Document:

EXHIBIT 10.1

 

TECHNOLOGY LICENSE AGREEMENT

 

	
   

  	
  PARTIES: 

  	
  Energy Technology Group Inc. (“Licensor”)

  
	
   

  	
   

  	
  200 East Palm Valley Drive, Suite 2000

  
	
   

  	
   

  	
  Orlando, FL 32765-9401

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  I-Sys, Inc. (Licensee)

  
	
   

  	
   

  	
  3600 K Avenue Plano,

  
	
   

  	
   

  	
  TX 75074

  

 

EFFECTIVE DATE: March 18, 2008

 

WHEREAS, the Licensor owns certain assets used in
connection with the operation of a business that engineers, manufactures,
installs and services automatic meter reading equipment and software and is
operated under the names of MeterMesh, Energy Technology Group, and other trade
names (the “Business”);

 

INTENDING TO BE LEGALLY BOUND, and in consideration
of the mutual promises set forth below, the parties agree as follows:

 

SECTION 1: DEFINITIONS

 

1.1  “Affiliate” means, with respect to
either party to this Agreement, any Person who, directly, or indirectly through
one or more intermediaries, controls, is controlled by, or is under common
control with such party.  For purposes of
this definition, “controls”, “controlled by” and “under common control with”
means the possession, direct or indirect, of the power to direct or cause the
direction of the management, polices or action of a Person, whether through the
ownership of voting securities, by contract, or otherwise.

 

1.2  “Licensed Technology” means those
present and future patented and un-patented trade secrets, manufacturing
methods, processes, techniques, engineering drawings and specifications, object
code, source code, technical data, specialized, novel, confidential and/or
unique techniques, inventions, practices, knowledge, know-how, skill,
experience, and other proprietary information owned by Licensor, including but
not limited to that which is set forth on Schedule A hereof, and any
patents concerning the Subject Matter of this Agreement which hereafter issue
to Licensor on any of the foregoing presently in Licensor’s possession or
control.

 

1.3  “Licensed
Trademarks “ means the trademarks identified on Schedule B of this
Agreement.  Licensor may amend Schedule B
solely to add additional marks thereto or to reflect changes to the status of
marks already thereon, from time to time upon reasonable notice to Licensee.

 

 

1.4  “Person” means any individual, sole
proprietorship, joint venture, partnership, corporation, association, trust
estate, governmental agency, regulatory agency, regulatory authority, or any
other entity.

 

1.5  “Proprietary Items” means all of the
following, whether provided orally, in written form or otherwise: (a) the
Licensed Technology, (b) any information, technical data, trade secrets,
or know-how of Licensor, including, but not limited to, that which relates to
research, product plans, products, services, customers, markets, software
(including, but not limited to, the source code therefore), hardware,
developments, inventions, discoveries, procedures, methods, experimental
techniques, processes, designs, drawings, blueprints, specifications, patent
applications, engineering, hardware and software configuration information,
processes, methods, materials, sources of supply and fees; (c) all
information relating to either parties’ past, present and future marketing and
business activities; (d) all information regarding either parties’ prior,
current and prospective customers and suppliers, including but not limited to,
each customer’s or supplier’s name, address and other identifying information,
all information regarding the products or services sold to or purchased from
each such customer or supplier, and all information regarding the business
relationship and business transactions between such party and each such
customer and supplier; (e) all information that is provided by or on
behalf either party, which is specified as being confidential, or which the
receiving party knows, or should reasonably know, to be confidential by the
nature of such information or the circumstances under which it is given.  Proprietary Items expressly includes any and
all information derived from the foregoing Proprietary Items and all
compilations and copies thereof. Notwithstanding the foregoing, Proprietary
Items will not include any information (i) which was known to Licensee
prior to its disclosure pursuant to this Agreement (as evidenced by
contemporaneous written records maintained in the ordinary course of business)
and not the subject of any other confidentiality obligation owed to the
disclosing party, (ii) which is currently or subsequently becomes part of
the public domain through no fault of receiving party and/or any Affiliate of
receiving party, (iii) which is disclosed to receiving party by any Person
who is not bound by an obligation to maintain such information in confidence,
or (iv) which was independently developed or created by receiving party
without reference to any Proprietary Items (as evidenced by contemporaneous written
records maintained in the ordinary course of business).

 

1.6 “Subject Matter of this Agreement” means
the Licensed Technology and any information or processes for producing the
same.

 

1.7 “Territory” means
worldwide.

 

1.8 “Royalty” has the
meaning set forth in Section 6.

 

SECTION 2: LICENSE GRANT; RESERVATION OF
RIGHTS

 

2.1 License Grant. Subject to the terms and conditions
of this Agreement, Licensor hereby grants to Licensee an exclusive, irrevocable
(except as provided herein), right and license to use, distribute, sublicense
and other wise exploit the Propietary Items in the Territory. To the extent
there are territories covered under the Master Distributor agreements in
Schedule 2.1 Licensor hereby assigns all rights in the Master Distributor
Agreements relating to same to Licensee

 

 

2.2  Reservation of
and Limitation of Licensor’s Rights.

 

(a) Licensor
hereby expressly reserves all rights in and to the Licensed Technology not
otherwise granted to Licensee hereunder.

 

(b) Licensor
agrees that, during the term of this Agreement and for so long as Licensee’s
rights hereunder are exclusive, Licensor will not sell, assign, transfer or
otherwise exploit the Licensed Technology in the Territory in any manner.

 

SECTION 3: TRADEMARK LICENSE

 

3.1  Grant of License. Licensor hereby
grants to Licensee an exclusive, nontransferable license to use the Licensed
Trademarks in the Territory in accordance with this Agreement.

 

3.2  Recognition of Licensor’s Rights.
Licensee recognizes Licensor’s ownership of the Licensed Trademarks and the
validity of any of registrations Licensor may secure therefor and Licensee will
not dispute or put at issue such ownership or validity.  Licensee shall not at any time apply for or
obtain the registration of any Licensed Trademark in any country or do or
suffer to be done any other act or thing which might in any way impair the
rights of Licensor in and to the Licensed Trademarks, and shall not claim any
right or interest in the Licensed Trademarks, except such rights as are
expressly granted herein.

 

3.3  Impairment of Licensed Trademarks.
Licensee hereby covenants that it will not directly or indirectly undertake any
action anywhere which in any manner might infringe, or impair the validity,
scope, or title of Licensor in the Licensed Trademarks, or any of them, or in
any other trademarks which may be owned by Licensor at any time during the
Effective Term.  Licensee agrees to cease
using the Licensed Trademarks in any way immediately upon the expiration or
termination of this Agreement (or any permitted sell off period).

 

3.4  Protection of
Quality Standards. Licensee agrees and undertakes that in using the
Licensed Trademarks, it shall comply with quality standards and methods of
testing materials in quality, furnished or approved by the Licensor, in respect
to the materials used, manufacturing specifications, and finished goods.  Licensee will not materially deviate from the
approved form and manner of use of the Licensed Trademarks without obtaining
Licensor’s prior written consent.  If any
such materials bearing the Licensed Trademarks do not meet with Licensor’s
approval, Licensor shall promptly communicate the reasons therefor, and
Licensee shall thereupon promptly take the necessary steps to ensure that such
materials meet with Licensor’s approval.

 

 

SECTION 4: ROYALTY, LICENSOR’S CURRENT
OR FORMER EMPLOYEES, CUSTOMER OBLIGATIONS AND OTHER 

CONSIDERATION

 

4.1  Royalty.
Licensee agrees to make monetary payments in an amount not to exceed
$1,500,000.00 (hereinafter referred to as “Royalty” payments) to Licensor as
follows:

 

(a)  Ten
percent (10%) of the first $7,500,000.00 in hardware sales of the Licensed
Technology; and

 

(b)  Thirty-three
percent (33%) of the next $2,272,728.00 in hardware sales of the Licensed
Technology.

 

4.2  Purchase Price and Transfer of Assets.     As part of this agreement, when Licensee
has paid to Licensor the sum total of seven hundred and fifty thousand dollars
($750,000), formal transfer of title to all the items listed on Schedules 1 and
2  Intellectual Property and all rights
associated with the technology, will be made in full to the Licensee.

 

4.3  Licensor’s Current or Former Employees.
Licensee in its sole discretion shall have the right to offer employment to
those employees of Licensor that Licensee deems necessary or advisable.

 

4.4  Customer
Obligations.   Licensee desires and agrees to assume
responsibility for all current customer contracts and obligations said
obligations are set out in Schedule 6.4. In addition the Licensor will
supply Licensee with the current pipeline and pilot information.

 

SECTION 5:
TAXES, DUTIES, LEVIES, VAT

 

5.1  Licensee
shall pay all taxes, duties, levies, handling charges and other fees (other
than Licensor’s direct net income taxes) imposed or levied against or incurred
by  Licensee under any law now or
hereafter in effect, levied or based upon the license, delivery, shipment,
import, export, or Licensee’s possession or use of the Licensed Technology or
upon the grant of this license or the exercise thereof or based upon or
measured by the Royalty or payment thereof or any part thereof.

 

5.2  Licensee
hereby declares that, should any governmental authority require that Value
Added Tax (VAT) is to be levied on payments hereunder, Licensee will be solely
responsible for payment of said VAT levies.

 

SECTION 6:
AUDIT RIGHTS; ADJUSTMENTS

 

6.1  During the term of this Agreement and for a
period of two (2) years after any termination of this Agreement, Licensor
or its duly authorized representatives shall be allowed at any reasonable time
to examine and make copies of Licensee’s books and records relating to this
Agreement in order to verify compliance with the provisions of this
Agreement.  Such books and records shall
be preserved by Licensee for at least two (2) years from the date of the
Royalty payment to which they pertain.

 

 

SECTION 7: INVENTIONS,
NEW DEVELOPMENTS AND IMPROVEMENTS

 

7.1 If, during the term of this Agreement or at any
time after the termination of this Agreement for any reason, any invention, new
development, derivative work or improvement (including, without limitation,
know-how) derived from the Subject Matter of this Agreement shall be developed
by Licensee or any of its Affiliates, the same shall be and remain the sole and
exclusive property, with all ownership rights title and interest, of Licensee .

 

SECTION 8: CONFIDENTIALITY

 

6.1 Confidentiality. Both parties acknowledge
that the Proprietary Items constitute trade secrets, proprietary property
and/or confidential information of the disclosing party; accordingly, at all
times during and after the date of this Agreement (regardless of whether or not
Licensee and Licensor are engaged in any business relationship), without the
prior written consent of the disclosing party:

 

(a) All
Proprietary Items will be held in strict confidence, and the receiving party
will not, directly or indirectly, communicate or disclose any Proprietary Items
to any Person or permit any Person to have access to or possession of any
Proprietary Items, except as necessary in connection with either parties’
performance under this Agreement

 

(b) Each
party will take all reasonable measures necessary to preserve the
confidentiality of the Proprietary Items and to safeguard against unauthorized
disclosures and uses of the Proprietary Items, which measures shall include the
highest degree of care such party utilizes to protect its own Proprietary Items
of a similar nature. The receiving party agrees to notify promptly the
disclosing party in writing of any misuse, unauthorized disclosure or
misappropriation of Proprietary Items which may come to receiving party’s
attention.

 

(c) Each
party agrees it will not use or permit the use of any Proprietary Items for any
purpose, and will not make or retain any copy of any Proprietary Items, except
as necessary in connection with performance under this Agreement.

 

8.2 Legal Requirement to
Disclose. The parties may disclose Proprietary Items to other Persons, but
only to the extent required under applicable law or by a government order,
decree, regulation or rule, provided that, if reasonably feasible,  written notice with sufficient opportunity to
seek a protective order prior to such disclosure is delivered to the disclosing
party.

 

 

8.3 Enforcement.
The parties acknowledge that the provisions of this Agreement are reasonable
and necessary to protect the legitimate interests of each party, and that any
violation of any provisions of this section will result in irreparable injury
to the disclosing party, for which monetary damages could not adequately
compensate.  Accordingly, the parties
agree that in the event of any such breach by receiving party, the disclosing
party shall be entitled to temporary and permanent injunctive relief, without
the necessity of proving actual damages, and to an equitable accounting of all
earnings, profits and other benefits arising from any such violation, which
rights shall be cumulative and in addition to any other rights or remedies to
which the disclosing party may be entitled in law or in equity. The existence
of any claim or cause of action which receiving party or any Person may have
against disclosing party will not constitute a defense or bar to the
enforcement of any of the provisions of this section.

 

SECTION 9:
INFRINGEMENT

 

9.1 In the
event that any suit, action or other proceeding shall be brought against
Licensee involving any claim of patent, trademark, copyright or trade secret
infringement based upon Licensee’s use of the Licensed Technology or Licensed
Trademarks hereunder, Licensee shall promptly send to Licensor copies of all
papers which shall have been served in such suit, action, or other
proceeding.  In the defense of any such
claim, Licensee will cooperate fully with Licensor, will on reasonable notice
have any of its employees, officers, directors, agents and other
representatives testify when requested by Licensor, and will on reasonable
notice, make available to Licensor all relevant records, papers, information,
samples, specimens and the like. 
Licensor will also hold Licensee harmless from and indemnify Licensee
against any and all liability, damage, costs, and expenses (including, without
limitation, reasonable attorneys’ fees) incurred by Licensee in connection
therewith, but solely to the extent that such liability, damage, costs and/or expenses
stems from Licensee’s use of the Licensed Technology and/or Licensed Trademarks
in accordance with this Agreement. Licensee shall be entitled to deduct
from/apply against the amount due pursuant to Section 4 of this Agreement
any amount due from Licensor for such indemnification.

 

9.3 Licensee will promptly notify Licensor of any
infringement, counterfeiting, imitation, or passing off the Licensed Technology
or any Licensed Trademark of which it becomes aware, but Licensee will not take
any action, legal or otherwise, with respect to such infringement,
counterfeiting, imitation, passing off, without the prior consent of
Licensor.  Licensor, either in its name
or in Licensee’s name, or in the names of both, may, but is not obligated to,
take any action, legal or otherwise, to protect the Licensed Technology and/or
the Licensed Trademarks that Licensor deems necessary or desirable, within
Licensor’s sole discretion.  In any such
action so instituted by Licensor, Licensee will cooperate with Licensor and, will
on reasonable notice have any of its employees, officers, directors, managers,
trustees, agents, and other representatives testify when requested by Licensor
and, on reasonable notice, will make available to Licensor all relevant
records, papers, information, samples, specimens, and the like.  Any and all money recoveries received in
connection therewith shall accrue to Licensor.

 

9.3 Upon payment of amount
specified in Section 4.1. (a), the provisions of this Section 11
shall no longer apply.

 

 

SECTION 10: SPECIFIC
OBLIGATIONS OF LICENSEE

 

10.1 Exportation of Technical Data or
Products. Licensee shall not, without the prior written consent of Licensor
and the Office of Export Administration, United States Department of Commerce,
knowingly re-export, export, or ship, or cause to be re-exported, exported, or
shipped, directly or indirectly, any Licensed Technology, or any direct or
indirect product thereof, to any country to which, under the laws of the United
States, Licensor is or may be prohibited from exporting its technology or its
direct or indirect product.  The
provisions of this paragraph shall extend automatically to any other
destination to which the U.S. Office of Export Administration at any time during
the life of this Agreement restricts or prohibits the export of technical data
or any direct or indirect product thereof.

 

10.2 Ethical Practices. Licensee shall
distribute and sell the Licensed Technology in an ethical manner and in
accordance with the provisions and the intent of this Agreement, and shall not
illegally engage in unfair or anti-competitive business practices.  The Licensed Technology shall be distributed
and sold in accordance with all applicable international, national, federal, state
and local laws, treaties and governmental orders and regulations.

 

10.3 No Encumbrances. Licensee shall
not encumber or cause to be encumbered in any manner, the Licensed Technology,
or cause or permit any expenses to be charged to Licensor without Licensor’s
prior approval in writing in each instance.

 

SECTION 11: CHOICE OF
LAWS; CONSENT TO JURISDICTION

 

This Agreement shall be governed by and
construed in accordance with the substantive laws of the State of Texas,
without reference to conflicts of law provisions, as an agreement made and wholly
to be performed therein.  The parties
each consent to service of process by certified mail, return receipt requested,
at the address set forth on the first page of this Agreement  (as the same may be changed pursuant to this
Agreement) and each party expressly waives the benefit of any contrary
provision of foreign law.  In the event
that any legal action or other proceeding is commenced to enforce any provision
of this Agreement or as a result of a breach, default or misrepresentation in
connection with any provision of this Agreement, the successful or prevailing
party shall be entitled, in addition to any other relief which said party may
be entitled, to recover reasonable attorneys’ fees and costs of litigation
incurred in such action or proceeding.

 

SECTION 12: FORCE
MAJEURE

 

Neither party to this Agreement will be
liable to the other for any failure or delay in performance under this
Agreement due to circumstances beyond its reasonable control including, without
limitation, Acts of God, accident, labor disruption, acts, omissions and
defaults of third parties, and official, governmental and judicial action not
the fault of the party failing or delaying in performance.

 

 

SECTION 13:
INDEMNIFICATION. Each
party agrees to indemnify and hold harmless the other party from and against
any cost, loss or expense (including attorneys’ fees) resulting from any and
all claims by third parties for loss, damage, or injury allegedly caused by
the  actions, admissions, omissions,
misrepresentations or breach of the representations and warranties contained
herein of the other party, its agents or employees  provided that the indemnified parties
provides the indemnifying party with (a) prompt written notice of such
claims or actions, (b) sole controlling authority over the defense or
settlement of such claim or action, and (c) proper and  full information and reasonable assistance to
defend and/or settle any such claim or action.

 

SECTION 14:
REPRESENTATIONS, WARRANTIES AND DISCLAIMERS.

 

14.1 Licensor hereby
represents to Licensee:

 

(a) Licensor warrants that it owns all
right, title, and interest in the Licensed Technology, it has the right to
grant the licenses herein to Licensee and no part of the License Technology
contains any rights title or interest belonging to a third party and not owned
by Licensor.

 

(b) That Licensee’s licensed use,
possession and duplication of the Licensed Technology will not be interrupted
or otherwise disturbed by any entity asserting a claim related to the Licensed
Technology.

 

(c) That neither the Licensed
Technology, or any portion thereof, constitutes or may give rise to a claim of
infringement of any patent, copyright, trade secret or other property right of
a third party.

 

(d) Licensor is not aware of any facts
or circumstances that would constitute an infringement of any third party
patents, copyrights or trade secrets.

 

14.2 WARRANTIES. EXCEPT AS OTHERWISE
SET FORTH HEREIN, LICENSOR’S LICENSED TECHNOLOGY IS LICENSED AS IS.  ALL WARRANTIES, EITHER EXPRESSED OR IMPLIED,
ARE DISCLAIMED AS TO THE TECHNOLOGY IN ITS QUALITY, PERFORMANCE,
MERCHANTABILITY, OR FITNESS FOR ANY BUSINESS OR A PARTICULAR PURPOSE. IN NO
EVENT WILL EITHER PARTY BE LIABLE FOR DIRECT, INDIRECT OR INCIDENTAL OR
CONSEQUENTIAL DAMAGES RESULTING FROM THE LICENSED TECHNOLOGY. HOWEVER, IT WILL
BE LICENSOR’S RESPONSIBILITY TO CORRECT ANY DEFECT IN THE LICENSED TECHNOLOGY
WITHIN A REASONABLE TIME AFTER RECEIVING A COMPLAINT, WHERE SUCH REASONABLE
TIME WILL IN NO EVENT EXCEED THREE (3) MONTHS FROM THE EFFECTIVE DATE OF
THIS LICENSING AGREEMENT.

 

 

SECTION 15: TERM AND
TERMINATION

 

15.1 Term and Renewal. The term of
this Agreement shall be for five (5) years from the date hereof. This
Agreement will automatically renew for successive one-year terms, unless this
Agreement is otherwise terminated as provided herein.

 

15.2 Termination.

 

(a) Breach by Licensee. In the
event that Licensee: (i) materially breaches any of its duties or
obligations hereunder, which breach shall not be cured within thirty (30) days
after written notice is given by Licensor specifying the breach; or (ii) repeatedly
breaches any of its duties or obligations hereunder and fails to cure and cease
committing such repeated breaches within thirty (30) days after being given
written notice specifying the breach, then Licensor may, by promptly giving
written notice thereof to Licensee, terminate this Agreement as of a date
specified in such notice of termination.

 

(b) Licensee’s Right to Terminate.
Licensee has the right to terminate this Agreement at any time immediately upon
written notice to Licensor.

 

(c) Upon the termination of this
Agreement for any reason, in addition to the other matters provided for in this
Agreement in such event, Licensee shall make no further use of the Licensed
Technology, excluding any and all derivatives thereof which under the terms of
this Agreement shall remain the property of Licensee, and shall immediately
deliver to Licensor or destroy the original and all copies of such Licensed
Technology.  Termination shall not affect
any rights accrued prior thereto. Sections 3,4,8,9,10,11,12,13,15, and 16 shall
survive termination of this Agreement or any License.

 

SECTION 16:
REPRESENTATION AND WARRANTIES OF LICENSOR

 

Licensor hereby represents
and warrants to Licensee the following:

 

(1) That the execution
by and performance of this Agreement by Licensor will not cause it to be in
breach of any other agreement, warranty, covenant, representation, law,
statute, regulation or ordinance.

(2) That the execution
of this Agreement has been duly authorized by Licensor in accordance with its
operational rules and procedures as set forth in the laws of the
jurisdiction wherein it was created and/or its own internal governance
documents.

(3) That Licensor is
the sole owner of all of the Licensed Technology and Licensed Trademarks free
and clear of any and all liens or other encumbrances.

(4) That Licensor is a
corporation duly established and in good standing under the applicable laws and
statutes of the State of                  .

(5) That any and all
representations made to Licensee and any and all documents provided or to be
provided pursuant to this Agreement are true, correct and complete.

 

 

SECTION 17:
MISCELLANEOUS

 

17.1 Notices. Notices by either party
to the other shall be given by facsimile transmission, if possible, and by
registered or certified mail, return receipt requested, with proof of delivery,
all charges prepaid. All statements, and notices hereunder shall be given at
the respective addresses of Licensor and Licensee as set forth on the first page of
this Agreement unless written notice of a change of address is given in the
manner specified in this section. 
Notices shall be deemed effective the date the notice is given, except
that notices of change of address shall be effective when received.

 

17.2 Relationship between Parties. The
relationship between Licensee and Licensor is that of independent contractors,
and not partners, joint ventures or agents. 
Except as expressly provided in this Agreement, neither party has any
authority to bind the other party in any manner.  Neither party will be liable for any debts or
liabilities of the other party, and, except as otherwise provided in this
Agreement, each party will be responsible for its own expenses incurred in
performing its obligations under this Agreement.

 

17.3 Entire Understanding. This
Agreement, together with the Exhibits and Schedules to this Agreement, state
the entire understanding between the parties with respect to the subject matter
hereof and supersede all earlier and contemporaneous oral and written
communications and agreements with respect to the same subject matter.  Neither this Agreement, nor any other Exhibit or
Schedule to this Agreement, may be amended or modified except in a written
document signed by both parties.

 

17.4 Additional Documents. Each of the
parties hereto shall take or cause to be taken all action, or do or cause to be
done all things, or execute and deliver any and all documents, instruments and
writings, necessary, convenient, proper or advisable to consummate, make
effective, and carry out the terms and provisions of this Agreement.

 

17.5 Parties in Interest. This
Agreement will bind, benefit, and be enforceable by Licensor and Licensee, and
their respective successors and, to the extent permitted hereby, assigns.  Without the prior written consent of
Licensor, Licensee may not assign or subcontract any of its rights or
obligations under this Agreement to any Person. 
Nothing herein expressed or implied is intended or shall be construed to
confer upon or to give to any Person, other than the parties hereto, their
respective successors and permitted assigns, any rights or remedies under or by
reason of this Agreement.

 

17.6 No Waivers. No failure to
exercise, delay in exercising, or single or partial exercise of any right,
power or remedy by either party, and no course of dealing between the parties,
will constitute a waiver of, or will preclude any other or further exercise of,
the same or any other right, power or remedy.

 

 

17.7 Severability. If any provision of
this Agreement is construed to be invalid, illegal or in unenforceable, then
the remaining provisions will not be affected thereby and will be enforceable without
regard thereto provide however that if such determination results in a material
change to the respective rights of the parties to this Agreement, the remaining
provisions shall be adjusted equitably so that no party benefits
disproportionately..

 

17.8 Counterparts. This Agreement may
be executed in any number of counterparts, each of which when so executed and
delivered will be an original hereof, and it will not be necessary in making
proof of this Agreement, and will not affect its interpretation.

 

17.9 Section Headings. Section and
subsection headings are for convenience of reference only, do not constitute
part of this Agreement, and will not affect its interpretation.

 

17.10 Assignment. Except as other wise
provided herein, neither party shall sell, assign, or otherwise transfer to any
third party this Agreement or any of its rights or obligations hereunder
without the prior written consent of the other party.

 

WITNESS THE DUE EXECUTION AND DELIVERY HEREOF
AS OF THE DATE FIRST STATED ABOVE.

 

	
  ENERGY TECHNOLOGY GROUP
  INC.

  	
  I-Sys, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ TOM E. WHEELER

  	
   

  	
  By:

  	
  /s/ KENNETH KERCHER

  
	
   

  	
   

  
	
  Name:

  	
  Tom E. Wheeler

  	
  Name: Kenneth Kercher

  
	
   

  	
   Title: President and Secretary, ETG

  	
  Title: President and CEOExhibit
10.1

 

 

 

                                                                                                                March 14,
2008

 

Mr. Joseph
Hill

23
Stable Way

Medway,
MA 02053

 

                Re:  Employment
Agreement

 

Dear Joe:

 

This letter is to confirm
our understanding with respect to your employment by Metabolix, Inc. (the “Company”).  The terms and conditions agreed to in this
letter are hereinafter referred to as the “Agreement”.  In consideration of the mutual promises and
covenants contained in this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby mutually
acknowledged, we have agreed as follows:

 

1.             Employment.

 

                (a)           General.  The Company will employ you, and you will be
employed by the Company, as Chief Financial Officer of the Company, reporting
to the Company’s Chief Executive Officer,  and
you shall have the responsibilities, duty and authority commensurate with that
position.  You will also perform such
reasonable other and/or different services for the Company as may be assigned
to you from time to time.  You agree that
if your employment hereunder ends for any reason, you will tender your
resignation to the Company of all offices with the Company as of the date of
your termination.

 

(b)           Devotion to Duties.  While you are employed hereunder, you will
use your best efforts, skills and abilities to perform faithfully all duties
assigned to you pursuant to this Agreement and will devote your full business
time and energies to the business and affairs of the Company.  While you are employed hereunder, you will
not undertake any other employment from any person or entity without the prior
written consent of the Company.  You may,
however, without prior approval of the Company, serve as a member of the board
of one other company or organization, with or without compensation, provided
that such membership does not conflict with your obligations to the Company.
You must seek advance approval from the Company in the event you wish to serve
as a member of a board of additional companies or organizations.  Such approval will not be unreasonably
withheld.

 

2.             Term.  The
Company hereby agrees to employ you, and you hereby accept employment with the
Company, upon the terms set forth in this Agreement, for the period commencing
as of April 1, 2008 (or such other date as the parties shall mutually
agree)

 

 

 

 

(the “Commencement Date”)
and ending on the first anniversary of the Commencement Date (such period is
the “Initial Term”), subject to earlier termination as provided in section 4;
provided, however, that at the end of such Initial Term and each anniversary
date thereafter, the term of this Agreement will automatically be extended for
an additional year unless, not less than thirty (30) days prior to the end of
such Initial Term or one (1) year extension period, as the case may be,
the Company or you shall have given written notice that it or you elects not to
have the term extended.  The term of this
Agreement as extended and defined by this section shall be referred to as the “Agreement
Term.”

 

3.             Compensation.

 

(a)           Base Salary.  While you are employed hereunder, the Company
will pay you a base salary at the annual rate of no less than $18,333.33 per
month (annualized at $220,000.00) (the “Base Salary”).  The Company will deduct from each monthly
salary payment all amounts required to be deducted or withheld under applicable
law or under any employee benefit plan in which you participate.

 

(b)           Signing Bonus.  Within fifteen (15) days of the Commencement
Date, the Company will pay you a signing bonus in the amount of $20,000, less
applicable payroll deductions.

 

(c)           Bonus Opportunity.  You will be eligible to receive an annual
cash bonus in an amount of up to 120% of the Base Salary, based upon the
Company’s good faith assessment of your achievement of individual goals, and of
the Company’s achievement of its goals, which assessment shall be done by the
CEO in conjunction with the Company’s Board of Directors.  Individual goals for each calendar year will
be established, and modified, in good faith by you and the CEO.  The Company expects that the annual target
bonus opportunity will be in the range of 60% of your Base Salary if your
performance fully meets those expectations. 
To the extent the Company awards you a cash bonus, the bonus, if
payable, shall be calculated and paid no later than two and a half months
following the later of the close of the calendar or Company fiscal year to
which such bonus relates.  For your first
year of employment, you are eligible for your full bonus potential.  For any other partial year, your cash bonus
will be awarded on a pro rata basis.

 

(d)           Equity Compensation.

 

                (i)            Upon the Commencement Date, the Company shall grant you a stock option under the
Metabolix, Inc. 2006 Stock Option and Incentive Plan, as amended February 22,
2007, and restated (the “2006 Stock Plan”), to purchase 50,000 shares of common
stock of the Company (the “Initial Option”) at an exercise price equal to the
Fair Market Value (as defined in the 2006 Stock Plan) of the Company’s common
stock on the date of such grant. 
Provided you are employed by the Company on the vesting date, the
Initial Option shall vest as to 3,125 of the shares three months after the
grant date and 

 

 

 

2

 

 

on the last day of each three (3) month period following the first
vesting date in equal installments of 3,125 until the Initial Option fully
vests. Except as provided herein, the Initial Option will be subject to the
terms and conditions of the 2006 Stock Plan and the customary terms and
conditions of the Company’s standard form of stock option agreement.

 

                (ii)           Provided
you remain employed with the Company, on the six- month anniversary of the
Commencement Date, the Company shall grant you an Option under the Company’s
2006 Stock Plan to purchase 25,000 shares of common stock of the Company (the “Six
Month Option”) at an exercise price equal to the Fair Market Value of the
Company’s common stock on the date of such grant.  Provided you are employed by the Company on
the vesting date, the Six Month Option shall vest as to 1562.50 of the shares
three (3) months following the grant date and on the last day of each
three (3) month period following the first vesting date in equal
installments of 1562.50 until the Six Month Option fully vests. Except as
provided herein, the Six Month Option will be subject to the terms and
conditions of the 2006 Stock Plan and the customary terms and conditions of the
Company’s standard form of stock option agreement.

 

                (iii)          To
the extent allowed pursuant to Section 422 of the Internal Revenue Code of
1986, as amended (the “Code”), each option referred to in subparagraphs (i) and
(ii) hereof. shall be deemed to be an incentive stock option.

 

                                                                (e)           Vacation. 
You will be entitled to paid vacation and paid holidays, accrued and
used in accordance with the Company’s policies as currently in effect. All
vacation days will be taken at times mutually agreed by you and the Company and
will be subject to the business needs of the Company.

 

(f)            Fringe Benefits.  You will be entitled to participate in
employee benefit plans which the Company provides or may establish for the
benefit of its senior executives (for example, group life, disability, medical,
dental and other insurance, retirement, pension, profit-sharing and similar
plans) (collectively, the “Fringe Benefits”). 
Your eligibility to participate in the Fringe Benefits and receive
benefits thereunder will be subject to the plan documents governing such Fringe
Benefits.  Nothing contained herein will
require the Company to establish or maintain any Fringe Benefits.

 

(g)           Reimbursement of Certain Expenses.  You shall be reimbursed for such reasonable
and necessary business expenses incurred by you while you are employed by the
Company, which are directly related to the furtherance of the Company’s
business.  You must submit any
request for reimbursement no later than ninety (90) days following the date
that such business expense is incurred in accordance with the Company’s
reimbursement policy regarding same and business expenses must be substantiated
by appropriate receipts and documentation.  If a business expense
reimbursement is not exempt from Section 409A of the Code, any
reimbursement in one calendar year shall not affect the amount that
may be reimbursed in any other calendar year and a reimbursement (or
right thereto) may not be exchanged or liquidated for another benefit or
payment.  

 

 

 

3

 

 

Any business expense
reimbursements subject to Section 409A of the Code shall be made no later
than the end of the calendar year following the calendar year in which you
incur such business
expense.

 

(h)           Indemnification.  You and the Company shall enter into the
Indemnification Agreement which is attached hereto as Exhibit A.

 

4.             Termination.  The Agreement
shall terminate upon the occurrence of any of the following:

 

                                (a)           Termination
of the Agreement Term.  The Agreement
shall terminate at the expiration of the Agreement Term as set forth in Section 2.

 

                                (b)           Termination for Cause.  The Agreement
shall terminate, at the election of the Company, for Cause upon written notice
by the Company to you.  For the purposes
of this Section, “Cause” for termination shall be limited to the following:

 

                (i)            Your
conviction of a felony; or

 

                (ii)           Your
commission of fraud, or misconduct that results in material and demonstrable
damage to the business or reputation of the Company; or

 

                (iii)          Your
continued, repeated, intentional and willful refusal to perform the duties
associated with your position with Company, which is not cured within thirty
(30) days following written notice to you; provided, however, that your refusal
to take any action that you reasonably believes violates any applicable law or
regulation or fiduciary duty, shall not constitute grounds for the application
of this subsection.

 

You shall not be deemed
to have been terminated for “Cause” hereunder unless and until there shall have
been delivered to you a copy of a resolution duly adopted by the affirmative
vote of not less than a majority of the Board of Directors of Company then in
office, after reasonable notice to you and an opportunity for you to be heard
before the Board, finding that, in the good faith opinion of the Board, you had
committed an act constituting “Cause” as herein defined and specifying the
particulars thereof in detail.  Nothing
herein will limit the right of you or your beneficiaries to contest the
validity or propriety of any such determination.  The Board of Directors of the Company will be
advised prior to the delivery of any notice sent pursuant to this section.

 

                                (c)           Termination
by the Company Without Cause or by You for Good Reason.  This Agreement shall terminate at the
election of the Company, without Cause, at any time upon 30 days prior written
notice by the Company to you or by you for Good Reason (as defined herein).

 

                                (d)           Death
or Disability.  The Agreement shall
terminate upon your death or disability. If you shall be disabled so as to be
unable to perform the 

 

 

4

 

 

essential functions of your position under this
Agreement with or without reasonable accommodation, the Board may remove you
from any responsibilities and/or reassign you to another position with the
Company during the period of such disability, and such reassignment shall not
trigger a Good Reason termination as provided herein.  Notwithstanding any such removal or
reassignment, you shall continue to receive your Base Salary (less any
disability pay or sick pay benefits to which you may be entitled under the
Company’s policies) and benefits under this Agreement (except to the extent
that you may be ineligible for one or more such benefits under applicable plan
terms) for a period of three months, and your employment may be terminated by
the Company at any time thereafter.  Nothing
in this Section 4(b) shall be construed to waive your rights, if any,
under existing law including, without limitation, the Family and Medical Leave
Act of 1993, 29 U.S.C. §2601 et seq.
and the Americans with Disabilities Act, 42 U.S.C. §12101 et seq.

 

Notwithstanding the
foregoing, if and only to the extent that your disability is a trigger for the
payment of deferred compensation, as defined in Section 409A of the Code, “disability”
shall have the meaning set forth  in Section 409A(a)(2)(C) of
the Code.

 

                                (e)           Voluntary
Termination by You.  You may
terminate this Agreement at your election upon not less than 30 days prior
written notice to the Company.

 

                                (f)            Definition
of Good Reason. As used in this Agreement, “Good Reason” means if
the Company, without your written consent, fails to cure any one or more of the
event or circumstance listed below within 10 business days after receiving
notice from you:

 

                (i)            the
assignment to you of duties materially inconsistent with this Agreement or a
material diminution in title or authority;

 

                (ii)           any
failure by the Company to pay you the compensation and benefits to which you
are entitled in any material way, including any reduction in compensation
including Base Salary, or payments and benefits to which you are entitled under
this Agreement; or

 

                (iii)          the
requirement that you relocate to a location more than 50 miles outside of
Cambridge, Massachusetts.

 

5.             Effect of
Termination.

 

                                (a)           In the event (i) you are
terminated for Cause; (ii) you are terminated for death or Disability; or (iii) you
voluntarily resign (other than for Good Reason), unless otherwise specifically
provided herein, you, or your estate, shall be eligible only to receive (i) the
portion of your Base Salary as has accrued prior to the effectiveness of 

 

 

5

 

 

such
termination and has not yet been paid, (ii) an amount equal to the value
of your accrued unused vacation days, and (iii) reimbursement for expenses
properly incurred by you on behalf of the Company prior to such termination if
such expenses are properly documented in accordance with Company policy and
practice and submitted for reimbursement within 30 days of the termination date
(collectively, the “Accrued Obligations”). 
Such amounts will be paid promptly after termination in accordance with
applicable law.

 

                                (b)           In the event prior to the first
anniversary of the Commencement Date (i) you are terminated without Cause;
or (ii) you resign for Good Reason, in addition to the Accrued Obligations,
and contingent on your executing a complete release of claims against the
Company, and you do not revoke the release (a fully effective release is
hereafter, the “Release,” a form of which is attached hereto as Exhibit B),
you shall be entitled, in addition to the Accrued Obligations, to receive
continuation of your Base Salary in effect at the time of termination for (x) the
balance of the Initial Term and (y) a period of twelve (12) months
following the Initial Term, upon your delivery of the Release.

 

                                (c)           In the event this Agreement is
extended and after the first anniversary of the Commencement Date (i) you
are terminated without Cause; or (ii) you resign for Good Reason, in
addition to the Accrued Obligations, and contingent on your executing a
complete release of claims against the Company, and you do not revoke the
release (a fully effective release is hereafter, the “Release,” a form of which
is attached hereto as Exhibit B), you shall be entitled, in addition to
the Accrued Obligations, to receive continuation of your Base Salary in effect
at the time of termination for a period of twelve (12) months, upon your
delivery of the Release.

 

                                (d)           To the extent required by Section 409A
of the Code, the first installment of such
Base Salary in the amount of six (6) months’ Base Salary shall be payable on
the first business day following the six (6) month anniversary of the
effective date of termination, and the remainder shall be payable in accordance
with the Company’s regular payroll procedures thereafter.  If Section 409A of the Code is not
applicable at the time of such termination, such Base Salary continuation shall
commence immediately after the date of the Release. In addition to the
foregoing, you shall be entitled to receive payment
of COBRA premiums to maintain medical and dental benefits, if any, in effect at
the time of termination for the earlier of (x) 12 months following the
termination and (y) the date you become insured under a medical insurance
plan providing similar benefits to that of the Company plan.

 

                                (e)           In the event the Agreement
Term expires and the Company elects not to renew the Agreement, then in
addition to the Accrued Obligations, you shall be entitled to the same benefits
provided in Section 5(c) and 5(d) herein, upon your execution of
the Release.  The benefits in this
subsection are subject to the same limitations of 409A of the Code as set forth
in Section 5(d).  Notwithstanding
the foregoing, if you continue in the employment of the Company after the
expiration of the Agreement Term, this Section 5(e) shall be of no
further force and effect.

 

 

6

 

 

                                (f)            Additional Benefits Upon
Termination in Connection With a Change of Control.  In the event that your employment is
terminated by the Company without Cause or by you for Good Reason (each as
defined herein) in connection with a Change of Control, then, in addition to
the Accrued Obligations and the respective benefits described in Sections 5(b) or
5(c), as applicable, you shall be entitled to receive full vesting of all
unvested equity, including but not limited to any options or restricted stock
granted to you under the 2006 Stock Plan or any authorized successor stock plan
provided that the
conditions to vesting other than the passage of time have been satisfied.

 

                                (g)           The payments, benefits and vesting,
if any, to which you are entitled under Section 5 (and all other payments,
benefits and vesting to which you may be entitled) shall be provided without
regard to whether the deductibility of such payments, benefits and vesting
would be limited or precluded by Section 280G of the Code (“Section 280G”)
and without regard to whether such payments (or any other payment, benefits and
vesting) would subject you to the federal excise tax levied on certain “excess
parachute payments” under Section 4999 of the Code (the “Excise Tax”). 
If any portion of the payments, benefits and vesting to or for your benefit
(including, but not limited to, payments, benefits and vesting under this
Agreement but determined without regard to this paragraph) constitutes an “excess
parachute payment” within the meaning of Section 280G (the aggregate of
such payments being hereinafter referred to as the “Excess Parachute Payments”),
the Company shall promptly pay to you an additional amount (the “gross-up
payment”) that after reduction for all taxes (including but not limited to the
Excise Tax) with respect to such gross-up payment equals the Excise Tax with
respect to the Excess Parachute Payments; provided,
that to the extent any gross-up payment would be considered “deferred
compensation” for purposes of Section 409A of the Code, the manner and
time of payment, and the provisions of this Section 5(d), shall be
adjusted to the extent necessary (but only to the extent necessary) to comply
with the requirements of Section 409A with respect to such payment so that
the payment does not give rise to the interest or additional tax amounts
described at Section 409A(a)(1)(B) or Section 409A(b)(4) of
the Code (the “Section 409A penalties”); and
further provided, that if, notwithstanding the immediately preceding
proviso, the gross-up payment cannot be made to conform to the requirements of Section 409A
of the Code, the amount of the gross-up payment shall be determined without
regard to any gross-up for the Section 409A penalties.  The
determination as to whether your payments, benefits and vesting include Excess
Parachute Payments and, if so, the amount of such, the amount of any Excise Tax
owed with respect thereto, and the amount of any gross-up payment shall be made
at the Company’s expense by such certified public accounting firm as the Board
may designate prior to a Change of Control (the “accounting firm”). 
Notwithstanding the foregoing, if the Internal Revenue Service shall assert an
Excise Tax liability that is higher than the Excise Tax (if any) determined by
the accounting firm, the Company shall promptly augment the gross-up payment to
address such higher Excise Tax liability. Notwithstanding anything in this
section to the contrary, the maximum amount of the gross-up payment, including
any gross-up for Section 409A penalties, shall not exceed $250,000.

 

 

7

 

 

                                (h)           “Change of Control”.  As used herein, a “Change of
Control” shall occur or be deemed to have occurred only upon any one or more of
the following events:

 

                (i)            any “person” (as such term is used in Sections 13(d) and
14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) becomes a “beneficial owner” (as such term is defined in Rule 13d-3
promulgated under the Exchange Act) (other than the Company, any trustee or
other fiduciary holding securities under an employee benefit plan of the
Company, or any corporation owned, directly or indirectly, by the stockholders
of the Company, in substantially the same proportions as their ownership of
stock of the Company), directly or indirectly, of securities of the Company,
representing fifty percent (50%) or more of the combined voting power of the
Company’s then outstanding securities; or

 

                (ii)           persons who, as of the Effective
Date, constituted the Company’s Board of Directors (the “Incumbent Board”)
cease for any reason including, without limitation, as a result of a tender
offer, proxy contest, merger, consolidation or similar transaction, to
constitute at least a majority of the Board of Directors, provided that any
person becoming a director of the Company subsequent to the Effective Date
whose election was approved by at least a majority of the directors then
comprising the Incumbent Board shall, for purposes of this Section 6(f),
be considered a member of the Incumbent Board; or

 

                (iii)          the consummation of a merger or
consolidation of the Company with any other corporation or other entity, other
than (1) a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) more than fifty percent (50%) of the
combined voting power of the voting securities of the Company or such surviving
entity outstanding immediately after such merger or consolidation or (2) a
merger or consolidation effected to implement a recapitalization of the Company
(or similar transaction) in which no “person” (as hereinabove defined) acquires
more than fifty percent (50%) of the combined voting power of the Company’s
then outstanding securities; or

 

                (iv)          the stockholders of the Company
approve a plan of complete liquidation of 
the Company or an agreement for the sale or disposition by the Company
of all or substantially all of the Company’s assets.

 

                                (i)            Separation from Service.  Notwithstanding anything set forth in
Sections 4 and 5 of this Agreement, a termination of employment shall be deemed
not to have occurred until such time as you incur a “separation from service”
with the Company in 

 

 

8

 

 

accordance
with Section 409a(a)(2)(A)(v) of the Code and the applicable
provisions of Treasury Regulation Section 1.409A-3.

 

6.             Noncompetition, Confidentiality
and Inventions Obligations.  You
agree to simultaneously execute the Company’s Employee Noncompetition,
Confidentiality and Inventions Agreement with the execution of this Agreement.

 

7.             Disclosure to Future Employers.  You will provide, and the Company, in its
discretion, may similarly provide, a copy of the covenants contained in the
Employee Noncompetition, Confidentiality and Inventions Agreement to any
business or enterprise which you may, directly or indirectly, own, manage,
operate, finance, join, control or in which you may participate in the
ownership, management, operation, financing, or control, or with which you may
be connected as an officer, director, employee, partner, principal, agent,
representative, consultant or otherwise.

 

8.             Representations.  You hereby represent and warrant to the
Company that you understand this Agreement, that you enter into this Agreement
voluntarily and that your employment under this Agreement will not conflict
with any legal duty owed by you to any other party.

 

                9.             General.

 

                                (a)           Notices.  Whenever any notice is required hereunder, it shall be
given in writing addressed as follows:

 

	
  To Company:

  	
   

  	
  Metabolix, Inc. 

  21 Erie Street 

  Cambridge, Ma 02139 

  Attention:  General Counsel

   

  
	
   

  	
   

  	
   

  
	
  To the Executive:

  	
   

  	
  Joseph
  Hill  

  23 Stable Way
  

  Medway, MA 02053

   

  

 

All notices, requests, consents and other communications hereunder
which are required to be provided, or which the sender elects to provide, in
writing, will be addressed to the receiving party’s address set forth above or
to such other address as a party may designate by notice hereunder, and will be
either (i) delivered by hand, (ii) sent by overnight courier, or (iii) sent
by registered or certified mail, return receipt requested, postage
prepaid.  All notices, requests, consents
and other communications hereunder will be deemed to have been given either (i) if
by hand, at the time of the delivery thereof to the receiving party at the
address of such party set forth above, (ii) if sent by overnight courier,
on the next business day following the day such notice is delivered to the
courier service, or (iii) if sent 

 

 

9

 

 

by
registered or certified mail, on the 5th business day following the
day such mailing is made.

 

                                (b)           Entire Agreement.  This Agreement, together with any Stock
Option Agreements executed by you and the Company (either prior to or in
conjunction with this Agreement) and the Employee Noncompetition,
Confidentiality and Inventions Agreement embody the entire agreement and
understanding between the parties hereto with respect to the subject matter
hereof and supersedes all prior oral or written agreements and understandings
relating to the subject matter hereof. 
No statement, representation, warranty, covenant or agreement of any
kind not expressly set forth in this Agreement will affect, or be used to
interpret, change or restrict, the express terms and provisions of this
Agreement.

 

                                (c)           Modifications and Amendments.  The terms and provisions of this Agreement may
be modified or amended only by written agreement executed by the parties
hereto.

 

                                (d)           Waivers and Consents.  The terms and provisions of this Agreement
may be waived, or consent for the departure therefrom granted, only by written
document executed by the party entitled to the benefits of such terms or
provisions.  No such waiver or consent
will be deemed to be or will constitute a waiver or consent with respect to any
other terms or provisions of this Agreement, whether or not similar.  Each such waiver or consent will be effective
only in the specific instance and for the purpose for which it was given, and
will not constitute a continuing waiver or consent.

 

                                (e)           Assignment.  The Company may assign its rights and
obligations hereunder to any person or entity that succeeds to all or
substantially all of the Company’s business or that aspect of the Company’s
business in which you are principally involved or to any Company
Affiliate.  You may not assign your
rights and obligations under this Agreement without the prior written consent
of the Company and any such attempted assignment by you without the prior
written consent of the Company will be void; provided, however, in the event of
your death, your rights, compensation and benefits under this Agreement shall
inure to the benefit of your estate, such that, for example, stock issuable to
you, and awards and payments payable to you, shall be issued and paid to your
estate.

 

                                (f)            Governing Law.  This Agreement and the rights and obligations
of the parties hereunder will be construed in accordance with and governed by
the law of Massachusetts, without giving effect to the conflict of law
principles thereof.

 

                                (g)           Dispute Resolution. You and
the Company agree to resolve any disputes arising from or relating to this
Agreement solely through arbitration. Nothing in this Section applies to or governs
disputes arising under or relating to the Employee Noncompetition,
Confidentiality and Inventions Agreement. 
Such arbitration shall be governed by the provisions of the American
Arbitration Association (“AAA”), in accordance with its Employment Dispute
Rules, as may be in place from time to time, 

 

 

10

 

 

including but not limited
to the selection of Arbitrators and the allocation of costs.   Any arbitration proceeding arising out of or
relating to this Agreement shall be brought in the Commonwealth of
Massachusetts, Suffolk County, and each of the parties irrevocably waives any
objection it may now or hereafter have to venue or to convenience of forum,
agrees that all claims in respect of the arbitration proceeding shall be heard
and determined only in any such venues and agrees not to bring any proceeding
arising out of or relating to this Agreement in any other venue.  Each party must select an arbitrator within
thirty (30) days of receipt of notice that an arbitration proceeding has
commenced.  In the event that a party
does not select an arbitrator within such 30 day-period, the arbitrator
selected by the other party shall conduct the arbitration proceeding
alone.  In the event neither party
selects an arbitrator during such 30-day period, then the AAA shall appoint the
arbitrator.

 

                                (h)           Severability.  The parties intend this Agreement to be
enforced as written.  However, if any
portion or provision of this Agreement is to any extent declared illegal or
unenforceable by a duly authorized court having jurisdiction, then the
remainder of this Agreement, or the application of such portion or provision in
circumstances other than those as to which it is so declared illegal or
unenforceable, will not be affected thereby, and each portion and provision of
this Agreement will be valid and enforceable to the fullest extent permitted by
law.

 

                                (i)            Headings and Captions.  The headings and captions of the various
subdivisions of this Agreement are for convenience of reference only and will
in no way modify or affect the meaning or construction of any of the terms or
provisions hereof.

 

                                (j)            Acknowledgments.  You recognize and agree that the enforcement
of the Noncompetition, Nondisclosure and Inventions Agreement may be necessary
to ensure the preservation, protection and continuity of the business, trade
secrets and goodwill of the Company.  You
agree that, due to the proprietary nature of the Company’s business, the
restrictions set forth in the Noncompetition, Confidentiality and Inventions
Agreement may be reasonable as to time and scope.

 

                                (k)           Taxes.  All payments required to be made by the Company to you
under this Agreement shall be subject to the withholding of such amounts for
taxes and other payroll deductions as the Company may reasonably determine it
should withhold pursuant to any applicable law or regulation.  To the extent
applicable, it is intended that this Agreement comply with the provisions of Section 409A
of the Code, and this Agreement shall be construed and applied in a manner
consistent with this intent.  In the
event that any severance payments or benefits hereunder are determined by the
Company to be in the nature of nonqualified deferred compensation payments, you
and the Company hereby agree to take such actions as may be mutually agreed to
ensure that such payments or benefits comply with the applicable provisions of Section 409A
of the Code and the official guidance issued thereunder.  Notwithstanding the foregoing, the
Company does not guarantee the tax treatment or tax consequences associated
with any payment or benefit arising under this Agreement.

 

 

11

 

 

                                (l)            Counterparts.  This Agreement may be executed in two or more
counterparts, and by different parties hereto on separate counterparts, each of
which will be deemed an original, but all of which together will constitute one
and the same instrument.

 

If the foregoing accurately sets
forth our agreement, please so indicate by signing and returning to us the
enclosed copy of this Agreement.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  Metabolix, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Anthony
  J. Sinskey

  
	
   

  	
  Name: Anthony J. Sinskey

  
	
   

  	
  Title: Chairman of the Compensation 

  
	
   

  	
  Committee

  

 

Accepted and Approved:

 

	
  /s/ Joseph Hill

  	
   

  	
  March 21, 2008

  
	
  Joseph Hill

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  

 

 

 

12

 

Exhibit A

 

Indemnification
Agreement

 

 

INDEMNIFICATION
AGREEMENT

 

This Agreement made and entered into this
         day of
            , 2006
(the “Agreement”), by and between Metabolix, Inc., a Delaware
corporation (the “Company,” which term shall include, where appropriate,
any Entity (as hereinafter defined) controlled, directly or indirectly, by the
Company) and
                        
(the “Indemnitee”):

 

WHEREAS, it is essential to the Company that it be able to retain and
attract as directors and officers the most capable persons available;

 

WHEREAS, increased corporate litigation has subjected directors and
officers to litigation risks and expenses, and the limitations on the
availability of directors and officers liability insurance have made it increasingly
difficult for the Company to attract and retain such persons;

 

WHEREAS, the Company’s Amended and Restated By-laws (the “By-laws”) require it to indemnify its  directors and officers to the fullest
extent permitted by law and permit it to make other indemnification
arrangements and agreements;

 

WHEREAS, the Company desires to provide Indemnitee with specific
contractual assurance of Indemnitee’s rights to full indemnification against
litigation risks and expenses (regardless, among other things, of any amendment
to or revocation of the Company’s Second Amended and Restated Certificate of
Incorporation (the “Certificate of Incorporation”) or By-laws or any change in the ownership
of the Company or the composition of its Board of Directors);

 

WHEREAS, the Company intends that this Agreement provide Indemnitee
with greater protection than that which is provided by the Company’s By-laws; and

 

WHEREAS, Indemnitee is relying upon the rights afforded under this
Agreement in becoming or continuing as a director or officer of the Company.

 

NOW, THEREFORE, in consideration of the promises and the covenants
contained herein, the Company and Indemnitee do hereby covenant and agree as
follows:

 

A.            Definitions.

 

1.                                       “Corporate Status” describes the
status of a person who is serving or has served (i) as a director of the
Company,  (ii) as an officer of the Company, (iii) in any capacity
with respect to any employee benefit plan of the Company, or (iv) as a
director, partner, trustee, officer, employee, or agent of any other Entity at
the request of the Company.  For purposes
of subsection (iv) of this Section 1(a), if Indemnitee  is serving or has served as a director,
partner, trustee, officer, employee or agent of a Subsidiary, Indemnitee shall
be deemed to be serving at the request of the Company.

 

13

 

 

 

2.                                       “Entity” shall mean any
corporation, partnership, limited liability company, joint venture, trust,
foundation, association, organization or other legal entity.

 

3.                                       “Enterprise” shall mean the
Company and any other corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise of which Indemnitee is or was serving at the
request of the Company as a director, officer, employee, agent or fiduciary.

 

4.                                       “Expenses” shall mean all fees,
costs and expenses incurred by Indemnitee in connection with any Proceeding (as
defined below), including, without limitation, attorneys’ fees, disbursements
and retainers (including, without limitation, any such fees, disbursements and
retainers incurred by Indemnitee pursuant to Sections 13 and 14(c) of
this Agreement), fees and disbursements of expert witnesses, private
investigators and professional advisors (including, without limitation,
accountants and investment bankers), court costs, transcript costs, fees of
experts, travel expenses, duplicating, printing and binding costs, telephone
and fax transmission charges, postage, delivery services, secretarial services,
and other disbursements and expenses.

 

5.                                       “Indemnifiable Amounts” shall have
the meaning ascribed to that term in Section 3 below.

 

6.                                       “Liabilities” shall mean
judgments, damages, liabilities, losses, penalties, excise taxes, fines and
amounts paid in settlement.

 

7.                                       “Proceeding” shall mean any threatened,
pending or completed claim, action, suit, arbitration, alternate dispute
resolution process, investigation, administrative hearing, appeal, or any other
proceeding, whether civil, criminal, administrative, arbitrative or
investigative, whether formal or informal, including a proceeding initiated by
Indemnitee pursuant to Section 13 of this Agreement to enforce Indemnitee’s
rights hereunder.

 

8.                                       “Subsidiary” shall mean any
corporation, partnership, limited liability company, joint venture, trust or
other Entity of which the Company owns (either directly or through or together
with another Subsidiary of the Company) either (i) a general partner,
managing member or other similar interest or (ii) (A) 50% or more of
the voting power of the voting capital equity interests of such corporation,
partnership, limited liability company, joint venture or other Entity, or (B) 50%
or more of the outstanding voting capital stock or other voting equity
interests of such corporation, partnership, limited liability company, joint
venture or other Entity.

 

 

14

 

 

B.            Services
of Indemnitee.  In consideration of the
Company’s covenants and commitments hereunder, Indemnitee agrees to serve or
continue to serve as a director or officer of the Company.  However, this Agreement shall not impose any
obligation on Indemnitee or the Company to continue Indemnitee’s service to the
Company beyond any period otherwise required by law or by other agreements or
commitments of the parties, if any. 
Indemnitee may at any time and for any reason resign from such position
(subject to any other contractual obligation or any obligation imposed by
operation of law), upon which event the Company shall have no obligation under
this Agreement to continue Indemnitee in such position.  Notwithstanding the forgoing, this Agreement
shall continue in force after Indemnitee has ceased to serve as a director or
officer of the Company.

 

C.            Indemnity
in Third-Party Proceedings.  The Company
shall indemnify Indemnitee in accordance with the provisions of this Section 3
if Indemnitee is, or is threatened to be made, by reason of Indemnitee’s
Corporate Status, a party to or a participant in any Proceeding, other than a
Proceeding by or in the right of the Company to procure a judgment in its
favor.  Pursuant to this Section 3,
Indemnitee shall be indemnified against all Expenses and Liabilities actually
and reasonably incurred by Indemnitee or on his behalf in connection with such
Proceeding or any claim, issue or matter therein (indemnifiable Expenses and
Liabilities collectively referred herein as “Indemnifiable Amounts”), if
Indemnitee acted in good faith and in a manner he reasonably believed to be in
or not opposed to the best interests of the Company and, in the case of a
criminal Proceeding, had not reasonable cause to believe that his conduct was
unlawful.  Indemnitee shall not enter
into any settlement in connection with a Proceeding without the consent of the
Company, which shall not be unreasonably held or delayed.

 

D.            Indemnity
in Proceedings by or in the Right of the Company.  The Company shall indemnify Indemnitee in
accordance with the provisions of this Section 4 if Indemnitee is, or is
threatened to be made, by reason of Indemnitee’s Corporate Status, a party to
or a participant in any Proceeding by or in the right of the Company to procure
a judgment in its favor.  Pursuant to
this Section 4, Indemnitee shall be indemnified against all Expenses
actually and reasonably incurred by him or on his behalf in connection with
such Proceeding or any claim, issue or matter therein, if Indemnitee acted in
good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the Company.  No indemnification
for Expenses shall be made under this Section 4 in respect of any claim,
issue or matter as to which Indemnitee shall have been finally adjudged by a
court to be liable to the Company, unless and only to the extent that the
Delaware Court of Chancery (the “Delaware Chancery Court”) or any court
in which the Proceeding was brought shall determine upon application that,
despite the adjudication of liability, but in view of all the circumstances of
the case, Indemnitee is fairly and reasonably entitled to indemnification for
such Expenses as the Delaware Chancery Court or such other court shall deem
proper.

 

E.             Indemnification
for Expenses of a Party Who is Wholly or Partly Successful.  If Indemnitee is not wholly successful in
such Proceeding but is successful, on the merits or otherwise, as to one or
more but less than all claims, issues or matters in such Proceeding, the
Company shall indemnify Indemnitee against: 
(a) all Expenses reasonably incurred by Indemnitee or on Indemnitee’s
behalf in connection with each successfully resolved claim, issue or matter;
and (b) any claim, issue or matter related to any such successfully
resolved claim,

 

 

15

 

issue or matter. 
For purposes of this Agreement, the termination of any claim, issue or matter
in such a Proceeding by dismissal, with or without prejudice, by reason of
settlement, judgment, order or otherwise, shall be deemed to be a successful
result as to such claim, issue or matter.

 

F.             Procedure
for Payment of Indemnifiable Amounts. 
Indemnitee shall submit to the Company a written request specifying the
Indemnifiable Amounts for which Indemnitee seeks payment under Sections 3,
4 or 5 of this Agreement and the basis for the claim.  The Company shall pay such Indemnifiable
Amounts to Indemnitee promptly upon receipt of its request.  At the request of the Company, Indemnitee
shall furnish such documentation and information as are reasonably available to
Indemnitee and necessary to establish that Indemnitee is entitled to
indemnification hereunder.

 

G.            Indemnification
For Expenses of a Witness. 
Notwithstanding any other provision of this Agreement, to the extent
that Indemnitee is, by reason of his Corporate Status, a witness in any
Proceeding to which Indemnitee is not a party, he shall be indemnified against
all Expenses actually and reasonably incurred by him or on his behalf in
connection therewith.

 

H.            Effect
of Certain Resolutions.  Neither the
settlement or termination of any Proceeding nor the failure of the Company to
award indemnification or to determine that indemnification is payable shall
create a presumption that Indemnitee is not entitled to indemnification
hereunder.  In addition, the termination
of any proceeding by judgment, order, settlement, conviction, or upon a plea of
nolo contendere or its equivalent shall not create a presumption that
Indemnitee did not act in good faith and in a manner which Indemnitee
reasonably believed to be in or not opposed to the best interests of the
Company or, with respect to any criminal Proceeding, had reasonable cause to
believe that Indemnitee’s action was unlawful.

 

I.              Exclusions.  Notwithstanding any provision in this
Agreement to the contrary, the Company shall not be obligated under this
Agreement to make any indemnity in connection with any claim made against
Indemnitee:

 

1.                                       for which payment has actually been made
to or on behalf of Indemnitee under any insurance policy or other indemnity
provision, except with respect to any excess beyond the amount paid under any
insurance policy or other indemnity provisions;

 

2.                                       for an accounting of profits made from
the purchase and sale (or sale and purchase) by Indemnitee of securities of the
Company within the meaning of Section 16(b) of the Securities
Exchange Act of 1934, as amended, or similar provisions of state statutory law
or common law; or

 

3.                                       for which payment is prohibited by
applicable law.

 

J.             Agreement
to Advance Expenses; Undertaking.  The
Company shall advance all Expenses incurred by or on behalf of Indemnitee in
connection with any Proceeding, including a Proceeding by or in the right of
the Company, in which Indemnitee is involved by reason of such Indemnitee’s
Corporate Status within ten (10) calendar days after the receipt by the
Company of a written statement from Indemnitee requesting such advance or
advances from time to time, whether prior to or after final disposition of such
Proceeding.  Advances shall be unsecured
and 

 

 

16

 

 

interest free. 
Advances shall be made without regard to Indemnitee’s ability to repay
the expenses and without regard to Indemnitee’s ultimate entitlement to
indemnification under the other provisions of this Agreement.  To the extent required by Delaware law,
Indemnitee hereby undertakes to repay any and all of the amount of
indemnifiable Expenses paid to Indemnitee if it is finally determined by a
court of competent jurisdiction that Indemnitee is not entitled under this
Agreement to indemnification with respect to such Expenses.  This undertaking is an unlimited general
obligation of Indemnitee.

 

K.            Procedure
for Advance Payment of Expenses. 
Indemnitee shall submit to the Company a written request specifying the
Expenses for which Indemnitee seeks an advancement under Section 10 of
this Agreement, together with documentation evidencing that Indemnitee has
incurred such Expenses (which shall include invoices received by Indemnitee in
connection with such Expenses but, in the case of invoices in connection with
legal services, any reference to legal work performed or to expenditures made
that would cause Indemnitee to waive any privilege accorded by applicable law
shall not be included with the invoice). 
Advances under Section 10 shall be made no later than ten (10) calendar
days after the Company’s receipt of such request.  If a claim for advancement of Expenses
hereunder by Indemnitee is not paid in full by the Company within ten (10) calendar
days after receipt by the Company of documentation of Expenses and the required
undertaking, Indemnitee may at any time thereafter bring suit against the
Company to recover the unpaid amount of the claim and if successful in whole or
in part, Indemnitee shall also be entitled to be paid the expenses of
prosecuting such claim.  The burden of
proving that Indemnitee is not entitled to an advancement of expenses shall be
on the Company.

 

L.             Presumptions
and Effect of Certain Proceedings.

 

1.                                       In making a determination required to be
made under Delaware law with respect to entitlement to indemnification
hereunder, the person, persons or entity making such determination shall
presume that Indemnitee is entitled to indemnification under this Agreement if
Indemnitee has submitted a request for indemnification in accordance with Section 6
of this Agreement, and the Company shall have the burden of proof to overcome
that presumption in connection with the making of any determination contrary to
that presumption.  Neither the failure of
the Company or of any person, persons or entity to have made a determination
prior to the commencement of any action pursuant to this Agreement that
indemnification is proper in the circumstances because Indemnitee has met the
applicable standard of conduct, nor an actual determination by the Company or
by any person, persons or entity that Indemnitee has not met such applicable
standard of conduct, shall be a defense to the action or create a presumption
that Indemnitee has not met the applicable standard of conduct.

 

2.                                       The termination of any Proceeding or of
any claim, issue or matter therein, by judgment, order, settlement or
conviction, or upon a plea of nolo contendere or its equivalent, shall
not (except as otherwise expressly 

 

 

17

 

provided in this Agreement) of itself adversely affect
the right of Indemnitee to indemnification or create a presumption that
Indemnitee did not act in good faith and in a manner which he reasonably
believed to be in or not opposed to the best interests of the Company or, with
respect to any criminal Proceeding, that Indemnitee had reasonable cause to
believe that his conduct was unlawful.

 

3.                                       For purposes of any determination of good
faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s
action is based on the records or books of account of the Enterprise, including
financial statements, or on information supplied to Indemnitee by the officers
of the Enterprise in the course of their duties, or on the advice of legal
counsel for the Enterprise or the Board of Directors or counsel selected by any
committee of the Board of Directors or on information or records given or
reports made to the Enterprise by an independent certified public accountant or
by an appraiser, investment banker or other expert selected with reasonable
care by the Company or the Board of Directors or any committee of the Board of
Directors.  The provisions of this Section 12(c) shall
not be deemed to be exclusive or to limit in any way the other circumstances in
which the Indemnitee may be deemed to have met the applicable standard of
conduct set forth in this Agreement.

 

4.                                       The knowledge and/or actions, or failure
to act, of any director, officer, agent or employee of the Enterprise shall not
be imputed to Indemnitee for purposes of determining the right to
indemnification under this Agreement.

 

M.           Remedies
of Indemnitee.

 

1.                                       Right to Petition Court. 
In the event that Indemnitee makes a request for payment of
Indemnifiable Amounts under Sections 3, 4 and 5 above or a request for an
advancement of Expenses under Sections 10 and 11 above and the Company
fails to make such payment or advancement in a timely manner pursuant to the
terms of this Agreement, Indemnitee may petition the Delaware Chancery Court to
enforce the Company’s obligations under this Agreement.

 

2.                                       Burden of Proof. 
In any judicial proceeding brought under Section 13(a) above,
the Company shall have the burden of proving that Indemnitee is not entitled to
payment of Indemnifiable Amounts hereunder.

 

3.                                       Expenses.  The Company
agrees to reimburse Indemnitee in full for any Expenses incurred by Indemnitee
in connection with investigating, preparing for, litigating, defending or
settling any action brought by Indemnitee under Section 13(a) above,
or in connection with any claim or counterclaim brought by the Company in connection
therewith, if 

 

 

 

18

 

Indemnitee is successful in whole or in part in
connection with any such action.

 

4.                                       Failure to Act Not a Defense. 
The failure of the Company (including its Board of Directors or any
committee thereof, independent legal counsel, or stockholders) to make a
determination concerning the permissibility of the payment of Indemnifiable
Amounts or the advancement of indemnifiable Expenses under this Agreement shall
not be a defense in any action brought under Section 13(a) above, and
shall not create a presumption that such payment or advancement is not
permissible.

 

N.            Defense
of the Underlying Proceeding.

 

1.                                       Notice by Indemnitee. 
Indemnitee agrees to notify the Company promptly upon being served with
any summons, citation, subpoena, complaint, indictment, information, or other
document relating to any Proceeding which may result in the payment of
Indemnifiable Amounts or the advancement of Expenses hereunder; provided,
however, that the failure to give any such notice shall not disqualify
Indemnitee from the right, or otherwise affect in any manner any right of
Indemnitee, to receive payments of Indemnifiable Amounts or advancements of
Expenses unless the Company’s ability to defend in such Proceeding is
materially and adversely prejudiced thereby.

 

2.                                       Defense by Company. 
Subject to the provisions of the last sentence of this Section 14(b) and
of Section 14(c) below, the Company shall have the right to defend
Indemnitee in any Proceeding which may give rise to the payment of
Indemnifiable Amounts hereunder; provided, however, that the Company shall
notify Indemnitee of any such decision to defend within thirty (30) calendar
days of receipt of notice of any such Proceeding under Section 14(a) above.  The Company shall not, without the prior
written consent of Indemnitee, consent to the entry of any judgment against
Indemnitee or enter into any settlement or compromise which (i) includes
an admission of fault of Indemnitee or (ii) does not include, as an
unconditional term thereof, the full release of Indemnitee from all liability
in respect of such Proceeding, which release shall be in form and substance
reasonably satisfactory to Indemnitee. 
This Section 14(b) shall not apply to a Proceeding brought by
Indemnitee under Section 13(a) above or pursuant to Section 22
below.

 

3.                                       Indemnitee’s Right to Counsel. 
Notwithstanding the provisions of Section 14(b) above, if in a
Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate
Status, (i) Indemnitee reasonably concludes that he or she may have
separate defenses or counterclaims to assert with respect to any issue which
may not be consistent with the position of other defendants in such Proceeding,
(ii) a conflict of interest or potential conflict of interest exists
between Indemnitee and the Company, or (iii) if 

 

19

 

 

the Company fails to assume the defense of such
proceeding in a timely manner, Indemnitee shall be entitled to be represented
by a separate legal counsel of Indemnitee’s choice at the expense of the
Company.  In addition, if the Company
fails to comply with any of its obligations under this Agreement or in the
event that the Company or any other person takes any action to declare this
Agreement void or unenforceable, or institutes any action, suit or proceeding
to deny or to recover from Indemnitee the benefits intended to be provided to
Indemnitee hereunder, Indemnitee shall have the right to retain a counsel of
Indemnitee’s choice, at the expense of the Company, to represent Indemnitee in
connection with any such matter.

 

O.            Representations
and Warranties of the Company.  The
Company hereby represents and warrants to Indemnitee as follows:

 

1.                                       Authority.  The Company
has all necessary power and authority to enter into, and be bound by the terms
of, this Agreement, and the execution, delivery and performance of the
undertakings contemplated by this Agreement have been duly authorized by the
Company.

 

2.                                       Enforceability. 
This Agreement, when executed and delivered by the Company in accordance
with the provisions hereof, shall be a legal, valid and binding obligation of
the Company, enforceable against the Company in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy,
insolvency, moratorium, reorganization or similar laws affecting the
enforcement of creditors’ rights generally.

 

P.             Insurance.  The Company shall, from time to time, make
the good faith determination whether or not it is practicable for the Company
to obtain and maintain a policy or policies of insurance with a reputable
insurance company providing the Indemnitee with coverage for losses from
wrongful acts.  For so long as Indemnitee
shall remain a director or officer of the Company and with respect to any such
prior service, in all policies of director and officer liability insurance,
Indemnitee shall be named as an insured in such a manner as to provide
Indemnitee the same rights and benefits as are accorded to the most favorably
insured of the Company’s officers and directors.  Notwithstanding the foregoing, the Company
shall have no obligation to obtain or maintain such insurance. The Company
shall promptly notify Indemnitee of any good faith determination not to provide
such coverage.

 

Q.            Contract
Rights Not Exclusive.  The rights to
payment of Indemnifiable Amounts and advancement of indemnifiable Expenses
provided by this Agreement shall be in addition to, but not exclusive of, any
other rights which Indemnitee may have at any time under applicable law, the
Company’s Certificate of Incorporation or By-laws, or any other agreement, vote
of stockholders or directors (or a committee of directors), or otherwise, both
as to action in Indemnitee’s official capacity and as to action in any other
capacity as a result of Indemnitee’s serving as a director or officer of the
Company.

 

 

 

20

 

 

 

R.            Successors.  This Agreement shall be (a) binding upon
all successors and assigns of the Company (including any transferee of all or a
substantial portion of the business, stock and/or assets of the Company and any
direct or indirect successor by merger or consolidation or otherwise by
operation of law) and (b) binding on and shall inure to the benefit of the
heirs, personal representatives, executors and administrators of
Indemnitee.  This Agreement shall
continue for the benefit of Indemnitee and such heirs, personal
representatives, executors and administrators after Indemnitee has ceased to
have Corporate Status.

 

S.             Subrogation.  In the event of any payment of Indemnifiable
Amounts under this Agreement, the Company shall be subrogated to the extent of
such payment to all of the rights of contribution or recovery of Indemnitee
against other persons, and Indemnitee shall take, at the request of the
Company, all reasonable action necessary to secure such rights, including the
execution of such documents as are necessary to enable the Company to bring
suit to enforce such rights.

 

T.            Change
in Law.  To the extent that a change in
Delaware law (whether by statute or judicial decision) shall permit broader
indemnification or advancement of expenses than is provided under the terms of
the By-laws and this Agreement, Indemnitee shall be entitled to such broader
indemnification and advancements, and this Agreement shall be deemed to be
amended to such extent.

 

U.            Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such a manner as to be effective and valid
under applicable law, but if any provision of this Agreement, or any clause
thereof, shall be determined by a court of competent jurisdiction to be
illegal, invalid or unenforceable, in whole or in part, such provision or
clause shall be limited or modified in its application to the minimum extent
necessary to make such provision or clause valid, legal and enforceable, and
the remaining provisions and clauses of this Agreement shall remain fully
enforceable and binding on the parties.

 

V.            Indemnitee
as Plaintiff.  Except as provided in Section 13(c) of
this Agreement and in the next sentence, Indemnitee shall not be entitled to
payment of Indemnifiable Amounts or advancement of indemnifiable Expenses with
respect to any Proceeding brought by Indemnitee against the Company, any Entity
which it controls, any director or officer thereof, or any third party, unless
the Board of Directors of the Company has consented to the initiation of such
Proceeding.  This Section 22 shall
not apply to counterclaims or affirmative defenses asserted by Indemnitee in an
action brought against Indemnitee.

 

W.           Modifications
and Waiver.  Except as provided in Section 20
above with respect to changes in Delaware law which broaden the right of
Indemnitee to be indemnified by the Company, no supplement, modification or
amendment of this Agreement shall be binding unless executed in writing by each
of the parties hereto.  No waiver of any
of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provisions of this Agreement (whether or not similar), nor
shall such waiver constitute a continuing waiver.

 

X.            General
Notices.  All notices, requests, demands
and other communications hereunder shall be in writing and shall be deemed to
have been duly given (a) when delivered by hand, (b) when transmitted
by facsimile and receipt is acknowledged, or (c) if mailed by certified 

 

 

21

 

 

or registered mail with postage prepaid, on the third
business day after the date on which it is so mailed:

 

	
   

  	
   

  	
   

  
	
  (i)

  	
  If to Indemnitee, to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

(ii)           If
to the Company, to:

 

Metabolix, Inc.

21 Erie Street

Cambridge, Massachusetts
02139

Attention:  General Counsel

 

or to
such other address as may have been furnished in the same manner by any party
to the others.

 

Y.            Governing
Law; Consent to Jurisdiction; Service of Process.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware without regard
to its rules of conflict of laws. 
Each of the Company and the Indemnitee hereby irrevocably and
unconditionally consents to submit to the exclusive jurisdiction of the
Delaware Chancery Court and the courts of the United States of America located
in the State of Delaware (the “Delaware Courts”) for any litigation
arising out of or relating to this Agreement and the transactions contemplated
hereby (and agrees not to commence any litigation relating thereto except in
such courts), waives any objection to the laying of venue of any such
litigation in the Delaware Courts and agrees not to plead or claim in any
Delaware Court that such litigation brought therein has been brought in an
inconvenient forum.  Each of the parties
hereto agrees, (a) to the extent such party is not otherwise subject to
service of process in the State of Delaware, to appoint and maintain an agent
in the State of Delaware as such party’s agent for acceptance of legal process,
and (b) that service of process may also be made on such party by prepaid
certified mail with a proof of mailing receipt validated by the United States
Postal Service constituting evidence of valid service.  Service made pursuant to (a) or (b) above
shall have the same legal force and effect as if served upon such party
personally within the State of Delaware. 
For purposes of implementing the parties’ agreement to appoint and
maintain an agent for service of process in the State of Delaware, each such
party does hereby appoint The Corporation Trust Company, 1209 Orange Street,
Wilmington, New Castle County, Delaware 19801, as such agent and each such
party hereby agrees to complete all actions necessary for such appointment.

 

[signature page follows]

 

 

 

22

 

 

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

 

	
   

  	
  METABOLIX, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  INDEMNITEE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Name]

  	
   

  

 

 

 

 

23

 

Exhibit B

 

Waiver
and Release

 

You hereby agree and
acknowledge that by signing this Waiver and Release, and for other good and
valuable consideration, you are waiving your right to assert any and all forms
of legal claims against the Company(1) of any kind whatsoever, whether known or
unknown, arising from the beginning of time through the date you execute this
Waiver and Release (the “Execution Date”). 
Except as set forth below, your waiver and release herein is intended to
bar any form of legal claim, complaint or any other form of action (hereafter, “Claim”
or “Claims”) against the Company seeking any form of relief including, without
limitation, equitable relief (whether declaratory, injunctive or otherwise),
the recovery of any damages, or any other form of monetary recovery whatsoever
(including, without limitation, back pay, front pay, compensatory damages,
emotional distress damages, punitive damages, attorneys fees and any other
costs) against the Company, for any alleged action, inaction or circumstance
existing or arising through the Execution Date.

 

(1)           For purposes of this Waiver and
Release, the Company includes the Company and any of its divisions, affiliates
(which means all persons and entities directly or indirectly controlling,
controlled by or under common control with the Company), subsidiaries and all
other related entities, and its and their directors, officers, employees,
trustees, agents, successors and assigns.

 

Without limiting the foregoing
general waiver and release, you specifically waive and release the Company from
any Claim arising from or related to your prior employment relationship with
the Company or the termination thereof, including, without limitation:

 

**                                  Claims under any state or federal
discrimination, fair employment practices or other employment related statute,
regulation or Employee order (as they may have been amended through the
Execution Date) prohibiting discrimination or harassment based upon any
protected status including, without limitation, race, national origin, age,
gender, marital status, disability, veteran status or sexual orientation.  Without limitation, specifically included in
this paragraph are any Claims arising under the Federal Age Discrimination in
Employment Act, Title VII of the Civil Rights Act of 1964, the Civil Rights Act
of 1991, the Americans With Disabilities Act and any similar Federal and state
statute.

 

**                                  Claims under any other state or federal
employment related statute, regulation or Employee order (as they may have been
amended through the Execution Date) relating to wages, hours or any other terms
and conditions of employment.

 

**                                  Claims under any state or federal common
law theory including, without limitation, wrongful discharge, breach of express
or implied contract, promissory estoppel, unjust enrichment, breach of a
covenant of good faith and fair dealing, violation of public policy,
defamation, interference with contractual relations, 

 

 

 

24

 

 

intentional
or negligent infliction of emotional distress, invasion of privacy,
misrepresentation, deceit, fraud or negligence.

 

**                                  Any other Claim arising under state or
federal law.

 

You acknowledge and agree
that, but for providing this Waiver and Release, you would not be receiving the
economic benefits being provided to you under the terms of this Waiver and
Release.

 

It is the
Company’s desire and intent to make certain that you fully understand the
provisions and effects of this Waiver and Release.  To that end, you have been encouraged and
given the opportunity to consult with legal counsel for the purpose of
reviewing the terms of this Waiver and Release. 
Also, because you are over the age of 40 and consistent with the
provisions of the Federal Age Discrimination in Employment Act, which prohibits
discrimination on the basis of age, the Company is providing you with
twenty-one (21) days in which to consider and accept the terms of this Waiver
and Release by signing below and returning it to the Company.

 

You may
rescind your assent to this Waiver and Release if, within seven (7) days
after you sign this Waiver and Release, you deliver by hand or send by mail a
written notice of rescission to the Company. 
The eighth day following your signing of this Waiver and Release is the
Effective Date.

 

Also,
consistent with the provisions of federal and state discrimination laws,
nothing in this Waiver and Release shall be deemed to prohibit you from
challenging the validity of this Waiver and Release under such discrimination
laws (the “Discrimination Laws”) or from filing a charge or complaint of age or
other employment related discrimination with the Equal Employment Opportunity
Commission (“EEOC”) or state equivalent, or from participating in any
investigation or proceeding conducted by the EEOC or state equivalent.  Further, nothing in this Waiver and Release
shall be deemed to limit the Company’s right to seek immediate dismissal of
such charge or complaint on the basis that your signing of this Waiver and
Release constitutes a full release of any individual rights under the
Discrimination Laws, or to seek restitution to the extent permitted by law of
the economic benefits provided to you under this Waiver and Release in the
event that you successfully challenge the validity of this Waiver and Release
and prevail in any claim under the Discrimination Laws.

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Employee

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  

 

 

 

4268241v.3

 

 

25

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