Document:

Blueprint

 

  Exhibit
4.98

 

 

 

August
15, 2018

 

STRICTLY CONFIDENTIAL

  

Intellipharmaceutics
International Inc.

30
Worcester Road

Toronto, Ontario
M9W 5X2

Canada

 

Attn:
Isa Odidi, Ph.D., Chairman & Chief Executive
Officer

 

Dear
Dr. Odidi:

 

This
letter agreement (this “Agreement”) constitutes
the agreement between Intellipharmaceutics International Inc. (the
“Company”) and H.C.
Wainwright & Co., LLC (“Wainwright”), that
Wainwright shall, subject to the terms hereof, serve as the
exclusive agent or underwriter in any offering (each a
“Financing”) in the United
States of securities of the Company (the “Securities”) during the
Term (as hereinafter defined) of this Agreement and the exclusive
agent or advisor with respect to the solicitation with respect to
the Company’s outstanding warrants (each, a
“Warrant
Solicitation” and collectively with the Financing, an
“Offering”). The terms of
each Offering and the Securities issued in connection therewith
shall be mutually agreed upon by the Company and Wainwright and
nothing herein implies that Wainwright would have the power or
authority to bind the Company and nothing herein implies that the
Company shall have an obligation to issue any Securities. It is
understood that Wainwright’s assistance in an Offering will
be subject to the satisfactory completion of such investigation and
inquiry into the affairs of the Company as Wainwright deems
appropriate under the circumstances and to the receipt of all
internal approvals of Wainwright in connection with the
transaction. The Company expressly acknowledges and agrees that
Wainwright’s involvement in an Offering is strictly on a
reasonable best efforts basis and that the consummation of an
Offering will be subject to, among other things, market conditions.
The execution of this Agreement does not constitute a commitment by
Wainwright to purchase the Securities and does not ensure a
successful Offering of the Securities or the success of Wainwright
with respect to securing any other financing on behalf of the
Company. Wainwright may retain other brokers, dealers, agents or
underwriters on its behalf in connection with an
Offering.

 

Notwithstanding the
foregoing, Wainwright’s exclusivity shall not apply to, and
the Company shall not be prohibited from (and shall not be required
to pay any fee to Wainwright or any other broker, dealer, agent or
other party engaged by Wainwright) in respect of (i) the
Company’s existing at-the market securities program (as the
same may be amended, restated, supplemented, replaced or otherwise
modified from time to time), (ii) the Company incurring any
non-convertible indebtedness, (iii) the Company’s outstanding
convertible indebtedness (as the same may be amended, restated,
supplemented, replaced, refinanced or otherwise modified from time
to time) or (iv) the Company’s issuing and selling securities
in: (a) any strategic transactions (including without limitation
commercial relationships, consulting agreements, licenses,
partnerships, joint ventures, collaborations, mergers, acquisitions
or other business combinations or otherwise) the primary purpose of
which is not to raise capital and/or (b) any transaction with one
or more officers, directors or employees of the Company and any
affiliate thereof without the involvement of any investment bank or
other broker-dealer.

 

 

430 Park Avenue | New York, New York
10022 | 212.356.0500 | www.hcwco.com

Member:
FINRA/SIPC

 

 

A.           Compensation;
Reimbursement. At the closing of each Offering (each a
“Closing”), the Company
shall compensate Wainwright as follows:

 

1. 

Cash Fee. The Company shall pay to
Wainwright a cash fee, or as to an underwritten Offering an
underwriter discount, equal to 8.0% of the aggregate gross proceeds
raised in each Closing; provided, however, that such cash fee shall
be reduced to 7.0% of the aggregate gross proceeds raised in each
Closing of each non-public Offering and Warrant Solicitation
transaction.

 

2. 

Warrant Coverage. The Company shall
issue to Wainwright or its designees at each Closing, warrants (the
“Wainwright
Warrants”) to purchase that number of common shares of
the Company equal to 6.0% of the aggregate number of common shares
(or common share equivalents) placed in the Offering and issued at
each Closing (and if the Offering includes a
“greenshoe” or “additional investment”
option component, such number of common shares underlying such
additional option component, with the additional Wainwright
Warrants to be issuable upon the closing of exercise of such
option); provided, however, that such warrant coverage shall be
reduced to 5.0% in connection with each non-public Offering and
Warrant Solicitation transaction. If the Securities included in on
Offering are convertible, the Wainwright Warrants shall be
determined by dividing the gross proceeds raised in such Offering
divided by the Offering Price (as defined hereunder). The
Wainwright Warrants shall have the same terms as the warrants
issued to investors in the applicable Offering, except that such
Wainwright Warrants shall have an initial exercise price equal to
125% of the offering price per share (or unit, if applicable) in
the applicable Offering and if such offering price is not
available, the market price of the common shares on the date an
Offering is commenced (such price, the “Offering Price”). If no
warrants are issued to investors in an Offering, the Wainwright
Warrants shall be in a customary form reasonably acceptable to
Wainwright and the Company, have a term of five (5) years and an
exercise price equal to 125% of the Offering Price.

 

3. 

Expense Allowance. Out of the proceeds
of each Closing, the Company also agrees to pay Wainwright (a) a
management fee equal to 1.0% of the gross proceeds raised in each
Financing; (b) $35,000 for non-accountable expenses of Wainwright
in connection with a Financing (to be reduced to $25,000 in
connection with each non-public Offering and Warrant Solicitation
transaction) and (c) up to $100,000 for invoiced fees and expenses
of legal counsel and other invoiced out-of-pocket expenses incurred
in a Financing (to be reduced to $40,000 in connection with each
non-public Offering and Warrant Solicitation transaction); plus the
additional reimbursable amount payable by the Company pursuant to
Paragraph D.3 below; provided, however, that such reimbursement
amount in no way limits or impairs the indemnification and
contribution provisions of this Agreement.

 

4. 

Tail Fee. Wainwright shall be entitled
to compensation under clauses (1) and (2) hereof, calculated in the
manner set forth therein, with respect to any public or private
offering or other financing or capital-raising transaction of any
kind (“Tail
Financing”) to the extent that such financing or
capital is provided to the Company by investors whom Wainwright had
contacted during the Term or introduced to the Company during the
Term, if such Tail Financing is consummated at any time within the
12-month period following the expiration or termination of this
Agreement. Upon the Company’s request, Wainwright shall
promptly provide a list to the Company of any such
investors.

 

 

2

 

 

5. 

Right of First Refusal. Provided that
an Offering has occurred, if within the 10-month period following
consummation of an Offering, the Company or any of its subsidiaries
(a) decides to finance or refinance any indebtedness (other than
the Company’s outstanding convertible indebtedness (as the
same may be amended, restated, supplemented, replaced, refinanced
or otherwise modified from time to time)), using a manager or
agent, Wainwright (or any affiliate designated by Wainwright) shall
have the right to act as sole book-runner, sole manager, sole
placement agent or sole agent with respect to such financing or
refinancing; or (b) decides to raise funds by means of a public
offering or a private placement of equity or debt securities using
an underwriter or placement agent, Wainwright (or any affiliate
designated by Wainwright) shall have the right to act as sole
book-runner, sole manager, sole underwriter or sole placement agent
for such financing. If Wainwright or one of its affiliates decides
to accept any such engagement, the agreement governing such
engagement will contain, among other things, provisions for
customary fees for transactions of similar size and nature and the
provisions of this Agreement, including indemnification, which are
appropriate to such a transaction. Notwithstanding anything to the
contrary contained herein, this right of first refusal must be
exercised by Wainwright within five (5) business days of written
notice from the Company of its intention to seek a transaction
described in (a) or (b) above. Notwithstanding anything herein to
the contrary, this provision shall not apply to the Company’s
existing at-the-market program, as amended from time to time after
the date hereof.

 

B.           Term
and Termination of Engagement; Exclusivity. The term of
Wainwright’s exclusive engagement will begin on the date
hereof and end on the earlier of (i) five (5) months after the date
hereof and (ii) consummation of the Financing (the
“Term”). Notwithstanding
anything to the contrary contained herein, the Company agrees that
the provisions relating to the payment of fees, reimbursement of
expenses, right of first refusal, tail, indemnification and
contribution, confidentiality, conflicts, independent contractor
and waiver of the right to trial by jury will survive any
termination or expiration of this Agreement. Notwithstanding
anything to the contrary contained herein, the Company has the
right to terminate the Agreement for cause in compliance with FINRA
Rule 5110(f)(2)(D)(ii). The exercise of such right of termination
for cause eliminates the Company’s obligations with respect
to the provisions relating to the tail fees and right of first
refusal. Notwithstanding anything to the contrary contained in this
Agreement, in the event that an Offering pursuant to this Agreement
shall not be carried out for any reason whatsoever during the Term,
the Company shall be obligated to pay to Wainwright its actual and
accountable out-of-pocket expenses related to an Offering
(including the reasonable fees and disbursements of
Wainwright’s legal counsel); provided, however, that such
expenses shall not exceed $50,000 in the aggregate. During
Wainwright’s engagement hereunder: (i) the Company will not,
and will not permit its representatives to, other than in
coordination with Wainwright, contact or solicit institutions,
corporations or other entities or individuals as potential
purchasers of the Securities and (ii) the Company will not pursue
any financing transaction which would be in lieu of an Offering.
Furthermore, the Company agrees that during Wainwright’s
engagement hereunder, all inquiries, whether direct or indirect,
from prospective investors will be referred to Wainwright and will
be deemed to have been contacted by Wainwright in connection with
an Offering. Additionally, except as set forth herein, the Company
represents, warrants and covenants that no brokerage or
finder’s fees or commissions are or will be payable by the
Company or any subsidiary of the Company to any broker, financial
advisor or consultant, finder, placement agent, investment banker,
bank or other third-party with respect to an Offering.

 

 

3

 

 

C.           Information;
Reliance. The Company shall furnish, or cause to be
furnished, to Wainwright all information reasonably requested by
Wainwright for the purpose of rendering services hereunder and
conducting due diligence (all such information being the
“Information”). In
addition, the Company agrees to make available to Wainwright upon
reasonable request from time to time the officers, directors,
accountants, counsel and other advisors of the Company. The Company
recognizes and confirms that Wainwright (a) will use and rely on
the Information, including any documents provided to investors in
an Offering (the “Offering Documents” which
shall include any Purchase Agreement (as defined below) and
applicable prospectus, and on information available from generally
recognized public sources in performing the services contemplated
by this Agreement without having independently verified the same;
(b) does not assume responsibility for the accuracy or completeness
of the Offering Documents or the Information and such other
information; and (c) will not make an appraisal of any of the
assets or liabilities of the Company. Upon reasonable request, the
Company will meet with Wainwright or its representatives to discuss
all information relevant for disclosure in the Offering Documents
and will cooperate in any investigation undertaken by Wainwright
thereof, including any document included or incorporated by
reference therein. At the Closing, at the request of Wainwright,
the Company shall deliver such legal letters (including negative
assurance letters), opinions, comfort letters, officers’ and
secretary certificates and good standing certificates, all in form
and substance reasonably satisfactory to Wainwright and its counsel
as is customary for such Offering. Wainwright shall be a third
party beneficiary of any representations, warranties, covenants and
closing conditions made by the Company in any Offering Documents,
including representations, warranties, covenants and closing
conditions made to any investor in an Offering.

 

D.           Related
Agreements. At each Offering, the Company shall enter into
the following additional agreements:

 

1. 

Underwritten Offering. If an Offering
is an underwritten Offering, the Company and Wainwright shall enter
into a customary underwriting agreement in form and substance
satisfactory to Wainwright and its counsel.

 

2. 

Best Efforts Offering. If an Offering
is on a best efforts basis, the sale of Securities to the investors
in the Offering will be evidenced by a purchase agreement
(“Purchase
Agreement”) between the Company and such investors in
a form reasonably satisfactory to the Company and Wainwright.
Wainwright shall be a third party beneficiary with respect to the
representations and warranties included in the Purchase Agreement.
Prior to the signing of any Purchase Agreement, officers of the
Company with responsibility for financial affairs will be available
to answer inquiries from prospective investors.

 

 

4

 

 

3.

Escrow and Settlement. In respect of an
Offering, the Company and Wainwright shall enter into an escrow
agreement with a third party escrow agent, which may also be
Wainwright’s clearing agent, pursuant to which
Wainwright’s compensation and expenses shall be paid from the
gross proceeds of the Securities sold. If an Offering is settled in
whole or in part via delivery versus payment (“DVP”), Wainwright shall
arrange for its clearing agent to provide the funds to facilitate
such settlement. The Company shall bear the cost of the escrow
agent and shall reimburse Wainwright for the actual out-of-pocket
cost of such clearing agent settlement and financing, if any, which
cost shall not exceed $10,000.

 

4.

FINRA Amendments. Notwithstanding
anything herein to the contrary, in the event that Wainwright
determines that any of the terms provided for hereunder shall not
comply with a FINRA rule, including but not limited to FINRA Rule
5110, then the Company shall agree to amend this Agreement (or
include such revisions in the final agreement) in writing upon the
request of Wainwright to comply with any such rules; provided that
any such amendments shall not provide for terms that are less
favorable to the Company than are reflected in this
Agreement.

 

E.           Confidentiality.
In the event of the consummation or public announcement of an
Offering, Wainwright shall have the right to disclose its
participation in such Offering, including, without limitation, an
Offering at its cost of “tombstone” advertisements in
financial and other newspapers and journals. Except as contemplated
by the terms hereof or as required by applicable law, Wainwright
will keep strictly confidential (and not disclose) all non-public
information concerning the Company provided to Wainwright. No
obligation of confidentiality will apply to information that: (a)
is in the public domain as of the date hereof or hereafter enters
the public domain without a breach by Wainwright of this provision,
(b) was known or became known by Wainwright prior to the
Company’s disclosure thereof to Wainwright, (c) becomes known
to Wainwright from a source other than the Company, and other than
by the breach of an obligation of confidentiality owed to the
Company and known to Wainwright, (d) is disclosed by the Company to
a third party without restrictions on its disclosure or (e) is
independently developed by Wainwright. In no event shall any
information be used by Wainwright for any purpose other than in
connection with Wainwright’s activities on behalf of the
Company in respect of an Offering. In the event that Wainwright is
legally required to make disclosure of any such information,
Wainwright will give notice to the Company prior to such
disclosure, to the extent that Wainwright can practically do so or
unless such notice would violate applicable law, rule or
regulation, legal or regulatory process or professional standard.
Wainwright’s obligations of confidentiality hereunder shall
extend to its officers, directors, employees, agents and
representatives. References to Wainwright in this paragraph shall
be deemed to include Wainwright and its affiliates, directors,
managers, partners, members, officers, employees, accountants,
attorneys, advisors and agents who were in privy to the
Company’s confidential information. The foregoing
confidentiality covenants shall remain in full force and effect
whether or not an Offering contemplated by this engagement letter
is completed and shall survive the termination of this engagement
letter for a period of one year thereafter.

 

 

5

 

F. 

Indemnity.

 

1. 

In connection with
the Company’s engagement of Wainwright hereunder, the Company
hereby agrees to indemnify and hold harmless Wainwright and its
affiliates, and the respective controlling persons, directors,
officers, members, shareholders, agents and employees of any of the
foregoing (collectively the “Indemnified Persons”),
from and against any and all claims, actions, suits, proceedings
(including those of shareholders), damages (excluding indirect,
special and consequential damages), liabilities and expenses
incurred by any of them (including the reasonable fees and expenses
of one counsel for all Indemnified Persons in the same
jurisdiction, other than to the extent the applicable Indemnified
Persons use separate counsel for conflict of interest reasons), as
incurred, (collectively a “Claim”), that are (A)
related to or arise out of (i) any actions taken or omitted to be
taken (including any untrue statements made or any statements
omitted to be made in the Offering Documents) by the Company, or
(ii) any actions taken or omitted to be taken by any Indemnified
Person in connection with the Company’s engagement of
Wainwright, or (B) otherwise relate to or arise out of
Wainwright’s activities on the Company’s behalf under
Wainwright’s engagement, and the Company shall reimburse any
Indemnified Person for all expenses (including the reasonable fees
and expenses of one counsel for all Indemnified Persons in the same
jurisdiction, other than to the extent the applicable Indemnified
Persons use separate counsel for conflict of interest reasons) as
incurred by such Indemnified Person in connection with
investigating, preparing or defending any such claim, action, suit
or proceeding, whether or not in connection with pending or
threatened litigation in which any Indemnified Person is a party.
The Company will not, however, be responsible for any Claim that is
finally judicially determined to have resulted from fraud, gross
negligence or willful misconduct of any person seeking
indemnification for such Claim. The Company further agrees that no
Indemnified Person shall have any liability to the Company for or
in connection with the Company’s engagement of Wainwright
except for any Claim incurred by the Company as a result of such
Indemnified Person’s fraud, gross negligence or willful
misconduct.

 

2. 

The Company further
agrees that it will not, without the prior written consent of
Wainwright, settle, compromise or consent to the entry of any
judgment in any pending or threatened Claim in respect of which
indemnification may be sought hereunder (whether or not any
Indemnified Person is an actual or potential party to such Claim),
unless such settlement, compromise or consent includes an
unconditional, irrevocable release of each Indemnified Person from
any and all liability arising out of such Claim.

 

3. 

Promptly upon
receipt by an Indemnified Person of notice of any complaint or the
assertion or institution of any Claim with respect to which
indemnification is being sought hereunder, such Indemnified Person
shall notify the Company in writing of such complaint or of such
assertion or institution but failure to so notify the Company shall
not relieve the Company from any obligation it may have hereunder,
except and only to the extent such failure causes actual harm to
the Company, results in the forfeiture by the Company of
substantial rights or defenses or results in any material increase
in the obligation which the Company has under this indemnity. If
the Company is requested by such Indemnified Person, the Company
will assume the defense of such Claim, including the employment of
counsel reasonably satisfactory to such Indemnified Person and the
payment of the reasonable fees and expenses of such counsel. In the
event, however, that legal counsel to such Indemnified Person
reasonably determines that having common counsel would present such
counsel with a conflict of interest or if the defendant in, or
target of, any such Claim, includes an Indemnified Person and the
Company, and legal counsel to such Indemnified Person reasonably
concludes that there may be legal defenses available to it or other
Indemnified Persons different from or in addition to those
available to the Company, then such Indemnified Person may employ
its own separate counsel to represent or defend him, her or it in
any such Claim and the Company shall pay the reasonable fees and
expenses of such counsel; provided, however, that in no event shall
the Company be responsible to pay the fees and expenses of more
than one firm of attorneys representing Indemnified Persons in the
same jurisdiction, other than to the extent the applicable
Indemnified Persons use separate counsel for conflict of interest
reasons. Notwithstanding anything herein to the contrary, if the
Company fails timely or diligently to defend, contest, or otherwise
protect against any Claim, the relevant Indemnified Person shall
have the right, but not the obligation, to defend, contest,
compromise, settle, assert crossclaims, or counterclaims or
otherwise protect against the same, and shall be fully indemnified
by the Company therefor, including without limitation, for the
reasonable fees and expenses of its counsel and all amounts paid as
a result of such Claim or the compromise or settlement thereof. In
addition, with respect to any Claim in which the Company assumes
the defense, the Indemnified Person shall have the right to
participate in such Claim and to retain his, her or its own counsel
therefor at his, her or its own expense. The Company shall not be
liable for any settlement of any action effected without its prior
written consent (which consent shall not be unreasonably withheld,
delayed or conditioned).

 

 

6

 

 

4. 

The Company agrees
that if any indemnity sought by an Indemnified Person hereunder is
held by a court to be unavailable for any reason then (whether or
not Wainwright is the Indemnified Person), the Company and
Wainwright shall contribute to the Claim for which such indemnity
is held unavailable in such proportion as is appropriate to reflect
the relative benefits to the Company, on the one hand, and
Wainwright on the other, in connection with Wainwright’s
engagement referred to above, subject to the limitation that in no
event shall the amount of Wainwright’s contribution to such
Claim exceed the amount of fees actually received by Wainwright
from the Company pursuant to Wainwright’s engagement. The
Company hereby agrees that the relative benefits to the Company, on
the one hand, and Wainwright on the other, with respect to
Wainwright’s engagement shall be deemed to be in the same
proportion as (a) the total value paid or proposed to be paid or
received by the Company pursuant to the applicable Offering
(whether or not consummated) for which Wainwright is engaged to
render services bears to (b) the fee paid or proposed to be paid to
Wainwright in connection with such engagement.

 

5. 

The Company’s
indemnity, reimbursement and contribution obligations under this
Agreement (a) shall be in addition to, and shall in no way limit or
otherwise adversely affect any rights that any Indemnified Person
may have at law or at equity and (b) shall be effective whether or
not the Company is at fault in any way.

 

G.           Limitation
of Engagement to the Company. The Company acknowledges that
Wainwright has been retained only by the Company, that Wainwright
is providing services hereunder as an independent contractor (and
not in any fiduciary or agency capacity) and that the
Company’s engagement of Wainwright is not deemed to be on
behalf of, and is not intended to confer rights upon, any
shareholder, owner or partner of the Company or any other person
not a party hereto as against Wainwright or any of its affiliates,
or any of its or their respective officers, directors, controlling
persons (within the meaning of Section 15 of the Securities Act or
Section 20 of the Securities Exchange Act of 1934, as amended (the
“Exchange
Act”)), employees or agents. Unless otherwise
expressly agreed in writing by Wainwright, no one other than the
Company is authorized to rely upon this Agreement or any other
statements or conduct of Wainwright, and no one other than the
Company is intended to be a beneficiary of this Agreement. The
Company acknowledges that any recommendation or advice, written or
oral, given by Wainwright to the Company in connection with
Wainwright’s engagement is intended solely for the benefit
and use of the Company’s management and directors in
considering a possible Offering, and any such recommendation or
advice is not on behalf of, and shall not confer any rights or
remedies upon, any other person or be used or relied upon for any
other purpose. Wainwright shall not have the authority to make any
commitment binding on the Company. The Company, in its sole
discretion, shall have the right to reject any investor introduced
to it by Wainwright.

 

H.           Limitation
of Wainwright’s Liability to the Company. Wainwright
and the Company further agree that neither Wainwright nor any of
its affiliates or any of its their respective officers, directors,
controlling persons (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act), employees or
agents shall have any liability to the Company, its security
holders or creditors, or any person asserting claims on behalf of
or in the right of the Company (whether direct or indirect, in
contract, tort, for an act of negligence or otherwise) for any
losses, fees, damages, liabilities, costs, expenses or equitable
relief arising out of or relating to this Agreement or the services
rendered hereunder, except for losses, fees, damages, liabilities,
costs or expenses that arise out of or are based on any action of
or failure to act by Wainwright and that are finally judicially
determined to have resulted solely from fraud, gross negligence or
willful misconduct of Wainwright.

 

 

7

 

I.           Governing
Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to
agreements made and to be fully performed therein. Any disputes
that arise under this Agreement, even after the termination of this
Agreement, will be heard only in the state or federal courts
located in the City of New York, State of New York. The parties
hereto expressly agree to submit themselves to the jurisdiction of
the foregoing courts in the City of New York, State of New York.
The parties hereto expressly waive any rights they may have to
contest the jurisdiction, venue or authority of any court sitting
in the City and State of New York. In the event of the bringing of
any action, or suit by a party hereto against the other party
hereto, arising out of or relating to this Agreement, the party in
whose favor the final judgment or award shall be entered shall be
entitled to have and recover from the other party the costs and
expenses incurred in connection therewith, including its reasonable
attorneys’ fees. Any rights to trial by jury with respect to
any such action, proceeding or suit are hereby waived by Wainwright
and the Company.

 

J.           Notices.
All notices hereunder will be in writing and sent by certified
mail, hand delivery, overnight delivery or fax, if sent to
Wainwright, at the address set forth on the first page hereof,
e-mail: notices@hcwco.com, Attention: Head of Investment Banking,
and if sent to the Company, to the address set forth on the first
page hereof, e-mail: apatient@intellipharmaceutics.com,
Attention: Chief Financial Officer. Notices sent by certified mail
shall be deemed received five days thereafter, notices sent by hand
delivery or overnight delivery shall be deemed received on the date
of the relevant written record of receipt, notices delivered by fax
shall be deemed received as of the date and time printed thereon by
the fax machine and notices sent by e-mail shall be deemed received
as of the date and time they were sent.

 

K.           Conflicts.
The Company acknowledges that Wainwright and its affiliates may
have and may continue to have investment banking and other
relationships with parties other than the Company pursuant to which
Wainwright may acquire information of interest to the Company.
Wainwright shall have no obligation to disclose such information to
the Company or to use such information in connection with any
contemplated transaction.

 

L.           Anti-Money
Laundering. To help the United States government fight the
funding of terrorism and money laundering, the federal laws of the
United States require all financial institutions to obtain, verify
and record information that identifies each person with whom they
do business. This means Wainwright must ask the Company for certain
identifying information, including a government-issued
identification number (e.g., a U.S. taxpayer identification number)
and such other information or documents that Wainwright considers
appropriate to verify the Company’s identity, such as
certified articles of incorporation, a government-issued business
license, a partnership agreement or a trust
instrument.

 

M.           Miscellaneous.
The Company represents and warrants that it has all requisite power
and authority to enter into and carry out the terms and provisions
of this Agreement and the execution, delivery and performance of
this Agreement does not breach or conflict with any agreement,
document or instrument to which it is a party or bound. This
Agreement shall not be modified or amended except in writing signed
by Wainwright and the Company. This Agreement shall be binding upon
and inure to the benefit of both Wainwright and the Company and
their respective assigns, successors, and legal representatives.
This Agreement constitutes the entire agreement of Wainwright and
the Company with respect to the subject matter hereof and
supersedes any prior agreements with respect to the subject matter
hereof; provided, however, that Wainwright’s existing rights
pursuant to those certain Engagement Agreement dated as of October
10, 2017 and as of March 12, 2018 by and between the company and
Wainwright shall survive the execution of this Agreement. If any
provision of this Agreement is determined to be invalid or
unenforceable in any respect, such determination will not affect
such provision in any other respect, and the remainder of the
Agreement shall remain in full force and effect. This Agreement may
be executed in counterparts (including facsimile or electronic
counterparts), each of which shall be deemed an original but all of
which together shall constitute one and the same
instrument.

 

 

*********************

 

 

8

 

 

In
acknowledgment that the foregoing correctly sets forth the
understanding reached by Wainwright and the Company, please sign in
the space provided below, whereupon this letter shall constitute a
binding Agreement as of the date indicated above.

 

 

	

 

	Very truly
yours,  	

 

	

 

	 	

 

	

 

	H.C.
WAINWRIGHT & CO., LLC	

 

	

 

	

 

	

 

	

 

	

	
By:  

	
/s/ 
Edward
Silvera

	

 

	

 

	

Name: 

	
Edward
Silvera

	

 

	

 

	

Title: 

	

Chief
Operating Officer

	

 

 

 

 

Accepted and
Agreed:

 

 

INTELLIPHARMACEUTICS
INTERNATIONAL INC.

 

 

 

 
By:    

/s/ Andrew Patient    
                 
                 
   

Name:
Andrew Patient

Title:
Chief Financial Officer

	

 

9Exhibit

Exhibit 10.1

SEPARATION AGREEMENT AND GENERAL RELEASE
This Separation Agreement and General Release (this “Agreement”) effective as of the Effective Date (as defined below), is entered into by and between Daniel J. Rinkenberger (“Employee”) and Kaiser Aluminum Corporation (the “Company”) (each individually a “Party” and together, the “Parties”).
WHEREAS, Employee is an at-will employee of the Company or one of its subsidiaries; and
WHEREAS, Employee and the Company desire to terminate their employment relationship and to settle all matters between them as set forth herein; 
NOW, THEREFORE, in consideration of the recitals and the mutual promises, covenants, and agreements set forth herein, and for other good and valuable consideration, the receipt of which is hereby acknowledged, Employee and the Company, intending to be legally bound, agree as follows:
1.Effective Date.  This Agreement will be effective on the eighth calendar day after it is executed by Employee pursuant to Paragraph 9 (“Effective Date”), provided Employee has not revoked Employee’s consent to this Agreement pursuant to Paragraph 9(i).  Pursuant to the terms of this Agreement, Employee will retire from the Company effective March 31, 2019 (the “Separation Date”).

2.Certain Payments.  In consideration of the general release set forth in Paragraph 8 and compliance with the promises made by Employee in this Agreement and provided that Employee has not revoked Employee’s consent to the Agreement pursuant to Paragraph 9:

		
	(a)
	The Company will pay Employee a lump sum amount of $500,000 within seven (7) days of the Effective Date;

		
	(b)
	The Company will pay Employee a bonus in respect of calendar year 2018 under the Company’s 2018 Short Term Incentive Plan for Key Managers in the amount of $364,870, if not already paid to Employee, in a lump sum within seven (7) days of the Effective Date; 

		
	(c)
	The Company will pay Employee a lump sum amount of $216,000, representing approximately twenty-four (24) weeks of Employee’s current base pay, payable in a lump sum within seven days of the Effective Date in accordance with the terms of the Company’s Salaried Severance Plan (the “Severance Plan”); 

		
	(d)
	The Company shall continue Employee’s medical benefits per the terms of the Severance Plan for twenty-four (24) weeks;

		
	(e)
	Employee expressly acknowledges that he is not otherwise entitled to the consideration set forth in this Paragraph 2, and that such consideration serves as adequate consideration for Employee’s waiver and release of claims and other commitments set forth in this Agreement; and

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	(f)
	Employee expressly acknowledges that the foregoing amounts will be subject to applicable federal, state, and local tax withholding, along with any other appropriate payroll deductions, in the same manner as other employees of the Company, except for any 401(k) deferrals because Employee is ineligible to continue those deferrals, if any, as of the Separation Date.

3.Payment of Paid Time Off.  The Company will compensate Employee for earned but unused paid time off, which Company and Employee hereby agree equals the sum total of $101,000, if not already paid, less applicable deductions and withholdings from wages required by law or regulation.  Such amount shall be paid in a lump sum on the Separation Date.

4.Equity Compensation.

		
	(a)
	Restricted Stock Units.  Employee’s restricted stock units outstanding under the Company’s 2016 Equity and Incentive Compensation Plan (the “2016 LTI Plan”) shall remain outstanding and become fully vested on the normal vesting dates set forth in Employee’s award agreements, subject to forfeiture in accordance with such award agreements.  All dividends accumulated in respect of Employee’s outstanding restricted stock units shall be paid to Employee in accordance with the timing set forth in Employee’s award agreements.  

		
	(b)
	Performance Shares.  Employee’s performance shares underlying Employee’s performance share awards outstanding under the Incentive Plan shall remain outstanding and subject to vesting based on the achievement of management objectives at the end of the applicable performance period and subject to forfeiture in accordance with the terms of such award agreements.  

5.Restoration Plan.  Employee’s account balance in the Kaiser Aluminum Fabricated Products Restoration Plan is fully vested and eligible for distribution in accordance with Employee’s distribution elections and in accordance with the terms of the Restoration Plan.

6.No Tax Representations.  Employee acknowledges and agrees that the Company has made no representation to Employee regarding the tax consequences of any amounts or benefits received by Employee pursuant to this Agreement.  Employee further agrees that Employee is responsible for paying federal or state taxes, if any, which are required by law to be paid with respect to this Agreement.  

7.Return of Company Property.  Except as otherwise agreed in writing by the Company, Employee represents and warrants that Employee has returned to the Company all Company property, including but not limited to any keys, files, and computer equipment, and has not made or retained copies thereof in any form, including but not limited to, photocopies or electronic data.

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8.General Release of Claims.  In consideration for the payments specified in Paragraph 2, which Employee hereby acknowledges is not otherwise owed to Employee, Employee hereby understands and agrees that Employee is knowingly and voluntarily releasing, waiving, and forever discharging (and Employee hereby does knowingly and voluntarily release, waive, and forever discharge), to the fullest extent permitted by law, on Employee’s own behalf and on behalf of Employee’s agents, assignees, attorneys, heirs, executors, administrators, and anyone else claiming by or through Employee (collectively referred to as the “Releasors”): 

		
	(a)
	the Company and any of its respective affiliates, subsidiaries, predecessors, successors or assigns, and any of its or their past or present stockholders, members or other equity holders, and any of its or their respective past or present directors, executives, officers, insurers, attorneys, employees, consultants, agents, employee benefits plans and trustees, fiduciaries, and administrators of those plans (collectively referred to as the “Released Parties”), 

		
	(b)
	of and from any and all claims under local, state, or federal law or equity, whether known or unknown, asserted, and unasserted, that Employee and/or the other Releasors have or may have against Released Parties as of the Effective Date (as defined below), including but not limited to all matters relating to or in any way arising out of any aspect of Employee’s employment with the Company, separation from employment with the Company, or Employee’s treatment by the Company while in the Company’s employ, and all other claims, charges, complaints, liens, demands, causes of action, obligations, damages (including consequential, punitive or exemplary damages), liabilities, or the like of whatever nature (including, without limitation, attorneys’ fees and costs) (collectively “Claims”), including but not limited to all Claims for:

		
	i.
	salary and other compensation or benefits, including, but not limited to, overtime if applicable, incentive compensation and other bonuses, severance pay, vacation pay, or any benefits under the Employee Retirement Income Security Act of 1974, as amended or any other applicable local, state or federal law;

		
	ii.
	discrimination, harassment, or retaliation based upon race, color, national origin, ancestry, religion, marital status, sex, sexual orientation, gender identity, citizenship status, family status, leave of absence (including but not limited to the Family and Medical Leave Act or any other federal, state, or local leave laws), handicap (including but not limited to the Rehabilitation Act of 1973), medical condition or disability, or any other characteristic covered by law under Title VII of the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, the Americans with Disabilities Act, as amended, the Age Discrimination in Employment Act of 1967, as amended, Sections 1981 through 1988 of the Civil Rights Act of 1866, and any other federal, state, or local law prohibiting discrimination in employment;

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	iii.
	matters arising under federal, state, or local whistleblower laws;

		
	iv.
	breach of contract, fraud (including any claim that this Agreement was induced or resulted from any fraud or misrepresentation by Company), estoppel, misrepresentation, express or implied duties of good faith and fair dealing, wrongful discharge, discrimination, retaliation, harassment, negligence, gross negligence, false imprisonment, assault and battery, conspiracy, intentional or negligent infliction of emotional distress, slander, libel, defamation, refusal to perform an illegal act, invasion of privacy, violation of public policy, wrongful or constructive discharge, or any cause of action arising under contract or tort recognized under any applicable local, state, or federal law; and

		
	v.
	past or future loss of pay or benefits, expenses, damages for pain and suffering, mental anguish or emotional distress damages, liquidated damages, punitive damages, compensatory damages, attorneys’ fees, interest, court costs, physical or mental injury, damage to reputation, and any other injury, loss, damage or expense, or any other legal or equitable remedy of any kind whatsoever.

		
	(c)
	Excluded from the release set forth in this Paragraph 8 are:  (i) any Claims or rights to enforce this Agreement against the Company; (ii) any Claims that may arise after the Effective Date; (iii) any rights under Employee’s Officer Indemnification Agreement, dated as of July 6, 2006, with the Company or the governing documents of the Company and its subsidiaries with respect to any actions or omissions of Employee prior to the Separation Date and (iv) any Claims that Employee cannot lawfully release.

		
	(d)
	Nothing in this Agreement (including but not limited to any confidentiality provision in Paragraph 13, the non-disparagement provision in Paragraph 14, and the covenant not to sue in Paragraph 10, limits Employee’s ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (“Government Agencies”).  Employee further understands that this Agreement does not limit Employee’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company.  Employee acknowledges, however, that he is waiving the right to any monetary recovery or relief in connection with any charge or to file an individual or class action lawsuit against the Released Parties.  Employee agrees that Employee shall not seek, accept, or be entitled to any further monetary relief from any source whatsoever with respect to any claim that Employee has released in this Agreement and that this Agreement shall control and is the exclusive remedy as to any of the claims released in this Paragraph 8  Notwithstanding, Employee may accept a monetary award offered by the Securities and Exchange Commission pursuant to Section 21F of the Securities Exchange Act of 1934.

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9.Waiver under OWBPA.  This Agreement is intended to comply with and be enforceable under the Older Workers’ Benefit Protection Act.  Accordingly, Employee acknowledges and agrees that:

		
	(a)
	Employee has a full twenty-one (21) calendar days in which to consider this Agreement before signing it, but may voluntarily elect to sign the Agreement sooner; 

		
	(b)
	Employee has carefully read and fully understands all of the terms of the Agreement and has had the opportunity to consult with an attorney regarding the effects of each and every term of this Agreement; 

		
	(c)
	Employee is, through this Agreement, releasing the Released Parties from any and all claims, including but not limited to claims of age discrimination Employee may have against them under the Age Discrimination in Employment Act; 

		
	(d)
	Employee knowingly and voluntarily agrees to all of the terms set forth in this Agreement and was not coerced to enter into this Agreement; 

		
	(e)
	Employee knowingly and voluntarily intends to be legally bound by this Agreement; 

		
	(f)
	Employee was advised and hereby is advised in writing to consult with an attorney of Employee’s choice prior to signing this Agreement; 

		
	(g)
	Employee understands that rights or claims under the Age Discrimination in Employment Act that may arise after the Effective Date of this Agreement are not waived; 

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	(h)
	Employee acknowledges that the consideration given for this Agreement is in addition to anything of value to which Employee was already entitled; and

		
	(i)
	Employee may accept this Agreement by delivering to Mark Krouse at the address set forth below, a hand-delivered signed copy of this Agreement, or by emailing a PDF signed copy of this Agreement to Mark Krouse.  Employee has a full seven (7) calendar days following the signing of this Agreement to revoke it, and Employee has been and hereby is advised in writing that this Agreement will not become effective or enforceable until the seven-day revocation period has expired and Employee has not revoked the Agreement.  Should Employee desire to revoke Employee’s consent to this Agreement, Employee must do so in a writing delivered to Mark Krouse at the address set forth below before the seven-day revocation period has expired.

10.Additional Agreements by Employee.

		
	(a)
	BY AGREEING TO THE RELEASE CONTAINED IN THIS AGREEMENT EMPLOYEE HEREBY KNOWINGLY AND VOLUNTARILY WAIVES ANY RIGHTS (KNOWN OR UNKNOWN) TO BRING OR PROSECUTE A LAWSUIT OR MAKE ANY LEGAL CLAIM AGAINST THE RELEASED PARTIES WITH RESPECT TO ANY OF THE CLAIMS DESCRIBED IN PARAGRAPH 8.  Employee agrees that the release set forth herein will bar all claims or demands of every kind, known or unknown, referred in Paragraph 8 and further agrees that no non-governmental person, organization, or other entity acting on Employee’s behalf has in the past or will in the future file any lawsuit, arbitration, or proceeding asserting any Claim that is waived or released under this Agreement.  If Employee initiates, files, or pursues a lawsuit, arbitration, or other proceeding asserting any Claim waived or released in this Agreement: (i) Employee will pay for all costs, including reasonable attorneys’ fees, incurred by the Released Parties in defending against such Claim (unless such Claim is a charge with the Equal Employment Opportunity Commission, the National Labor Relations Board, or similar state agency); (ii) Employee gives up any right to individual damages in connection with any administrative, arbitration, or court proceeding with respect to Employee’s employment with and/or separation from the Company; and (iii) if Employee is awarded money damages, Employee will assign to the Released Parties Employee’s right and interest to all such money damages.

		
	(b)
	Employee agrees that Employee shall not solicit, encourage, assist, or participate (directly or indirectly) in bringing any Claims or actions against any of the Released Parties by other current or former employees, officers, or third parties, except as compelled by subpoena or other court order or legal process, and only after providing the Company with prior notice of any such subpoena, order, or legal process and an opportunity to timely contest such process.

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	(c)
	Employee represents, warrants, and agrees that Employee has not filed any administrative, judicial, or other form of complaint or initiated any legal or other proceeding against any of the Released Parties, and that Employee will not make such a filing at any time hereafter based on any events, actions, or omissions occurring prior to the Effective Date.  Employee understands and agrees that this Agreement will be pleaded as a full and complete defense to any such proceeding which is or may be instituted, prosecuted or maintained by Employee, Employee’s agents, assignees, attorneys, heirs, executors, administrators, and anyone else claiming by or through Employee.

		
	(d)
	Employee agrees that no fact, event, circumstance, evidence or transaction, which could now be asserted or which may hereafter be discovered, shall affect in any manner the final, absolute and unconditional nature of the release set forth above.  Employee acknowledges that he fully understands the following provision of Section 1542 of the California Civil Code:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
		
	(e)
	Employee expressly and voluntarily waives each and all Claims, rights or benefits he has or may have under Section 1542 of the California Civil Code to the fullest extent that he may lawfully waive such Claims, rights and benefits in connection with this Separation Agreement.  Employee further acknowledges and agrees that California Labor Code Section 206.5 is not applicable to the resolution of this matter.  That section provides in pertinent part as follows:

No employer shall require the execution of any release of any claim or right on account of wages due, or to become due, or made as an advance on wages to be earned, unless payment of such wage has been made.
11.Affirmations.  In signing this Agreement, Employee hereby affirms that:

		
	(a)
	Employee has have been paid and/or has received all compensation, wages, bonuses, commissions, overtime, and/or benefits to which Employee may be entitled (except as set forth in this Agreement), and that no other amounts and/or benefits are due to Employee except as specifically provided in the Agreement.  Employee affirms that Employee has been granted any leave to which Employee was entitled under the Family and Medical Leave Act or related state or local leave or disability accommodation laws; 

7

		
	(b)
	Employee is not eligible to receive payments or benefits under any other Company and/or other Released Party’s severance pay policy, plan, practice, or arrangement; 

		
	(c)
	Employee has no known workplace injuries or occupational diseases that Employee has not reported to the Company in writing and Employee either has been provided or Employee has not been denied any leave requested under the Family and Medical Leave Act or any applicable Company policy or any local, state, or federal law; 

		
	(d)
	Employee has not complained of and Employee is not aware of any fraudulent activity or any act(s) which would form the basis of a Claim of fraudulent or illegal activity by the Company or any other Released Party that Employee has not reported to the Company in writing.  Employee also affirms that Employee has not been retaliated against for reporting any allegations of wrongdoing by any Released Party, including any allegations of corporate fraud.  Both Parties acknowledge that this Agreement does not limit either Party’s right, where applicable, to file or to participate in an investigative proceeding of any federal, state or local governmental agency.  To the extent permitted by law, Employee agrees that if such a Claim is made, Employee shall not be entitled to recover any individual monetary relief or other individual remedies; and

		
	(e)
	Employee acknowledges and agrees that if Employee breaches the provisions of this Agreement, the Company will have the right to seek any appropriate legal and/or equitable remedies as a result of Employee’s breach, which may include, but may not be limited to, injunctive relief, the return of any payments, reimbursements or benefits Employee has received under any provision of this Agreement, other monetary damages, and the payment of the Company’s attorneys’ fees.

12.Cooperation.  

		
	(a)
	Employee agrees that he will fully cooperate with the Company in effecting an orderly transition and in ensuring that the business of the Company is conducted in a professional and competent manner.  Employee agrees that following the Separation Date, he shall serve as a consultant to the Company consistent with the terms set forth in the attached Exhibit A.

8

		
	(b)
	Employee agrees that Employee will cooperate with the Company, its subsidiaries, and its affiliates with respect to matters or issues which took place or arose during Employee’s tenure with the Company, specifically including without limitation any attorney retained by any of them or any other representative acting on their behalf, in connection with any pending or future internal investigation or judicial, administrative, or regulatory matter, proceeding, or investigation.  The Parties acknowledge and agree that such cooperation may include, but shall not be limited to, Employee being available for meetings, interviews, statements, testimony, or the signing of affidavits, and providing to the Company any documents or information in Employee’s possession or under Employee’s control relating to any such litigation, regulatory matter or investigation, provided that any such meeting, interviews, statements or testimony do not unduly interfere with Employee’s work schedule or other post-Company duties.  The Company shall reimburse Employee for reasonable and documented expenses in connection with Employee’s performance under this Paragraph 12, subject to the Company’s policies on business expense reimbursement including, without limitation, the receipt of supporting documentation by the Company; provided, however, that Employee shall not be entitled to any expense reimbursement for time spent testifying or otherwise cooperating in any matter in which Employee is a defendant in the proceeding or a named subject or target of the litigation, regulatory matter or investigation.

		
	(c)
	Employee represents and warrants that Employee has and will accurately, completely and truthfully disclose to the Company any and all materials and information requested, including without limitation in connection with any pending or future internal investigation or judicial, administrative, or regulatory matter, proceeding, or investigation involving conduct in which Employee was involved or had knowledge in connection with Employee’s employment with the Company.  In the event of a material breach of this Paragraph 12, Employee agrees that the Company may, in its sole discretion, elect to terminate this Agreement and render it null and void as of the Separation Date or any time thereafter, and that in such event, Employee shall be required to reimburse the Company in full any payments, reimbursements or benefits Employee has received under any provision of this Agreement.

13.Confidentiality/Non‐Disclosure.  Employee agrees to make no disclosure or use of any proprietary or confidential information, including without limitation, data, developments, customer information, or trade secrets belonging to the Company or learned or acquired by Employee and will take all action necessary to preserve that confidentiality.  Employee shall continue to comply with any confidentiality agreements, provisions, and policies by which Employee has previously agreed to abide.  For purposes of emphasis and as a reminder, portions of this Agreement set forth obligations already imposed on Employee by agreement(s) of confidentiality, whether by acceptance of the Company policy(s) or provision(s) on confidentiality in writing, by electronic affirmation of such policy(s) or provision(s), or by the fact of Employee’s employment with the Company constituting an acceptance of the confidentiality requirements in policy(s) or provision(s) applicable to employees generally including, but not limited to, obligations related to nondisclosure. This Agreement does not supersede any such confidentiality agreement(s), policy(s) or provision(s), but instead supplements the terms of all such confidentiality agreement(s), policy(s) and provision(s).  

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14.Public Statements/ Non-Disparagement.  Employee shall neither cause to be made or offered, nor make or offer any comments, remarks, statements, or opinions regarding the Company, or any of the other Released Parties, with respect to any of their respective past or present activities, or otherwise publish (whether in writing or orally), including to the press, on social media sites, or website comment sections, that could be construed as portraying the Company, or any of the Released Parties, in an unfavorable light; provided, that nothing herein shall or shall be deemed to prevent or impair Employee from testifying truthfully in any legal or administrative proceeding if such testimony is compelled or requested or otherwise complying with any subpoenas or other judicial or governmental requests for information.

15.Severability.  If any provision of this Agreement is held to be unenforceable, Employee understands and agrees that such unenforceability shall not affect any other provision hereof and that the remainder of the Agreement shall be enforceable.

16.No Admission.  The Parties hereto recognize that, by entering into this Agreement, the Company does not admit, and does specifically deny, any violation of any local, state, federal, or other law, whether regulatory, common, or statutory.  The Parties further recognize that any payment by the Company under this Agreement is not an admission of liability, but a compromise of any and all issues that have been or may be disputed between the Company and Employee in connection with Employee’s employment by the Company.  This Agreement is made for the purpose of terminating any and all potential disputes between the Company and Employee and the amounts payable to Employee hereunder are in addition to anything of value to which Employee is already entitled.

17.Rights after Breach.  Employee agrees that, in the event Employee materially breaches any provision of this Agreement or otherwise engages in any other act or omission that has caused or may reasonably be expected to cause injury to the interest or business reputation of the Company, in addition to rights otherwise set forth in this Agreement:  (a) the Company shall have the right to (i) offset or reduce or discontinue any payments, reimbursements or benefits Employee otherwise would be entitled to receive under the provisions of this Agreement; and (ii) demand repayment of or reimbursement for, and Employee shall immediately repay or reimburse the Company upon demand, any or all payments, reimbursements or benefits paid or provided to Employee under the provisions of this Agreement; and (b) the Released Parties shall be entitled to file counterclaims against Employee in the event of Employee’s breach of the covenant not to sue and may recover any and all other resulting actual or consequential damages, including reasonable attorneys’ fees and costs.

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18.Notices.  Any and all notices required by this Agreement shall be either hand-delivered or mailed, via certified mail, return receipt requested or via nationally recognized commercial courier, addressed:

TO THE COMPANY:

Kaiser Aluminum Corporation
27422 Portola Parkway, Suite 200
Foothill Ranch, CA 92610
Attn:  Mark Krouse
Email:  mark.krouse@kaiseraluminum.com

TO EMPLOYEE:

Daniel J. Rinkenberger
2672 Pala Way
Laguna Beach, CA 92651

All notices hand-delivered or delivered via nationally recognized commercial courier shall be deemed delivered as of the date actually delivered to the addressee.  All notices mailed shall be deemed delivered as of three (3) business days after the date postmarked.  
19.Binding Release.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, heirs, and assigns.  In the event of Employee’s death prior to the time when all payments due under the applicable portion of this Agreement have been made, Employee’s estate shall receive such payments not already paid to Employee in accordance with the provisions of the applicable portion of this Agreement.

20.Assignment.  Neither the Company nor Employee shall have the right to assign this Agreement or its respective rights or interests hereunder without the prior written consent of the other Party.  Any purported assignment or transfer in violation of this Paragraph 20 shall be null and void. 

21.Counterparts.  This Agreement may be signed in multiple counterparts and, when both of the Parties have signed a counterpart hereof, it shall be a binding and enforceable agreement as an original.  This Agreement may be executed by facsimile or e-mail signatures, and any such facsimile or e-mail signature will be deemed valid as an original signature.

22.Amendment or Modification.  This Agreement may not be amended or modified except by a writing signed by all Parties hereto.

23.Governing Law, Enforcement and Arbitration.

		
	(a)
	This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to agreements made and to be wholly performed within that State, without regard to its conflict of laws provisions.  Employee and the Company agree that, except for any claim that is non-arbitrable under applicable law, final and binding arbitration shall be the exclusive forum for any dispute or controversy between them, including, without limitation, disputes arising under or in connection with this Agreement, Employee’s employment with, and/or separation from, the Company; provided, however, that the Company shall be entitled to commence an action in any court of competent jurisdiction for injunctive relief in connection with any alleged actual or threatened violation of any provision of Paragraphs 13 or 14.  Judgment may be entered on the arbitrators’ award in any court having jurisdiction.  For purposes of entering such judgment or seeking injunctive relief with regard to Paragraphs 13 or 14, the Company and Employee hereby consent to the jurisdiction of the courts located in Orange County, California; provided, that damages for any alleged violation of Paragraphs 13 or 14, as well as any claim, counterclaim or cross-claim brought by Employee or any third-party in response to, or in connection with any court action commenced by the Company seeking said injunctive relief shall remain exclusively subject to final and binding arbitration as provided for herein.  The Company and Employee hereby waive, to the fullest extent permitted by applicable law, any objection which either may now or hereafter have to such jurisdiction, venue, and any defense of inconvenient forum.  Thus, except for the claims carved out above, this Agreement includes all common-law and statutory claims (whether arising under federal state or local law), including, but not limited to, any 

11

claim for breach of contract, fraud, fraud in the inducement, unpaid wages, wrongful termination, and gender, age, national origin, sexual orientation, marital status, disability, or any other protected status.

		
	(b)
	Any arbitration under this Agreement shall be filed exclusively with American Arbitration Association (“AAA”) in Orange County, California before three arbitrators, in accordance with the AAA’s Employment Arbitration Rules in effect at the time of submission to arbitration.  Each Party will select one arbitrator for the panel, and those two selected arbitrators shall together select the third arbitrator for the panel.  The arbitrators shall not know which Party selected them.  The Company and Employee hereby agree that a judgment upon an award rendered by the arbitrators may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  The Company shall pay all costs uniquely attributable to arbitration, including the administrative fees and costs of the arbitrators.  Each Party shall pay its own costs and attorney fees, if any, unless the arbitrators rule otherwise.  Employee understands that Employee is giving up no substantive rights, and this Agreement simply governs forum.

12

		
	(c)
	BY SIGNING THIS AGREEMENT, EMPLOYEE AND THE COMPANY ACKNOWLEDGE THAT THE RIGHT TO A COURT TRIAL AND TRIAL BY JURY IS OF VALUE, AND KNOWINGLY AND VOLUNTARILY WAIVE THAT RIGHT FOR ANY DISPUTE SUBJECT TO THE TERMS OF THE ARBITRATION PROVISIONS SET FORTH IN THIS PARAGRAPH 23.

24.Entire Agreement.  This Agreement constitutes the entire agreement and understanding of the Parties hereto with respect to the subject matter hereof and no representations, oral or written, are being relied upon by either Party in executing this Agreement other than the express representations of this Agreement.  This Agreement supersedes any prior understanding, agreement or undertakings between the Parties, subject to the provisions of Paragraph 13.

25.Drafting.  This Agreement shall not be construed either for or against the Company or Employee, by reason of the Party drafting its provisions.

26.No Waiver for Failure to Enforce.  The failure by any Party to this Agreement to enforce at any time, or for any period of time, any one or more of the terms or conditions of this Agreement shall not be a waiver of such terms or conditions of this Agreement or of such Party’s right thereafter to enforce each and every term and condition of this Agreement.    

27.Acknowledgment.

		
	(a)
	By executing this Agreement, Employee acknowledges that (i) Employee has been advised by the Company pursuant to this Agreement to consult with an attorney regarding the terms of this Agreement; (ii) Employee has consulted with an attorney or, in the alternative, waives Employee’s right to do so, regarding the terms of this Agreement; (iii) without limitation of the reach of the integration clause of Paragraph 24, any and all questions regarding the terms of this Agreement have been asked and answered to Employee’s complete satisfaction; (iv) Employee has read this Agreement; (v) the consideration provided for herein is good and valuable; and (vi) Employee is entering into this Agreement voluntarily, of Employee’s own free will, and without any coercion, undue influence, threat or intimidation of any kind or type whatsoever.

		
	(b)
	Employee hereby acknowledges and confirms that Employee has read all of this Agreement and hereby freely and voluntarily assents to all the terms and conditions in this Agreement, and signs the same as Employee’s own free act with the full intent of accepting the benefits contemplated hereby in return for releasing the Released Parties (as defined above) from all Claims.

[Signature Page Follows]

13

	
					
	Accepted and Agreed:
	 
	Accepted and Agreed:

	 
	 
	 
	 
	 

	Kaiser Aluminum Corporation
	 
	Daniel J. Rinkenberger

	 
	 
	 
	 
	 

	By:
	/s/ Mark Krouse
	 
	/s/ Daniel J. Rinkenberger

	Name:
	Mark Krouse
	 
	Employee Signature

	Title:
	VP - Human Resources
	 
	 
	 

	 
	 
	 
	 
	 

	February 25, 2019
	 
	February 23, 2019

	Date of Signature
	 
	Date of Signature

	 
	 
	 
	 
	 

    

14

Exhibit A

CONSULTING AGREEMENT

This Consulting Agreement (the “Consulting Agreement”) is made effective as of the Effective Date (as defined in the Separation Agreement and General Release (as defined below)) by and between Kaiser Aluminum Corporation (“Company”) and [insert name of LLC] (“Consultant”) (each individually a “Party” and together, the “Parties”), and is intended to be interpreted in conjunction with the Separation Agreement and General Release between the Company and Consultant (“Separation and Release Agreement”).

WHEREAS, the Company and Consultant desire to establish the consulting relationship set forth herein because of Consultant’s unique knowledge and expertise and because the Company is desirous of obtaining Consultant’s Services, as defined herein, and Consultant is desirous of performing same.

NOW, THEREFORE, in consideration of the premises and mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1.Engagement as Consultant.  The Company hereby engages Consultant to perform the Services during the Term of this Consulting Agreement, and Consultant accepts such engagement, upon the terms and conditions set forth herein.

2.Term.  The term of this Consulting Agreement shall commence on the Effective Date and continue for a period of twelve (12) months thereafter unless sooner terminated as provided herein or extended as agreed to in writing by the Parties (“Term”).    

3.Compensation.  During the Term of this Consulting Agreement, Consultant will be compensated for Services (as defined below) provided hereunder at the rate of $25,000 per month for which Consultant agrees to provide up to 100 hours of Services per month.  Such fees will be paid monthly in arrears and will be prorated for partial months of Services.  In addition, the Company shall reimburse Consultant for reasonable and necessary expenses incurred by Consultant in the performance of the Services, including, but not limited to, meals, beverages and lodging expenses incurred in connection with any travel required under this Consulting Agreement, but only to the extent such travel is in accordance with the Company’s policy and approved by the Company, in writing, prior to the expenses being incurred. All expense submissions shall be submitted on the invoices within one month of the referenced expenses being incurred. Such invoices for expenses must set out adequate and complete details of the business purposes of the expenses incurred.  The Company will pay amounts owed under the expense submissions within one month of receipt.  

4.Services.  During the Term of this Consulting Agreement, Consultant shall perform independent consulting services (“Services”) for the Company which shall include, but not be limited to, services related to the financial, accounting, financial reporting, risk management and IT tasks and responsibilities  previously managed by Daniel J. Rinkenberger and any other matters within Consultant’s knowledge for which the Company may request information, or meeting with such representatives as the Company may designate.  The coordination of Services will be arranged through the Company’s Chief Executive Officer, President and Chief Operating Officer, Chief Financial Officer or Chief Accounting Officer.  Consultant shall provide Services only as needed and when reasonably requested by one of the foregoing officers of the Company.

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5.Independent Contractor.  In the performance of Services, Consultant shall act solely as an independent contractor, and Consultant’s employees shall not be considered officers, executives, or employees of the Company or any of its subsidiaries and shall not be eligible to participate as employees in any employee benefit plans provided to employees of the Company or any of its subsidiaries.  Consultant shall be free to exercise Consultant’s own judgment as to the manner and method of providing Services for the Company, subject to applicable laws and requirements reasonably imposed by the Company.  Consultant shall not have the right or authority, and shall not attempt, to enter into any contract, commitment, or agreement, or incur any debt or liability, of any nature, in the name of or on behalf of the Company or any of its subsidiaries.  Consultant acknowledges and agrees that as an independent contractor, Consultant will be required, during the term of this Consulting Agreement, to pay any applicable taxes and social security contributions on the fees paid to Consultant hereunder.  Consultant shall indemnify, hold harmless and defend the Company for all tax, social security contributions and other liabilities (including, without limitation, reasonable fees and expenses of attorneys and other professionals) arising out of or relating to Consultant’s failure to report and pay all income taxes or other taxes due and/or social security contributions on taxable amounts paid to or on behalf of Consultant by the Company or any of its subsidiaries.

6.Protection of the Company’s Interests.  Contemporaneous with the execution of this Consulting Agreement or shortly thereafter, and in any event prior to the termination of Services set forth in this Consulting Agreement, the Company and/or one of its subsidiaries will provide Consultant with:  Confidential Information (as defined below) of the Company and/or one of its subsidiaries, in addition to any Confidential Information of which Consultant may already be aware; and the opportunity to develop goodwill or establish rapport with customers and/or employees of the Company or its subsidiaries.  In consideration for receiving such additional information and opportunities, Consultant agrees to abide by the terms included in this Paragraph which Consultant acknowledges and agrees are necessary to protect the Company and its subsidiaries and/or the Company’s and its subsidiaries’ interests and are reasonable as to both scope and duration.  The activities described in this Paragraph and subsections shall be prohibited regardless of whether performed for Consultant’s own account or for the account of any other individual, partnership, firm, corporation, or other business organization other than the Company and/or its subsidiaries.  This Paragraph and subsections shall not be construed to limit any other rights the Company and/or its subsidiaries may have by statute or under the common law of any applicable jurisdiction.

7.Nonsolicitation.  Consultant agrees that during the Term of this Consulting Agreement and for a period of twelve months thereafter, Consultant shall not, whether for his own account or for the account of any other individual, partnership, firm, corporation, or other business organization attempt to or otherwise influence, persuade or induce, or assist any other person or entity in so influencing, persuading or inducing, any employee of the Company and/or its subsidiaries with whom Consultant worked or about whom Consultant obtained Confidential Information in the one-year period immediately preceding Consultant’s termination of his employment relationship with the Company or during the Term of this Consulting Agreement, to give up his or her employment with the Company and/or its subsidiaries, and shall not directly or indirectly solicit any such employee for employment elsewhere.

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8.Maintenance of Secrecy of Confidential Information.  

(a)“Confidential Information” shall mean any information not previously disclosed to the public or to the trade by the Company and/or its subsidiaries with respect to the Company or its subsidiaries and/or Company’s or its subsidiaries’ products, facilities, and methods, trade secrets and other intellectual property, systems, procedures, manuals, confidential reports, product price lists, customer lists, financial information (including the revenues, costs or profits associated with any of the products of the Company and/or its subsidiaries), business plans, prospects, opportunities, performance evaluations, performance capabilities, or salary/benefits information.  Confidential Information includes any such information that Consultant may have or may originate, learn, have access to, or obtain, whether in tangible form or memorized.  Confidential Information does not, however, include, and there shall be no obligation hereunder with respect to, information that (a) is generally available to the public or (b) becomes generally available to the public other than as a result of a disclosure by Consultant in violation of this Agreement.

(b)Consultant understands and acknowledges that as a result of Services provided pursuant to this Consulting Agreement, Consultant will receive Confidential Information prior to the termination of those Services.  Consultant understands and acknowledges that disclosure of any such Confidential Information could cause the Company and/or its subsidiaries substantial losses and damages which could not be readily calculated and for which no remedy at law would be adequate.  Accordingly, Consultant covenants and agrees that he will not, at any time directly or indirectly disclose to any person or entity any Confidential Information that Consultant learns or has learned by reason of his association with the Company and/or its subsidiaries, whether through Consultant’s employment or providing Services under this Consulting Agreement. Consultant confirms that all Confidential Information is and shall remain the exclusive property of the Company.  All business records, papers and documents kept or made by Consultant relating to the business of the Company and its subsidiaries shall be and remain the property of the Company and/or its subsidiaries.  Consultant shall not retain copies of any such materials, records, papers or documents, whether in a written, printed, or electronic format unless necessary in order to comply with applicable law.

(c)Consultant understands that nothing in this Consulting Agreement is intended to interfere with or discourage the disclosure of a suspected violation of the law to any governmental entity, or to discourage Consultant from participating in an investigation by a governmental entity regarding a suspected violation of the law.

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(d)The U.S. Defend Trade Secrets Act of 2016 (the “DTSA”) provides that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (x) is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (y) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  In addition, the DTSA provides that an individual who files a lawsuit for retaliation for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.

9.Assignment of Developments.

(a)All Developments (as defined below) that were at any time made, conceived, or suggested by Consultant, whether acting alone or in conjunction with others, during or as a result of Consultant’s Services with the Company and/or its subsidiaries, shall be the sole and absolute property of the Company and its subsidiaries, free of any reserved or other rights of any kind on Consultant’s part.  Consultant acknowledges and confirms that if such Developments are or have been made, conceived or suggested by Consultant as a result of Services then Consultant will comply with an affirmative obligation to make prompt and full disclosure of any such Developments to the Company and/or its subsidiaries.  Also, at the Company’s cost and expense, Consultant shall do all acts and things (including, among others, the execution and delivery under oath of patent and copyright applications and instruments of assignment) deemed by the Company and/or its subsidiaries to be necessary or desirable at any time in order to effect the full assignment to the Company and/or its subsidiaries of Consultant’s right and title, if any, to such Developments.

(b)“Developments” shall mean all data, discoveries, findings, reports, designs, inventions, know how, show how, conceptions, improvements, methods, processes, formulae, creations, practices, techniques, developments, programs, software, works of authorship, and ideas, whether or not patentable, all Intellectual Property (as defined below) and moral rights therein, and all tangible embodiments of the foregoing, relating to the activities of the Company and/or its subsidiaries of which Consultant is as of the Effective Date of this Consulting Agreement aware of or which Consultant becomes aware of at any time during the Term of this Consulting Agreement, but excluding any Development for which no equipment, supplies, facilities or Confidential Information of the Company and/or its subsidiaries was used and which was developed entirely on Consultant’s own time, unless (a) the Development relates directly to the business of the Company and/or its subsidiaries, (b) the Development relates to actual or demonstrably anticipated research or development of the Company and/or its subsidiaries, or (c) the Development results from or relates to any work performed by Consultant for the Company and/or its subsidiaries.

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(c)“Intellectual Property” shall mean rights in, to and under intellectual and industrial property in any jurisdiction, including without limitation patents, patent applications, copyrights, trademarks, service marks, trade dress or other identifiers of source or goodwill, trade secrets, rights in data, rights in publicity and endorsement, other property rights in intangible property, and any and all other proprietary information.    

10.Return of Property.  Except as otherwise agreed in writing by the Company, no later than the termination of this Consulting Agreement, Consultant shall return to the Company all property of the Company and/or its subsidiaries then in the possession of Consultant.

11.Indemnification.  Consultant shall protect, defend, indemnify, save and hold harmless the Company and/or its subsidiaries and their agents, directors, officers, shareholders, employees, representatives, successors, and assigns, from any and all direct or indirect costs, damages, losses, obligations, lawsuits, claims, liabilities, fines, or penalties (whether or not ultimately defeated) in connection with, arising out of, relating to, incidental to, or resulting from any negligent or act or omission or willful misconduct by Consultant while performing Services for the Company pursuant to this Consulting Agreement, including in each instance, but not limited to, all costs and expenses of investigations of and defenses against any claim at any time arising and any final judgments, compromises, settlements, court costs and attorneys’ fees, whether foreseen or unforeseen (including all such expenses, court costs, and attorneys’ fees incurred in the enforcement of the Company and/or Company’s rights hereunder). After it is determined by the Company and/or its subsidiaries that an act, omission, or breach has occurred which shall give rise to a claim for indemnification hereunder, written notice thereof shall be dispatched to Consultant and Consultant will fully cooperate as requested in any investigation or defense subject to this indemnification provision.  Notwithstanding the foregoing, Consultant has no obligation to provide any protection, defense, indemnification or insurance, and is not required to hold harmless, the Company and/or its subsidiaries and/or their agents, directors, officers, shareholders, employees, representatives, successors, and assigns, from any costs, damages, losses, obligations, lawsuits, claims, liabilities, fines, or penalties (whether or not ultimately defeated) arising out of negligence or willful misconduct on the part of the Company and/or its subsidiaries or their agents, directors, officers, shareholders, employees, representatives, successors, and/or assigns.  Consultant shall not employ any other personnel, employees, agents, independent contractors, or other agents or representatives in support of Consultant’s Services to be provided hereunder.

12.Termination.  This Consulting Agreement may be terminated by Consultant upon not less than thirty (30) days prior written notice to the Company.  In addition, this Consulting Agreement shall terminate upon the death or disability of Daniel J. Rinkenberger.  The Consultant and the Company may each also terminate this Agreement upon not less than ten (10) days prior written notice in the event of any breach of this Consulting Agreement by one party to this Consulting Agreement that remains uncured thirty (30) days after receipt of written notice of such breach from the from the other party to this Consulting Agreement alleging a default.

13.Amendment or Modification.  This Consulting Agreement may not be amended or modified except by a writing signed by all Parties hereto.

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14.Binding Agreement.  This Consulting Agreement shall be binding upon and inure to the benefit of Consultant’s assigns, heirs, executors, and administrators and to the predecessors, successors, and assigns of the Company and/or its subsidiaries, to the extent permitted by applicable law.

15.Interpretation.  Each provision of this Consulting Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Consulting Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Consulting Agreement.    

16.Waiver.  A party’s failure to complain of breach or non-compliance, or to otherwise enforce any provision of this Consulting Agreement shall not be construed as, constitute, or operate as a waiver of any rights that party may have under this Consulting Agreement.

17.Multiple Counterparts.  This Consulting Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original.

18.Governing Law.  This Consulting Agreement shall be exclusively interpreted and enforced in accordance with the laws of the State of California, excluding any reference to conflict of law principles.  Exclusive venue of any dispute arising from or related to this Consulting Agreement or Consultant’s Services for the Company and/or its subsidiaries shall lie in Orange County, California.

19.Arbitration.

(a)Except for the Company’s and/or its subsidiaries’ rights to injunctive remedies as set forth in this Consulting Agreement and the Separation and Release Agreement, the Parties agree that in the event of any dispute or disagreement arising out of or relating to the duties and responsibilities arising under this Consulting Agreement, the Parties will resolve such dispute in accordance with the arbitration procedures outlined in Paragraph 23 of the Separation and Release Agreement.

(b)BY SIGNING THIS AGREEMENT, CONSULTANT AND THE COMPANY ACKNOWLEDGE THAT THE RIGHT TO A COURT TRIAL AND TRIAL BY JURY IS OF VALUE, AND KNOWINGLY AND VOLUNTARILY WAIVE THAT RIGHT FOR ANY DISPUTE SUBJECT TO THE TERMS OF THE ARBITRATION PROVISIONS SET FORTH IN THIS PARAGRAPH 19.

20.Entire Agreement.  Except for the Separation and Release Agreement between Daniel J. Rinkenberger and the Company to which this is an exhibit, this Consulting Agreement contains all agreements of any kind or nature (oral or written) between the Parties and all prior or contemporaneous promises, representations, agreements, or understandings are expressly merged herein and superseded hereby.

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21.Notice.  Any and all notices under this Consulting Agreement shall be sent in accordance with Paragraph 19 of the Separation and Release Agreement.

[Signature Page Follows]                   

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IN WITNESS WHEREOF, the Parties have executed this Consulting Agreement as of the day and year first shown above.
	
					
	Kaiser Aluminum Corporation
	 
	[Insert Name of LLC]

	 
	 
	 
	 
	 

	By:
	 
	 
	 

	Name:
	 
	 
	Employee Signature

	Title:
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 

	Date of Signature
	 
	Date of Signature

	 
	 
	 
	 
	 

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