Document:

Exhibit 4.2

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT dated December 4, 2017 (this “Agreement”) is entered into by and among Starwood Property Trust, Inc., a Maryland corporation (the “Company”) and J.P. Morgan Securities LLC (“J.P. Morgan”), as representative of the initial purchasers (collectively, the “Initial Purchasers”) named in the Purchase Agreement dated November 27, 2017 (the “Purchase Agreement”) among the Company, SPT Management, LLC and J.P. Morgan.

 

The Purchase Agreement provides for the sale by the Company to the Initial Purchasers of $500 million aggregate principal amount of the Company’s 4.750% Senior Notes due 2025 (the “Securities”) which may, in certain circumstances, be guaranteed on an unsecured senior basis by certain Guarantors.  As an inducement to the Initial Purchasers to enter into the Purchase Agreement, the Company has agreed to provide, and any Guarantors will provide, to the Initial Purchasers and their direct and indirect transferees the registration rights set forth in this Agreement.  The execution and delivery of this Agreement is a condition to the closing under the Purchase Agreement.

 

In consideration of the foregoing, the parties hereto agree as follows:

 

1.                                      Definitions.  As used in this Agreement, the following terms shall have the following meanings:

 

“Additional Interest” shall have the meaning set forth in Section 2(e) hereof.

 

“Agreement” shall have the meaning set forth in the preamble.

 

“Business Day” shall mean any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed.

 

“Company” shall have the meaning set forth in the preamble and shall also include the Company’s successors.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

“Exchange Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

 

“Exchange Offer” shall mean the exchange offer by the Company and any Guarantors of Exchange Securities for Registrable Securities pursuant to Section 2(a) hereof.

 

“Exchange Offer Registration” shall mean a registration under the Securities Act effected pursuant to Section 2(a) hereof.

 

“Exchange Offer Registration Statement” shall mean an exchange offer registration statement on Form S-4 (or, if applicable, on another appropriate form) and all amendments and supplements to such registration statement, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

 

“Exchange Securities” shall mean senior notes issued by the Company and, in certain circumstances, guaranteed by the Guarantors under the Indenture containing terms identical to the Securities (except that the Exchange Securities will not be subject to restrictions on transfer or be entitled to the payment of Additional Interest and will not, except as expressly set forth in this Agreement, be entitled to any rights under this Agreement and except for, if applicable, the first interest payment date and the date from which interest will accrue) and to be offered to Holders of Securities in exchange for Securities pursuant to the Exchange Offer.

 

“FINRA” means the Financial Industry Regulatory Authority, Inc.

 

 

“Free Writing Prospectus” means each free writing prospectus (as defined in Rule 405 under the Securities Act) prepared by or on behalf of the Company or used or referred to by the Company in connection with the sale of the Securities or the Exchange Securities.

 

“Guarantees” shall mean the guarantees of the Securities (if any) and guarantees of the Exchange Securities (if any), in each case by the Guarantors under the Indenture.

 

“Guarantor” shall mean any subsidiary of the Company that executes a Guarantee under the Indenture after the date of this Agreement and any such subsidiary’s successor that Guarantees the Securities.

 

“Holders” shall mean the Initial Purchasers, for so long as they own any Registrable Securities, and each of their successors, assigns and direct and indirect transferees who become owners of Registrable Securities under the Indenture; provided that, for purposes of Section 4 and Section 5 hereof, the term “Holders” shall include Participating Broker-Dealers.

 

“Indemnified Person” shall have the meaning set forth in Section 5(c) hereof.

 

“Indemnifying Person” shall have the meaning set forth in Section 5(c) hereof.

 

“Indenture” shall mean the indenture relating to the Securities, dated as of December 4, 2017 between the Company and The Bank of New York Mellon, as trustee, and as may be amended or supplemented from time to time in accordance with the terms thereof, including any supplemental indenture for the additional of any Guarantee by a Guarantor.

 

“Initial Purchasers” shall have the meaning set forth in the preamble.

 

“Inspector” shall have the meaning set forth in Section 3(a)(xiv) hereof.

 

“Issue Date” shall mean December 4, 2017.

 

“Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of the outstanding Registrable Securities; provided that whenever the consent or approval of Holders of a specified percentage of Registrable Securities is required hereunder, any Registrable Securities owned directly or indirectly by the Company or any of its affiliates shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage or amount; and provided, further, that if the Company shall issue any additional Securities under the Indenture prior to consummation of the Exchange Offer or, if applicable, the effectiveness of any Shelf Registration Statement, such additional Securities and the Registrable Securities to which this Agreement relates shall be treated together as one class for purposes of determining whether the consent or approval of Holders of a specified percentage of Registrable Securities has been obtained.

 

“Notice and Questionnaire” shall mean a notice of registration statement and selling security holder questionnaire distributed to a Holder by the Company upon receipt of a Shelf Request from such Holder.

 

“Participating Broker-Dealers” shall have the meaning set forth in Section 4(a) hereof.

 

“Participating Holder” shall mean any Holder of Registrable Securities that has returned a completed and signed Notice and Questionnaire to the Company in accordance with Section 2(b) hereof.

 

“Person” shall mean an individual, partnership, limited liability company, corporation, trust or unincorporated organization, or a government or agency or political subdivision thereof.

 

“Prospectus” shall mean the prospectus included in, or, pursuant to the rules and regulations of the Securities Act, deemed a part of, a Registration Statement, and any such prospectus as amended or supplemented by any prospectus supplement, including a prospectus supplement with respect to the terms of the offering of any

 

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portion of the Registrable Securities covered by a Shelf Registration Statement, and by all other amendments and supplements to such prospectus, and in each case including any document incorporated by reference therein.

 

“Purchase Agreement” shall have the meaning set forth in the preamble.

 

“Registrable Securities” shall mean the Securities; provided that a Security shall cease to be a Registrable Security (i) when a Registration Statement with respect to such Security has become effective under the Securities Act and such Security has been exchanged or disposed of pursuant to such Registration Statement, (ii) when such Security ceases to be outstanding, (iii) when the Exchange Offer is completed, except in the case of a Security that is held by an Initial Purchaser and that was ineligible to be exchanged in the Exchange Offer or (iv) when such Security is sold or transferred pursuant to Rule 144 under the Securities Act.

 

“Registration Default” shall mean the occurrence of any of the following: (i) the Exchange Offer, if required pursuant to Section 2(a) hereof, is not completed on or prior to the Target Registration Date, (ii) any Shelf Registration Statement, if required pursuant to Section 2(b) hereof, has not been filed and declared effective by the SEC in accordance with Section 2(b) hereof or (iii) any Shelf Registration Statement, if required by this Agreement, has become effective and thereafter ceases to be effective at any time at which it is required to be effective under this Agreement.

 

“Registration Expenses” shall mean any and all expenses incident to performance of or compliance by the Company and any Guarantors with this Agreement, including without limitation: (i) all SEC, stock exchange or FINRA registration and filing fees, (ii) all fees and expenses incurred in connection with compliance with state securities or blue sky laws (including reasonable fees and disbursements of counsel for any Underwriters or Holders in connection with blue sky qualification of any Exchange Securities or Registrable Securities), (iii) all expenses of any Persons in preparing or assisting in preparing, word processing, printing and distributing any Registration Statement, any Prospectus, any Free Writing Prospectus and any amendments or supplements thereto, any underwriting agreements, securities sales agreements or other similar agreements and any other documents relating to the performance of and compliance with this Agreement, (iv) all rating agency fees, (v) all fees and disbursements relating to the qualification of the Indenture under applicable securities laws, (vi) the fees and disbursements of the Trustee and its counsel, (vii) the fees and disbursements of counsel for the Company and any Guarantors and, in the case of a Shelf Registration Statement, the fees and disbursements of one counsel for the Participating Holders (which counsel shall be selected by the Participating Holders holding a majority of the aggregate principal amount of Registrable Securities held by such Participating Holders and which counsel may also be counsel for the Initial Purchasers) and (viii) the fees and disbursements of the independent registered public accountants of the Company and any Guarantors, including the expenses of any special audits or “comfort” letters required by or incident to the performance of and compliance with this Agreement, but excluding fees and expenses of counsel to the Underwriters (other than fees and expenses set forth in clause (ii) above) or the Holders and underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or disposition of Registrable Securities by a Holder.

 

“Registration Statement” shall mean any registration statement of the Company and the Guarantors (if any) that covers any of the Exchange Securities or Registrable Securities pursuant to the provisions of this Agreement and all amendments and supplements to any such registration statement, including post-effective amendments, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

 

“SEC” shall mean the United States Securities and Exchange Commission.

 

“Securities” shall have the meaning set forth in the preamble.

 

“Securities Act” shall mean the Securities Act of 1933, as amended from time to time.

 

“Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

 

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“Shelf Registration Statement” shall mean a “shelf” registration statement of the Company and the Guarantors (if any) that covers all or a portion of the Registrable Securities (but no other securities unless approved by a majority in aggregate principal amount of the Securities held by the Participating Holders) on an appropriate form under Rule 415 under the Securities Act, or any similar rule that may be adopted by the SEC, and all amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained therein or deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.

 

“Shelf Request” shall have the meaning set forth in Section 2(b) hereof.

 

“Staff” shall mean the staff of the SEC.

 

“Target Registration Date” shall mean November 29, 2018, which is 360 days after the Issue Date.

 

“Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to time.

 

“Trustee” shall mean the trustee with respect to the Securities under the Indenture.

 

“Underwriter” shall have the meaning set forth in Section 3(e) hereof.

 

“Underwritten Offering” shall mean an offering in which Registrable Securities are sold to an Underwriter for reoffering to the public.

 

2.                                      Registration Under the Securities Act.  (a)  To the extent not prohibited by any applicable law or applicable interpretations of the Staff, (x) the Company and any Guarantors shall use their commercially reasonable efforts to file with the SEC an Exchange Offer Registration Statement covering an offer to the Holders to exchange all the Registrable Securities for Exchange Securities and cause such Registration Statement to become effective and (y) to facilitate the use of such Registration Statement by one or more Participating Broker-Dealers, the Company and any Guarantors shall use their commercially reasonable efforts to cause such Registration Statement to remain effective until the earlier of (i) 180 days after such Registration Statement becomes effective and (ii) the date on which a Participating Broker-Dealer is not required to deliver the Prospectus in connection with resales of Exchange Securities.  The Company and any Guarantors shall commence the Exchange Offer promptly after the Exchange Offer Registration Statement is declared effective by the SEC and use their commercially reasonable efforts to complete the Exchange Offer by the Target Registration Date.

 

The Company and any Guarantors shall commence the Exchange Offer by mailing the related Prospectus, appropriate letters of transmittal and other accompanying documents to each Holder stating, in addition to such other disclosures as are required by applicable law, substantially the following:

 

(i)                                     that the Exchange Offer is being made pursuant to this Agreement and that all Registrable Securities validly tendered and not properly withdrawn will be accepted for exchange;

 

(ii)                                  the dates of acceptance for exchange (which shall be a period of at least 20 Business Days from the date such notice is mailed) (the “Exchange Dates”);

 

(iii)                               that any Registrable Security not tendered will remain outstanding and continue to accrue interest but will not retain any rights under this Agreement, except as otherwise specified herein;

 

(iv)                              that any Holder electing to have a Registrable Security exchanged pursuant to the Exchange Offer will be required to (A) surrender such Registrable Security, together with the appropriate letters of transmittal, to the institution and at the address and in the manner specified in the notice, or (B) effect such exchange otherwise in compliance with the applicable procedures of the depositary for such Registrable Security, in each case prior to the close of business on the last Exchange Date; and

 

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(v)                                 that any Holder will be entitled to withdraw its election, not later than the close of business on the last Exchange Date, by (A) sending to the institution and at the address specified in the notice, a telegram, facsimile transmission or letter setting forth the name of such Holder, the principal amount of Registrable Securities delivered for exchange and a statement that such Holder is withdrawing its election to have such Securities exchanged or (B) effecting such withdrawal in compliance with the applicable procedures of the depositary for the Registrable Securities.

 

In addition to any other conditions that, in the Company’s judgment, are necessary to comply with the applicable laws, rules or regulations or comments of the SEC, as a condition to participating in the Exchange Offer, a Holder will be required to represent and warrant to, and agree with, the Company and any Guarantors that (1) any Exchange Securities to be received by it will be acquired in the ordinary course of its business, (2) it has no arrangement or understanding with any Person to engage in, and it is not engaged in and does not intend to engage in, the distribution (within the meaning of the Securities Act) of the Exchange Securities in violation of the provisions of the Securities Act, (3) it is not an “affiliate” (within the meaning of Rule 405 under the Securities Act) of the Company or any Guarantor and (4) if such Holder is a broker-dealer that will receive Exchange Securities for its own account in exchange for Registrable Securities that were acquired as a result of market-making or other trading activities, then such Holder will deliver (or, to the extent permitted by applicable law, make available) a Prospectus to purchasers in connection with any resale of such Exchange Securities.

 

As soon as practicable after the last Exchange Date, the Company and any Guarantors shall:

 

(i)                                     accept for exchange Registrable Securities or portions thereof validly tendered and not properly withdrawn pursuant to the Exchange Offer; and

 

(ii)                                  deliver, or cause to be delivered, to the Trustee for cancellation all Registrable Securities or portions thereof so accepted for exchange by the Company and issue, and cause the Trustee to promptly authenticate and deliver to each Holder, Exchange Securities equal in principal amount to the principal amount of the Registrable Securities tendered by such Holder.

 

The Company and any Guarantors shall use their commercially reasonable efforts to complete the Exchange Offer as provided above and shall comply with the applicable requirements of the Securities Act, the Exchange Act and other applicable laws and regulations in connection with the Exchange Offer.  The Exchange Offer shall not be subject to any conditions, other than that (A) the Exchange Offer does not, in the judgment of the Company, violate any applicable law or applicable interpretations of the Staff, (B) no action or proceeding shall have been instituted or threatened by any governmental agency or other person or entity and no material adverse development shall have occurred in any existing action or proceeding with respect to the Company and its Subsidiaries which, in either case, in the Company’s judgment, might materially impair the Company’s ability to proceed with the Exchange Offer and (C) all governmental consents and approvals that, in the Company’s judgment, are necessary in connection with the Exchange Offer shall have been obtained and shall be in full force and effect.

 

(b)                                 In the event that (i) the Company determines, in its judgment, that the Exchange Offer Registration provided for in Section 2(a) hereof is not available or the Exchange Offer may not be completed because it would violate any applicable law or applicable interpretations of the Staff, (ii) the Exchange Offer is not for any other reason completed by the Target Registration Date or (iii) upon receipt of a written request (a “Shelf Request”) from any Initial Purchaser representing that it holds Registrable Securities that are or were ineligible to be exchanged in the Exchange Offer, the Company and any Guarantors shall use their commercially reasonable efforts to cause to be filed on or prior to that date that is 90 days after the Target Registration Date a Shelf Registration Statement providing for the sale of all the Registrable Securities by the Holders thereof and to cause such Shelf Registration Statement to become effective under the Securities Act; provided that no Holder will be entitled to have any Registrable Securities included in any Shelf Registration Statement, or entitled to use the prospectus forming a part of such Shelf Registration Statement, until such Holder shall have delivered a completed and signed Notice and Questionnaire and provided such other information regarding such Holder to the Company as is contemplated by Section 3(b) hereof.

 

In the event that the Company and any Guarantors are required to file a Shelf Registration Statement pursuant to clause (iii) of the preceding sentence, the Company and any Guarantors shall use their commercially

 

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reasonable efforts to file and have become effective both an Exchange Offer Registration Statement pursuant to Section 2(a) hereof with respect to all Registrable Securities and a Shelf Registration Statement (which may be a combined Registration Statement with the Exchange Offer Registration Statement) with respect to offers and sales of Registrable Securities held by the Initial Purchasers after completion of the Exchange Offer.

 

The Company and any Guarantors shall use commercially reasonable efforts to keep such Shelf Registration Statement continuously effective, supplemented and amended as required by the provisions of Section 3 hereof (A) to the extent necessary to ensure that it is available for resales of Registrable Securities registered pursuant to such Shelf Registration Statement by the Holders of such Registrable Securities entitled to the benefit of this Section 2(b), (B) to ensure that it conforms with the requirements of this Agreement, the Securities Act and the policies, rules and regulations of the SEC as announced from time to time, and (C) if reasonably requested by a Holder of Registrable Securities with respect to information regarding such Holder, for a period that ends upon the earliest of  (i) one year from the date on which such Shelf Registration Statement becomes effective under the Securities Act, (ii) when all the Registrable Securities covered by such Shelf Registration Statement have been sold pursuant to such Shelf Registration Statement or cease to be Registrable Securities or (iii) the date when the Holders of such Registrable Securities, other than Holders that are “affiliates” (as defined in Rule 144 under the Securities Act) of the Company or any Guarantors, are able to sell such Registrable Securities without restriction, and without reliance as to the availability of current public information, pursuant to Rule 144 under the Securities Act or any successor rule thereto; provided that the Company and any Guarantors may delay the initial filing or suspend the effectiveness of any Shelf Registration Statement (and suspend the use of the Prospectus that is part of such Shelf Registration Statement) for a period of up to 60 days in any three-month period, not to exceed 90 days in any calendar year, if the Company or any Guarantors determine in good faith that the initial filing or continuing effectiveness of such Shelf Registration Statement, the use of the related Prospectus or the offering or sale of any Securities pursuant to such Shelf Registration Statement would, in the reasonable opinion of the Company, require premature disclosure of material, non-public information that could reasonably be expected to adversely affect the Company or any Guarantors or a financing, acquisition, merger or other material transaction to which the Company or any subsidiary of the Company or any controlled affiliate of the Company is a party or has under consideration, or such action is otherwise required, in the reasonable opinion of the Company, by law, rule or regulation.  For the avoidance of doubt, any such suspension by the Company in accordance with the foregoing proviso shall not constitute a Registration Default.

 

(c)                                  The Company and any Guarantors shall pay all Registration Expenses in connection with any registration pursuant to Section 2(a) or Section 2(b) hereof.  Each Holder shall pay all underwriting discounts and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or disposition of such Holder’s Registrable Securities pursuant to the Shelf Registration Statement.

 

(d)                                 An Exchange Offer Registration Statement pursuant to Section 2(a) hereof will not be deemed to have become effective unless it has been declared effective by the SEC.  A Shelf Registration Statement pursuant to Section 2(b) hereof will not be deemed to have become effective unless it has been declared effective by the SEC or is automatically effective upon filing with the SEC as provided by Rule 462 under the Securities Act.

 

(e)                                  If a Registration Default occurs, the interest rate on the Registrable Securities will be increased by 0.25% per annum (such interest, the “Additional Interest”) from and including the date such Registration Default occurs to, but excluding, the date such Registration Default has been cured or otherwise ceases to exist.  A Registration Default is cured or otherwise ceases to exist when the Securities cease to be Registrable Securities or, if earlier, (1) in the case of a Registration Default under clause (i) of the definition thereof, when the Exchange Offer is completed, (2) in the case of a Registration Default under clause (ii) of the definition thereof, when the Shelf Registration Statement becomes effective or (3) in the case of a Registration Default under clause (iii) of the definition thereof, when the Shelf Registration Statement again becomes effective.  If at any time more than one Registration Default has occurred and is continuing, then, until the next date that there is no Registration Default, the increase in interest rate provided for by this paragraph shall apply as if there occurred a single Registration Default that begins on the date that the earliest such Registration Default occurred and is cured or otherwise ceases to exist on such next date that there is no Registration Default.

 

3.                                      Registration Procedures.  (a) In connection with their obligations pursuant to Section 2(a) and Section 2(b) hereof, the Company and any Guarantors shall:

 

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(i)                                     prepare and file with the SEC a Registration Statement on the appropriate form under the Securities Act, which form (A) shall be selected by the Company and any Guarantors, (B) shall, in the case of a Shelf Registration, be available for the sale of the Registrable Securities by the Holders thereof and (C) shall comply as to form in all material respects with the requirements of the applicable form and include all financial statements required by the SEC to be filed therewith; and use their commercially reasonable efforts to cause such Registration Statement to become effective and remain effective for the applicable period in accordance with Section 2 hereof;

 

(ii)                                  prepare and file with the SEC such amendments and post-effective amendments to each Registration Statement as may be necessary to keep such Registration Statement effective for the applicable period in accordance with Section 2 hereof and cause each Prospectus to be supplemented by any required prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424 under the Securities Act; and keep each Prospectus current during the period described in Section 4(3) of and Rule 174 under the Securities Act that is applicable to transactions by brokers or dealers with respect to the Registrable Securities or Exchange Securities;

 

(iii)                               to the extent any Free Writing Prospectus is used, file with the SEC any Free Writing Prospectus that is required to be filed by the Company or any Guarantors with the SEC in accordance with the Securities Act and to retain any Free Writing Prospectus not required to be filed;

 

(iv)                              in the case of a Shelf Registration, furnish to each Participating Holder, to counsel for the Initial Purchasers, to counsel for such Participating Holders and to each Underwriter of an Underwritten Offering of Registrable Securities, if any, without charge, as many copies of each Prospectus, preliminary prospectus or Free Writing Prospectus, and any amendment or supplement thereto, as such Participating Holder, counsel or Underwriter may reasonably request in order to facilitate the sale or other disposition of the Registrable Securities thereunder; and, subject to Section 3(c) hereof, the Company and any Guarantors consent to the use of such Prospectus, preliminary prospectus or such Free Writing Prospectus and any amendment or supplement thereto in accordance with applicable law by each of the Participating Holders and any such Underwriters in connection with the offering and sale of the Registrable Securities covered by and in the manner described in such Prospectus, preliminary prospectus or such Free Writing Prospectus or any amendment or supplement thereto in accordance with applicable law;

 

(v)                                 use their commercially reasonable efforts to register or qualify the Registrable Securities under all applicable state securities or blue sky laws of such jurisdictions as any Participating Holder shall reasonably request in writing by the time the applicable Registration Statement becomes effective; cooperate with such Participating Holders in connection with any filings required to be made with FINRA; and do any and all other acts and things that may be reasonably necessary or advisable to enable each Participating Holder to complete the disposition in each such jurisdiction of the Registrable Securities owned by such Participating Holder; provided that neither the Company nor any Guarantor shall be required to (1) qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction where it would not otherwise be required to so qualify, (2) file any general consent to service of process in any such jurisdiction or (3) subject itself to taxation in any such jurisdiction if it is not so subject;

 

(vi)                              notify counsel for the Initial Purchasers and, in the case of a Shelf Registration, notify each Participating Holder and counsel for such Participating Holders promptly and, if requested by any such Participating Holder or counsel, confirm such advice in writing (1) when a Registration Statement has become effective, when any post-effective amendment thereto has been filed and becomes effective, when any Free Writing Prospectus has been filed or any amendment or supplement to the Prospectus or any Free Writing Prospectus has been filed, (2) of any request by the SEC or any state securities authority for amendments and supplements to a Registration Statement, Prospectus or any Free Writing Prospectus or for additional information after the Registration Statement has become effective, (3) of the issuance by the SEC or any state securities authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose, including the receipt by the Company of any notice of objection of the SEC to the use of a Shelf Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Securities Act, (4) if, between the applicable effective date of a Shelf Registration Statement and the closing of any sale of Registrable Securities covered thereby, the representations and warranties of the Company or any Guarantor contained in any underwriting agreement, securities sales agreement or other similar agreement, if any, relating to an offering of such Registrable Securities cease to be true and correct in all material respects or if the Company or any Guarantor receives any

 

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notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation of any proceeding for such purpose, (5) of the happening of any event during the period a Registration Statement is effective that would result in such Registration Statement or the related Prospectus or any Free Writing Prospectus containing an untrue statement of a material fact or omitting to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading and (6) of any determination by the Company or any Guarantor that a post-effective amendment to a Registration Statement or any amendment or supplement to the Prospectus or any Free Writing Prospectus would be appropriate;

 

(vii)                           use their commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement or, in the case of a Shelf Registration, the resolution of any objection of the SEC pursuant to Rule 401(g)(2) under the Securities Act, including by filing an amendment to such Registration Statement on the proper form, at the earliest possible moment and provide immediate notice to each Holder or Participating Holder of the withdrawal of any such order or such resolution;

 

(viii)                        in the case of a Shelf Registration, furnish to each Participating Holder, without charge, at least one conformed copy of each Registration Statement and any post-effective amendment thereto (without any documents incorporated therein by reference or exhibits thereto, unless requested);

 

(ix)                              in the case of a Shelf Registration, cooperate with the Participating Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold and not bearing any restrictive legends and enable such Registrable Securities to be issued in such denominations and registered in such names (consistent with the provisions of the Indenture) as such Participating Holders may reasonably request at least one Business Day prior to the closing of any sale of Registrable Securities;

 

(x)                                 upon the occurrence of any event contemplated by Section 3(a)(vi)(5) hereof, use their commercially reasonable efforts to prepare and file with the SEC a supplement or post-effective amendment to the applicable Exchange Offer Registration Statement or Shelf Registration Statement or the related Prospectus or any Free Writing Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered (or, to the extent permitted by law, made available) to purchasers of the Registrable Securities, such Prospectus or Free Writing Prospectus, as the case may be, will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and the Company and any Guarantors shall notify the Participating Holders (in the case of a Shelf Registration Statement) and the Initial Purchasers and any Participating Broker-Dealers known to the Company (in the case of an Exchange Offer Registration Statement) to suspend use of the Prospectus or any Free Writing Prospectus as promptly as practicable after the occurrence of such an event, and such Participating Holders, such Participating Broker-Dealers and the Initial Purchasers, as applicable, hereby agree to suspend use of the Prospectus or any Free Writing Prospectus, as the case may be, until the Company and any Guarantors have amended or supplemented the Prospectus or the Free Writing Prospectus, as the case may be, to correct such misstatement or omission;

 

(xi)                              a reasonable time prior to the filing of any Registration Statement, any Prospectus, any Free Writing Prospectus, any amendment to a Registration Statement or amendment or supplement to a Prospectus or a Free Writing Prospectus or of any document that is to be incorporated by reference into a Registration Statement, a Prospectus or a Free Writing Prospectus after initial filing of a Registration Statement, provide copies of such document to the Initial Purchasers and their counsel (and, in the case of a Shelf Registration Statement, to the Participating Holders and their counsel) and make such of the representatives of the Company and any Guarantors as shall be reasonably requested by the Initial Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Participating Holders or their counsel) available for discussion of such document; and the Company and any Guarantors shall not, at any time after initial filing of a Registration Statement, use or file any Prospectus, any Free Writing Prospectus, any amendment of or supplement to a Registration Statement or a Prospectus or a Free Writing Prospectus, or any document that is to be incorporated by reference into a Registration Statement, a Prospectus or a Free Writing Prospectus, of which the Initial Purchasers and their counsel (and, in the case of a Shelf Registration Statement, the Participating Holders and their counsel) shall not have previously been advised and furnished a copy or to which the Initial Purchasers or their counsel (and, in the case of a Shelf Registration Statement, the Participating Holders or their counsel) shall object;

 

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(xii)                           obtain a CUSIP number for all Exchange Securities or Registrable Securities, as the case may be, not later than the initial effective date of a Registration Statement;

 

(xiii)                        cause the Indenture to be qualified under the Trust Indenture Act in connection with the registration of the Exchange Securities or Registrable Securities, as the case may be; cooperate with the Trustee and the Holders to effect such changes to the Indenture as may be required for the Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and execute, and use their commercially reasonable efforts to cause the Trustee to execute, all documents as may be required to effect such changes and all other forms and documents required to be filed with the SEC to enable the Indenture to be so qualified in a timely manner;

 

(xiv)                       in the case of a Shelf Registration, make available for inspection by a representative of the Participating Holders (an “Inspector”), any Underwriter participating in any disposition pursuant to such Shelf Registration Statement, any attorneys and accountants designated by a majority in aggregate principal amount of the Securities held by the Participating Holders and any attorneys and accountants designated by such Underwriter, at reasonable times and in a reasonable manner, all pertinent financial and other records, documents and properties of the Company and its subsidiaries, and cause the respective officers, directors and employees of the Company and any Guarantors to supply all information reasonably requested by any such Inspector, Underwriter, attorney or accountant in connection with a Shelf Registration Statement; provided that if any such information is identified by the Company or any Guarantor as being confidential or proprietary, each Person receiving such information shall take such actions as are reasonably necessary to protect the confidentiality of such information to the extent such action is otherwise not inconsistent with, an impairment of or in derogation of the rights and interests of any Inspector, Holder or Underwriter);

 

(xv)                          in the case of a Shelf Registration, use their commercially reasonable efforts to cause all Registrable Securities to be listed on any securities exchange or any automated quotation system on which similar securities issued or guaranteed by the Company or any Guarantor are then listed if requested by the Majority Holders, to the extent such Registrable Securities satisfy applicable listing requirements;

 

(xvi)                       in connection with any Shelf Registration Statement, if requested by any Holders named in such Shelf Registration Statement or the underwriter(s), if any, promptly include or incorporate in such Shelf Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if necessary, such information as such Holders and underwriter(s), if any, may reasonably request to have included therein if such information is required by the rules and regulations of the SEC;

 

(xvii)                    in the case of a Shelf Registration, enter into such customary agreements and take all such other actions in connection therewith (including those requested by the Holders of a majority in principal amount of the Registrable Securities covered by the Shelf Registration Statement) in order to expedite or facilitate the disposition of such Registrable Securities including, but not limited to, an Underwritten Offering and in such connection, (1) to the extent possible, make such representations and warranties to the Participating Holders and any Underwriters of such Registrable Securities with respect to the business of the Company and its subsidiaries and the Registration Statement, Prospectus, any Free Writing Prospectus and documents incorporated by reference or deemed incorporated by reference, if any, in each case, in form, substance and scope as are customarily made by issuers to underwriters in underwritten offerings and confirm the same if and when requested, (2) obtain opinions of counsel to the Company and any Guarantors (which counsel and opinions, in form, scope and substance, shall be reasonably satisfactory to the Participating Holders and such Underwriters and their respective counsel) addressed to each Participating Holder and Underwriter of Registrable Securities, covering the matters customarily covered in opinions requested in underwritten offerings, (3) obtain “comfort” letters from the independent registered public accountants of the Company and any Guarantors (and, if necessary, any other registered public accountant of any subsidiary of the Company or any Guarantor, or of any business acquired by the Company or any Guarantor for which financial statements and financial data are or are required to be included in the Registration Statement) addressed to each Participating Holder (to the extent permitted by applicable professional standards) and Underwriter of Registrable Securities, such letters to be in customary form and covering matters of the type customarily covered in “comfort” letters in connection with underwritten offerings, including but not limited to financial information contained in any preliminary prospectus, Prospectus or Free Writing Prospectus and (4) deliver such documents and certificates as may be reasonably requested by the Holders of a majority in principal amount of the Registrable Securities being sold or the Underwriters, and which are customarily delivered in underwritten

 

9

 

offerings, to evidence the continued validity of the representations and warranties of the Company and any Guarantors made pursuant to clause (1) above and to evidence compliance with any customary conditions contained in an underwriting agreement; and

 

(xviii)                 so long as any Registrable Securities remain outstanding, cause each Guarantor (if any) upon the creation or acquisition by the Company of such Guarantor, to execute a counterpart to this Agreement in the form attached hereto as Annex A and to deliver such counterpart, together with an opinion of counsel as to the enforceability thereof against such entity, to the Initial Purchasers no later than five Business Days following the execution thereof.

 

(b)                                 In the case of a Shelf Registration Statement, the Company may require each Holder of Registrable Securities to furnish in writing, within 20 Business Days after receipt of a request therefor, to the Company a Notice and Questionnaire and such other information regarding such Holder and the proposed disposition by such Holder of such Registrable Securities as the Company and any Guarantors may from time to time reasonably request.

 

(c)                                  Each Participating Holder agrees that, upon receipt of any notice from the Company and any Guarantors of the happening of any event of the kind described in Section 3(a)(vi)(3) or Section 3(a)(vi)(5) hereof, such Participating Holder will forthwith discontinue disposition of Registrable Securities pursuant to the Shelf Registration Statement until such Participating Holder’s receipt of the copies of the supplemented or amended Prospectus and any Free Writing Prospectus contemplated by Section 3(a)(x) hereof and, if so directed by the Company and any Guarantors, such Participating Holder will deliver to the Company and any Guarantors all copies in its possession, other than permanent file copies then in such Participating Holder’s possession, of the Prospectus and any Free Writing Prospectus covering such Registrable Securities that is current at the time of receipt of such notice.

 

(d)                                 If the Company and any Guarantors shall give a notice pursuant to Section 3(a)(x) hereof to suspend the disposition of Registrable Securities pursuant to a Registration Statement, the Company and any Guarantors shall extend the period during which such Registration Statement shall be maintained effective pursuant to this Agreement by the number of days during the period from and including the date of the giving of such notice to and including the date when the Holders of such Registrable Securities shall have received copies of the supplemented or amended Prospectus or any Free Writing Prospectus necessary to resume such dispositions; provided, however, that no such extension shall be taken into account in determining whether Additional Interest is due pursuant to Section 2(e) hereof or the amount of such Additional Interest with respect to the Registrable Securities covered by or related to such Registration Statement, it being agreed that the suspension of a Registration Statement pursuant to this paragraph shall be treated as a Registration Default for purposes of Section 2(e) hereof in the case of an Exchange Offer Registration Statement required pursuant to Section 2(a) hereof, if such suspension exceeds an aggregate of 30 days in any three-month period or an aggregate of 60 days in any six-month period, and in the case of a Shelf Registration Statement required pursuant to Section 2(b) hereof, if such suspension exceeds an aggregate of 60 days in any three month period or an aggregate of 90 days in any calendar year.

 

(e)                                  The Participating Holders who desire to do so may sell such Registrable Securities in an Underwritten Offering.  In any such Underwritten Offering, the investment bank or investment banks and manager or managers (each an “Underwriter”) that will administer the offering will be selected by the Holders of a majority in principal amount of the Registrable Securities included in such offering.

 

4.                                      Participation of Broker-Dealers in Exchange Offer.  (a)  The Staff has taken the position that any broker-dealer that receives Exchange Securities for its own account in the Exchange Offer in exchange for Securities that were acquired by such broker-dealer as a result of market-making or other trading activities (a “Participating Broker-Dealer”) may be deemed to be an “underwriter” within the meaning of the Securities Act and must deliver a prospectus meeting the requirements of the Securities Act in connection with any resale of such Exchange Securities.

 

The Company and any Guarantors understand that it is the Staff’s position that if the Prospectus contained in the Exchange Offer Registration Statement includes a plan of distribution containing a statement to the above effect and the means by which Participating Broker-Dealers may resell the Exchange Securities, without naming the

 

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Participating Broker-Dealers or specifying the amount of Exchange Securities owned by them, such Prospectus may be delivered by Participating Broker-Dealers (or, to the extent permitted by law, made available to purchasers) to satisfy their prospectus delivery obligation under the Securities Act in connection with resales of Exchange Securities for their own accounts, so long as the Prospectus otherwise meets the requirements of the Securities Act.

 

(b)                                 In light of the above, and notwithstanding the other provisions of this Agreement, the Company and any Guarantors agree to amend or supplement the Prospectus contained in the Exchange Offer Registration Statement for a period ending on the earlier of (i) 180 days from the date on which such Exchange Offer Registration Statement  is declared effective and (ii) the date on which a Participating Broker-Dealer is no longer required to deliver the Prospectus in connection with such resales, in order to expedite or facilitate the disposition of any Exchange Securities by Participating Broker-Dealers consistent with the positions of the Staff recited in Section 4(a) above.  The Company and any Guarantors further agree that Participating Broker-Dealers shall be authorized to deliver such Prospectus (or, to the extent permitted by law, make available) during such period in connection with the resales contemplated by this Section 4.

 

(c)                                  The Initial Purchasers shall have no liability to the Company, any Guarantor or any Holder with respect to any request that they may make pursuant to Section 4(b) hereof.

 

5.                                      Indemnification and Contribution.  (a)  The Company and each Guarantor (if any), jointly and severally, agree to indemnify and hold harmless each Initial Purchaser and each Holder, their respective affiliates, directors and officers and each Person, if any, who controls any Initial Purchaser or any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that arise out of, or are based upon, (1) any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement or any omission or alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements therein not misleading, or (2) any untrue statement or alleged untrue statement of a material fact contained in any Prospectus, any Free Writing Prospectus or any “issuer information” (“Issuer Information”) filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or any omission or alleged omission to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case except insofar as such losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to any Initial Purchaser or information relating to any Holder furnished to the Company or any Guarantors by such Initial Purchaser or Holder expressly for use in any Registration Statement, any Prospectus or any Free Writing Prospectus. In connection with any Underwritten Offering permitted by Section 3, the Company and any Guarantors, jointly and severally, will also indemnify the Underwriters, if any, selling brokers, dealers and similar securities industry professionals participating in the distribution, their respective affiliates and each Person who controls such Persons (within the meaning of the Securities Act and the Exchange Act) to the same extent as provided above with respect to the indemnification of the Holders, if requested in connection with any Registration Statement, any Prospectus or any Free Writing Prospectus or any Issuer Information.

 

(b)                                 Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company,  any Guarantors, the Initial Purchasers and the other selling Holders, the respective directors of the Company and any Guarantors, each officer of the Company and any Guarantors who signed the Registration Statement, and each Person, if any, who controls the Company, any Guarantors, any Initial Purchaser and any other selling Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above, but only with respect to any losses, claims, damages or liabilities (including, without limitation, legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred) that arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to such Holder furnished to the Company in writing by such Holder expressly for use in any Registration Statement, any Prospectus and any Free Writing Prospectus.

 

(c)                                  If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against any Person in respect of which indemnification may be sought pursuant

 

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to either paragraph (a) or (b) above, such Person (the “Indemnified Person”) shall promptly notify the Person against whom such indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have under paragraph (a) or (b) above except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided, further, that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have to an Indemnified Person otherwise than under paragraph (a) or (b) above.  If any such proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any others entitled to indemnification pursuant to this Section 5 that the Indemnifying Person may designate in such proceeding and shall pay the fees and expenses of such proceeding and shall pay the fees and expenses of such counsel related to such proceeding, as incurred.  In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless: (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it that are different from or in addition to those available to the Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them.  It is understood and agreed that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be reimbursed as they are incurred.  Any such separate firm (x) for any Initial Purchaser, its affiliates, directors and officers and any control Persons of such Initial Purchaser shall be designated in writing by J.P. Morgan, (y) for any Holder, its directors and officers and any control Persons of such Holder shall be designated in writing by the Majority Holders and (z) in all other cases shall be designated in writing by the Company.  The Indemnifying Person shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or liability by reason of such settlement or judgment.  No Indemnifying Person shall, without the written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnification could have been sought hereunder by such Indemnified Person, unless such settlement (A) includes an unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from all liability on claims that are the subject matter of such proceeding and (B) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person.

 

(d)                                 If the indemnification provided for in paragraphs (a) and (b) above is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and any Guarantors on the one hand and by the Holders on the other from the offering of the Securities and the Exchange Securities or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) but also the relative fault of the Company and any Guarantors on the one hand and the Holders on the other in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations.  The relative fault of the Company and any Guarantors on the one hand and the Holders on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company and any Guarantors or by the Holders and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

 

(e)                                  The Company, any Guarantors and the Holders agree that it would not be just and equitable if contribution pursuant to this Section 5 were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in paragraph (d) above.  The amount paid or payable by an Indemnified Person as a result

 

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of the losses, claims, damages and liabilities referred to in paragraph (d) above shall be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred by such Indemnified Person in connection with any such action or claim.  Notwithstanding the provisions of this Section 5, in no event shall a Holder be required to contribute any amount in excess of the amount by which the total price at which the Securities or Exchange Securities sold by the Holder or, in the case of a Holder that is a Holder only as an Initial Purchaser, the total discounts and commissions received by such Initial Purchaser with respect to the Securities or Exchange Securities sold by such Initial Purchaser, exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.  The Holders’ obligations to contribute pursuant to this Section 5 are several and not joint.

 

(f)                                   The remedies provided for in this Section 5 are not exclusive and shall not limit any rights or remedies that may otherwise be available to any Indemnified Person at law or in equity.

 

(g)                                  The indemnity and contribution provisions contained in this Section 5 shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of the Initial Purchasers or any Holder or any Person controlling any Initial Purchaser or any Holder, or by or on behalf of the Company or any Guarantors or the officers or directors of or any Person controlling the Company or any Guarantors, (iii) acceptance of any of the Exchange Securities and (iv) any sale of Registrable Securities pursuant to a Shelf Registration Statement.

 

6                                         General.

 

(a)                                 Remedies. The Company and any Guarantors hereby agree that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Agreement and hereby agrees to waive the defense in any action for specific performance that a remedy at law would be inadequate.

 

(b)                                 No Inconsistent Agreements.   The Company and any Guarantors represent, warrant and agree that (i) the rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent with the rights granted to the holders of any other outstanding securities issued or guaranteed by the Company or any Guarantor under any other agreement and (ii) neither the Company nor any Guarantor has entered into, or on or after the date of this Agreement will enter into, any agreement that is inconsistent with the rights granted to the Holders of Registrable Securities in this Agreement or otherwise conflicts with the provisions hereof.

 

(c)                                  Amendments and Waivers.   The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given unless the Company and any Guarantors have obtained the written consent of Holders of at least a majority in aggregate principal amount of the outstanding Registrable Securities affected by such amendment, modification, supplement, waiver or consent; provided that no amendment, modification, supplement, waiver or consent to any departure from the provisions of Section 5 hereof shall be effective as against any Holder of Registrable Securities unless consented to in writing by such Holder.  Any amendments, modifications, supplements, waivers or consents pursuant to this Section 6(c) shall be by a writing executed by each of the parties hereto.

 

(d)                                 Notices.  All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, registered first-class mail, telecopier, or any courier guaranteeing overnight delivery (i) if to a Holder, at the most current address given by such Holder to the Company by means of a notice given in accordance with the provisions of this Section 6(d), which address initially is, with respect to the Initial Purchasers, the address set forth in the Purchase Agreement; (ii) if to the Company and any Guarantors, initially at the Company’s address set forth in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 6(d); and (iii) if to such other persons at their respective addresses as provided in the Purchase Agreement and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 6(d).  All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged, if telecopied; and on the next Business Day if

 

13

 

timely delivered to an air courier guaranteeing overnight delivery.  Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee, at the address specified in the Indenture.

 

(e)                                  Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors, assigns and transferees of each of the parties, including, without limitation and without the need for an express assignment, subsequent Holders; provided that nothing herein shall be deemed to permit any assignment, transfer or other disposition of Registrable Securities in violation of the terms of the Purchase Agreement or the Indenture.  If any transferee of any Holder shall acquire Registrable Securities in any manner, whether by operation of law or otherwise, such Registrable Securities shall be held subject to all the terms of this Agreement, and by taking and holding such Registrable Securities such Person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement and such Person shall be entitled to receive the benefits hereof.  The Initial Purchasers (in their capacity as Initial Purchasers) shall have no liability or obligation to the Company or the Guarantors (if any) with respect to any failure by a Holder to comply with, or any breach by any Holder of, any of the obligations of such Holder under this Agreement.

 

(f)                                   Release.  Notwithstanding any other provision of this Agreement, in the event that the Company is released from all of its obligations under the Indenture pursuant to Section 5.01 of the Indenture, the Company shall also be released from its obligations under this Agreement; provided that, the Surviving Entity (as defined in the Indenture) shall have fully assumed the Company’s obligations hereunder.

 

(g)                                  Third Party Beneficiaries.  Each Holder shall be a third party beneficiary to the agreements made hereunder between the Company and any Guarantors, on the one hand, and the Initial Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the extent it deems such enforcement necessary or advisable to protect its rights or the rights of other Holders hereunder.

 

(h)                                 Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

(i)                                     Headings.  The headings in this Agreement are for convenience of reference only, are not a part of this Agreement and shall not limit or otherwise affect the meaning hereof.

 

(j)                                    Governing Law.  This Agreement, and any claim, controversy or dispute arising under or related to this Agreement, shall be governed by and construed in accordance with the laws of the State of New York.

 

(k)                                 Entire Agreement; Severability.  This Agreement contains the entire agreement between the parties relating to the subject matter hereof and supersedes all oral statements and prior writings with respect thereto.  If any term, provision, covenant or restriction contained in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable or against public policy, the remainder of the terms, provisions, covenants and restrictions contained herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated.  The Company, any Guarantors and the Initial Purchasers shall endeavor in good faith negotiations to replace the invalid, void or unenforceable provisions with valid provisions the economic effect of which  comes as close as possible to that of the invalid, void or unenforceable provisions.

 

14

 

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

 

	
 
    	
 
    	
STARWOOD PROPERTY   TRUST, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Andrew J. Sossen
    
	
 
    	
 
    	
Name:     Andrew   J. Sossen
    
	
 
    	
 
    	
Title:       Executive   Vice President, General Counsel, Chief Operating Officer, Chief Compliance   Officer and Secretary
    

 

15

 

Confirmed and accepted as of the date first above written:

 

J.P. MORGAN SECURITIES LLC

 

For itself and on behalf of the
 several Initial Purchasers

 

	
By
    	
/s/ Summer Nemeth
    	
 
    
	
 
    	
Authorized Signatory
    	
 
    

 

16

 

Annex A

 

Counterpart to Registration Rights Agreement

 

The undersigned hereby absolutely, unconditionally and irrevocably agrees as a Guarantor (as defined in the Registration Rights Agreement, dated December 4, 2017  by and among Starwood Property Trust, Inc., a Maryland corporation (the “Company”), the Guarantors party thereto (if any) and J.P. Morgan Securities LLC, on behalf of itself and the other Initial Purchasers relating to the Company’s 4.750% Senior Notes due 2025 to be bound by the terms and provisions of such Registration Rights Agreement.

 

IN WITNESS WHEREOF, the undersigned has executed this counterpart as of         , 20  .

 

	
 
    	
[GUARANTOR]
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:Exhibit 10.1

 

EMPLOYMENT AGREEMENT (“Agreement”),
as of December 1, 2017, by and between Immune Pharmaceuticals, Inc., a Delaware corporation with offices at 550 Sylvan Avenue,
Englewood Cliffs, NJ 07632 (the “Corporation”) and Elliot Maza, an individual (“Executive”).

 

WITNESSETH

 

WHEREAS, Executive
served as the Interim Chief Executive Officer of the Corporation during the period commencing on May 10, 2017 and ending on September
14, 2017 pursuant to that certain Letter Agreement between the Corporation and Executive, dated May 10, 2017 as amended on July
24, 2017 (the “Prior Agreement”);

 

WHEREAS, the Board
of Directors of the Corporation (the “Board”) at a duly held meeting of the Board appointed Executive as Chief Executive
Officer effective September 14, 2017;

 

WHEREAS, the Corporation
desires to appoint Executive as President of the Corporation and continue to employ Executive as its Chief Executive Officer upon
the terms and conditions hereinafter set forth; and

 

WHEREAS, Executive
desires to serve as the President and Chief Executive Officer of the Corporation upon the terms and conditions hereinafter set
forth.

 

NOW, THEREFORE, the
parties mutually agree as follows:

 

Section 1.            Employment.
Commencing on November 1, 2017 (hereinafter referred to as the “Effective Date”), the Corporation shall employ Executive
and Executive shall commence such employment, as an executive of the Corporation, on the terms and conditions set forth in this
Agreement.

 

Section
2.            Duties. As of the Effective
Date, Executive shall serve as President and Chief Executive Officer of the Corporation and shall, among other things, be responsible
for all aspects of managing the Corporation including its employees and current product portfolio and shall properly perform such
duties as may be assigned to him from time to time by the Board. From and after the Effective Date and during the term of this
Agreement, Executive shall devote substantially all of his business time to the performance of his duties hereunder; provided,
that Executive may serve on up to two public company outside boards. 

 

Section
3.            Term of Employment. Unless
earlier terminated pursuant to the provisions of Section 5 hereof, the term of Executive’s employment shall continue as of
the Effective Date and shall continue until October 31, 2020 and shall automatically renew for successive one (1) year terms unless
not renewed by the Corporation upon no less than three (3) months advance written notice to Executive, or non-renewed by Executive
upon no less than one (1) month advance written notice to the Corporation (the term of employment hereinafter referred to as the
“Term”). 

 

     

     

    

 

Section 4.            Compensation
of Executive.

 

4.1.        Compensation.
As compensation for his services hereunder the Corporation shall pay Executive an annual salary (“Salary”) equal
to four hundred thousand dollars ($400,000). The Salary shall be payable according to the salary payment cycle of the Corporation,
less such deductions as shall be required to be withheld by applicable law and regulations.
Upon each anniversary of the Effective Date during the term of this Agreement, Executive’s Salary shall be reviewed by the
Compensation Committee of the Board (the “Compensation Committee”) or earlier at the sole discretion of the Compensation
Committee and the Board but in no case will Executive receive an annual raise of less than the percentage increase (if any) in
the Consumer Price Index: Urban Wage Earners and Clerical Workers for the N.Y. Northeastern N.J. region as published by the U.S.
Bureau of Labor Statistics during the immediately preceding 12-month period running from October 1st through September 30th..

 

4.2.        Bonus;
Stock Options. 

 

(a)          In
addition to his Salary, Executive shall be eligible to receive a potential annual target cash bonus (the “Target Cash Bonus”)
of 75% of his Salary on an annual fiscal year basis, in accordance with the terms of the Corporation’s Board approved executive
incentive compensation or bonus plan, if any, or as otherwise approved by the Board. The determination of any Target Cash Bonus
payment to be made shall be based on Executive’s and / or the Corporation’s achievement of financial goals and other
measurement criteria, as defined and approved by the Board each year. The annual Target Cash Bonus is payable at the discretion
of the Compensation Committee and Board. The Target Cash Bonus for any particular calendar year, if any, will be paid by March
15 of the following calendar year. Notwithstanding anything contained in this Section 4.2(a) to the contrary, Executive’s
Target Cash Bonus in respect of calendar year 2017 shall be determined based on Executive’s achievement of performance objectives
during the period commencing on the Effective Date and ending on December 31, 2017 (the “2017 Performance Period”),
which performance objectives shall be agreed to by the Board and Executive. 

 

(b)          As
additional compensation for his services hereunder, Executive shall be eligible to receive, as promptly as possible following the
Effective Date, an option to purchase a number of shares of the Corporation’s common stock representing seven percent (7%)
of the Corporation’s total outstanding shares on the date of grant, subject to and in accordance with the terms and provisions
of the Corporation’s current Equity Incentive Plan, as amended (the “Plan”) and the applicable award agreement
in accordance with the schedule attached hereto as Schedule 1. An amount equal to fifty percent (50%) of such stock options will
vest immediately on the Effective Date and the remaining fifty percent (50%) will vest quarterly over two years in equal installments,
irrespective of Executive remaining in the role contemplated by this Agreement. 

 

(c)          Subject
to Compensation Committee and Board approval, for each fiscal year during the term of his employment following the first fiscal
year, Executive shall be eligible to receive, simultaneous with receipt of the Target Cash Bonus described in Section 4.2 (a),
options to purchase a number of shares of the Corporation’s common stock with an aggregate fair market value (determined
by the quoted price of the common stock on Nasdaq or other national exchange) of up to six hundred thousand dollars ($600,000)
on the date of grant, subject to and in accordance with the terms and provisions of the Corporation’s Plan and the applicable
award agreement. 

 

(d)          Expenses.
The Corporation shall pay or reimburse Executive for all reasonable and necessary business, travel or other expenses incurred by
him, upon proper documentation thereof, in accordance with the Corporation’s travel and expense policy, which may be incurred
by him in connection with the rendition of the services contemplated hereunder. 

 

    	 	2	 

     

    

 

(e)          Benefits.
From and after the Effective Date and during the Term, Executive shall be entitled to participate in such pension, profit sharing,
group insurance, term life, option plans, hospitalization, and group health benefit plans and all other benefits and plans as the
Corporation provides to its senior executives, subject to the terms and conditions of such plans. 

 

(f)           Vacations.
Executive shall be entitled to four (4) weeks of paid vacation during each calendar year of the Term, during which period his Salary
shall be paid in full. Executive shall take his vacation at such time or times as Executive and the Corporation shall determine
is mutually convenient. Executive shall be permitted
to carryover up to 10 days from one calendar year to the next, and shall forfeit any accrued but unused vacation days above such
amount. Upon Executive’s termination of employment for any reason, he shall be entitled to payment for a maximum of 20 accrued
but unused days.

 

(g)          Sick
Time. Executive shall be entitled to sick time in accordance with the Corporation’s sick time policy.

 

Section 5.             Termination.

 

5.1.        Termination.
This Agreement and Executive’s employment hereunder shall terminate immediately upon: (i) Executive’s death or Total
Disability (as defined below); or (ii) termination of Executive’s employment by the Corporation For Cause (as defined below);
or (iii) termination of Executive’s employment by the Corporation other than For Cause; or (iv) a Change in Control Termination
(as defined below); or (v) termination of Executive’s employment by Executive without Good Reason (as defined below); or
(vi) termination of Executive’s employment by Executive for Good Reason. 

 

5.2.        Termination
upon Death or Total Disability. In the event of a termination upon the death or Total Disability of Executive, the Corporation
shall pay to Executive, or any person designated by Executive in writing or, if no such person is designated, to his estate, the
Salary which has been earned but unpaid. As used herein, the term “Total Disability” shall mean that Executive is unable
to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted, or can be expected to last, for a continuous period of not less than one year.

 

5.3.        Termination
For Cause or without Good Reason. In the event Executive’s employment is terminated by the Corporation for Cause or by
Executive without Good Reason, Executive shall be paid his Salary through the date of termination. As used herein, the term “For
Cause” shall mean (i) Executive’s failure to perform Executive’s material duties hereunder (other than such failure
resulting from incapacity due to physical or mental illness); (ii) Executive’s substantiated misappropriation of the Corporation’s
assets or substantiated perpetration of fraud against or proven dishonesty in dealings with the Corporation; (iii) Executive’s
plea of guilty or nolo contendere to, or conviction in a court of law of, any crime or offense which constitutes a felony, in each
case whether or not involving the Corporation; (iv) Executive’s willful misconduct; (v) Executive’s habitual drunkenness
or habitual use of illegal substances; (vi) Executive’s failure to cooperate with a governmental or regulatory investigation
concerning the Corporation or Executive; (vii) Executive’s behavior which is materially detrimental to the Corporation’s
reputation; (viii) Executive’s willful refusal to follow, or reckless disregard of, the policies and directives of the Corporation
or the Board; or (ix) Executive’s material breach of this Agreement, which material breach, if curable, is not cured within
fifteen (15) calendar days after notice thereof by the Corporation. Whether a termination is “For Cause,” as such term
is defined in this Section 5.3, shall be determined by the Board in its sole discretion. For purposes of this Section 5.3, no act
or failure to act by Executive shall be considered “willful” if such act is done by Executive in the good faith belief
that such act is or was in the best interests of the Corporation or one or more of its businesses.

 

    	 	3	 

     

    

 

5.4.        Termination
for Good Reason. Executive may terminate this Agreement, upon notice to the Corporation, for Good Reason, which Good Reason
is not remedied by the Corporation within thirty (30) calendar days after notice thereof by Executive. The term “Good Reason”
shall include any of the following, (i) any assignment to Executive of duties inconsistent with Executive’s position of President
and Chief Executive Officer or which constitutes a significant reduction in authority, responsibilities, or status; (ii) any demotion,
including, but not limited to, reporting to someone other than the Board; (iii) any material reduction in Executive’s
base salary, or other benefit plans available to executive officers of the Corporation, or the level, amount or value of any accrued
benefit; or (iv) any attempted reduction of Executive’s bonus potential which is inconsistent with the provisions of this
Agreement. 

 

5.5.        Termination
by the Corporation other than For Cause or by Executive for Good Reason. If, other than as set forth in Section 10.1, Executive’s
employment is terminated during the Term by the Corporation other than For Cause or by Executive as a result of Good Reason, then
the Corporation shall pay to Executive after such termination, subject to his execution and non-revocation of the release described
in Section 5.6, severance payments (“Severance”) equal to (i) twelve (12) months of Executive’s Salary for the
year in which the termination for Good Reason occurs plus (ii) the amount of the actual bonus earned by Executive under Section
4.2(a) hereof for the year prior to the year of termination, pro-rated based on the number of days Executive was employed by the
Corporation during the year of termination as compared to the total number of days in such year. The Severance shall be paid in
a lump sum within thirty (30) days after the Release Effective Date (as defined below), less such deductions as shall be required
to be withheld by applicable law and regulations. In addition, if Executive timely and properly elects continuation coverage under
the Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”), then, subject to his execution and non-revocation of
the release described in Section 5.6, the Corporation shall reimburse Executive for the monthly COBRA premium paid by Executive
for Executive and Executive’s eligible dependents. Executive shall be eligible to receive such reimbursement until the earliest
of: (x) the twelve (12) month anniversary of the date of Executive’s termination of employment; (y) the date Executive is
no longer eligible to receive COBRA continuation coverage; or (z) the date on which Executive either receives or becomes eligible
to receive substantially similar coverage from another employer.

 

    	 	4	 

     

    

 

5.6.        Release.
Executive agrees that, as a condition to receiving the payments and benefits set forth in Section 5.5 or Section 10.1, as applicable,
Executive will execute a release of claims substantially in the form of the release attached hereto as Exhibit A. Within
five business days of the date of Executive’s termination of employment, the Corporation shall deliver to Executive the release
for Executive to execute. Executive will forfeit all rights to the payments and benefits set forth in Section 5.5 or Section 10.1,
as applicable, unless, within sixty (60) days of delivery of the release by the Corporation to Executive, Executive executes and
delivers the release to the Corporation and such release has become irrevocable by virtue of the expiration of the revocation period
without the release having been revoked (the first such date, the “Release Effective Date”). In the event that the
Release Effective Date could occur in one of two taxable years of Executive, the Release Effective Date shall be deemed to occur
on the earliest date in the later such taxable year as otherwise would apply hereunder. The Corporation shall have no obligation
to provide the payments and benefits set forth in Section 5.5 or Section 10.1, as applicable, prior to the Release Effective Date.

 

Section 6.             Confidential
Information; Restrictive Covenants.

 

6.1.        Disclosure.
Executive hereby acknowledges that he will acquire confidential information concerning the Corporation, its business, products,
product development, formulas, research and development, know-how, names and contact information of the Corporation’s customers,
suppliers, contract manufacturers, and vendors, and the Corporation’s current and future business plans and that, among other
things, his knowledge of the Corporation’s business will be enhanced through his employment by the Corporation. Executive
acknowledges that such information is of great value to the Corporation, is the sole property of the Corporation, other than those
customers, suppliers, contract manufacturers, and vendors introduced to the Corporation by Executive, and has been and will be
acquired by him in confidence.

 

6.2.        Confidentiality.
In consideration of the obligations undertaken by the Corporation herein, Executive will not, at any time during or after the Term,
directly or indirectly, use for Executive’s own benefit or any other party’s benefit, or reveal, divulge or make known
to any person, any information which is treated as confidential by the Corporation and not otherwise in the public domain. Confidential
information shall not include information which was previously known by Executive, information which was given to Executive by
any third party under no obligation of confidentiality, or information which Executive is required to disclose as a result of a
governmental investigation or by a court order. Executive agrees that all materials or copies thereof containing confidential information
of the Corporation in Executive’s custody or possession will not, at any time, be removed from the Corporation’s premises
without the prior written consent of the Board. The parties hereto acknowledge that pursuant to 18 USC § 1833(b), an individual
may not be held liable under any criminal or civil federal or state trade secret law for disclosure of a trade secret: (i) made
in confidence to a government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or
investigating a suspected violation of law or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if
such filing is made under seal. The parties hereto further acknowledge that an individual suing an employer for retaliation based
on the reporting of a suspected violation of law may disclose a trade secret to his attorney and use the trade secret information
in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose
the trade secret except pursuant to court order.

 

    	 	5	 

     

    

 

6.3.        Restrictive
Covenants. Executive recognizes that the services to be performed by him hereunder are special, unique and extraordinary. The
parties confirm that it is reasonably necessary for the protection of the Corporation that Executive agrees, and, accordingly,
Executive does hereby agree, that he will not, either on Executive’s own behalf or as an officer, director, stockholder,
partner, principal, consultant, associate, employee, owner, agent, creditor, independent contractor, or co-venturer of any third
party or in any other relationship or capacity, directly or indirectly, at any time during his employment and for the Restricted
Period (as defined below) solicit, induce, persuade or encourage, or attempt to solicit, induce, persuade or encourage, any individual
employed by the Corporation, with whom Executive has worked, to terminate such employee’s position with the Corporation,
whether or not such employee is a full-time or temporary employee of the Corporation and whether or not such employment is pursuant
to a written agreement, for a determined period, or at will. The provisions of this Section 6.3 shall only apply to those individuals
employed by the Corporation at the time of solicitation or attempted solicitation.

 

6.4.        Restricted
Period. “Restricted Period” shall mean the term following Executive’s employment to last for as long as Executive
receives Severance or his regular Salary and benefits from the Corporation.

 

6.5.        Modification
of Restrictions. If any of the restrictions contained in this Section 6 shall be deemed to be unenforceable by reason
of the extent, duration or geographical scope thereof, or otherwise, then after such restrictions have been reduced so as to be
enforceable, in its reduced form this Section shall then be enforceable in the manner contemplated hereby.

 

Section 7.            Work
for Hire.

 

7.1.        Executive
agrees to make full and prompt disclosure to the Corporation of all inventions, improvements, discoveries, methods, developments,
formulas, computer software (and programs and code) and works of authorship, whether or not patentable or copyrightable, which
were or are created, made, conceived or reduced to practice by Executive or under Executive’s direction or jointly with others
during Executive’s employment by the Corporation, whether or not during normal working hours or on the premises of the Corporation
(all of which are collectively referred to in this Agreement as “Developments”). 

 

7.2.        Executive
agrees to assign and, by executing this Agreement, Executive does hereby assign, to the Corporation (or to any person or entity
designated by the Corporation) all of Executive’s rights, titles and interests, if any, in and to all Developments and all
related patents, patent applications, copyrights and copyright applications. However, this Section 7.2 shall not apply to Developments
(i) which do not relate to the present or planned business or research and development of the Corporation and (ii) which are made
and conceived by Executive: (A) at a time other than during normal working hours, (B) not on the Corporation’s
premises and (C) not using the Corporation’s tools, devices, equipment or proprietary information. Executive understands
that to the extent that the terms of this Agreement shall be construed in accordance with the laws of any state which precludes
a requirement in an employment agreement to assign certain classes of inventions made by an employee, this Section 7 shall be interpreted
not to apply to any invention which a court rules and/or the Corporation agrees falls within such class or classes. Executive also
agrees to waive all claims to moral and/or equitable rights in any Developments.

 

    	 	6	 

     

    

 

7.3.        Executive
agrees to cooperate fully with the Corporation, both during and after Executive’s employment with the Corporation, with respect
to the procurement, maintenance and enforcement of copyrights, patents and other intellectual property rights (both in the United
States and foreign countries) relating to Developments. Executive agrees that he will sign all papers, including, without limitation,
copyright applications, patent applications, declarations, oaths, formal assignments, assignments of priority rights, and powers
of attorney, which the Corporation may deem necessary or desirable in order to protect its rights and interests in any Development.
Executive further agrees that if the Corporation is unable, after reasonable effort, to secure Executive’s signature on any
such papers, any executive officer of the Corporation shall be entitled to execute any such papers as Executive’s agent and
attorney-in-fact, and Executive hereby irrevocably designates and appoints each executive officer of the Corporation as Executive’s
agent and attorney-in-fact to execute any such papers on Executive’s behalf, and to take any and all actions as the Corporation
may deem necessary or desirable, in order to protect its rights and interests in any Development, under the conditions described
in this sentence.

 

Section 8.             Conflicts
of Interest; Insider Trading.

 

8.1.        Conflicts
of Interest. Further, in order to avoid actual or apparent conflicts of interest, except with the Corporation’s consent,
Executive shall not have any direct or indirect ownership or financial interest in any company, person or entity which is: (i)
a service provider to, or vendor of the Corporation; (ii) a customer of the Corporation; or (iii) a competitor of the Corporation.
Executive shall not be deemed to have any direct or indirect ownership or financial interest for any such interest that does not
exceed five (5%) percent of the issued and outstanding voting securities of any class of any corporation whose voting capital stock
is traded on a national securities exchange or in the over-the-counter market. 

 

8.2.        General
Requirements. Executive shall observe such lawful policies of the Corporation as may from time to time be in effect.

 

8.3.        Insider
Trading. Considering that the Corporation is a publicly-traded corporation, Executive hereby agrees that Executive shall comply
with the Corporation’s Insider Trading Policy and any and all federal and state securities laws, including but not limited
to those that relate to non-disclosure of information, insider trading and individual reporting requirements and shall specifically
abstain from discussing the non-public aspects of the Corporation’s business affairs with any individual or group of individuals
(e.g., Internet chat rooms) who does not have a business need to know such information for the benefit of the Corporation. Executive
hereby agrees to immediately notify the Corporation’s Compliance Officer or Chief Financial Officer in accordance with the
Corporation’s Insider Trading Policy prior to Executive’s acquisition or disposition of Corporation’s securities.

 

Section 9.             Indemnification.

 

9.1.        Indemnification.
The Corporation hereby agrees to indemnify and hold harmless Executive to the fullest extent permitted by the Corporation’s
Certificate of Incorporation, By-Laws, the Delaware General Corporation Law or any other applicable law, as any or all may be amended
from time to time. Such reimbursements shall include but not be limited to Executive’s reasonable and necessary out of pocket
expenses including attorneys and expert fees, losses, judgments, claims, and settlement payments and any other such costs and expenses.

 

9.2.        Undertaking.
To the extent that the Corporation advances payment for any fees or expenses to Executive pursuant to this Section 9, such advance
shall be accompanied by a written undertaking by Executive to repay such amounts if it shall be ultimately determined by a court
of competent jurisdiction in a final disposition, that Executive (i) is not entitled to be indemnified by the Corporation or (ii)
that the amount advanced exceeded the indemnification to which he is entitled, in which case the amount of such excess shall be
repaid to the Corporation.

 

    	 	7	 

     

    

 

9.3.        Notice.
As a condition precedent to his right to be indemnified hereunder, Executive shall give the Corporation notice in writing as soon
as practicable of any claim made against him for which indemnity will or could be sought under this Agreement.

 

9.4.        Cooperation.
Executive shall fully cooperate with the Corporation in connection with any matter, which results in the assertion of a claim by
Executive for indemnification hereunder. The Corporation shall be entitled at its own expense to participate in the defense of
any proceeding, claim or action, or, if it shall elect, to assume such defense, in which event such defense shall be conducted
by counsel chosen by the Corporation, subject to the consent of Executive, which consent shall not be unreasonably withheld or
delayed.

 

9.5.        Exceptions.
The Corporation shall not be liable under this Agreement to make any payment in connection with any claim:

 

(a)          For
which payment is actually made to Executive under valid and collectable insurance policies, the premiums of which are paid by the
Corporation or any of its affiliates, except in respect of any deductible and excess beyond the amount of payment under such insurance;

 

(b)          For
which Executive is indemnified by the Corporation otherwise than pursuant to this Agreement, provided such amount has previously
been paid to Executive;

 

(c)          Brought
about or contributed to by the dishonesty of Executive; 

 

(d)          For
which Executive fails to cooperate in a criminal or civil investigation involving the claim; and

 

(e)          By
Executive who acts as a plaintiff suing the Corporation, its affiliates or directors, officers or shareholders of the Corporation
or its affiliates, except with regard to Executive’s successful enforcement of Section 9.1 hereof.

 

9.6.        Survival.
The obligations of the Corporation hereunder will survive (i) any actual or purported termination of this Agreement by the Corporation
or its successors or assigns, whether by operation of law or otherwise, (ii) any change in the Corporation’s Certificates
of Incorporation or By-laws, and (iii) termination of Executive’s services to the Corporation or its affiliates (whether
such services were terminated by the Corporation, such affiliate or Executive), if such claim arises as a result of an occurrence
prior to the termination of this Agreement, whether or not a claim is made or an action or proceeding is threatened or commenced
before or after the actual or purported termination of this Agreement, change in the Corporation’s Certificate of Incorporation
or By-laws, or termination of Executive’s services.

 

    	 	8	 

     

    

 

Section 10.           Change
in Control. 

 

10.1.      Payment
on Change in Control Termination. The Corporation will provide or cause to be provided to Executive the rights and benefits
described below if, during the Term, within the three (3) month period prior to and the twelve (12) month period following a Change
in Control, (x) Executive terminates his employment for Good Reason, or (y) the Corporation or its successor terminates Executive’s
employment (“Change in Control Termination”); provided however, that a Change in Control Termination shall not include
a termination For Cause or a termination as a result of Executive’s death or Total Disability. In the event of a Change in
Control Termination during the Term, the Corporation shall pay or cause its successor to pay to Executive, in cash, in a lump sum
within thirty (30) days after the Release Effective Date, less such deductions as shall be required to be withheld by applicable
law and regulations, and subject to his execution and non-revocation of the release described in Section 5.6, an amount equal to
two (2) times Executive’s base compensation which equals the sum of the following: (i) Executive’s annual Salary on
the day preceding the Change in Control Termination, plus (ii) an amount equal to the aggregate bonus received by Executive for
the year immediately preceding the Change in Control Termination or if no Bonus had been received, then at minimum fifty percent
(50%) of the Target Cash Bonus. In addition, if Executive timely and properly elects continuation coverage under COBRA, then, subject
to his execution and non-revocation of the release described in Section 5.6, the Corporation shall reimburse Executive for the
monthly COBRA premium paid by Executive for Executive and Executive’s eligible dependents. Executive shall be eligible to
receive such reimbursement until the earliest of: (x) the eighteen (18) month anniversary of the date of Executive’s termination
of employment; (y) the date Executive is no longer eligible to receive COBRA continuation coverage; or (z) the date on which Executive
either receives or becomes eligible to receive substantially similar coverage from another employer. In addition, in the event
of a Change in Control Termination, subject to Executive’s execution and non-revocation of the release described in Section
5.6, any and all outstanding stock options held by Executive shall become fully vested and exercisable. Executive shall have six
(6) months to exercise any such stock options following his termination of employment, provided that in no event may Executive
exercise a stock option following the original expiration date of such stock option as set forth in the applicable award agreement.

 

10.2.      Change
in Control Defined. A “Change in Control” shall be deemed to occur upon the earliest to occur after the date of
this Agreement of any of the following events; 

 

(a)          Any
“person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly
or indirectly, of securities of the Corporation representing more than fifty percent (50%) of the total voting power represented
by the Corporation’s then-outstanding voting securities;

 

(b)          The
consummation of the sale or disposition by the Corporation of all or substantially all of the Corporation’s assets;

 

(c)          The
consummation of a merger or consolidation of the Corporation with or into any other entity, other than a merger or consolidation
which would result in the voting securities of the Corporation outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) more than fifty percent
(50%) of the total voting power represented by the voting securities of the Corporation or such surviving entity or its parent
outstanding immediately after such merger or consolidation; or

 

    	 	9	 

     

    

 

(d)          Individuals
who are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the
members of the Board over a period of 12 months; provided, however, that if the appointment or election (or nomination for election)
of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office,
such new member shall, for purposes of this Plan, be considered as a member of the Incumbent Board.

 

A transaction shall not
constitute a Change in Control if its sole purpose is to change the state of the Corporation’s incorporation or to create
a holding company that will be owned in substantially the same proportions by the persons who held the Corporation’s securities
immediately before such transaction.

 

Section 11.           Miscellaneous.

 

11.1.      Section
409A. The parties intend for the payments and benefits under this Agreement to be exempt from Section 409A of the Internal
Revenue Code (“Section 409A”) or, if not so exempt, to be paid or provided in a manner which complies with the requirements
of such section, and intend that this Agreement shall be construed and administered in accordance with such intention. Any payments
that qualify for the “short-term deferral” exception or another exception under Section 409A shall be paid under the
applicable exception. For purposes of the limitations on nonqualified deferred compensation under Section 409A, each payment of
compensation under this Agreement shall be treated as a separate payment of compensation. All in-kind benefits, reimbursements,
and tax-gross-ups (if any) to be provided under this Agreement shall be made or provided in accordance with the requirements of
Section 409A of the Code, including, where applicable, the requirements that (x) the amount of expenses eligible for reimbursement,
or in kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in kind benefits
to be provided, in any other calendar year, (y) the reimbursement of an eligible expense will be made no later than the last day
of the calendar year following the year in which the expense is incurred, and (z) the right to reimbursement or in kind benefits
is not subject to liquidation or exchange for another benefit. Notwithstanding anything contained herein to the contrary, to the
extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A, (i) no amounts payable under this
Agreement to Executive on termination of employment shall be paid until Executive would be considered to have incurred a separation
from service from the Corporation within the meaning of Section 409A and (ii) amounts that would otherwise be payable and benefits
that would otherwise be provided pursuant to this Agreement during the Applicable Period (as defined below) shall instead be paid
on the first business day after the expiration of the Applicable Period, with interest from the date such amounts would otherwise
have been paid at the short-term applicable federal rate, compounded semi-annually, as determined under Section 1274 of the Internal
Revenue Code of 1986, as amended, for the month in which payment would have been made but for the delay in payment required to
avoid the imposition of an additional rate of tax on Executive under Section 409A. The “Applicable Period” shall be
the period commencing on Executive’s separation from service and ending on the date that is six (6) months following Executive’s
separation from service.

 

    	 	10	 

     

    

 

11.2.      Survival.
The provisions of Sections 5, 6.1, 6.2, 6.4, 6.5, 7, 8, 9, 10 and 11 shall indefinitely survive Executive’s employment with
the Corporation. The provisions of Section 6.3 shall survive for the Restricted Period, as defined therein.

 

11.3.      Injunctive
Relief. Executive agrees that any breach or threatened breach by him of Sections 6, 7 or 8 of this Agreement shall entitle
the Corporation, in addition to all other legal remedies available to it, to apply to any court of competent jurisdiction to enjoin
such breach or threatened breach without proving actual damage or posting a bond or other security. The parties understand and
intend that each restriction agreed to by Executive herein shall be construed as separable and divisible from every other restriction,
that the unenforceability of any restriction shall not limit the enforceability, in whole or in part, of any other restriction,
and that one or more or all of such restrictions may be enforced in whole or in part as the circumstances warrant. In the event
that any restriction in this Agreement is more restrictive than permitted by law in the jurisdiction in which the Corporation seeks
enforcement thereof, such restriction shall be limited to the extent permitted by law.

 

11.4.      Entire
Agreement. This Agreement constitutes and embodies the entire and complete understanding and agreement of the parties with
respect to Executive’s employment by the Corporation, supersedes all prior understandings and agreements, if any, whether
oral or written, between Executive and the Corporation, including, without limitation, the Prior Agreement, and shall not be amended,
modified or changed except by an instrument in writing executed by the party to be charged. The invalidity or partial invalidity
of one or more provisions of this Agreement shall not invalidate any other provision of this Agreement. No waiver by either party
of any provision or condition to be performed shall be deemed a waiver of similar or dissimilar provisions or conditions at the
same or any prior or subsequent time.

 

11.5.      Assignment;
Binding Effect. Executive may not assign or delegate any of his or duties under this Agreement. This Agreement shall inure
to the benefit of, be binding upon and enforceable against, the parties hereto and their respective successors and permitted assigns.

 

11.6.      Captions.
The captions contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation
of this Agreement.

Notices. All notices, requests, demands and other
communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given when
personally delivered or sent by fax or certified, mail, postage prepaid, to the party at the address set forth above or to such
other address as either party may hereafter give notice of in accordance with the provisions hereof.

 

11.7.      Governing
Law. This Agreement shall be governed by and interpreted under the laws of the State of New York applicable to contracts made
and to be performed therein without giving effect to the principles of conflict of laws thereof. Except in respect of any action
commenced by a third party in another jurisdiction, the parties hereto agree that any legal suit, action, or proceeding against
them arising out of or relating to this Agreement may be brought in the United States Federal Courts in the State of New York or
the state courts, in the State of New York. By its execution hereof, the parties hereby irrevocably waive any objection and any
right of immunity on the ground of venue, the convenience of the forum or the jurisdiction of such courts or from the execution
of judgments resulting therefrom. The parties hereby irrevocably accept and submit to the jurisdiction of the aforesaid courts
in any such suit, action or proceeding.

 

    	 	11	 

     

    

 

11.8.      Waiver
of Jury Trial. THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT,
TORT OR OTHERWISE. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE
KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE TRIAL BY JURY AND THAT ANY ACTION OR PROCEEDING
WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY SHALL INSTEAD BE TRIED IN A COURT OF
COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 

11.9.      Counterparts.
This Agreement may be executed and delivered in counterparts, including by facsimile transmission or portable document format (“.pdf”),
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

Signature
page follows

 

    	 	12	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date set forth above.

 

	 	Immune Pharmaceuticals, Inc.

 

	 	By: 	/s/ Cameron Durrant
	 	 
	 	Dr. Cameron Durrant, Chair of Compensation Committee
	 	 
	 	Date: 	11/29/17
	 	 
	 	Executive
	 	 
	 	By: 	/s/ Elliot Maza
	 	 
	 	Elliot Maza
	 	 
	 	Date: 	11/29/17

 

    	 	13	 

     

    

 

Schedule 1

 

Stock Options

 

As additional compensation for his services
hereunder, Executive shall be eligible to receive, as promptly as possible following the Effective Date, an option to purchase
a number of shares of the Corporation’s common stock representing seven percent (7%) of the Corporation’s total outstanding
shares on the date of grant, subject to and in accordance with the terms and provisions of the Corporation’s current Equity
Incentive Plan, as amended (the “Plan”) and the applicable award agreement in accordance with the following schedule:

 

	·     Immediately
upon execution of employment contract:	 	 	5.0	%
	 	 	 	 	 
	·     Upon filing
    of Form 10 for Cytovia, Inc.:	 	 	0.5	%
	 	 	 	 	 
	·     Upon completing
    a financing with a lead fundamental investor:	 	 	0.5	%
	 	 	 	 	 
	·     Upon completion
    of ongoing Bertilimumab phase 2 trials:	 	 	0.5	%
	 	 	 	 	 
	·     Upon successful
    manufacturing of Bertilimumab with new cell line:	 	 	0.25	%
	 	 	 	 	 
	·     Upon FDA
    and/or EMA agreement  on pivotal BP trial	 	 	0.25	%
	 	 	 	 	 
	·     Total	 	 	7.00	%

 

    	 	14	 

     

    

 

EXHIBIT A

 

General Release of Claims

 

I, Elliot Maza (the “Employee”),
in consideration of and subject to the performance by Immune Pharmaceuticals, Inc. (together with its subsidiaries, the “Corporation”),
of its obligations under the Employment Agreement dated as of November 1, 2017 (the “Agreement”), do hereby
release and forever discharge as of the date hereof the Corporation and its respective affiliates, subsidiaries and direct or indirect
parent entities and all present, former and future directors, officers, agents, representatives, employees, successors and assigns
of the Corporation and/or its respective affiliates, subsidiaries and direct or indirect parent entities (collectively, the “Released
Parties”) to the extent provided below (this “General Release”). The Released Parties are intended
to be third-party beneficiaries of this General Release, and this General Release may be enforced by each of them in accordance
with the terms hereof in respect of the rights granted to such Released Parties hereunder. Terms used herein but not otherwise
defined shall have the meanings given to them in the Agreement.

 

1.           Employee
understands that any payments or benefits paid or granted to him under Section 5.5 or Section 10.1 of the Agreement represent,
in part, consideration for signing this General Release and are not salary, wages or benefits to which he was already entitled.
Employee understands and agrees that he will not receive certain of the payments and benefits specified in Section 5.5 or Section
10.1 of the Agreement unless he executes this General Release and does not revoke this General Release within the time period
permitted hereafter.

 

2.           Employee
agrees that he is not entitled to and will not seek any further consideration, including but not limited to, any wages, vacation
pay, sick pay, disability pay, bonus, compensation, profit sharing contributions, restricted stock, stock options, payment or benefit
from the Released Parties other than that to which he is entitled pursuant to the Agreement.

 

3.           In
consideration of the payments and benefits to Employee provided herein and in the Agreement, Employee knowingly and voluntarily
(for himself, his heirs, executors, administrators and assigns) releases and forever discharges the Corporation and the other Released
Parties from any and all complaints, claims, liabilities, obligations, promises, agreements, damages, actions, causes of action,
suits, rights, demands, losses, debts and expenses (including attorneys’ fees and costs), whether known or unknown, that
Employee ever had, now has or hereafter can or may have arising or accruing at any time up to and including the date this General
Release is fully executed, including any claims arising out of Employee’s employment with the Corporation or the termination
of that employment based upon any theory of tort, contract or law and any prohibited acts under local, state and federal employment
or benefits laws, including, without limitation, breach of any express or implied employment contract or agreement, wrongful discharge,
breach of the implied covenant of good faith and fair dealing, intentional or negligent infliction of emotional distress, fraud,
retaliation, misrepresentation, defamation, interference with prospective economic advantage, failure to pay wages due or other
monies owed, and discrimination based on race, sex, age, religion, national origin, sexual orientation, disability, marital status,
retaliation and any other protected characteristic (individually and collectively, “Claims”), except as to the enforcement
of this General Release and any rights which cannot be waived as a matter of law. This includes a release of all rights and Claims,
including, without limitation, any and all claims Employee may have under the National Labor Relations Act, the Age Discrimination
in Employment Act as amended, the Older Workers Benefit Protection Act, Title VII of the Civil Rights Acts of 1964 as amended,
the Civil Rights Act of 1870, the Americans with Disabilities Act of 1990 as amended, the Family and Medical Leave Act, the Fair
Labor Standards Act of 1938 as amended by the Equal Pay Act of 1963, as amended, the Lilly Ledbetter Fair Pay Act of 2009, the
Employee Retirement Income Security Act of 1974, the Civil Rights Act of 1991, the Sarbanes-Oxley Act, the U.S. Patriot Act, the
Worker’s Adjustment and Retraining Notification Act, the Occupational Safety and Health Act, the Consolidated Omnibus Budget
Reconciliation Act of 1985, the New York State Human Rights Law, the New York City Human Rights Law, the New York Labor Law, the
New York Wage Theft Prevention Act, the New York the Worker’s Adjustment and Retraining Notification Act, as well as any
other federal, state or local law, statute, ordinance, regulation or common law regarding employment, employment discrimination,
termination, retaliation, equal opportunity, wages and hours, or otherwise. Employee specifically understands that he is releasing
Claims based on race, color, sex, sexual orientation or preference, pregnancy, marital status, religion, national origin, citizenship,
veteran status, disability, age and any other category protected by law.

 

    	 	15	 

     

    

 

4.           For
the purpose of implementing a full and complete release and discharge of the Released Parties as set forth above, Employee acknowledges
that this General Release is intended to include in its effect, without limitation, all claims known or unknown that you have or
may have against the Released Parties which arise out of or relate to Employee’s employment, including but not limited to
compensation, performance or termination of employment with the Corporation, except for, and notwithstanding anything in this General
Release to the contrary, claims which cannot be released solely by private agreement. This General Release also excludes any claims
relating to any right you may have to payments pursuant to Section 5.5 or Section 10.1, as applicable in the Agreement, any claim
for workers’ compensation benefits and any rights you may have to indemnification or directors’ and officers’
liability insurance under the Corporation’s bylaws or certificate of incorporation, any indemnification agreement to which
you are a party or beneficiary or applicable law, as a result of having served as an officer, director or employee of the Corporation
or any of its affiliates.

 

5.           In
the course of his employment with the Corporation prior to the date hereof, Employee may have had access to confidential and proprietary
information and records, data and other trade secrets of the Corporation (“Confidential Information”). Confidential
Information shall include, without limitation, the following types of information or material, both existing and contemplated,
regarding the Corporation or its parents, subsidiaries, direct and indirect affiliated corporations and other entities: corporate
information, including plans, strategies, policies, resolutions, drawings, designs, proposals and any litigation or negotiations;
marketing information, including marketing and sales plans, strategies, methods, customer and/or supplier information, pricing
information, prospects or market research data; financial information, including cost and performance data, debt arrangement,
equity structure, investors and holdings; operational and scientific information, including trade secrets, confidential
processes, specifications, expertise, techniques, inventions, concepts, ideas and technical information; and personnel information,
including personnel lists, resumes, personnel data, organizational structure, compensation structure and performance evaluations.
Employee shall not directly or indirectly disclose Confidential Information to any person or entity or use any Confidential Information
in any way. Employee represents and warrants that as of his Release Date, he has returned to the Corporation all property of the
Corporation in his possession, including, but not limited to, all office equipment, computer equipment and peripherals (such as
laptops, printers and memory sticks), cell phones, credit cards, keys, documents, manuals, procedures, notebooks and any other
Confidential Information. In addition, Employee represents and warrants that he has deleted all of the Corporation’s Confidential
Information from his personal computers, other memory devices and/or records.

 

6.          This
General Release is not an admission by the Corporation of any liability. The Corporation specifically denies and disclaims any
discrimination or injury to any person.

 

    	 	16	 

     

    

 

7.          The
parties agree that this General Release may not be introduced in any proceeding, except to establish the settlement and release,
the breach of this Agreement, or as may be required by law or judicial directive.

 

8.           Employee
agrees not to directly or indirectly take, support, encourage or participate in any activity or attempted activity which in any
way would disparage the Corporation, its parents, subsidiaries and affiliated entities. Employee agrees not to write or speak about
the Corporation, its parents, subsidiaries and affiliated entities in negative terms.

 

9.           Employee
agrees that Employee will not disclose the existence or terms of this General Release except to his immediate family, tax advisor
and attorney, federal or state taxing authorities, or as compelled by court process.

 

10.         Employee
agrees to cooperate with the Corporation with respect to any past, present or future legal matters that relate to or arise out
of Employee’s employment with the Corporation or in the event that any claim or action is brought against the Corporation
concerning which Employee may have knowledge or information. Employee’s cooperation may take the form of, among other things,
Employee making himself reasonably available for interviews by the Corporation’s counsel, providing copies of any relevant
documents Employee may have, and preparing to testify and testifying at depositions, informal and formal hearings, and trials.
Such cooperation should not adversely interfere with any future positions Employee may obtain. Nothing in the General Release shall
be construed to prohibit the Employee from cooperating with and participating in any investigation by or action taken by federal,
state, or local administrative agencies, regulatory agencies, or law enforcement agencies. Furthermore, Employee’s cooperation
with and participation in any investigation by, or action taken by, federal, state or local administrative agencies, regulatory
agencies, or law enforcement agencies will not violate any provision of this Agreement.

 

11.         This
General Release contains the complete understanding of the parties with respect to the subject matter hereof. No other promises
or agreements shall be binding or shall modify this General Release unless reduced to writing and signed by the parties hereto
or counsel for the parties.

 

12.         This
General Release shall be governed by New York law without regard to conflicts of laws principles, and any action to enforce this
General Release must be brought and heard in a court within the State of New York. The parties to this General Release consent
to personal jurisdiction in New York in any action commenced to enforce its terms.

 

13.         Employee
shall not institute nor be represented as a party in any lawsuit, claim, complaint or other proceeding against or involving the
Corporation, its parents, subsidiaries or affiliated entities based on Employee’s employment with the Corporation or upon
any act or omission occurring up to and including the date this General Release is fully executed, whether as an individual or
class action, under any federal, state or local laws, rules, regulations or any other basis. Further, Employee shall not seek or
accept any award or settlement from any such source or proceeding (not including unemployment insurance proceedings). In the event
that Employee institutes, is a knowing participant, or is a willing member of a class that institutes any such action, Employee’s
claims shall be dismissed or class membership terminated with prejudice immediately upon presentation of this Agreement. This General
Release does not affect Employee’s right to file a charge with the Equal Employment Opportunity Commission (“EEOC”),
or any similar state or local agency, or to participate in any investigation conducted by the EEOC, or any similar state or local
agency, but Employee acknowledges that he is not entitled to any monies other than those payments described in this General Release.

 

    	 	17	 

     

    

 

14.         Nothing
in this General Release prohibits Employee from reporting possible violations of federal law or regulation to any governmental
agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress,
and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal
law or regulation. Employee does not need the prior authorization of the Corporation to make any such reports or disclosures and
Employee is not required to notify the Corporation that Employee has made such reports or disclosures. Further, this General Release
does not limit Employee’s right to receive an award for information provided to any governmental agency or entity.

 

15.         Employee
agrees that he will not make any applications for employment with Employer, its parents, subsidiaries or affiliated entities and
further agrees that any application for employment he makes to such entities will violate this General Release and will be rejected
by Employer or its parents, subsidiaries or affiliated entities pursuant to the terms herein.

 

16.         This
General Release is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“409A”).
Employer shall undertake to administer, interpret and construe the provisions of the General Release in a manner that does not
result in the imposition of any additional tax, penalty or interest under 409A.

 

17.         Employee
warrants he is fully competent to enter into this Agreement and Employee acknowledges that he has been afforded the opportunity
to review this Agreement with an attorney for at least [twenty-one (21) / forty-five (45)] days, that he has been advised
to consult with an attorney about this Agreement prior to executing it, that Employee has read and understands this Agreement and
that Employee has signed this Agreement freely and voluntarily. If Employee executed this Agreement prior to the end of such [twenty-one
(21) / forty-five (45)] day period, such early execution was a knowing and voluntary waiver by Employee of his right to consider
this Agreement for [twenty-one (21) / forty-five (45)] days, and was due to Employee’s belief that Employee had ample
time in which to consider and understand this Agreement and review it with an attorney. Further, Employee understands that he has
the opportunity to revoke such Agreement within seven (7) days of signing it (the “Revocation Period”). Employee
understands that if he does revoke this Agreement, Employee must notify [INSERT NAME AND CONTACT INFORMATION], in writing
within seven (7) days of signing this Agreement.

 

PLEASE READ CAREFULLY.
THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

To signify their agreement
to the terms of this General Release, the parties have executed this General Release on the dates set forth under their signatures
which appear below.

 

	Elliot Maza	 	Immune Pharmaceuiticals, Inc.	 
	 	 	 	 	 	 
	By: 	 	 	By: 	 	 
	 	 	 	 	 	 
	Date: 	 	 	Date: 	 	 

 

    	 	18

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