commenced on March 1, 2016.

 

1.2                                                  This Agreement supersedes all other written or oral agreements between the Company, or any associated company, and the Employee due to the employment. For the purposes of this Agreement, “associated company” means a legal entity directly or indirectly controlling or controlled by or under common control with the Company, irrespective of the country of registration of such legal entity. For the avoidance of doubt, this agreement is an extension of a previous agreement effective December 1, 2015, Appendix II.

 

2                                                            Position

 

2.1                                                  The Employee shall hold the position of Senior Vice President and Chief Scientific Officer and be stationed at the Company’s premises in Solna or at any other premises in Sweden occupied by the Company in the future.

 

2.2                                                  The Company and the Employee (jointly the “Parties”) agree that the nature of the Company’s business demands flexibility and that reallocation of duties, etc. from time to time is a constituent part of, and a precondition for, the employment relationship between the Company and the Employee. The position of the Employee implies that the Employee may be required from time to time to travel within and outside Sweden in order to promote the Company’s interests in the best possible way.

 

2.3                                                  The Parties agree that it is essential for the Company’s business and a condition for employment with the Company that its employees are service-minded and that they conduct themselves appropriately and act in all respects as good ambassadors of the Company.

 

3                                                            Working hours and other engagements

 

3.1                                                  The working hours comprise forty (40) hours per week exclusive of lunch breaks.

 

3.2                                                  The position demands that additional hours are worked from time to time. No compensation shall be paid for any overtime worked since this, among other things, has been taken into account when determining the salary level.

 

3.3                                                  During the employment the Employee shall not, either personally or through any legal entity, be engaged in any other employment or carry out other work without the prior written consent of the Company.

 

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4                                                            Salary and other remuneration

 

4.1                                                  The Employee is entitled to a monthly salary of SEK 133,333. The salary is paid in arrears before the expiry of each calendar month

 

4.2                                                  In addition to the salary, the Employee is eligible for a bonus targeted at 25% of the adjusted base salary. For 2016 the bonus will be calculated on a 12 month calendar period, notwithstanding the effective date of this agreement. Bonus payments are discretionary and will be based on achievement of Company and individual performance objectives.  The Company reserves the right to unilaterally decide on any changes to, or cessation of, the bonus.

 

4.3                                                  The salary and bonus target are normally subject to annual review.

 

5                                                            Pension and insurance

 

5.1                                                  The Employee’s employment will expire by the end of the month of the Employee’s 67th birthday.

 

5.2                                                  The Employee shall be entitled to insurance and pension benefits in accordance with the Company’s policy as applicable from time to time.

 

6                                                            Work equipment

 

For the performance of the Employee’s duties, the Company will provide such equipment that the Company deems necessary from time to time.

 

7                                                            Expenses

 

7.1                                                  Entertainment expenses incurred in compliance with Company regulations will be reimbursed and such expenses must be itemised and verified.

 

7.2                                                  Expenses drawn on the Company’s credit card (which will be available for the Employee’s use), which the Employee has not accounted for in accordance with the Company’s expense reporting policy within one (1) month of the due date of the credit card company’s invoice, may be set off by the Company against the Employee’s net salary.

 

8                                                            Vacation

 

The Employee is entitled to 30 days paid vacation per each yearly period of service to be taken at such times as agreed with the Company. Vacation pay is calculated in accordance with the Company’s policy as applicable from time to time. In conjunction with the cessation of employment, any vacation pay paid in advance may be deducted from any salary and accrued vacation pay.

 

9                                                            Sick pay

 

In case of absence due to sickness the provisions of the Swedish Sick Pay Act (Sw. lagen om sjuklön (1991:1047)) shall apply.

 

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10                                                     Personal data and data security

 

10.1                                           The Employee confirms that the Company has informed the Employee of the Company’s use of employees’ personal data in accordance with the provisions of the Swedish Personal Data Protection Act (Sw. personuppgiftslagen (1998:204)).

 

10.2                                           The Employee agrees to comply with the Company’s policies regarding the use of the Company’s computers, e-mail system, Internet services and other software programs. The Employee is aware and acknowledges that the Company has unrestricted access to all material and e-mail correspondence and an overview of Internet usage that is saved in or performed via the Company’s data system.

 

11                                                     Intellectual property rights

 

11.1                                           All rights to any material and results within the Company ́s field of activity, and all intellectual property rights related thereto (including but not limited to all patents, inventions, trademark rights, copyrights and neighbouring rights, rights in computer software and database rights, design rights, trade secrets and know-how including the rights to registrations or applications for these rights), which are made, written, designed or produced by the Employee during the term of the Employee’s employment shall exclusively vest in the Company, irrespective of whether such material, results and intellectual property rights are produced during or outside of working hours and irrespective of whether produced with the use of the Company ́s facilities. This applies irrespective of whether the Employee has been instructed or has taken own initiative to produce such material, results and intellectual property rights. The Company shall have a right to freely develop and alter such material, results and intellectual property rights and to licence and assign them to third parties, with or without a reference to the Employee’s name. The above-mentioned right of the Company includes any patent applications for inventions that have been created through the participation of the Employee and which have been filed within six (6) months after the termination of the employment, provided that the invention falls within the Company’s field of activity and that the Employee is unable to reasonably prove that the invention was made after the employment was terminated.

 

11.2                                           The Employee shall not be entitled, directly or indirectly, to use or exploit the material, results and intellectual property rights referred to in Section 11 in any manner whatsoever during the term of the Employee’s employment or thereafter unless obtaining a written confirmation regarding such use from the Company. However, this Section 11.2 shall not prevent the Employee from using such material, results and/or intellectual property rights to the extent such use is necessary for the Employee’s performance of his/her normal contractual duties under this Agreement. In cases of uncertainty, the Employee shall always obtain written approval from the Company.

 

11.3                                           The Employee confirms that the compensation agreed in this Agreement for the performed work is reasonable and constitutes satisfactory compensation for the assignment in Section 11 and hereby waives any claims for royalty or other compensation for the assignment, exploitation or use of the assigned rights, to the extent permitted by law. The Employee furthermore undertakes not to make any claims against the Company’s, its subsidiaries’ or successors’ ownership or other rights to the assigned rights in Section 11.

 

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11.4                                           The Employee agrees to inform the Company in writing of all inventions, ideas, discoveries, developments or improvements wholly or partially made by the Employee during the term of the Employee’s employment. Such information shall be given continuously, and without delay after creation.

 

11.5                                           The Employee agrees and undertakes without any additional compensation, during or after the Employee’s employment, to execute all such deeds and documents that, in the Company’s sole discretion, are necessary or desirable in order for the Company to be able to protect, register, maintain and in any other way fully enjoy the Company’s rights referred to under this Section 11.

 

12                                                     Confidentiality

 

12.1                                           The Employee shall not at any time during the employment or thereafter utilise, reproduce or disclose to any person or firm or company (unless required by the performance of the Employee’s duties under this Agreement or by law) any information in respect of the Company or any of its associated companies that the Employee will gain access to through the employment and that the Company reasonably wishes to keep confidential.

 

12.2                                           Confidential information shall include, without limitation and in whatever form, information concerning the Company and its associated companies:

 

·                       business, current and potential business relations, business plans, strategic plans investigations, finances and financial statements;

 

·                       employees, terms of employment and other human resources matters;

 

·                       customers, suppliers and distributors;

 

·                       prices and pricing policies, marketing, sales methods, contracts;

 

·                       trade secrets, know-how, methods, software programs, new products and services, safety devises, etc.

 

12.3                                           Confidential information shall not include information that enters the public domain, other than through a breach by the Employee of an obligation of confidentiality owed to the Company or its associated companies.

 

12.4                                           The Employee agrees that the Employee will not, during the employment with the Company, improperly use or disclose any proprietary information or trade secrets of any former or concurrent employer or other person or entity. Further, the Employee will not bring into the Company any proprietary information or trade secret of any such employer, person or entity unless consented to in writing by such employer, person or entity.

 

13                                                     Non-competition

 

13.1                                           The Parties hereby agree that the Employee in the course of the employment will gain access to company-specific trade secrets that cannot be protected through patents or other similar registrations and which may cause the Company considerable harm if used for the benefit of a competing business. The Parties furthermore agree that it is a precondition for the Employee’s employment that the Company can disclose such

 

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information to the Employee in the knowledge that it will not be used to engage in or promote a business that competes with the Company’s (or any associated company’s) business. The Employee thus agrees to refrain, during the term of this Agreement and for a period of six (6) months after its termination, directly or indirectly, whether alone or as a partner, officer, employee, director or executive or consultant, from engaging, participating or investing in any business activity anywhere in the world that develops, markets or sells any products, or performs or sells any services that directly or indirectly target the pharmacological restoration of normal function to wild type or missense-mutant p53 in oncologic applications .

 

13.2                                           Subject to the exceptions stated below in this section, the Company shall, as compensation for the inconvenience that the existing non-competition covenant causes the Employee after the expiry of the employment, pay the Employee per month the difference between the Employee’s average monthly remuneration (both fixed and variable) paid by the Company during the twelve (12) months preceding the time of termination of the employment and the (lower) salary which the Employee earns, or reasonably could have earned from any new employment or proceeds of any business activity. However, the monthly compensation payable by the Company shall never exceed sixty (60) per cent of the Employee’s average monthly remuneration as set out above during the restrictive period of the non-competition covenant. For the avoidance of doubt, if the Employee, despite reasonable efforts to minimise the Employee’s loss of income, does not obtain new employment or is not engaged in any business activity after the employment with the Company has terminated, the Company shall pay the Employee per month sixty (60) per cent of the Employee’s average monthly remuneration as set out above during the restrictive period of this non-competition covenant. The right to compensation according to this section presupposes that there is a causal relationship between the Employee’s undertaking in accordance with the non-competition covenant and the loss of income that is caused by its application. Compensation shall not be paid in case of the Employee’s breach of this non-competition covenant.

 

13.3                                           After the expiry of employment, the Employee is obliged to inform the Company of the level of the Employee’s current salary from any new employment or proceeds of any business activity. Such written information shall be provided to the Company no later than on the 15th day of each month. In the absence of such written information, it shall be understood that the Employee has not suffered any loss of income with regards to the concerned month, but Section 13.1 shall still apply.

 

13.4                                           Compensation according to Section 13.2 above shall not be paid during any period for which the Employee receives severance pay from the Company or if the employment expires: (i) due to the Employee’s retirement; or (ii) due to cancellation of this Agreement with immediate effect or the Company’s immediate dismissal of the Employee.

 

13.5                                           During the term of employment, as well as in the event of either party’s termination of the employment and as long as the non-competition covenant is in force, the Company may unilaterally subject to one (1) month’s prior written notice either limit the application of the non-competition covenant or completely release the Employee from the non-competition covenant. In the event of a full release from the non-competition

 

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covenant, the Company shall be released from the obligation to pay compensation in accordance with Section 13.2 above.

 

14                                                     Non-solicitation

 

14.1                                           During the term of this Agreement and for six (6) months following the termination thereof, the Employee shall not, directly or indirectly, engage or participate in professional contacts with anyone who, during the twelve (12) months preceding the termination of the Employee’s employment, has been a customer or client of the Company or any of its associated companies or is a potential customer or client who has been actively approached by the Company or any of its associated companies, with the intention of persuading such customer or client/potential customer or client to change the business relationship, to cease to do business with or to refrain from initiating a business relationship with the Company or any of its associated companies. The Company may through written notification release the Employee from this obligation in specific cases.

 

14.2                                           During the term of this Agreement and for six (6) months following the termination thereof, the Employee shall not directly or indirectly solicit or attempt to solicit employees of the Company, or any of its associated companies, or use their services for any means other than for the benefit of the Company. The Company may through written notification release the Employee from this obligation in specific cases.

 

15                                                     Termination of employment

 

15.1                                           This Agreement may be terminated by the Company subject to six (6) months’ notice and by the Employee subject to six (6) months’ notice. In the event the employment agreement extends beyond the end of the month of the Employee’s 67th birthday, such extension shall be governed by provisions of the Swedish Employment Protection Act.

 

15.2                                           The Company is entitled to terminate the employment summarily without notice in the event of the Employee’s gross misconduct or material breach of any of the terms of this Agreement. However, notwithstanding such termination, the Employee’s obligations pursuant to Section 11 (Intellectual Property Rights), Section 12 (Confidentiality), Section 13 (Non-competition) and Section 14 (Non-solicitation) shall remain in full force and effect.

 

15.3                                           In conjunction with the expiry of the employment, the Employee shall deliver up to the Company all reports, papers, correspondence, documents and any other materials (including copies thereof) supplied, or entrusted to the Employee or in the Employee’s possession in connection with this employment and/or relating to the Company, its associated companies and/or their businesses and the same shall at all times remain the sole property of the Company or the associated company as the case may be.

 

16                                                     Amendments

 

This Agreement may only be amended by an instrument in writing duly executed by the Parties.

 

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17                                                     Governing law

 

17.1                                           This Agreement shall be governed by and construed in accordance with the laws of Sweden.

 

17.2                                           Any dispute, controversy or claim arising out of or in connection with this Agreement, or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the Swedish Arbitration Act (Sw. lagen (1999:116) om skiljeförfarande).

 

17.3                                           The arbitral tribunal shall be composed by one (1) arbitrator. In case the Parties are unable to agree on the appointment of the arbitrator, the arbitrator shall be appointed by the Arbitration Institute of the Stockholm Chamber of Commerce.

 

17.4                                           The Parties undertake and agree that all arbitral proceedings conducted by reference to this arbitration section will be kept strictly confidential. This confidentiality undertaking shall cover all information disclosed in the course of such arbitral proceedings, as well as any decision or award that is made or declared during the proceedings. Information covered by this confidentiality undertaking may not, in any form, be disclosed to a third party without the written consent of both Parties hereto. Notwithstanding the foregoing, a party shall not be prevented from disclosing such information in order to secure its interests against the other Party in connection with a dispute or if required to do so by law, any applicable stock exchange regulations or the regulations of any other recognised market place.

 

17.5                                           The Company shall, unless the arbitrator holds that the Employee has caused the initiation of arbitral proceedings without reasonable cause, pay the arbitrator’s fees and, if applicable, the fees of the Arbitration Institute of the Stockholm Chamber of Commerce. Other costs, such as legal fees, shall be apportioned between the Parties in accordance with the provisions of the Swedish Code of Judicial Procedure (Sw. rättegångsbalken (1942:740)).

 

 

This Agreement has been duly executed in two (2) original copies of which each of the Parties has received one.

 

	
Place:   Stockholm
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:   September 7, 2016
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Aprea   AB
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Christian S. Schade
    	
 
    	
/s/ Lars Abrahmsén
    
	
Christian   S, Schade
    	
 
    	
 
    
	
CEO
    	
 
    	
Lars   Abrahmsén
    

 

8Exhibit 10.9

 

July 15, 2016

 

Greg Korbel

3929 Netherfield Road

Philadelphia, PA 19129

 

Dear Greg:

 

On behalf of Aprea (US), Inc. (the “Company”), a wholly-owned U.S. subsidiary of Aprea AB (“Aprea”), I am pleased to confirm the terms and conditions of your employment as set forth below in this letter agreement (this “Agreement”).  Certain capitalized terms used in this Agreement without definition are defined in Section 14.

 

1.             Position.  Effective as of July 15, 2016, you will serve as the Vice President, Business Development, of the Company.  As Vice President, Business Development, you will have overall responsibility for the business development strategy and operations of the Company.  You will report to the Company’s Chief Executive Officer.  It is understood and agreed that, while you render services to the Company, you will not engage in any other employment, consulting or other business activities, except for business and professional activities that do not interfere with your obligations under this Agreement and that are first disclosed to and approved by the Company’s Chief Executive Officer or Board of Directors (the “Board”).

 

2.             Place of Performance.  Your primary place of performance will be offices of the Company located in or around Boston, Massachusetts, and from time-to-time you may be required to travel to Company or Aprea offices located in Sweden and other geographic locations in connection with the performance of your duties.

 

3.             Salary.  The Company will pay you a salary at the rate of U.S. $220,000 per year, payable in accordance with its standard payroll practices and subject to applicable deductions and withholdings.  Your salary will be subject to periodic review and increase at the Board’s discretion in conjunction with the Company’s annual performance reviews.

 

4.             Bonus Compensation.  You will be eligible for a bonus targeted at 20% of your base salary.  For 2016, you will receive a prorated bonus based upon the fraction of the calendar year remaining from the commencement date of your employment.  Bonus payments are discretionary and will be based on achievement of Company and individual performance objectives, as determined by the Board in consultation with the Chief Executive Officer.  Payment of any bonus compensation shall be made in a single lump sum payment no later than March 15 of the year following the year to which the bonus relates.  Payment of your bonus compensation is not contingent on continued employment; if you are awarded a bonus, so long as you have not voluntarily terminated your employment or been terminated by the Company for Cause, the bonus will be paid to you regardless of whether you are still employed by the Company on the date on which the lump sum bonus payment is otherwise payable.

 

5.             Benefits/Vacation.  You will be eligible to participate in the employee benefits and insurance programs generally made available to full-time executive officers of the Company, including 20 days of paid time off and the Company’s standard medical and dental programs.

 

 

6.             At-Will Employment, Accrued Obligations.  Your employment will be “at will,” meaning you or the Company may terminate it at any time for any or no reason.  In the event of the termination of your employment for any reason, the Company shall pay you the Accrued Obligations, defined as (a) your base salary through the date of termination, (b) an amount equal to the value of your accrued unused vacation days, and (c) the amount of any expenses properly incurred by you on behalf of the Company prior to any such termination and not yet reimbursed.

 

7.             Termination Without Cause or by Reason of Death or Disability.  In the event that (a) the Company terminates your at-will employment without Cause, or your employment terminates by reason of your death or Disability, and (b) you (and/or your representative, if applicable) (i) enter into, do not revoke, and comply with the terms of a separation agreement in a form acceptable to the Company, which shall include a release against the Company, Aprea and related persons and entities (the “Release”); (ii) resign from any and all positions, including, without implication of limitation, as a director, trustee, and officer, that you then hold with the Company, Aprea or any Affiliate of the Company; and (iii) return all property belonging to the Company, Aprea or its Affiliates (“Company Property”) and comply with any instructions related to deleting and purging duplicates of such Company property (collectively, the “Termination Benefits Conditions”), the Company will continue your base salary for three months (six months if such termination occurs during the twelve-month period that immediately follows a Change of Control) (the “Termination Benefits”).  Any severance payments due hereunder shall commence (and, if applicable, any prorated bonus payment shall be made) as soon as administratively feasible within 60 days after your termination of employment provided you have timely executed and returned the Release and, if a revocation period is applicable, you have not revoked the Release.  Solely for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), each installment payment is considered a separate payment.  To the full extent permitted by Code Section 409A, it is intended that any severance benefit hereunder shall be exempt from the requirements of Code Section 409A by reason of either (1) the exemption set forth in Treas. Regs. Section 1.409A-1(b)(9)(iii) or (2) the short-term deferral rule under Treas. Regs. Section 1.409A-1(b)(4).

 

8.             Termination of Employment Due to Your Resignation or Termination by the Company for Cause.  In the event your employment is terminated as a result of your (a) resignation for any reason, or (b) termination for Cause by the Company, you will not be eligible for any Termination Benefits.

 

9.             Confidential Information and Restricted Activities.  By signing this Agreement, you represent that you have carefully read and considered all the terms and conditions of this Agreement, including the restraints imposed on you pursuant to Sections 9. 10 and 11 of this Agreement (collectively, the “Restrictive Covenant Agreements”).  For purposes of the Restrictive Covenant Agreements, “Company” shall mean the Company and its Affiliates.  You agree that during your employment and for the twelve month period after your employment with the Company ends for any reason (the “Restricted Period”) you will not (without the Company’s prior written consent), whether as owner, partner, shareholder, director, consultant, agent, employee, co-venturer or otherwise, (a) engage, participate or invest in any business activity anywhere in the world that develops, markets or sells any products, or performs or sells any services that directly or indirectly target the pharmacological restoration of normal function to

 

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wild type or missense-mutant  P53 in oncologic applications; provided that this shall not prohibit any investment by you in publicly traded stock of a company representing less than two percent of the stock of such company, (b) (i) solicit or attempt to solicit, or (ii) take away or divert from the Company, or attempt to take away or divert from the Company, the business or patronage of any customer(s) known to you or with respect to which you were involved in soliciting, in each case at any time during the twelve-month period that immediately preceded the termination of your employment with the Company and with which, as a result of your employment with the Company, you had business dealings or about which your acquired confidential information, or (c) (i) recruit or attempt to recruit, solicit or attempt to solicit, hire or attempt to hire, interfere with or endeavor to entice away or (ii) assist in recruiting or attempting to recruit, soliciting or attempting to solicit, hiring or attempting to hire, interfering with or enticing away any person who is or was employed by the Company or is or was an agent, representative or consultant of the Company within the six-month period preceding the termination of your employment with the Company.  You agree without reservation that these restraints are necessary for the reasonable and proper protection of the Company, and that each and every one of the restraints is reasonable in respect to subject matter, length of time and geographic area.  Any breach of any of the Restrictive Covenant Agreements is likely to cause the Company substantial and irrevocable damage and therefore, in the event of such breach, the Company, in addition to such other remedies which may be available, will be entitled to specific performance and other injunctive relief.  If you breach any of the covenants contained in the Restrictive Covenant Agreements, in addition to the Company’s other legal and equitable remedies, the Company may cease any Termination Benefits to which you might otherwise be entitled.  Any such termination of the Termination Benefits by the Company in the event of a breach by you shall not affect your ongoing obligations to the Company including pursuant to the Release.  You further understand that your obligations under the Restrictive Covenant Agreements will continue in accordance with their express terms regardless of any changes in your title, position, duties, salary, compensation or benefits or other terms and conditions of employment.  You expressly consent to be bound by the provisions of the Restrictive Covenant Agreements for the benefit of the Company or any Affiliate or successor to whose employ you may be transferred.

 

10.          Return of Property.  All files, letters, notes, memoranda, reports, records, data, sketches, drawings, notebooks, layouts, charts, quotations and proposals, specification sheets, program listings, blueprints, models, prototypes, or other written, photographic or other tangible material containing Company information, whether created by you or others, which come into your custody or possession, are the exclusive property of the Company to be used by you only in the performance of your duties for the Company.  Any property situated on the Company’s premises and owned by the Company, including without limitation computers, disks and other storage media, filing cabinets or other work areas, is subject to inspection by the Company at any time with or without notice.  In the event of the termination of your employment for any reason, you will deliver to the Company all files, letters, notes, memoranda, reports, records, data, sketches, drawings, notebooks, layouts, charts, quotations and proposals, specification sheets, program listings, blueprints, models, prototypes, or other written, photographic or other tangible material containing proprietary information, and other materials of any nature pertaining to the proprietary information of the Company and to your work performed for the Company, and will not take or keep in your possession any of the foregoing or any copies.

 

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11.          Developments.  You will make full and prompt disclosure to the Company of all inventions, discoveries, designs, developments, methods, modifications, improvements, processes, algorithms, databases, computer programs, formulae, techniques, trade secrets, graphics or images, audio or visual works, and other works of authorship (collectively “Developments”), whether or not patentable or copyrightable, that are created, made, conceived or reduced to practice by you (alone or jointly with others) or under your direction during the period of your employment.  You acknowledge that all work performed by you is on a “work for hire” basis, and you hereby do assign and transfer and, to the extent any such assignment cannot be fully made at present, will assign and transfer, to the Company and its successors and assigns all your right, title and interest in all Developments that (a) relate to the business of the Company or any customer of or supplier to the Company or any of the products or services being researched, developed, manufactured, commercialized, marketed or sold by the Company or that may be used with such products or services; or (b) result from tasks assigned to you by the Company; or (c) result from the use of premises or personal property (whether tangible or intangible) owned, leased or contracted for by the Company (“Company-Related Developments”), and all related patents, patent applications, trademarks and trademark applications, copyrights and copyright applications, and other intellectual property rights in all countries and territories worldwide and under any international conventions (“Intellectual Property Rights”).  To preclude any possible uncertainty, you have provided on Exhibit A to this Agreement a complete list of Developments that you have, alone or jointly with others, conceived, developed or reduced to practice prior to the commencement of your employment with the Company that you consider to be your property or the property of third parties and that you wish to have excluded from the scope of this Agreement (“Prior Inventions”).  You have also listed on Exhibit A all patents and patent applications in which you are named as an inventor, other than those that have been assigned to the Company, (“Other Patent Rights”).  If no such disclosure is set forth on Exhibit A, you represent that there are no Prior Inventions or Other Patent Rights.  If, in the course of your employment with the Company, you incorporate a Prior Invention into a Company product, process or machine or other work done for the Company, you hereby grant to the Company a nonexclusive, royalty-free, irrevocable, worldwide license (with the full right to sublicense) to make, have made, modify, use and sell such Prior Invention.  Notwithstanding the foregoing, you will not incorporate, or permit to be incorporated, Prior Inventions in any Company-Related Development without the Company’s prior written consent.  This Agreement does not obligate you to assign to the Company any Development that, in the sole judgment of the Company, reasonably exercised, is developed entirely on your own time and does not relate to the business efforts or research and development efforts in which, during the period of your employment, the Company actually is engaged or reasonably would be engaged, and does not result from the use of premises or equipment owned or leased by the Company.  However, you will also promptly disclose to the Company any such Developments for the purpose of determining whether they qualify for such exclusion.  You understand that to the extent this Agreement is required to be construed in accordance with the laws of any state that precludes a requirement in an employee agreement to assign certain classes of inventions made by an employee, this Section 12 will be interpreted not to apply to any invention which a court rules and /or the Company agrees falls within such classes.  You also hereby waive all claims to any moral rights or other special rights which you may have or accrue in any Company-Related Developments.

 

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12.          Enforcement of Agreement; Relief.  You acknowledge and agree that the Restrictive Covenant Agreements and all other provisions of this Agreement that are intended to endure beyond the terms of your employment shall survive the termination of your employment and that any violation of any of the Restrictive Covenant Agreements will cause immediate and irreparable damage to the Company, entitling it to injunctive relief and other equitable remedies.  You specifically consent to the issuance of temporary, preliminary, and permanent injunctive relief to enforce the terms of this Agreement.  In addition to injunctive relief, the Company is entitled to all money damages available under the law.

 

13.          Definitions.  For purposes of this Agreement:

 

“Affiliates” means all persons and entities directly or indirectly controlling, controlled by or under common control with the Company, where control may be by management authority, or an equity interest of 50% more (direct or indirect).

 

“Cause” means, in the sole discretion of the Chief Executive Officer:  (i) conduct by you in connection with your service to the Company or any Affiliate that is fraudulent, unlawful or grossly negligent; (ii) your material breach of your material responsibilities to the Company or any Affiliate or your willful failure to comply with reasonable and lawful directives of the Board or written policies of the Company that results in harm to the Company or any Affiliate; (iii) material breach by you of your material representations, warranties, covenants and/or obligations under the this Agreement; (iv) material misconduct by you that seriously discredits or damages the Company or any Affiliate; and/or (v) nonperformance or unsatisfactory performance of your material duties or responsibilities to the Company or any Affiliate; in the case of each of (ii), (iii), (iv) and (v) as determined in good faith by the Chief Executive Officer after written notice to you providing reasonable details of the alleged breach and not less than a 30 day period to cure the alleged breach; provided that the Company may suspend your employment, access, authority and duties during such cure period.

 

“Change of Control” will mean the occurrence of any of the following events after the date hereof:

 

(i)            the acquisition of the Company by another person or entity (other than an Affiliate) by means of any transaction or series of related transactions (including, without limitation, any reorganization, merger or consolidation or stock transfer, but excluding any such transaction effected primarily for the purpose of changing the domicile of the Company or any of its Affiliates), unless the Company stockholders of record immediately prior to such transaction or series of related transactions hold, immediately after such transaction or series of related transactions, at least 50% of the voting power of the surviving or acquiring entity; provided that neither the sale by the Company or any of its Affiliates of its securities for the purposes of raising additional funds nor any trading in the Company’s capital stock after such time, if any, as the Company shall have a class of securities registered under the Securities Exchange Act of 1934 shall constitute a Change of Control hereunder; or

 

(ii)           a sale, exclusive worldwide license or other disposition of all or substantially all of the assets of the Company other than to an Affiliate.

 

5

 

14.          Tax Matters.

 

All payments and forms of compensation referred to in this Agreement are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law.  You hereby acknowledge that neither the Company has no duty to design its compensation policies in a manner that minimizes your tax liabilities, and you will not make any claim against the Company or any of its Affiliates, or the Board related to tax liabilities arising from your compensation.

 

Anything in this Agreement to the contrary notwithstanding, if at the time of your separation from service within the meaning of Section 409A of the Code, the Company determines that you are a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that you becomes entitled to under this Agreement on account of your separation from service would be considered deferred compensation subject to the 20% additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (a) six months and one day after your separation from service, or (b) your death.  If any such delayed cash payment is otherwise payable on an installment basis, the first payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application of this provision, and the balance of the installments shall be payable in accordance with their original schedule.  All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or incurred by you during the time periods set forth in this Agreement.  All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred.  The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year.  Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.  To the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon your termination of employment, then such payments or benefits shall be payable only upon your “separation from service.”  The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h).  the Company and you intend that this Agreement will be administered in accordance with Section 409A of the Code.  To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so that all payments hereunder comply with (or are exempt from) Section 409A of the Code.  The Company makes no representation or warranty and shall have no liability to you or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section.

 

In the event that the Company determines in good faith that any payments or benefits (whether made or provided pursuant to this Agreement or otherwise) provided to you constitute

 

6

 

“parachute payments” within the meaning of Section 280G of the Code (“Parachute Payments”) and may be subject to an excise tax imposed pursuant to Section 4999 of the Code, the Parachute Payments will be reduced to an amount determined by the Company in good faith to be the maximum amount that may be provided to you (after taking into account the value of the Restrictive Covenant Agreements, reasonable compensation for services, and any other available exemption) without resulting in any portion of such Parachute Payments being subject to such excise tax (the amount of such reduction, the “Cutback Benefits”); provided, however, that no such reduction shall apply if either (a) the Company’s stockholders approve the Cutback Benefits (in accordance with the procedure described below) or (b) upon your request, the Company does not seek such stockholder approval and your net after-tax benefit, after applying the excise tax required by Section 4999 of the Code with respect to the full amount of the Parachute Payments (without reduction), would be more than your net after-tax benefit after subtracting the Cutback Benefits.  You shall be entitled to select which Parachute Payments (of those that are not considered to be deferred compensation under Section 409A of the Code) shall be reduced hereunder; provided that if you fail to so select promptly, the Company shall select which Parachute Payments (of those that are not considered to be deferred compensation under Section 409A of the Code) will be reduced.  Parachute Payments that are considered to be deferred compensation under Section 409A of the Code shall be reduced only to the extent that the complete reduction of the Parachute Payments in the preceding sentence is insufficient to eliminate the imposition of the excise tax imposed under Section 4999 of the Code.  Notwithstanding the foregoing, if applicable to the Company at that time, upon your request, the Company shall use reasonable efforts to obtain the approval of the Cutback Benefits by the Company’s stockholders in the manner contemplated by Q&A 7 of Treas. Reg. Section 1.280G-1, it being understood and agreed that the Company does not guarantee that such approval will be obtained.  If the Company seeks but fails to attain the required stockholder approval described in the immediately preceding sentence, you will forfeit the Cutback Benefits.

 

15.          Interpretation, Amendment and Enforcement.  This Agreement, the Restrictive Covenant Agreements, and any other agreements evidencing equity grants to you by the Company and its Affiliates constitute the complete agreement between you and the Company, contain all of the terms of your employment with the Company and supersede any prior agreements, representations or understandings (whether written, oral or implied) between you and the Company or its Affiliates relating to the subject matter herein.  The terms of such agreements and the resolution of any disputes as to the meaning, effect, performance or validity of this Agreement or arising out of, related to, or in any way connected with, this Agreement, your employment with the Company or any other relationship between you and the Company and its Affiliates (the “Disputes”) will be governed by the laws of the State of Delaware, excluding laws relating to conflicts or choice of law.  You and the Company submit to the exclusive personal jurisdiction of the federal and state courts located in the State of Delaware in connection with any Dispute or any claim related to any Dispute.

 

16.          Assignment.  Neither you nor the Company may make any assignment of this Agreement or any interest in it, by operation of law or otherwise, without the prior written consent of the other; provided, however, that the Company may assign its rights and obligations under this Agreement (including, without limitation, the Restrictive Covenant Agreements) without your

 

7

 

consent to one of its Affiliates or to any person with whom the Company or Aprea shall hereafter effect a reorganization, consolidate with, or merge into or to whom it transfers all or substantially all of its properties or assets.  This Agreement shall inure to the benefit of and be binding upon you and the Company, and each of our respective successors, executors, administrators, heirs and permitted assigns.

 

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

 

18.          Miscellaneous.  This Agreement may not be modified or amended, and no breach shall be deemed to be waived, unless agreed to in writing by you and a duly authorized officer or board member of the Company.  The headings and captions in this Agreement are for convenience only and in no way define or describe the scope or content of any provision of this Agreement.  The words “include,” “includes” and “including” when used herein shall be deemed in each case to be followed by the words “without limitation.” This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.  A facsimile or electronic transmission of a scanned copy of a signed counterpart signature page to this Agreement shall be deemed to be an originally executed copy for purposes of this Agreement.

 

19.          Other Terms.  By signing this Agreement, you confirm to the Company that you have no contractual commitments or other legal obligations that would or may prohibit you from entering into this Agreement or performing your duties for the Company.

 

8

 

To indicate your acceptance of this Agreement, please sign and date this Agreement in the space provided below and return it to me by July 15, 2016.  We look forward to working with you.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
APREA   (US), Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Christian S. Schade
    
	
 
    	
 
    	
Christian   S. Schade
    
	
 
    	
 
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
Accepted   and Agreed:
    	
 
    
	
 
    	
 
    
	
/s/   Greg Korbel
    	
 
    
	
Greg   Korbel
    	
 
    
	
 
    	
 
    
	
Dated:   July 15, 2016
    	
 
    

 

9

 

EXHIBIT A

 

Prior Inventions and Other Patent Rights

 

None.

 

A-1

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