Document:

Exhibit 10.2

 

SEPARATION AND RELEASE AGREEMENT

 

This Separation and Release Agreement (this “Agreement”), delivered September 26, 2018, confirms the following understandings and agreements between Innoviva, Inc. (the “Company”) and Theodore J. Witek, Jr. (hereinafter referred to as “you” or “your”).

 

In consideration of the promises set forth herein, you and the Company agree as follows:

 

1.                                      Opportunity for Review; Acceptance.

 

(a)                                 You have until October 18, 2018 (the “Review Period”) to review and consider this Agreement.  To accept this Agreement, and the terms and conditions contained herein, prior to the expiration of the Review Period, you must execute and date this Agreement where indicated below and return the executed copy of this Agreement to Geoffrey L. Hulme (the “Company Representative”), Principal Executive Officer, 2000 Sierra Point Parkway Suite 500, Brisbane, CA 94005, by email (geoffrey.hulme@inva.com) or by a recognized national overnight courier service to the address specified above.  You acknowledge that, to the extent there are changes made to the terms of this Agreement, whether they are material or immaterial, the Review Period is not recommenced.

 

(b)                                 Notwithstanding anything contained herein to the contrary, this Agreement will not become effective or enforceable for a period of seven (7) calendar days following the date of your execution of this Agreement (the “Revocation Period”), during which time you may revoke your acceptance of this Agreement by notifying the Company Representative, in writing, as specified above.  To be effective, such revocation must be received by the Company Representative no later than 5:00 p.m. Pacific Time on the seventh (7th) calendar day following your execution of this Agreement.  Provided that this Agreement is executed during the Review Period and you do not revoke it during the Revocation Period, the eighth (8th) day following the date on which this Agreement is executed and delivered to the Company shall be its effective date (the “Effective Date”).  In the event that you fail to execute and deliver this Agreement prior to the expiration of the Review Period, this Agreement will be null and void and of no effect, and neither the Company nor any other member of the Company Group (as defined below) will have any obligations hereunder.  In the event that you revoke this Agreement during the Revocation Period, this Agreement will be null and void and of no effect, and the Company will have no obligations hereunder.

 

2.                                      Employment Status; Accrued Benefits; Separation Benefits.

 

(a)                                 Employment Status.  You acknowledge and agree that your employment with the Company and its direct and indirect parent(s), subsidiaries, and affiliates (collectively, with the Company, the “Company Group”), will terminate effective as of the close of business on September 26, 2018 (the “Separation Date”), and after the Separation Date, you will not represent yourself as being an employee, officer, agent, or representative of the Company or any other member of the Company Group.  You hereby confirm your resignations from all offices, directorships, trusteeships, committee memberships and fiduciary and other capacities held with, or on behalf of, the Company Group effective as of the Separation Date and your execution of this Agreement will be deemed the grant by you to the officers of the Company of a limited power of attorney to sign in your name and on your behalf any such

 

 

documentation as may be required to be executed solely for the limited purposes of effectuating such resignations.  You agree that within five (5) business days following the Effective Date, you will update your accounts or profiles on any social media platform (including, but not limited to, Facebook, Twitter or LinkedIn) to reflect that you are no longer actively employed by or affiliated with the Company.

 

(b)                                 Accrued Benefits.  The Separation Date shall be the termination date of your employment for purposes of participation in and coverage under all employee benefit plans and programs or arrangements sponsored by or through the Company and any other member of the Company Group, except as otherwise provided herein.  You will be paid for (i) all of your earned but unpaid salary through the Separation Date on or prior to the Company’s next regularly scheduled payroll date on or following the Separation Date, or earlier to the extent otherwise required by applicable law, (ii) your accrued but unused vacation as of the Separation Date to the extent required by the Company’s policies, and (iii) any business expenses incurred prior to the Separation Date and properly submitted in accordance with the Company’s policies and procedures prior to the Separation Date.  In addition, your medical and health benefits will continue until September 30, 2018 and thereafter you will be entitled to continued medical and health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), and additional information concerning such benefits will be provided to you under separate cover following the Separation Date.

 

(c)                                  Separation Benefits.  In consideration of your release and waiver of claims set forth in paragraph 3 below, and subject to your execution, delivery and non-revocation of this Agreement and continued compliance with this Agreement, including but not limited to paragraph 10 hereof, the Company will provide you with the following separation benefits (collectively, the “Consideration”):

 

(1)                                 A lump-sum cash payment in an amount equal to $582,917, payable on the first regularly scheduled payroll date following the Effective Date, which amount represents 100% of your annual base salary ($437,188) plus a pro-rata bonus for 2018 based on the number of full months of employment completed in 2018 ($145,729), such amount to be paid in a manner consistent with prior compensatory payments from the Company to you; and

 

(2)                                 A lump-sum cash payment in an amount equal to $13,216, payable on the first regularly scheduled payroll date following the Effective Date.

 

(d)                                 Deferral of Payments.  Notwithstanding the foregoing, in the event that any amount would otherwise have been payable as a result of subparagraph (c) above prior to the Effective Date, such amount shall not be paid until the first regular payroll date following the Effective Date.

 

(e)                                  2018 Annual Bonus.  By signing below, you acknowledge and agree that you will not be entitled to any bonus payment in respect of the 2018 calendar year or otherwise.

 

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(f)                                   Unvested Equity Awards.  As of the Separation Date, all unvested equity and equity-based awards in respect of the Company’s common stock held by you will expire and automatically be forfeited.

 

(g)                                  Full Discharge.  You acknowledge and agree that the payment(s) and other benefits provided pursuant to this paragraph 2 are in full discharge of any and all liabilities and obligations of the Company or any other member of the Company Group to you, monetarily or with respect to employee benefits or otherwise, including but not limited to any and all obligations arising under the letter agreement between you and the Company, dated May 2, 2014, as amended, the Company’s 2009 Severance Plan and Change in Control Severance Plan, in either case as amended and/or restated, any other alleged written or oral employment agreement, policy, plan or procedure of the Company or any other member of the Company Group and/or any alleged understanding or arrangement between you and the Company or any other member of the Company Group (other than claims for accrued and vested benefits under an employee benefit, insurance, or pension plan of the Company or any other member of the Company Group (excluding any severance or similar plan or policy), subject to the terms and conditions of such plan(s)).

 

(h)                                 Taxes.  Amounts and benefits provided hereunder, including without limitation the Consideration, are subject to withholding for all applicable taxes, including but not limited to income, employment, and social insurance taxes, as shall be required by law.

 

3.                                      Release and Waiver of Claims.

 

(a)                                 As used in this Agreement, the term “claims” will include all claims, covenants, warranties, promises, undertakings, actions, suits, causes of action, obligations, debts, accounts, attorneys’ fees, judgments, losses and liabilities, of whatsoever kind or nature, in law, equity or otherwise.

 

(b)                                 For and in consideration of the payments and benefits described in paragraph 2 above, and other good and valuable consideration, you, for and on behalf of yourself and your heirs, administrators, executors and assigns, as of the date hereof, do fully and forever release, remise and discharge each member of the Company Group and their successors and assigns, together with their respective officers, directors, partners, members, stockholders (including any management company of a stockholder), employees and agents (collectively, and with the Company, the “Company Parties”) from any and all claims whatsoever up to the date hereof which you had, may have had, or now have against the Company Parties, whether known or unknown, for or by reason of any matter, cause or thing whatsoever, including any claim arising out of or attributable to your employment or the termination of your employment with the Company or any member of the Company Group, whether for tort, breach of express or implied employment contract, intentional infliction of emotional distress, wrongful termination, unjust dismissal, defamation, libel or slander, or under any federal, state or local law dealing with discrimination based on age, race, sex, national origin, handicap, religion, disability or sexual orientation.  This release of claims includes, but is not limited to, all claims arising under the Age Discrimination in Employment Act (the “ADEA”), Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Civil Rights Act of 1991, the Family and Medical Leave

 

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Act, the Equal Pay Act, the Worker Adjustment and Retraining Notification Act, and the Employee Retirement Income Security Act (excluding claims for accrued, vested benefits under an employee pension benefit plan of the Company Parties), each as may be amended from time to time, and all other federal, state and local laws, the common law and any other purported restriction on an employer’s right to terminate the employment of employees.  You intend the release contained herein to be a general release of any and all claims to the fullest extent permissible by law and for the provisions regarding the release of claims against the Company Parties to be construed as broadly as possible, and hereby incorporate in this release similar federal, state or other laws, all of which you also hereby expressly waive.

 

(c)                                  You understand and agree that claims or facts in addition to or different from those which are now known or believed by you to exist may hereafter be discovered, but it is your intention to fully and forever release, remise and discharge all claims which you had, may have had, or now have against the Company Parties, whether known or unknown, suspected or unsuspected, asserted or unasserted, contingent or noncontingent, without regard to the subsequent discovery or existence of such additional or different facts.  Without limiting the foregoing, by signing this Agreement, you expressly waive and release any provision of law that purports to limit the scope of a general release, including any and all rights and benefits under Section 1542 of the Civil Code of the State of California (or any analogous law of any other state, to the extent applicable), which provides as follows:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

(d)                                 You acknowledge and agree that as of the date you execute this Agreement, you have no knowledge of any facts or circumstances that give rise or could give rise to any claims under any of the laws listed in the preceding paragraphs.

 

(e)                                  Notwithstanding any provision of this Agreement to the contrary, by executing this Agreement, you are not releasing any claims relating to: (i) your rights with respect to payment of amounts under this Agreement, (ii) any claims that cannot be waived by law, (iii) your right to indemnification, advancement and reimbursement of legal fees and expenses, and directors and officers liability insurance, as provided by, and in accordance with the terms of, applicable law, the Company’s by-laws, the Indemnification Agreement between you and the Company, or otherwise, (iv) any rights or claims under the ADEA that may arise after the date that you execute this Agreement, (v) your rights as a stockholder of the Company in respect of vested capital stock held by you as of immediately prior to the Separation Date or (vi) your right to unemployment insurance benefits (application for which shall not be contested by the Company).

 

(f)                                   You acknowledge and agree that, by virtue of the foregoing, you have waived any relief available to you (including without limitation, monetary damages, equitable relief and reinstatement) under any of the claims and/or causes of action waived in this paragraph 3.  Therefore you agree that you will not accept any award or settlement from any

 

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source or proceeding (including but not limited to any proceeding brought by any other person or by any government agency) with respect to any claim or right waived in this Agreement.

 

(g)                                  You acknowledge and agree that as of the date of this Agreement, you have reported all accidents, injuries or illnesses relating to or arising from your employment with the Company or the Company Group and that you have not suffered any on-the-job injury or illness for which you have not yet filed a claim.

 

4.                                      Knowing and Voluntary Waiver.  You expressly acknowledge and agree that you:

 

(a)                                 are able to read the language, and understand the meaning and effect, of this Agreement;

 

(b)                                 have no physical or mental impairment of any kind that has interfered with your ability to read and understand the meaning of this Agreement or its terms, and that you are not acting under the influence of any medication, drug or chemical of any type in entering into this Agreement;

 

(c)                                  are specifically agreeing to the terms of the release contained in this Agreement because the Company has agreed to provide you the Consideration, which the Company has agreed to provide because of your agreement to accept it in full settlement of all possible claims you might have or ever had, and because of your execution of this Agreement;

 

(d)                                 acknowledge that but for your execution of this Agreement, you would not be entitled to the Consideration;

 

(e)                                  had or could have the entire Review Period in which to review and consider this Agreement and that if you execute this Agreement prior to the expiration of the Review Period, you have voluntarily and knowingly waived the remainder of the Review Period;

 

(f)                                   understand that, by entering into this Agreement, you do not waive rights or claims under the ADEA that may arise after the date you execute this Agreement;

 

(g)                                  have not relied upon any representation or statement not set forth in this Agreement made by the Company Group or any of its representatives;

 

(h)                                 were advised to consult with your attorney regarding the terms and effect of this Agreement; and

 

(i)                                     have signed this Agreement knowingly and voluntarily.

 

5.                                      No Suit.  You represent and warrant that you have not previously filed, and to the maximum extent permitted by law agree that you will not file, a complaint, charge or lawsuit against any of the Company Parties regarding any of the claims released herein.  If, notwithstanding this representation and warranty, you have filed or file such a complaint, charge or lawsuit, you agree that you shall cause such complaint, charge or lawsuit to be dismissed with prejudice and shall pay any and all costs required in obtaining dismissal of such complaint,

 

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charge or lawsuit, including without limitation the attorneys’ fees of any of the Company Parties against whom you have filed such a complaint, charge, or lawsuit.  This paragraph 5 shall not apply, however, to any non-waivable right to file a charge with the U.S. Equal Employment Opportunity Commission (the “EEOC”) or similar state agency; provided, however, that if the EEOC or similar state agency pursues any claims relating to your employment with the Company or any member of the Company Group, you agree that you shall not be entitled to recover any monetary damages or any other remedies or benefits as a result and that this Agreement and the Consideration will control as the exclusive remedy and full settlement of all such claims by you.

 

6.                                      Company Release.  The Company voluntarily and irrevocably releases and discharges you and your executors and administrators generally from all charges, complaints, claims, promises, agreements, causes of action, damages, and debts that relate in any manner to your employment with or services for the Company, known or unknown, which the Company has, claims to have, ever had, or ever claimed to have had against you through the date upon which you execute this Agreement.  The Company agrees to waive the provisions of Section 1542 of the Civil Code of the State of California, which is set forth in full in Section 3(c) hereof, in connection with this general release of claims.  This general release of claims includes, without implication of limitation, all claims related to your services or termination as a director, officer, employee, agent, or fiduciary of the Company or your activities on behalf of the Company in any such capacity; provided, however, that this general release of claims excludes any acts or omissions that would be excluded from exculpation under Section 102(b)(7) of the Delaware General Corporation Law.

 

7.                                      Successors and Assigns.  The provisions hereof shall inure to the benefit of your heirs, executors, administrators, legal personal representatives and assigns and shall be binding upon your heirs, executors, administrators, legal personal representatives and assigns.

 

8.                                      Severability; Third-Party Beneficiaries.  If any provision of this Agreement shall be held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect.  The illegality or unenforceability of such provision, however, shall have no effect upon and shall not impair the enforceability of any other provision of this Agreement.  You acknowledge and agree that each of the Company Parties shall be a third-party beneficiary to the releases set forth in paragraph 3 above, with full rights to enforce this Agreement and the matters documented herein.

 

9.                                      Non-Disparagement.  You agree that you will make no disparaging or defamatory comments regarding any member of the Company Group or their respective current or former directors, officers, employees, members, stockholders (including any management company of a stockholder), or affiliates in any respect or make any comments concerning any aspect of your relationship with any member of the Company Group or the conduct or events which precipitated your termination of employment from any member of the Company Group.  Your obligations under this paragraph 9 extend to, but are not limited to, text messages, e-mail communications, and comments or postings on blogs, comment boards or social media websites including, but not limited to, Facebook, Twitter or LinkedIn.  The Company will not, and will instruct its officers, directors and its investor relations personnel not to make any disparaging statements concerning you or your performance as an executive officer of the Company.  This

 

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paragraph 9 shall not prevent the truthful testimony by any individual or entity in a legal proceeding or pursuant to a governmental, administrative or regulatory investigation.

 

10.                               Cooperation.

 

(a)                                 You agree that you will provide reasonable cooperation to the Company and/or any other member of the Company Group and its or their respective counsel in connection with any investigation, administrative proceeding or litigation relating to any matter that occurred during your employment in which you were involved or of which you have knowledge.  The Company agrees to reimburse you for reasonable out-of-pocket expenses incurred at the request of the Company with respect to your compliance with this paragraph 10(a).

 

(b)                                 You agree that, in the event you are subpoenaed by any person or entity (including, but not limited to, any government agency) to give testimony or provide documents (in a deposition, court proceeding or otherwise) which in any way relates to your employment by the Company and/or any other member of the Company Group, you will give prompt written notice of such request to the Company Representative, in writing, as specified above (or his successor or designee) and will make no disclosure until the Company and/or the other member of the Company Group has had a reasonable opportunity to contest the right of the requesting person or entity to such disclosure.  The Company agrees to reimburse you for reasonable out-of-pocket expenses incurred at the request of the Company with respect to your compliance with this paragraph 10(b).

 

11.                               Affirmation of Continuing Obligations.  You hereby acknowledge and agree that the execution of this Agreement does not alter your obligations to any member of the Company Group under any confidentiality, non-compete, non-solicit, invention assignment, or similar agreement or arrangement to which you are a party with any member of the Company Group (the “Restrictive Covenants”), which obligations are hereby incorporated into this Agreement and shall survive the termination of your employment with the Company, and you hereby acknowledge, reaffirm and ratify your continuing obligations to the Company Group pursuant to such agreements or arrangements.  You further hereby acknowledge that your continued compliance with these obligations is a condition of your receiving the Consideration described in paragraph 2 above and upon any breach of the Restrictive Covenants, the Company shall be entitled to an immediate refund of any Consideration already received by you.

 

12.                               Confidentiality.  The terms and conditions of this Agreement are and shall be deemed to be confidential, and shall not be disclosed by you to any person or entity without the prior written consent of the Company, except if required by law, and to your accountants, attorneys and/or immediate family, provided that, to the maximum extent permitted by applicable law, rule, code or regulation, they agree to maintain the confidentiality of this Agreement.

 

13.                               Return of Property.

 

(a)                                 With respect to all proprietary and/or confidential information and documents (including any copies thereof) in any form belonging to the Company Group and all

 

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Company Group-owned or produced cell phones, Blackberries, iPhones or other mobile device, keys, credit cards, identification cards or badges, access cards, employee handbooks, laptops, computers or other office equipment, computer user names and passwords, disks, data files, thumb drives, and/or voicemail codes (collectively “Proprietary Materials”) in your possession that are in physical or hard copy form, the Company will provide a messenger service to collect all such Proprietary Materials from your home office in Toronto, Ontario, and you agree to cooperate with the Company and such messenger service in the collection of all such Proprietary Materials.

 

(b)                                 With respect to all Proprietary Materials that are in your possession that are in digital or electronic form, you agree to, promptly following the date hereof, send such Proprietary Materials to the Company Representative by email to an email address to be provided by the Company to you promptly following the date hereof or by such other means as may be agreed to by you and the Company; provided, that you shall not be required to send emails that are in your Company issued email account.  After such digital or electronic Proprietary Materials are provided to the Company, you agree to use reasonable efforts to promptly and permanently remove, delete and otherwise relinquish your possession and control of such Proprietary Materials.

 

(c)                                  If you discover after the Separation Date that you have retained any Proprietary Materials, you will not be in breach of this paragraph 13 if, immediately upon discovery, you send an email to the Company Representative to inform the Company of the nature and location of the Proprietary Materials that you have retained so that the Company may arrange to remove, recover, and/or collect such information and you thereafter assist with such removal.

 

(d)                                 You further acknowledge and agree that the Company shall have no obligation to provide the Consideration described in paragraph 2 above in the event that you fail to satisfy your obligations pursuant to this paragraph 13 prior to the applicable payment date.

 

14.                               Non-Admission.  Nothing contained in this Agreement will be deemed or construed as an admission of wrongdoing or liability on the part of you or any member of the Company Group.  Accordingly, this Agreement may not be admissible in any forum as an admission, but only in an action to enforce it.

 

15.                               Entire Agreement.  This Agreement and the Restrictive Covenants constitutes the entire understanding and agreement of the parties hereto regarding the termination of your employment.  This Agreement and the Restrictive Covenants supersede all prior negotiations, discussions, correspondence, communications, understandings and agreements between the parties relating to the subject matter of this Agreement and the Restrictive Covenants.

 

16.                               Attorneys’ Fees and Costs.  You hereby acknowledge and agree that Company Parties are entitled to recover from you all reasonable attorneys’ fees and costs associated with their efforts to enforce this Agreement or the Restrictive Covenants and/or to recover damages for a breach of this Agreement or the Restrictive Covenants by you, and/or

 

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which are incurred by the Company Parties as a result of a breach of this Agreement or the Restrictive Covenants by you.

 

17.                               Governing Law; Jurisdiction; Arbitration.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH FEDERAL LAW AND THE LAWS OF THE STATE OF CALIFORNIA, APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO CONFLICT OF LAWS RULES.  BY EXECUTION OF THIS AGREEMENT, EACH PARTY TO THIS AGREEMENT HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA, TO THE EXTENT FEDERAL JURISDICTION EXISTS, AND IN ANY COURT SITTING IN SAN FRANCISCO, CALIFORNIA, BUT ONLY IN THE EVENT FEDERAL JURISDICTION DOES NOT EXIST, AND ANY APPLICABLE APPELLATE COURTS, AND HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN CONNECTION WITH ANY DISPUTE ARISING UNDER OR CONCERNING THIS AGREEMENT.  ALL DISPUTES ARISING UNDER OR CONCERNING THIS AGREEMENT, AS WELL AS ALL CLAIMS ARISING OUT OF YOUR EMPLOYMENT OR TERMINATION THEREOF, INCLUDING WITHOUT LIMITATION ALL CLAIMS FOR PAYMENT OF WAGES, DISCRIMINATION, RETALIATION, AND ALL OTHER CLAIMS BASED ON ANY STATE, FEDERAL OR COMMON LAW WILL BE RESOLVED THROUGH BINDING ARBITRATION BEFORE A SINGLE ARBITRATOR.  THE ARBITRATION SHALL BE ADMINISTERED BY JAMS, UNDER ITS THEN APPLICABLE RULES FOR EMPLOYMENT DISPUTES.  IF JAMS CANNOT SERVE AS THE ARBITRATION ADMINISTRATOR, THEN THE ARBITRATION WILL BE THROUGH THE AMERICAN ARBITRATION ASSOCIATION, UNDER ITS THEN APPLICABLE RULES FOR EMPLOYMENT DISPUTES.  THE EXCLUSIVE VENUE OF ANY SUCH ARBITRATION WILL BE SAN FRANCISCO, CALIFORNIA.  THE NON-PREVAILING PARTY WILL PAY THE REASONABLE ATTORNEYS’ FEES AND COSTS OF THE PREVAILING PARTY.  THE ARBITRATOR SHALL HAVE AUTHORITY TO ISSUE EQUITABLE AND LEGAL RELIEF, INCLUDING WITHOUT LIMITATION INJUNCTIVE RELIEF AND MONETARY DAMAGES.  ALL ARBITRATION PROCEEDINGS SHALL BE CONFIDENTIAL.

 

18.                               Construction.  The section or paragraph headings or titles herein are for convenience of reference only and shall not be deemed a part of this Agreement.  The parties hereto acknowledge and agree that each party has reviewed and negotiated the terms and provisions of this Agreement and has had the opportunity to contribute to its revision.  Accordingly, the rule of construction to the effect that ambiguities are resolved against the drafting party, including, but not limited to Section 1654 of the California Civil Code, shall not be employed in the interpretation of this Agreement.  Rather, the terms of this Agreement shall be construed in a reasonable manner to effect the intentions of both parties hereto and not in favor or against either party.

 

19.                               Section 409A.  Payments under this Agreement are intended to be exempt from, or comply with, Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), and this Agreement will be interpreted to achieve this result.  For purposes of this Agreement, each payment in a series of payments hereunder shall be deemed to be a separate payment for purposes of Section 409A.  In no event is the Company responsible for any tax or

 

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penalty owed by you (other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A) with respect to payments under this Agreement.

 

20.                               Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument, and electronically delivered copies of executed counterparts shall be deemed to be originals for all purposes.

 

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

 

	
 
    	
INNOVIVA, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Geoffrey L. Hulme
    
	
 
    	
 
    	
Geoffrey L. Hulme
    
	
 
    	
 
    	
Principal Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THEODORE   J. WITEK, JR.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Theodore J. Witek, Jr.
    
	
 
    	
Theodore   J. Witek, Jr.
    
	
 
    	
 
    
	
 
    	
Dated: October 1, 2018
    

 

[Signature Page to T. Witek Separation Agreement]Blueprint

Exhibit 10.45

CONSULTING AGREEMENT

 

This
Consulting Agreement (the “Agreement”) is made as of
September 6, 2017 between Spartan
Capital Securities, LLC (the “Consultant”), and Bright Mountain Media, Inc. (the
“Company”). The
Company and the Consultant are collectively herein referred to as
the “Parties.”

 

WITNESSETH

 

WHEREAS, the
Consultant is a broker-dealer, licensed by and in good standing
with the Financial Industry Regulatory Authority, Inc.
(“FINRA”).

 

WHEREAS, the
Parties are parties to that certain Consulting Agreement dated
April 14, 2017 (the “Prior
Agreement”), the term of which expires on October 7,
2017.

 

WHEREAS, the
Consultant is desirous of providing the Company with certain
advisory services on terms and conditions hereinafter set
forth;

 

WHEREAS, the
Consultant has been engaged to serve as placement agent with
respect to a “$1,000,000 minimum/$4,000,000 maximum”
private offering of the Company’s securities consisting of
shares of its common stock and common stock purchase warrants (the
“Units”)
pursuant to a Placement Agent Agreement of even date herewith (the
“Private
Placement”);

 

NOW,
THEREFORE, in consideration of the mutual promises, covenants and
agreements hereinafter set forth, the Parties agree as
follows:

 

1. Term. With the exception of the
confidentiality terms and obligations, this Agreement shall be
effective as of the closing date of the sale of at least $4,000,000
of Units in the Private Placement (the “Effective Date”) and shall
continue in effect for sixty (60) months. On the Effective Date,
the Prior Agreement shall terminate. The Parties acknowledge that
the Consultant is not due any compensation or reimbursement under
the Prior Agreement.

 

2.

Services.

 

2.1           Services.
During the term of this Agreement, the Consultant will stand ready
to provide, as the Company shall reasonably request, consulting
services related to general corporate matters, including, but not
limited to (i) advice and input with respect to raising capital,
(ii) identifying suitable personnel for management and Board
positions, (iii) developing corporate structure and finance
strategies, (iv) assisting the Company with strategic
introductions, (v) assisting management with enhancing corporate
and shareholder value, and (vi) introducing the Company to
potential investors (collectively, the “Advisory Services”).

 

3.

Compensation.

 

3.1           Initial
Fee. The Company shall pay an initial fee of $200,000, which
shall be payable on the Effective Date in consideration of the
termination of the Prior Agreement.

 

3.2           Monthly
Fee. The Company shall pay an additional fee of $300,000 on
the Effective Date which shall represent the prepayment of a fee of
$5,000 per month for the 60 month term of this Agreement within
five (5) business days from.

 

3.3           Stock
Compensation. The
Company shall issue 1,000,000 shares of its Common Stock (the
“Shares”)
to Consultant within five (5) business days from the Effective
Date, which Shares shall be fully paid and non-assessable.
The Shares will be “restricted securities” as that term
is defined in the Securities Act of 1933, as amended (the
“Securities
Act”). The Shares are being acquired by the Consultant
solely for its account for investment and not with a view to, or
for resale in connection with, any distribution. The Consultant
does not intend to dispose of all or any part of the Shares except
in compliance with the provisions of the Securities Act and
applicable state securities laws and understands that the Shares
are being issued pursuant to a specific exemption under the
provisions of the Securities Act, which exemption depends, among
other things, upon the compliance with the provisions of the
Securities Act. The
Company agrees to register the Shares for public resale under the
resale registration statement filed by the Company with the
Securities and Exchange Commission with respect to the registration
of the shares of the Company’s Common Stock underlying the
warrants issued to investors in the Private
Placement.

 

3.5           Out-of-pocket
expenses. Following the Effective Date, the Consultant shall
be reimbursed for reasonable out-of-pocket expenses incurred in
connection with the Consultant’s performance of Advisory
Services. All such expenses must be approved in advance and in
writing by the Company prior to the Consultant incurring such
expenses.

 

4.            

Confidential
Information. The
Consultant acknowledges and agrees that it will have access
to, or become acquainted with, Confidential Information of the
Company in the performance of its duties and obligations hereunder.
For purposes of this Agreement, “Confidential Information” shall
mean all confidential, proprietary, or trade secret information,
property, or material of the Company and any derivatives, portions,
or copies thereof, including, without limitation, information
resulting from or in any way related to (i) the business practices,
plans, intellectual property, proprietary information, formulae,
methods, practices, designs, know how, processes and procedures,
software, test results, financial information, sales, customers,
employees, suppliers, contracts, agreements or relationships of the
Company; and (ii) any other information or material that the
Company designates as Confidential Information. The Consultant
shall keep all Confidential Information in strict confidence and
shall not, at any time during or for five (5) years after the
expiration or earlier termination of this Agreement, without the
Company’s prior written consent, disclose, publish,
disseminate or otherwise make available, directly or indirectly,
any item of Confidential Information to anyone. The Consultant
shall use the Confidential Information only in connection with the
performance of the Advisory Services and for no other purpose.
Notwithstanding the obligations set forth above, the Consultant may
disclose Confidential Information to any of its employees,
consultants or subcontractors who need to receive the Confidential
Information in connection with the provision of the Advisory
Services, provided that the Consultant shall ensure that, prior to
disclosing the Confidential Information, each subcontractor,
consultant or employee to whom the Confidential Information is to
be disclosed is made aware of the obligations contained in this
Agreement and agrees to undertake, in a manner legally enforceable
by the Company, to adhere to such terms of this Agreement as if it
were a party to it. The Consultant recognizes that its threatened breach or breach of
this Section 4
will cause irreparable harm to the
Company that is inadequately compensable in damages and that, in
addition to other remedies that may be available at law or equity,
the Company is entitled to injunctive relief for such a threatened
or actual breach of this Section
4. Notwithstanding the above,
the Consultant shall not have any obligations of confidentiality
with respect to any portion of Confidential Information which (i)
was previously known to the Consultant prior to receipt from the
disclosing party, (ii) is now public knowledge, or becomes public
knowledge in the future, other than through acts or omissions of
the Consultant in violation of this Section
4, or (iii) is lawfully
obtained by the Consultant from sources independent of the
disclosing party who have a lawful right to disclose such
Confidential Information. The Consultant may disclose Confidential
Information to the extent such disclosure is reasonably necessary
in complying with applicable governmental laws, rules or
regulations or court orders.

 

5. Publicity. The Consultant shall
not refer to the existence of this Agreement in any press release,
advertising or other public statement, written or oral, without the
prior written consent of the Company, except as required by
applicable law or regulation.

 

6. Ownership. The Company shall
have complete and exclusive ownership of all work products, as well
as all materials (and all intellectual property rights in and to
all of the foregoing) (collectively, “Work Product”), produced by
Consultant under this Agreement. In furtherance of the foregoing,
the Consultant hereby irrevocably assigns to the Company all right,
title and interest in and to such Work Product. The Consultant
agrees to execute all documents deemed reasonably necessary by the
Company to evidence or perfect the foregoing
assignment.

 

7. Patent Rights. No right or
license, either expressed or implied, under any licensing
agreement, patent or proprietary right of the Company is granted
hereunder. Any information or technology, including but not limited
to data, products, processes, formulations, machinery and
apparatus, and uses thereof, which Consultant may develop, improve,
discover or invent as a result of the Services (the
“Technology”)
shall be considered to be “Work Product” and shall
become the property of the Company. The Consultant shall
immediately disclose any Technology to the Company. The Consultant
shall also execute any other documents reasonably requested by the
Company related to the Technology and the Work Product, including
documents necessary for patent or regulatory filings and cooperate with the Company after the filing of
patent or regulatory documents for as long as necessary to vest the
rights to the Technology in the Company, including execution of
necessary documents in subsequent continuation,
continuation-in-part, divisional, international, and foreign patent
applications.

 

8. Return of Materials. Upon the
expiration or termination of this Agreement, whichever occurs
first, the Consultant shall transfer to the Company all Work
Product, Technology, work in progress, property, Confidential
Information and all other materials in the Consultant’s
possession or control that are the property of the
Company.

 

9. Indemnification. Each party
shall defend, indemnify and hold the other party harmless in
accordance with the indemnification and other provisions set forth
in Exhibit A
hereto, which provisions are incorporated herein by reference and
shall survive the termination or expiration of this
Agreement.

 

10.            

Independent Contractor. The
Consultant shall perform all of Consultant’s obligations
under this Agreement as an independent contractor and not as an
agent, employee or representative of the Company. The Consultant
shall not participate in any insurance programs or benefits
including, but not limited to, workers' compensation insurance,
disability insurance or any other employee benefits available to
the Company’s employees.

 

11.            

Assignment. This Agreement is
not assignable by the Consultant without the prior written consent
of the Company.

 

12.            

Notices. Any notice consent,
authorization of other communication to be given hereunder shall be
in writing and shall be deemed duly given and received when
delivered personally, when transmitted by fax, three days after
being mailed by first class mail, or one day after being sent by a
nationally recognized overnight delivery service, charges and
postage prepaid, properly addressed to the party to receive such
notice, as the following address or fax number (or such other
address or fax number as shall hereafter be specified by such party
by like notice):

 

a. If to the Company,
to:                                                                           b.
If to the
Consultant:

   Bright Mountain Media,
Inc.                                                                                     
Spartan Capital Securities,
LLC

   6400 Congress Avenue, Suite
2050                                                                                                
45 Broadway

   Boca Raton, Florida
33487                                                                                     
New York, New York
10006

   Attn: W. Kip
Speyer                                                                                     
Attn: John Lowry

    Telephone: (561)
998-2440                                                                           
Telephone: (212)
293-0123

 

13.            

Counterparts. This Agreement
may be executed in one or more counterparts each of which shall for
all purposes be deemed to be an original and all of which shall
constitute one and the same instrument. Facsimile signatures shall
be treated as original signatures.

 

14.            

Severability. If for any reason
a court of competent jurisdiction finds any provision of this
Agreement, or portion thereof, to be unenforceable, the remainder
of this Agreement shall continue in full force and
effect.

 

15.            

Relationship of Parties.
Nothing in this Agreement is intended
or shall be deemed to constitute a partnership, agency,
employer-employee or joint venture relationship between the
Parties. No Party shall incur any debts or make any commitments for
the other, except to the extent, if at all, specifically provided
herein.

 

16.                       

Waiver.
A waiver by either party of any of the
terms and conditions of this Agreement in any instance shall not be
deemed or construed to be a waiver of such term or condition for
the future, or of any subsequent breach hereof. All rights,
remedies, undertakings, obligations and agreements contained in
this Agreement shall be cumulative and none of them shall be in
limitation of any other remedy, right, undertaking, obligation or
agreement of either party.

 

17.            

Entire Agreement. This
Agreement sets forth the entire agreement between the parties with
respect to the specific matters contained herein, and this
Agreement has no bearing or effect on any prior agreements entered
into by the Parties. This Agreement may be modified or amended only
in writing signed by the Parties. The descriptive headings of each
numbered section of this Agreement are for convenience only and are
not for use in the construction and/or interpretation of this
Agreement.

 

18.            

Applicable Law. This Agreement
shall be deemed to have been made in the State of New York and
shall be construed and governed in accordance with the laws of the
State of New York without regard to the conflicts of laws rules of
such jurisdiction. The parties hereby irrevocably consent to the
jurisdiction of the courts located in the State of New
York.

 

IN WITNESS WHEREOF, the Parties have
caused their respective signature page to this Agreement to be duly
executed as of the date first written above.

 

 

Spartan Capital Securities,
LLC                                            

Bright
Mountain Media, Inc.

 

 

 By:
/s/ John
Lowry                         

                                 

By: W. Kip Speyer

        John
Lowry,                 

            

                       

W. Kip
Speyer,

        Chief
Executive Officer Chief Executive Officer 

 

 

Page
[Insert Page Number] of
1

 

Exhibit 10.45

 

EXHIBIT A

 

INDEMNIFICATION PROVISIONS

 

Bright
Mountain Media, Inc. (the “Company”) agrees to indemnify and
hold harmless Spartan Capital Securities, LLC (“Consultant”) and each of the other
Indemnified Parties (as hereinafter defined) from and against any
and all losses, claims, damages, obligations, penalties, judgments,
awards, liabilities, and reasonable costs, expenses and
disbursements, and any and all actions, suits, proceedings and
investigations in respect thereof and reasonable legal and other
costs, expenses and disbursements in giving testimony or furnishing
documents in response to a subpoena or otherwise (including,
without limitation, the reasonable costs, expenses and
disbursements, as and when incurred, of investigating, preparing,
pursing or defending any such action, suit, proceeding or
investigation (whether or not in connection with litigation in
which any Indemnified Party is a party)) (collectively,
“Losses”),
directly or indirectly, caused by, relating to, based upon, arising
out of, or in connection with, Consultant’s advisory services
to the Company, including, without limitation, any act or omission
by the Company in connection with its acceptance of or the
performance or non-performance of its obligations under the
Consulting Agreement dated as of September 6, 2017 between the
Company and Consultant to which these indemnification provisions
are attached and form a part (the “Agreement”), any breach by the
Company of any representation, warranty, covenant or agreement
contained in the Agreement (or in any instrument, document or
agreement relating thereto), or the enforcement by Consultant of
its rights under the Agreement or these indemnification provisions,
except to the extent that any such Losses are found in a final
judgment by a court of competent jurisdiction (not subject to
further appeal) to have resulted primarily and directly from the
gross negligence or willful misconduct of an Indemnified Party. The
Company also agrees that no Indemnified Party shall have any
liability (whether direct or indirect, in contract or tort or
otherwise) to the Company for or in connection with the engagement
of Consultant by the Company or for any other reason, except to the
extent that any such liability is found in a final judgment by a
court of competent jurisdiction (not subject to further appeal) to
have resulted primarily and directly from such Indemnified
Party’s gross negligence or willful misconduct.

 

The
Consultant agrees to indemnify and hold harmless the Company and
each of the other Indemnified Parties (as hereinafter defined) from
and against any and all Losses, directly or indirectly, caused by,
relating to, based upon, arising out of, or in connection with,
Consultant’s advisory services to the Company, including,
without limitation, any act or omission by Consultant in connection
with its acceptance of or the performance or non-performance of its
obligations under the Agreement, any breach by the Consultant of
any representation, warranty, covenant or agreement contained in
the Agreement (or in any instrument, document or agreement relating
thereto), or the enforcement by the Company of its rights under the
Agreement or these indemnification provisions, except to the extent
that any such Losses are found in a final judgment by a court of
competent jurisdiction (not subject to further appeal) to have
resulted primarily and directly from the gross negligence or
willful misconduct of an Indemnified Party. The Company also agrees
that no Indemnified Party shall have any liability (whether direct
or indirect, in contract or tort or otherwise) to the Company for
or in connection with the engagement of Consultant by the Company
or for any other reason, except to the extent that any such
liability is found in a final judgment by a court of competent
jurisdiction (not subject to further appeal) to have resulted
primarily and directly from such Indemnified Party’s gross
negligence or willful misconduct.

 

These
indemnification provisions shall extend to the following persons
(collectively, the “Indemnified Parties”). the
Consultant, the Company, and each of their respective present and
former affiliated entities, partners, employees, legal counsel,
agents and controlling persons (within the meaning of the federal
securities laws), and the officers, directors, partners,
stockholders, members, managers, employees, legal counsel, agents
and controlling persons of any of them. These indemnification
provisions shall be in addition to any liability which the
indemnifying party may otherwise have to any Indemnified
Party.

 

If any
action, suit, proceeding or investigation is commenced, as to which
an Indemnified Party proposes to demand indemnification, it shall
notify the indemnifying party with reasonable promptness;
provided,
however, that any
failure by an Indemnified Party to notify the indemnifying party
shall not relieve the indemnifying party from its obligations
hereunder unless the indemnifying party is prejudiced by such
failure. An Indemnified Party shall have the right to retain
counsel of its own choice to represent it, and the reasonable fees,
expenses and disbursements of such counsel shall be borne by the
indemnifying party. Any such counsel shall, to the extent
consistent with its professional responsibilities, cooperate with
the indemnifying party and any counsel designated by the
indemnifying party. The indemnifying party shall be liable for any
settlement of any claim against any Indemnified Party made with the
indemnifying party’s written consent. The indemnifying party
shall not, without the prior written consent of Indemnified Party,
settle or compromise any claim, or permit a default or consent to
the entry of any judgment in respect thereof, unless such
settlement, compromise or consent (i) includes, as an unconditional
term thereof, the giving by the claimant to all of the Indemnified
Parties against whom it has made a claim of an unconditional
release from all liability in respect of such claim, and (ii) does
not contain any untrue factual or legal admission by or with
respect to an Indemnified Party or an untrue adverse statement with
respect to the character, professionalism, expertise or reputation
of any Indemnified Party or any action or inaction of any
Indemnified Party.

 

In
order to provide for just and equitable contribution, if a claim
for indemnification pursuant to these indemnification provisions is
made but it is found in a final judgment by a court of competent
jurisdiction (not subject to further appeal) that such
indemnification may not be enforced in such case, even though the
express provisions hereof provide for indemnification in such case,
then the indemnifying party shall contribute to the Losses to which
any Indemnified Party may be subject (i) in accordance with the
relative benefits received by the indemnifying par ty, on the one
hand, and the Indemnified Party, on the other hand, and (ii) if
(and only if) the allocation provided in clause (i) of this
sentence is not permitted by applicable law, in such proportion as
to reflect not only the relative benefits, but also the relative
fault of the indemnifying party, on the one hand, and the
Indemnified Party, on the other hand, in connection with the
statements, acts or omissions which resulted in such Losses as well
as any relevant equitable considerations. No person found liable
for a fraudulent misrepresentation shall be entitled to
indemnification or contribution from any person who is not also
found liable for fraudulent misrepresentation. The relative
benefits received (or anticipated to be received) by the
indemnifying party and its stockholders, subsidiaries and
affiliates shall be deemed to be equal to the aggregate
consideration payable or receivable by such parties in connection
with the transaction or transactions to which the Agreement.
Notwithstanding the foregoing, in no event shall the amount
contributed by all Indemnified Parties exceed the amount of fees
previously received by Consultant pursuant to the
Agreement.

 

Neither
termination nor completion of the engagement of Consultant referred
to above shall affect these indemnification provisions which shall
remain operative and in full force and effect. The indemnification
provisions shall be binding upon the Parties and their respective
successors and assigns and shall inure to the benefit of the
Indemnified Parties and their respective successors, assigns, heirs
and personal representatives.

 

 

 

 

 

 

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