Document:

Exhibit

Exhibit 10.1
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT MARKED WITH [***] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT, AS AMENDED.
LICENSE AGREEMENT
THIS LICENSE AGREEMENT (this “Agreement”) is made this 8th day of March, 2013 (the “Effective Date”) between: 
CYDEX PHARMACEUTICALS, INC., a Delaware corporation with offices at 11119 North Torrey Pines Road, Suite 200, La Jolla, CA 92037 (“CyDex”); and
SPECTRUM PHARMACEUTICALS, INC., a Delaware corporation with offices at 11500 S. Eastern Ave., Ste. 240, Henderson, NV 89052 (“Spectrum”).
RECITALS
WHEREAS, CyDex is engaged in the business of developing and commercializing novel drug delivery technologies designed to enhance the solubility and effectiveness of existing and development-stage drugs;  
WHEREAS, CyDex is the exclusive worldwide licensee of Captisol®, a patented drug formulation system designed to enhance the solubility and stability of drugs;
WHEREAS, CyDex has developed or obtained certain rights related to the Compound (defined below);
WHEREAS, Spectrum desires to obtain a license to use such patented drug formulation system for Captisol and such rights to the Compound for the development and commercialization of the Licensed Product (defined below) and CyDex is willing to grant such license to Spectrum under the terms and conditions set forth herein; and
WHEREAS, CyDex desires to sell Captisol® to Spectrum or its Contract Manufacturers (defined below), and Spectrum desires to obtain supplies of Captisol® from CyDex, for use in the Licensed Product, in accordance with the terms and conditions of that certain Supply Agreement between the parties of even date herewith (the “Supply Agreement”). 
NOW, THEREFORE, in consideration of the following mutual promises and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties, intending to be legally bound, agree as follows:
1.DEFINITIONS.
For the purposes of this Agreement, the following terms whether used in singular or plural form shall have the meanings as defined below:
“Affiliate” means, with respect to any party, any entity controlling, controlled by, or under common control with such party, during and for such time as such control exists.  For these purposes, “control” shall 

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refer to the ownership, directly or indirectly, of at least fifty percent (50%) of the voting securities or other ownership interest of the relevant entity. 
“Annual Net Sales” means the aggregate Net Sales during a calendar year.
“Approvals” means, collectively the Marketing Approvals and Regulatory Approvals.
“Captisol” means Captisol®, also known scientifically as sulfobutylether β(beta) cyclodextrin, sodium salt, including all of its optical isomers, and salt, ester, and polymorphic forms.
“Captisol Data Package” means (a) all toxicology/safety and other scientific data owned, licensed or developed by CyDex and its Affiliates; and (b) all toxicology/safety and other scientific data owned, licensed or developed by the licensees or sublicensees of CyDex or its Affiliates or other Third Parties (to the extent permitted to be shared under this Agreement in the applicable license or other agreements between CyDex and/or its Affiliates and such licensees, sublicensees or other Third Parties), in each case of Captisol alone (and not in conjunction with a product formulation).
“Captisol Improvement” means any technology or improvement related to Captisol alone, including without limitation the formulation or uses of Captisol, whether or not patentable, that is developed by Spectrum or its Affiliates, solely or jointly with a Third Party.  For clarity, Captisol Improvements shall not include technology or improvements which are related to the Compound and/or other non-Captisol components of the Licensed Product. 
“Captisol Patents” means all patents and patent applications in the Territory which pertain to Captisol, other than the Licensed Product Patents, and which now or at any time during the Term are owned by or licensed to CyDex or any CyDex Affiliate with the right to sublicense, including any and all extensions, renewals, continuations, substitutions, continuations-in-part, divisions, patents-of-addition, reissues, reexaminations and/or supplementary protection certificates to any such patents.  For avoidance of doubt, all intellectual property pertaining to the Licensed Product generated by Spectrum or its Affiliates or their Sublicensees during the Term of this Agreement shall be solely owned by Spectrum and shall not be part of the Captisol Patents. Set forth in Exhibit A attached hereto include, without limitation, a list of the Captisol Patents as of the Effective Date.  Such Exhibit A may be updated by CyDex from time to time during the Term.
“Claim” has the meaning specified in Section 10.1.
“Clinical Grade Captisol” means Captisol which (a) has been manufactured under conditions of current good manufacturing practices for bulk excipients as set forth in U.S. Pharmacopoeia <1078> as of the Effective Date or any successor thereto, and (b) is for clinical trials for the Licensed Product.
“Combination Product” means a Licensed Product containing:  (i) the Compound, and (ii) one or more other active pharmaceutical ingredients.
“Commercial Grade Captisol” means Captisol which (a) has been manufactured under conditions of current good manufacturing practices for bulk excipients as set forth in U.S. Pharmacopoeia <1078> as of the Effective Date or any successor thereto, and (b) is for commercial sale of the Licensed Product.  
“Commercial Launch Date” means, in any particular country, the first commercial sale by Spectrum, its Affiliates or Sublicensees of the Licensed Product to a Third Party in a given regulatory jurisdiction after Approvals have been obtained in such jurisdiction.  For avoidance of doubt, any transfer 

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of the Licensed Product to a Third Party for preclinical, clinical or regulatory purposes shall not be deemed a first commercial sale.
“Commercially Reasonable Efforts” means the carrying out of obligations or tasks using efforts not less than the efforts a reasonably prudent company engaged in the development and commercialization of a pharmaceutical product having similar market potential, profit potential, or strategic value at a similar stage of its development or product life as the Licensed Product, would use based on conditions then prevailing and taking into account relevant commercial and economic factors.
“Compound” means that certain pharmaceutical compound known as melphalan, including all of its optical isomers, and salt, ester, and polymorphic forms. 
“Confidential Information” has the meaning specified in Section 8.1.
“Contract Manufacturer” has the meaning specified in Section 2.4.
“Cover” (including variations thereof such as “Covered,” “Coverage,” or “Covering”) means that the manufacture, use, importation or sale of the Licensed Product to which such term is being applied would infringe a Valid Claim of a patent in the absence of a grant of rights under such patent.  The determination of whether an item or process is Covered by a Valid Claim shall be made on a country–by-country basis.
“Disclosing Party” has the meaning specified in Section 8.1 hereof.
“DMF” means a Drug Master File for Captisol, as filed as of the Effective Date, or as hereafter updated from time to time during the Term, by CyDex with the FDA, and equivalent filings in other jurisdictions.
“FDA” means the United States Food and Drug Administration, or any successor thereto.
“Field” means all indications, including without limitation, all dosages, formulations, uses, and routes of administration for the Licensed Product.  
“Indemnitee” has the meaning specified in Section 10.4.
“Indemnitor” has the meaning specified in Section 10.4.
“Licensed Patents” means, collectively, the Captisol Patents and the Licensed Product Patents.
“Licensed Product” means a pharmaceutical composition comprising the Compound and Captisol, which is Covered by the Licensed Patents or Product Know-How or Captisol Data Package. 
“Licensed Product Patents” means all patents and patent applications in the Territory which Cover the use of Captisol with the Compound, other than the Captisol Patents, and which now or at any time during the Term are owned by or licensed to CyDex or any CyDex Affiliate with the right to sublicense, including any and all extensions, renewals, continuations, substitutions, continuations-in-part, divisions, patents-of-addition, reissues, reexaminations and/or supplementary protection certificates to any such patents.  Licensed Product Patents further include all other patents and patent applications, other than the Captisol Patents, which are owned or licensed by CyDex before the Effective Date or at any time during the Term of this Agreement, and which are necessary to develop, manufacture, and commercialize the Licensed Product or which are necessary for Spectrum to exercise its license under this Agreement. Set forth in Exhibit B attached 

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hereto is a list of the Licensed Product Patents as of the Effective Date.  Such Exhibit B may be updated by CyDex from time to time during the Term.  
“Losses” has the meaning set forth in Section 10.1.
“Major Markets” means the countries listed on Exhibit E.
“Marketing Approval” means final approval of an NDA by the FDA for the United States, or final approval of a comparable document filed with an equivalent health regulatory authority in any other country or in the European Union (using the centralized process or mutual recognition), including all required marketing, pricing or reimbursement approvals.
 “NDA” means a New Drug Application, as defined in the United States Federal Food, Drug and Cosmetic Act and the regulations promulgated thereunder, or similar application filed with an equivalent regulatory body in another jurisdiction.
“Net Sales” means, with respect to a particular time period, the total amounts invoiced by Spectrum and its Affiliates and their Sublicensees for sales of the Licensed Product made during such time period to unaffiliated Third Parties, less the following deductions to the extent allowed or incurred with respect to such sales:
(a)    customary discounts, including cash, trade and quantity discounts, charge-back payments, fees for service, patient assistance discounts, administrative fees, and rebates granted to trade customers, government, and distributors; provided, however, such discounts shall be subject to audit pursuant to Section 5.3 below; 
(b)    credits or allowances granted for damaged, outdated, spoiled, returned or rejected products or on account of retroactive price reductions;
(c)    freight, insurance and transportation charges (if separately identified on the invoice); and
(d)    taxes, tariffs, duties or other governmental charges (other than income taxes) levied on, absorbed or otherwise imposed on sales of the Licensed Product, as adjusted by any refunds.
Notwithstanding the foregoing, amounts invoiced by Spectrum and its Affiliates for the sale of the Licensed Product among Spectrum or its Affiliates for resale shall not be included in the computation of Net Sales.  For purposes of determining Net Sales, a “sale” shall not include reasonable transfers or dispositions as samples for promotional or charitable purposes, or transfers or dispositions at no cost for preclinical, clinical or regulatory purposes.  Notwithstanding anything otherwise specified herein, Net Sales shall be calculated in accordance with generally accepted accounting principles.
If a Licensed Product is sold or provided as part of a Combination Product, Net Sales shall be calculated by multiplying the Net Sales from the sale of Combination Products by the fraction A/B, where “A” is the fair market value of the Licensed Product containing the Compound as the only active pharmaceutical ingredient when supplied or priced separately and “B” is the fair market value of the Combination Product.  If no market price is available for the Licensed Product (solely containing the Compound) when supplied or priced separately, fair market value shall be determined in good faith by the parties.
“Pfizer” has the meaning specified in Section 8.5.

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“Product Know-How” means information or data, including regulatory documentation, necessary for the manufacture, use, importation or sale of Licensed Products in the Field in the Territory, owned, licensed or generated by CyDex and its Affiliates, before and during the Term of this Agreement relating to the Compound and/or Captisol.
“Receiving Party” has the meaning specified in Section 8.1.
“Regulatory Approval” means, with respect to the Licensed Product in any country or jurisdiction, all approvals (including, where required, pricing and reimbursement approvals), registrations, licenses or authorizations from the relevant regulatory authority in a country or jurisdiction that is specific to the Licensed Product and necessary to market and sell such Licensed Product in such country or jurisdiction.
“Royalty Obligation Term” means, for each country within the Territory on a country-by-country basis, the time period commencing on the first Commercial Launch Date of the Licensed Product in such country and ending on the date that is the earlier of (i) the date that a Valid Claim no longer exists under the Licensed Patents in such country or (ii) the date a pharmaceutical product containing a [***] formulation of the Compound, other than Spectrum’s product licensed hereunder, receives regulatory approval in such country; but in either event is at least [***] ([***]) years after the Commercial Launch Date for such Licensed Product in such country.  Notwithstanding the foregoing, if at any time no Valid Claim under the Licensed Patents exists in a country, and a pharmaceutical product containing a [***] formulation of the Compound (other than Spectrum’s product licensed hereunder) receives regulatory approval and launches commercially in such country for the same indication as Spectrum’s product licensed hereunder, then the royalty rate shall immediately be reduced [***] for such country for the remainder of the Royalty Obligation Term).  
“SEC” has the meaning specified in Section 8.3.
“Specifications” means the specifications for Captisol set forth in Exhibit C hereto, as such may be amended from time to time.
“Sublicensees” has the meaning specified in Section 2.3.
“Term” has the meaning specified in Section 13.1.
“Territory” means the entire world.
[***]:  CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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“Third Party” means any person or entity other than CyDex or Spectrum or an Affiliate of either of them.
“Valid Claim” means (i) a claim in any unexpired, issued patent which has not been irrevocably abandoned or held to be invalid or unenforceable by a non-appealed or unappealable decision of a court or other authority of competent jurisdiction, which is not admitted to be invalid through disclaimer or dedication to the public, and which Covers the Licensed Product, or (ii) regulatory exclusivity, such as orphan drug exclusivity, covering the Licensed Product.
2.GRANT OF RIGHTS.
2.1    License Grants from CyDex to Spectrum.
(a)    Licensed Patents.  Subject to the terms and conditions of this Agreement, CyDex hereby grants to Spectrum an exclusive, nontransferable (except with respect to the assignment provision in Section 14.14) license during the Term under the Licensed Patents, solely to research, develop, make, have made, import, use, offer for sale and sell the Licensed Product in the Territory in the Field.  Notwithstanding the foregoing, to the extent that any Licensed Patents are licensed to CyDex or its Affiliates by a Third Party on a non-exclusive basis, the license granted to Spectrum in the foregoing sentence shall be exclusive as to CyDex and non-exclusive as to any Third Party.  Spectrum may not sublicense the Licensed Patents, except as expressly set forth in Section 2.3 below.  
(b)    Know-How License.  Subject to the terms and conditions of this Agreement, CyDex hereby grants to Spectrum an exclusive, nontransferable (except with respect to the assignment provision in Section 14.14) license during the Term under CyDex’s rights in and to the Captisol Data Package and Product Know-How, solely to research, develop, make, have made, import, use, offer for sale and sell the Licensed Product in the Territory in the Field.  Notwithstanding the foregoing, to the extent that any Captisol Data Package and Product Know-How are licensed to CyDex or its Affiliates by a Third Party on a non-exclusive basis, the license granted to Spectrum in the foregoing sentence shall be exclusive as to CyDex and non-exclusive as to any Third Party. Spectrum may not sublicense its rights to the Captisol Data Package or Product Know-How, except as expressly set forth in Section 2.3 below.
(c)    Scope of Licenses.  Unless otherwise provided in this Agreement or the Supply Agreement, CyDex grants no rights to Spectrum to manufacture, import, sell or offer for sale bulk Captisol.  
2.2    Grant of License from Spectrum to CyDex.  Spectrum shall provide prompt notice of any and all Captisol Improvements to CyDex.  Spectrum hereby grants to CyDex a nonexclusive, transferable, perpetual, worldwide and royalty-free license, with the right to grant sublicenses (through multiple tiers of sublicensees), under Spectrum’s and its Affiliates’ rights in and to Captisol Improvements to develop, make, have made, use, market, distribute, import, sell and offer for sale Captisol.
2.3    Sublicensing.  Spectrum shall have the right to grant sublicenses to any Third Party (collectively “Sublicensees”) under the licenses granted to Spectrum pursuant to Section 2.1; provided, however, Spectrum shall promptly notify CyDex of each sublicense without unreasonable delay following any such grant. Spectrum shall ensure that all of its Sublicensees will comply with the terms and conditions of this Agreement and Spectrum shall remain fully responsible for the compliance by its Sublicensees with the terms and conditions of this Agreement as if such Sublicensees were Spectrum hereunder.
2.4    Contracting.  Spectrum may manufacture the Licensed Product or contract the manufacture of the Licensed Product with reputable Third Party manufacturers inspected by FDA or equivalent foreign 

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regulatory authorities (each a “Contract Manufacturer”).  To the extent necessary to engage a Contract Manufacturer for manufacturing the Licensed Product, Spectrum shall be permitted under this Agreement to grant any such Contract Manufacturer a sublicense under the licenses granted to Spectrum pursuant to Section 2.1 solely for such purposes. Spectrum shall ensure that all of its Contract Manufacturers will comply with the terms and conditions of this Agreement and Spectrum shall remain fully responsible for the compliance by such Contract Manufacturers with the terms and conditions of this Agreement as if its Contract Manufacturers were Spectrum hereunder.
2.5    Technology Transfer.  Within thirty (30) days after the Effective Date, CyDex shall transfer to Spectrum the IND for the Licensed Product and clinical trial materials of the Licensed Product and provide Spectrum with a technology transfer package, which shall include the Product Know-How and the Captisol Data Package, related to the excipients, formulation, filling, packaging, testing and stability of the Licensed Product.  CyDex will update such package at least [***] with any data or know-how developed or licensed by CyDex during the Term.  CyDex shall also, for a period up to the NDA filing and in the preparation for pre-approval inspection of the Third Party manufacturers and laboratories, make its personnel available to Spectrum and its Contract Manufacturers to respond to informational inquiries and provide technical assistance related to the Product Know-How and the Captisol Data Package. After CyDex personnel have spent [***] ([***]) hours, excluding travel time, providing such assistance, Spectrum shall compensate CyDex at the rate of US$[***] per hour for the time of CyDex personnel incurred to provide such services; provided, that CyDex shall provide reasonable telephonic consultation at [***] to Spectrum.  Such technology transfer shall not include information related to the manufacture of bulk Captisol.  
2.6    Negative Covenant.  During the Term of this Agreement, CyDex and its Affiliates shall not [***].   
3.MANUFACTURE AND SUPPLY OF CAPTISOL.        
The provisions of the Supply Agreement and any related quality agreement shall govern the manufacture and supply of Captisol for use in the formulation of the Licensed Product.

4.COMPENSATION.
4.1    Payments and Royalties for Licenses.    
(a)    One-Time Fee.  Within [***] ([***]) business days after the Effective Date, Spectrum shall pay to CyDex a non-refundable, one-time fee of Three Million Dollars (US$3,000,000) in partial consideration of the rights granted Spectrum under this Agreement.  

[***]:  CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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(b)    Milestone Payments.  Within [***] ([***]) days following the occurrence of each of the milestone events listed below with respect to the Licensed Product, Spectrum shall provide written notice to CyDex of the achievement of such milestone event, and within [***] ([***]) days of the occurrence of each of the milestone events, pay to CyDex the applicable non-refundable milestone fee listed next to each such event in further consideration of the rights granted Spectrum under this Agreement.  The milestone payments (each payable only one time regardless of the number of times achieved by the Licensed Product and regardless of the number of the Licensed Products there may be) are as follows:  
	
			
	 
	Milestone
	Milestone Payment

	(i)
	Upon receipt of the first Marketing Approval from the FDA
	US$6,000,000

	(ii)
	Annual Net Sales in the Territory exceed US$[***]
	US$[***]

	(iii)
	Annual Net Sales in the Territory exceed US$[***]
	US$[***]

	(iv)
	Annual Net Sales in the Territory exceed US$[***]
	US$[***]

(c)    Royalties.  
(i)    In addition to amounts payable pursuant to Sections 4.1(a) and 4.1(b) above, Spectrum shall make royalty payments to CyDex during the Royalty Obligation Term on a calendar [***] basis, in amounts equal to 20.0% of the applicable Net Sales during such calendar [***] arising from the sale of the Licensed Product in the Territory.
(ii)    All royalties payable to CyDex pursuant to this Section 4.1(c) shall be due and payable within [***] ([***]) days after the conclusion of each calendar [***].  
(iii)    If additional rights or licenses are required from any Third Party or Third Parties to develop and commercialize the Licensed Product in any jurisdiction within the Territory, Spectrum shall be entitled to deduct [***] ([***]) of all commercially reasonable payments, including any milestone payments and royalty payments, made to such Third Party or Third Parties to acquire such rights and licenses, from the payments earned by CyDex for that jurisdiction within the Territory, including all milestone and royalty payments specified in Sections 4.1(b) and 4.1(c) above; provided, however, any deduction by Spectrum shall not exceed [***] ([***]) of the payments for a given jurisdiction then earned by CyDex at one time, and any reduction to royalty payments in a calendar [***] shall not exceed [***] ([***]) of the applicable Net Sales in any given jurisdiction. In the event that, for a calendar [***], Spectrum is unable to deduct all payments it is entitled to deduct, any remaining portion of the deduction Spectrum is entitled to will be used toward any future payments earned by and due to CyDex pursuant to Sections 4.1(b) and 4.1(c) until the total deduction by Spectrum reaches [***] ([***]) of all payments made by Spectrum to the Third Party or Third Parties for a given jurisdiction. 
[***]:  CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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4.2    Currency.  All amounts due hereunder are stated in, and shall be paid in, U.S. dollars.  Net Sales based on foreign revenue will be converted to U.S. dollars at the rate of exchange published in The Wall Street Journal, Eastern U.S. Edition on the last day of each calendar [***].  Spectrum shall provide CyDex, together with each royalty payment owed pursuant to Section 4.1(c) above, a schedule detailing the calculation of Net Sales resulting from the conversion of foreign revenue to U.S. dollars as set forth herein.
4.3    Taxes.
(a)    Taxes on Income.  Each Party shall be solely responsible for the payment of all taxes imposed on its share of income arising directly or indirectly from the efforts of the Parties under this Agreement or the Supply Agreement.
(b)    Tax Cooperation.  The parties agree to cooperate with one another and use reasonable efforts to avoid or reduce tax withholding or similar obligations in respect of royalties, milestone payments, and other payments made by Spectrum to CyDex under this Agreement or the Supply Agreement. To the extent Spectrum is required to deduct and withhold taxes on any payment to CyDex, Spectrum shall pay the amounts of such taxes to the proper governmental authority in a timely manner and promptly transmit to CyDex an official tax certificate or other evidence of such withholding sufficient to enable CyDex to claim such payment of taxes.  CyDex shall provide Spectrum any tax forms that may be reasonably necessary in order for Spectrum to not withhold tax or to withhold tax at a reduced rate under an applicable bilateral income tax treaty.  CyDex shall use reasonable efforts to provide any such tax forms to Spectrum at least [***] ([***]) days prior to the due date for any payment for which CyDex desires that Spectrum apply a reduced withholding rate.  Each party shall provide the other with reasonable assistance to enable the recovery, as permitted by applicable law, of withholding taxes, value added taxes, or similar obligations resulting from payments made under this Agreement, such recovery to be for the benefit of the party bearing such withholding tax or value added tax.
4.4    Late Payments.  Unpaid balances shall accrue interest, from due date until paid, at a rate equal to the prime rate, as reported in The Wall Street Journal, Eastern U.S. Edition, on the date such payment is due, plus an additional [***] ([***]), unless such unpaid balance is subject to a reasonable, good faith dispute by Spectrum.  
5.RECORDS; REPORTS; AUDIT.
5.1    Records.  Spectrum shall, and shall require its Affiliates and Sublicensees to maintain accurate records relating to Net Sales.
5.2    Reports.  Upon CyDex’s request, Spectrum shall update CyDex in writing regarding development and commercial activities with respect to the Licensed Product but not more often than [***].  
5.3    Audit.  Upon reasonable prior notice, such records shall be available during regular business hours for a period of [***] ([***]) years from the end of the calendar year to which they pertain for examination, and not more often than [***] each calendar year, by an independent certified public accountant selected by CyDex and reasonably acceptable to Spectrum, for the sole
[***]:  CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.  

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purpose of verifying the accuracy of the financial reports furnished by Spectrum pursuant to this Agreement.  Any such auditor shall not disclose Spectrum’s Confidential Information, except to the extent such disclosure is necessary to verify the accuracy of the financial reports furnished by Spectrum or the amount of payments due by Spectrum under this Agreement.  Any amounts shown to be owed but unpaid shall be paid within [***] ([***]) days from the accountant’s report from the original due date, plus interest accrued thereon (from the applicable original due date) at the rate set forth in Section 4.4 above.  Any amounts shown to have been overpaid shall be refunded within [***] ([***]) days.  CyDex shall bear the full cost of such audit unless such audit discloses an underpayment by Spectrum of more than [***] ([***]) of the total amount due, in which case Spectrum shall bear the full cost of such audit.  
6.DEVELOPMENT AND COMMERCIALIZATION BY SPECTRUM.
6.1    Diligence.  Spectrum shall (i) use at least Commercially Reasonable Efforts, and shall further require its Affiliates and Sublicensees to use at least Commercially Reasonable Efforts, to develop the Licensed Product, and to commercialize the Licensed Product following Approvals of the Licensed Product, and (ii) comply with the requirements set forth in Exhibit D hereto.  For the avoidance of doubt, in the event of a conflict between subparts (i) and (ii), Spectrum shall use whichever efforts are greater.  
6.2    Costs and Expenses.  Other than those specified in this Agreement, [***].  
6.3    Right of Reference.  Spectrum shall have the right to reference the DMF solely in connection Spectrum’s regulatory filings submitted in connection with obtaining Regulatory Approval for the Licensed Product.
6.4    Access to Spectrum’s Data.  In connection with CyDex’s development and commercialization of Captisol or for fulfilling its obligations under this Agreement, CyDex shall have the right to reference and utilize all toxicology/safety and other scientific data developed on Captisol alone (and not in conjunction with a product formulation) by Spectrum, its Sublicensees or Affiliates, [***].  Upon written request by CyDex, Spectrum shall either provide CyDex with a copy of all such data or shall make such data accessible to CyDex at such times and locations mutually agreed upon by the parties; provided, that CyDex may include such data in the drug master file related to Captisol but shall not selectively share the data with other Captisol licensees.  
7.REGULATORY MATTERS.
7.1    Captisol Information Submitted for Regulatory Review.  Except as otherwise set forth herein, Spectrum shall be solely responsible for all communications with regulatory agencies in connection with the Licensed Product. Notwithstanding the foregoing, Spectrum shall provide CyDex with (a) copies of the portions of all regulatory submissions containing Captisol data alone (and not in conjunction with any product formulation) [***] ([***]) days prior to submission and shall use Commercially Reasonable Efforts to incorporate CyDex’s comments on the same, and (b) notice of meetings with the FDA regarding the Licensed Product prior to the occurrence of any such meetings.  

[***]:  CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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7.2    Material Safety.  CyDex shall provide Spectrum, in writing, from time to time, with (a) relevant information currently known to it regarding handling precautions, toxicity and hazards with respect to Captisol, and (b) the then-current material safety data sheet for Captisol.  Notwithstanding the foregoing or anything in this Agreement to the contrary, Spectrum is solely responsible for (i) use of all documentation provided by CyDex, including without limitation, use in any regulatory submission to the FDA or any other regulatory agency in the Territory, (ii) document control and retention, and (iii) determining the suitability of any documentation provided by CyDex hereunder for use in any regulatory submission.
7.3    Adverse Event Reporting.  Either party shall adhere, and shall require that its Affiliates, Sublicensees, co-marketers and distributors adhere, to all requirements of applicable law and regulations that relate to the reporting and investigation of any adverse event.  In the event that either party becomes aware of any adverse event relating to either the Licensed Product or Captisol, the party shall timely inform the other party of any such adverse event.
7.4    Quality Agreement.  Within [***] ([***]) days of the Effective Date, the parties shall enter into a quality agreement containing provisions, in addition to the provisions customary for quality agreement, customary pharmacovigilance provisions including, without limitation, related to sharing of adverse event and other clinically significant information regarding Licensed Product or Captisol.
8.CONFIDENTIALITY.
8.1    Definition.  Spectrum and CyDex each recognizes that, during the Term, it may be necessary for a party (the “Disclosing Party”) to provide Confidential Information (as defined herein) to the other party (the “Receiving Party”) that is highly valuable, the disclosure of which would be highly prejudicial to such party.  The disclosure and use of Confidential Information will be governed by the provisions of this Section 8.  Neither Spectrum nor CyDex shall use the other’s Confidential Information except as expressly permitted in this Agreement.  For purposes of this Agreement, “Confidential Information” means all information disclosed by the Disclosing Party to the Receiving Party and designated in writing by the Disclosing Party as “Confidential” (or equivalent), and all material disclosed orally which is declared to be confidential by the Disclosing Party and confirmed in a writing delivered to the Receiving Party within [***] ([***]) days of such disclosure; provided, however, the foregoing notwithstanding, Confidential Information orally disclosed by or on behalf of the Disclosing Party that a reasonable person would understand to be confidential or proprietary in nature shall be treated as Confidential Information, even if such Confidential Information is not subsequently reduced to a tangible form and delivered to the Receiving Party.  Confidential Information shall include, but not be limited to, product specifications, data, know-how, formulations, product concepts, sample materials, business and technical information, financial data, batch records, trade secrets, processes, techniques, algorithms, programs, designs, drawings, and any other information related to a party’s present or future products, sales, suppliers, customers, employees, investors or business.  Without limiting the generality of the foregoing, CyDex’s Confidential Information includes all materials provided as part of the Captisol Data Package and Product Know-How.

[***]:  CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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                                                                                LICENSE AGREEMENT    PAGE 11 

8.2    Obligation.  CyDex and Spectrum agree that they will disclose the other’s Confidential Information to its own officers, employees, consultants and agents only if and to the extent necessary to carry out their respective responsibilities under this Agreement or in accordance with the exercise of their rights under this Agreement, and such disclosure shall be limited to the maximum extent possible consistent with such responsibilities and rights.  Neither party shall disclose Confidential Information of the other to any Third Party without the other’s prior written consent, and any such disclosure to a Third Party shall be pursuant to the terms of a non-disclosure agreement no less restrictive than this Section 8.  Each party shall take such action to preserve the confidentiality of each other’s Confidential Information as it would customarily take to preserve the confidentiality of its own Confidential Information (but in no event less than a reasonable standard of care).  Unless otherwise specified in this Agreement and subject to terms and conditions in this Agreement, each party, upon the other’s request, will return all the Confidential Information disclosed to the other party pursuant to this Agreement, including all copies and extracts of documents, within [***] ([***]) days of the request, and in any event, promptly following the termination of this Agreement, except that the receiving party may retain (i) one (1) copy for archival purposes and (ii) such electronic copies that exist as part of the party’s computer systems, network storage systems and electronic backup systems. 
8.3    Exceptions.  The use and non-disclosure obligations set forth in this Section 8 shall not apply to any Confidential Information, or portion thereof, that the Receiving Party can demonstrate by appropriate documentation:  
(i)    at the time of disclosure is in the public domain; 
(ii)    after disclosure, becomes part of the public domain, by publication or otherwise, through no fault of the Receiving Party; 
(iii)    at the time of disclosure is already in the Receiving Party’s possession, and such prior possession can be properly demonstrated by the Receiving Party, with the exception of Confidential Information exchanged between parties prior to the execution of this Agreement; or
(iv)    is made available to the Receiving Party by an independent Third Party; provided, however, to the Receiving Party’s knowledge, such information was not obtained by said Third Party, directly or indirectly, from the Disclosing Party hereunder.
In addition, the Receiving Party may disclose information that is required to be disclosed by law, by a valid order of a court or by order or regulation of a governmental agency including but not limited to, regulations of the United States Securities and Exchange Commission (the “SEC”), or in the course of litigation; provided, however, in all cases the Receiving Party shall give the other party prompt notice of the pending disclosure and make a reasonable effort to obtain, or to assist the Disclosing Party in obtaining, a protective order preventing or limiting the disclosure and/or requiring that the Confidential Information so disclosed be used only for the purposes for which the law or regulation required, or for which the order was issued.  Spectrum may further disclose CyDex’s Confidential Information to extent that such disclosure is necessary to develop, file for Regulatory Approval, or commercialize the Licensed Product, or to seek, prosecute and maintain intellectual property protection for the Licensed Product.
[***]:  CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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                                                                                LICENSE AGREEMENT    PAGE 12 

8.4    Injunction.  Each party agrees that should it breach or threaten to breach any provisions of this Section 8, the Disclosing Party will suffer irreparable damages and its remedy at law will be inadequate.  Upon any breach or threatened breach by the Receiving Party of this Section 8, the Disclosing Party shall be entitled to seek injunctive relief in addition to any other remedy which it may have, without need to post any bond or security. 
8.5    Third Party Information.  Spectrum acknowledges that CyDex’s Confidential Information includes information developed by Pfizer, Inc. (“Pfizer”) that is confidential to both CyDex and Pfizer.  In so far as Confidential Information of Pfizer is disclosed, Pfizer is a third-party beneficiary of this Section 8 of this Agreement and may enforce it or seek remedies pursuant to it in accordance with its terms. 
8.6    Public Announcements.  The parties will mutually agree on a press release to be issued upon execution of this Agreement or reasonably soon thereafter.  The press release shall describe the transaction as being royalty-based with commercial milestones in excess of $50 million.  Ligand shall also file a Form 8-K describing the Agreement as including a significant double-digit royalty..  Neither party shall make any subsequent public announcement concerning this Agreement or the terms hereof not previously made public without the prior written approval of the other party with regard to the form, content, and precise timing of such announcement, except as may be required to be made by either party in order to comply with applicable Law, regulations, court orders, or tax, securities filings, financing arrangements, acquisitions, or sublicenses.  Such consent shall not be unreasonably withheld or delayed by such other party.  Prior to any such public announcement, the party wishing to make the announcement will submit a draft of the proposed announcement to the other party in sufficient time to enable such other party to consider and comment thereon.  The party wishing to make the announcement will reasonably consider all comments provided by the other party and will also cooperate to seek confidential treatment of any information reasonably requested by the other party. 
9.REPRESENTATIONS AND WARRANTIES.
9.1    Mutual Representations and Warranties.  Each party represents and warrants to the other as follows:  
(i)    it is a corporation duly organized and validly existing under the laws of the state or country of its incorporation; 
(ii)    it has the complete and unrestricted power and right to enter into this Agreement and to perform its obligations hereunder; 
(iii)    this Agreement has been duly authorized, executed and delivered by such party and constitutes a legal, valid and binding obligation of such party enforceable against such party in accordance with its terms except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, receivership, moratorium, fraudulent transfer, or other similar laws affecting the rights and remedies of creditors generally and by general principles of equity;
(iv)    the execution, delivery and performance of this Agreement by such party do not conflict with any agreement, instrument or understanding, oral or written, to which such party is a party or by which such party may be bound, nor violate any law or regulation of any court, governmental body or administrative or other agency having authority over such party;

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                                                                                LICENSE AGREEMENT    PAGE 13 

(v)    all consents, approvals and authorizations from all governmental authorities or other Third Parties required to be obtained by such party in connection with the execution and delivery of this Agreement have been obtained;
(vi)    no person or entity has or will have, as a result of the transactions contemplated by this Agreement, any right, interest or valid claim against or upon such party for any commission, fee or other compensation as a finder or broker because of any act by such party or its agents; and
(vii)    it has not entered into any agreement with any Third Party that is in conflict with the rights granted to the other party pursuant to this Agreement.
9.2    Additional Representations, Warranties and Covenants of CyDex.  CyDex represents and warrants to Spectrum, as of the Effective Date, and covenants that:
(i)    it (directly or through its Affiliates) is the owner or licensee of the Licensed Patents and has the right to grant the licenses to Spectrum for the Captisol Data Package, Product Know-How, and the Licensed Patents pursuant to this Agreement, and it has not and will not grant such license to any Third Party;
(ii)    to CyDex’s knowledge, it (directly or through its Affiliates) is the owner of all the intellectual property rights necessary to develop, manufacture, and commercialize the Licensed Product, and all such rights have been licensed to Spectrum pursuant to this Agreement;
(iii)    to CyDex’s knowledge, other than the intellectual property licensed to Spectrum pursuant to this Agreement, no other intellectual property right and interests are necessary to develop, manufacture, and commercialize the Licensed Product;
(iv)    it (directly or through its Affiliates) is the owner or licensee of all the intellectual property rights necessary to manufacture and commercialize Captisol and, to CyDex’s knowledge, other than the intellectual property licensed to Spectrum pursuant to this Agreement, no other intellectual property right and interests are necessary to use Captisol to develop, manufacture, and commercialize the Licensed Product;
(v)    after the Effective Date, it (directly or through its Affiliates) shall provide to Spectrum pursuant to Section 2.5 above, all material Confidential Information of CyDex pertaining to the development, manufacture, or commercialization of the Licensed Product;
(vi)    CyDex or any of its Affiliates has not received any written notice from any Third Party asserting or alleging that any research or development of the Licensed Product prior to the Effective Date infringed or misappropriated the intellectual property rights of such Third Party;   
(vii)    there are no actual, or, to CyDex’s knowledge, pending, alleged or threatened adverse actions, suits, claims, interferences or formal governmental investigations pertaining to the Licensed Product, the Licensed Patents and the Product Know How by or against CyDex or any of its Affiliates in or before any court, governmental or regulatory authority; and
(viii)    after the Effective Date, it will not enter into any agreement or other arrangement with any Third Party following the Effective Date that would limit Spectrum’s right and ability to exploit the rights and licenses granted by CyDex to Spectrum under this Agreement.  

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                                                                                LICENSE AGREEMENT    PAGE 14 

9.3    Disclaimer.  THE WARRANTIES SET FORTH IN THIS SECTION 9 ABOVE ARE PROVIDED IN LIEU OF, AND EACH PARTY HEREBY DISCLAIMS, ALL OTHER WARRANTIES, EXPRESS AND IMPLIED, RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT, CAPTISOL, THE LICENSED PATENTS, THE CAPTISOL DATA PACKAGE, OR THE PRODUCT KNOW-HOW, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.  
10.INDEMNIFICATION.
10.1    By CyDex.  CyDex shall defend, indemnify and hold Spectrum and its Affiliates and Sublicensees, and each of their respective directors, officers and employees, harmless from and against any and all losses, damages, liabilities, costs and expenses (including the reasonable costs and expenses of attorneys and other professionals) (collectively “Losses”) incurred by Spectrum as a result of any claim, demand, action or other proceeding (each, a “Claim”) by a Third Party, to the extent such Losses arise out of: (a) the manufacture, use, handling, promotion, marketing, distribution, importation, sale or offering for sale of Captisol by CyDex and its Affiliates; or (b) an alleged or actual infringement or misappropriation of an intellectual property right by the use, handling, promotion, marketing, distribution, importation, sale or offering for sale of Captisol by Spectrum in connection with the Licensed Products; or (c) CyDex’s breach of this Agreement, to the extent that such Losses are not due to Spectrum’s gross negligence or willful misconduct.
10.2    By Spectrum.  Spectrum shall defend, indemnify and hold CyDex and its Affiliates, and each of their respective directors, officers and employees, harmless from and against any and all Losses incurred by CyDex as a result of any Claim by a Third Party, to the extent such Losses arise out of: (a) the manufacture, use, handling, promotion, marketing, distribution, importation, sale or offering for sale of the Licensed Product by Spectrum, its Affiliates and Sublicensees to the extent not covered by Section 10.1; or (b) Spectrum’s breach of this Agreement, to the extent that such Losses are not due to CyDex’s gross negligence or willful misconduct.
10.3    Expenses.  As the parties intend complete indemnification, all costs and expenses of enforcing any provision of this Section 10 shall also be reimbursed by the Indemnitor.
10.4    Procedure.  The party intending to claim indemnification under this Section 10 (an “Indemnitee”) shall promptly notify the other party (the “Indemnitor”) of any Claim in respect of which the Indemnitee intends to claim such indemnification, and the Indemnitor shall assume the defense thereof whether or not such Claim is rightfully brought; provided, however, an Indemnitee shall have the right to retain its own counsel, with the fees and expenses to be paid by the Indemnitee, unless Indemnitor does not assume the defense, in which case the reasonable fees and expenses of counsel retained by the Indemnitee shall be paid by the Indemnitor.  The Indemnitee, and its employees and agents, shall cooperate fully with the Indemnitor and its legal representatives in the investigations of any Claim.  The Indemnitor shall not be liable for the indemnification of any Claim settled or compromised by the Indemnitee without the written consent of the Indemnitor.  
11.LIMITATION OF LIABILITY.  
11.1    Limitation of Remedies.  NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL, INCIDENTAL, PUNITIVE, OR INDIRECT DAMAGES OR LOSS OF PROFITS ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES.  NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS SECTION 11 IS INTENDED TO OR SHALL LIMIT OR RESTRICT THE 

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                                                                                LICENSE AGREEMENT    PAGE 15 

INDEMNIFICATION RIGHTS OR OBLIGATIONS OF ANY PARTY UNDER SECTION 10, OR DAMAGES AVAILABLE FOR A PARTY’S BREACH OF CONFIDENTIALITY OBLIGATIONS IN SECTION 8.
11.2    Limitation of Damages. EXCEPT WITH RESPECT TO THE INDEMNIFICATION SPECIFICALLY PROVIDED IN SECTION 10 ABOVE, IN NO EVENT SHALL CYDEX’S TOTAL AGGREGATE LIABILITY FOR ALL CLAIMS ARISING OUT OF OR RELATED TO THIS AGREEMENT AND THE SUPPLY AGREEMENT EXCEED [***] MILLION DOLLARS ($[***]).  
12.MANAGEMENT OF LICENSED PATENTS.
12.1    Prosecution and Maintenance.  
(a)    CyDex Patents.  CyDex shall maintain or abandon, at its sole cost and expense and using reasonable discretion, the Captisol Patents set forth on Exhibit A.  CyDex shall have the sole right to control the prosecution and maintenance of patent applications and the selection of countries where patent applications are filed related to the Captisol Patents.  
(b)    Licensed Product Patents.   Spectrum shall maintain, at its sole cost and expense and using reasonable discretion, the Licensed Product Patents set forth on Exhibit B.  Spectrum shall have the sole right to control the prosecution and maintenance of patent applications and the selection of countries where patent applications are filed related to the Licensed Product Patents; provided, however, (i) CyDex shall be provided with the right and opportunity to give comments and recommendations as to the overall strategy regarding the filing, prosecution and maintenance of the Licensed Product Patents which shall be considered by Spectrum in good faith, and (ii) Spectrum shall use Commercially Reasonable Efforts to prosecute, obtain and maintain the Licensed Product Patents in each of the Major Markets.  In the event that Spectrum decides not to prosecute and maintain the Licensed Product Patents in a country, Spectrum shall provide not less than [***] ([***]) days prior written notice of such decision, and CyDex shall have the option to take over the prosecution and maintenance in such country or countries. For clarity, in the event that Spectrum fails to prosecute and/or maintain the Licensed Product Patents in a country, CyDex shall have the right to terminate this Agreement pursuant to Section 13.2 hereof with respect to such country (but not other countries within the Territory) with [***] days notice during which Spectrum may cure this failure.  
12.2    Infringement of Captisol Patents by Third Parties.  If Spectrum becomes aware that a Third Party may be infringing a Captisol Patent, it will promptly notify CyDex in writing, providing all information available to Spectrum regarding the potential infringement.  CyDex shall take whatever, if any, action it deems appropriate, in its sole discretion, against the alleged infringer.  If CyDex elects to take action, Spectrum shall, at CyDex’s request and expense, cooperate and shall cause its employees to cooperate with CyDex in taking any such action, including but not limited to, cooperating with the prosecution of any infringement suit by CyDex related to a Captisol Patent.   Spectrum shall not take any such action against the alleged infringer related to a Captisol Patent without the written consent of CyDex.  Each party shall provide to the party enforcing any such rights under this Section 12.2 reasonable assistance in such enforcement, at such enforcing party’s request and expense, including joining such action as a party plaintiff if required by applicable law to pursue such action.
[***]:  CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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                                                                                LICENSE AGREEMENT    PAGE 16 

12.3    The enforcing party shall keep the other party regularly informed of the status and progress of such enforcement efforts, shall reasonably consider the other party’s comments on any such efforts.  If either party recovers monetary damages from any Third Party in a suit or action brought for infringement of a Captisol Patent, such recovery shall be allocated first to the reimbursement of any expenses incurred by the parties in such litigation (including, for this purpose, a reasonable allocation of expenses of internal counsel), and the remaining amounts shall (i) to the extent not attributable to the Licensed Product, be paid to CyDex, if the suit or action is brought by CyDex and shared equally by CyDex and Spectrum, if the suit or action is brought by Spectrum and (ii) be regarded as Net Sales which is subject to royalty obligations under this Agreement to the extent any amounts are attributable to the Licensed Product.  For clarity, this Section 12.2 shall not apply in the event of Product Infringement as defined below in Section 12.3(a).  Without Spectrum’s prior written consent (not to be unreasonably withheld, conditioned or delayed), no settlement shall be concluded by CyDex that would provide the alleged infringer any right to use the Captisol Patents for a product containing the Compound. 
12.4    Infringement of Licensed Product Patents by Third Parties.  
(a)    Notification.  Each party shall promptly notify the other party in writing of any existing or threatened infringement of the Licensed Product Patents through the development or commercialization of a product comprising the Compound as an active ingredient by a Third Party, of which such Party becomes aware, including any “patent certification” filed in the United States under 21 U.S.C. §355(b)(2) or 21 U.S.C. §355(j)(2) or similar provisions in other jurisdictions and of any declaratory judgment, opposition, or similar action alleging the invalidity, unenforceability or non-infringement of any of the Licensed Product Patents (collectively “Product Infringement”).
(b)    Product Infringement.    
(i)    For any Product Infringement, Spectrum shall have the first right, but not the obligation, to bring an appropriate suit or other action against any person or entity engaged in such Product Infringement.  If Spectrum fails to institute and prosecute an action or proceeding to abate the Product Infringement within a period of [***] ([***]) days (a) after the first notice under Section 12.3(a) or (b) of otherwise having knowledge of the Product Infringement, then CyDex shall have the right, but not the obligation, to commence a suit or take action to enforce the applicable Licensed Product Patent against such third Party perpetrating such Product Infringement at its own cost and expense. In this case, Spectrum shall take appropriate actions in order to enable CyDex to commence a suit or take the actions set forth in the preceding sentence.
(ii)    Each party shall provide to the party enforcing any such rights under this Section 12.3 reasonable assistance in such enforcement, at such enforcing party’s request and expense, including joining such action as a party plaintiff if required by applicable law to pursue such action.  The enforcing party shall keep the other party regularly informed of the status and progress of such enforcement efforts, shall reasonably consider the other party’s comments on any such efforts.
(iii)    Each party shall bear all of its own internal and external costs and expenses incurred in connection with its activities under this Section 12.3.  
(iv)    The party not bringing an action with respect to Product Infringement under this 

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                                                                                LICENSE AGREEMENT    PAGE 17 

Section 12.3 shall be entitled to separate representation in such matter by counsel of its own choice and at its own expense, but such party shall at all times cooperate fully with the party bringing such action.
(c)    Allocation of Proceeds.  If either party recovers monetary damages from any Third Party in a suit or action brought for a Product Infringement, such recovery shall be allocated first to the reimbursement of any expenses incurred by the parties in such litigation (including, for this purpose, a reasonable allocation of expenses of internal counsel), and the remaining amounts shall be part of Net Sales subject to the royalty payment by Spectrum to CyDex.
12.5    Cooperation.  Each party hereby agrees to duly execute and deliver, or cause to be duly executed and delivered such further instruments and do and cause to be done such further acts and things, including without limitation, the filing of such additional assignments, agreements, documents and instruments, that may be necessary or as the other party hereto may at any time and from time to time reasonably request in connection with this Section 12.
13.    TERM AND TERMINATION.
13.1    Term.  The term of this Agreement (the “Term”) shall commence on the Effective Date and shall continue in effect thereafter, on a country-by-country basis, through the Royalty Obligation Term, unless terminated earlier as set forth herein. 
13.2    Termination for Breach.
(a)    Notice.  If either party believes that the other is in material breach of this Agreement, then the party holding such belief (the “Non-breaching Party”) may deliver notice of such breach to the other party (the “Notified Party”).  The Notified Party shall have [***] ([***]) days to cure such breach to the extent involving non-payment of amounts due hereunder, and [***] ([***]) days to either cure such breach for all other material breaches, or, if cure of such breach other than non-payment cannot reasonably be effected within such [***] ([***]) day period, to deliver to the Non-breaching Party a plan reasonably calculated to cure such breach within a timeframe that is reasonably prompt in light of the circumstances then prevailing but in no event in excess of an additional [***] ([***]) day period unless otherwise mutually agreed in writing.  Following delivery of such a plan, the Notified Party shall diligently carry out the plan and cure the breach and the cure period shall be extended by the time period provided in such plan but in no event to exceed [***] ([***]) days from the date of any initial breach notice delivered under this Section 13.2.   
(b)    Failure to Cure.  If the Notified Party fails to cure a material breach of this Agreement as provided for in Section 13.2, then the Non-Breaching Party may terminate this Agreement upon written notice to the Notified Party.
(c)    Disputes.  If a party gives notice of termination under this Section 13.2 and the other Party disputes whether such termination is proper under this Section 13.2, then the issue of whether this Agreement may properly be terminated upon expiration of the notice period (unless such breach is cured as provided in Section 13.2) shall be resolved in accordance with Section 14.4.  If as a result of such dispute resolution process it is determined that the notice of termination was proper, then such termination shall be deemed to have been effective [***] ([***]) days following the date of the notice of termination (or such other time period applicable pursuant to Section 13.2).  If as a result of such dispute resolution process it is determined that the notice of termination was improper, then no termination shall have occurred and this Agreement shall remain in effect.

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                                                                                LICENSE AGREEMENT    PAGE 18 

13.3    Termination by Spectrum for Convenience.  Spectrum shall have the right to terminate this Agreement in its entirety without cause by providing CyDex with ninety (90) days prior written notice.  
13.4    CyDex Rights upon Termination (Other Than for CyDex Breach).  In event that Spectrum terminates the Agreement without cause pursuant to Section 13.3 or that CyDex terminates this Agreement pursuant to Section 13.2, the following shall apply (in addition to any other rights and obligations otherwise under this Agreement with respect to such termination):
(a)    Regulatory Filings; Data.  To the extent permitted by applicable Laws, Spectrum shall transfer and assign to CyDex all regulatory filings, Regulatory Approvals, and related preclinical, analytical, and clinical data for the Licensed Product. 
(b)    Transition Assistance.  Spectrum shall provide such assistance, at CyDex’s expense, as may be reasonably necessary or useful for CyDex to commence or continue developing, manufacturing or commercializing the Licensed Product, to the extent Spectrum is then performing such activities, including, without limitation transferring, upon request of CyDex, any agreements or arrangements with Third Party vendors to sell the Licensed Product, to the extent assignable.  To the extent that any such contract between Spectrum and a Third Party is not assignable to CyDex, then Spectrum shall reasonably cooperate with CyDex to arrange to continue to and provide such services from such entity.  
(c)    Termination of Licenses.  All rights granted to Spectrum herein shall immediately terminate.
(d)    Return of Records.  Each party shall promptly return all relevant records and materials in its possession or control containing the other party’s Confidential Information with respect to which the former party does not retain rights hereunder; provided, however; each party may retain one archival copy of such records and materials solely to be able to monitor its obligations that survive under this Agreement. 
(e)    License of Certain Rights.  Spectrum hereby grants to CyDex a nonexclusive, transferable, perpetual, worldwide and royalty-free license, with the right to grant sublicenses (through multiple tiers of sublicensees), under Spectrum’s and its Affiliates’ rights in and to any technology, improvement, data or information related to the Licensed Product, including, without limitation, any such technology, improvement, data or information related to Licensed Patents, Product Know-How or Captisol Data Package, whether or not patentable, that is developed by Spectrum or its Affiliates, to develop, make, have made, use, market, distribute, import, sell and offer for sale the Licensed Product.  
[***]:  CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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(f)    Transfer of Approvals.  Spectrum shall transfer and assign the relevant Marketing Approvals and Regulatory Approvals to CyDex, to the extent permitted by applicable laws.
13.5    CyDex Rights upon Termination (If for CyDex Breach).  In event that Spectrum terminates the Agreement due to CyDex’s breach pursuant to Section 13.2, the following shall apply (in addition to any other rights and obligations otherwise under this Agreement with respect to such termination):
(a)    Termination of Licenses.  All rights granted to Spectrum and all rights granted to CyDex herein shall immediately terminate subject to sub-clauses (b) and (c) below.
(b)    Regulatory Filings.  Spectrum shall retain all regulatory filings and data generated by Spectrum, its Affiliates and Sublicensees during the Term of this Agreement, including any existing Market Approval for the Licensed Product, and CyDex shall not have rights to use any such regulatory filings, data or Market Approval.  
(c)    Return of Records.  Each party shall promptly return all relevant records and materials in its possession or control containing the other party’s Confidential Information with respect to which the former party does not retain rights hereunder; provided, however, each party may retain one archival copy of such records and materials solely to be able to monitor its obligations that survive under this Agreement. 
13.6    Spectrum Rights Upon Expiration. On a country-by-country basis, upon the expiration of Spectrum’s obligations to pay royalties under Section 4.1(c), the license granted to Spectrum under this Agreement shall become a fully-paid, royalty-free, and perpetual license for the Licensed Product in the Field. 
13.7    Termination of the Supply Agreement. For clarity, this Agreement shall terminate if the Supply Agreement is terminated by Spectrum without cause, or terminated by CyDex because of any material breach by Spectrum.
13.8    Survival.  Notwithstanding any other provisions of this Agreement, any liability or obligation of either party to the other for acts or omissions prior to the termination or expiration of this Agreement shall survive the termination or expiration of this Agreement.  Such termination or expiration shall not relieve either party from obligations that are expressly indicated to survive termination or expiration of this Agreement, nor shall any termination or expiration of this Agreement relieve Spectrum of its obligation to pay CyDex royalties for all Licensed Product sold by Spectrum, its Affiliates or Sublicensees prior to the effective date of such expiration or termination.  Sections 2.2 (Grant of License from Spectrum to CyDex), 4.1 (Payments and Royalties for Licenses), 4.2 (Currency), 4.3 (Taxes), 4.4 (Late Payments), 5 (Records; Reports; Audits), 6.4 (Access to Spectrum’s Data), 7.3 (Adverse Event Reporting), 8 (Confidentiality), 9.3 (Disclaimer), 10 (Indemnification), 11 (Limitation of Liability), 13.4 (CyDex Rights Upon Termination (Other Than for CyDex Breach)), 13.5 (CyDex Rights Upon Termination (If for CyDex Breach), 13.6 (Spectrum’s Rights Upon Expiration), 13.8 (Survival), and 14 (General Provisions) shall survive termination or expiration of this Agreement.  
14.    GENERAL PROVISIONS.
14.1    Non-Solicitation.  During the Term and for a period of [***] ([***]) [***] thereafter, neither party shall solicit, induce, encourage or attempt to induce or encourage any employee of the other party to terminate his or her employment with such other party or to breach any other obligation to such 

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                                                                                LICENSE AGREEMENT    PAGE 20 

other party.  This section is not meant to encompass general solicitations such as may be found in newspaper advertisements and the like.  
14.2    Relationship of Parties.  Each of the parties hereto is an independent contractor and 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.
14.3    Compliance with Law.   Each of the parties will comply with all applicable international, federal, state and local laws, rules and regulations, including, but not limited to, import/export restrictions, laws, rules and regulations governing use and patent, copyright and trade secret protection. 
14.4    Arbitration.
(a)    Procedure.  Except as otherwise expressly set forth in Section 14.4(b) below, any and all disputes or controversies arising out of or relating to this Agreement shall be exclusively and finally resolved by binding arbitration in accordance with the commercial arbitration rules of the American Arbitration Association then in effect, in San Diego, California.  The arbitration shall be conducted by an arbitrator reasonably knowledgeable about the pharmaceutical industry and acceptable to CyDex and Spectrum.  If CyDex and Spectrum cannot agree on a single arbitrator within [***] ([***]) days after a demand for arbitration has been made, CyDex shall appoint an arbitrator, Spectrum shall appoint an arbitrator, the two (2) arbitrators shall appoint a third arbitrator, and the three (3) arbitrators shall hear and decide the issue in controversy.  If either party fails to appoint an arbitrator within [***] ([***]) days after service of the demand for arbitration, then the arbitrator appointed by the other party shall arbitrate any controversy in accordance with this Section 14.4(a).  Except as to the selection of arbitrators, the arbitration proceedings shall be conducted promptly and in accordance with the rules of the American Arbitration Association then in effect.  The expenses of any arbitration, including the reasonable attorney fees of the prevailing party, shall be borne [***].  
(b)    Short-Form Arbitration.  Any dispute subject to short-form arbitration as provided in this Agreement shall be exclusively and finally resolved by binding arbitration in accordance with the commercial arbitration rules of the American Arbitration Association then in effect, in San Diego, California by a single arbitrator reasonably knowledgeable about the pharmaceutical industry and appointed in accordance with such rules.  Such arbitrator shall make his or her determination on the basis of “baseball arbitration” principles.  THE FOREGOING REMEDY SHALL BE EACH PARTY’S SOLE AND EXCLUSIVE REMEDY WITH RESPECT TO ANY SUCH DISPUTE. The expenses of any arbitration, including the reasonable attorney fees of the prevailing party, shall be borne [***].  In each case, the parties and arbitrator shall use all diligent efforts to complete such arbitration within [***] ([***]) days of appointment of the arbitrator.  
[***]:  CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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(c)    Confidentiality of Proceedings.  All arbitration proceedings hereunder shall be confidential and the arbitrator(s) shall issue appropriate protective orders to safeguard each party’s Confidential Information.  Except as required by law, no party shall make (or instruct the arbitrator(s) to make) any public announcement with respect to the proceedings or decision of the arbitrator(s) without prior written consent of the other party.
(d)    Interim Equitable Relief.  Each party shall, in addition to all other remedies accorded by law and permitted by this Agreement, be entitled to equitable relief (including but not limited to interim injunctive relief) in any court having jurisdiction to protect its interests.  Neither party shall commence any court proceeding or action against the other to resolve any dispute, except (i) to enforce an arbitral award rendered pursuant to this Section 14.4, or (ii) for such interim injunctive relief.
(e)    Binding Effect.  The provisions of this Section 14.4 shall survive any expiration or termination of this Agreement, and shall be severable and binding on the parties hereto, notwithstanding that any other provision of this Agreement may be held or declared to be invalid, illegal or unenforceable. 
14.5    Costs and Expenses.  Except as otherwise expressly provided in this Agreement, each party shall bear all costs and expenses associated with the performance of such party’s obligations under this Agreement.
14.6    Force Majeure.  Neither party shall be liable for failure to perform, or delay in the performance of, its obligations under this Agreement (other than payment obligations) when such failure or delay is caused by an event of force majeure.  For purposes of this Agreement, an event of force majeure means any event or circumstance beyond the reasonable control of the affected party, including but not limited to, war, insurrection, riot, fire, flood or other unusual weather condition, explosion, act of God, peril of the sea, strike, lockout or other industrial disturbance, sabotage, accident, embargo, breakage of machinery or apparatus, injunction, act of governmental authority, compliance with governmental order on national defense requirements, or inability to obtain fuel, power, raw materials, labor or transportation facilities.   If, due to any event of force majeure, either party shall be unable to fulfill its obligations under this Agreement (other than payment obligations), the affected party shall immediately notify the other party of such inability and of the period during which such inability is expected to continue.
14.7    Notices.  Any notice, request, or communication under this Agreement shall be effective only if it is in writing and personally delivered; sent by certified mail, postage pre-paid; facsimile with receipt confirmed; or by nationally recognized overnight courier with signature required, addressed to the parties at the addresses stated below or such other persons and/or addresses as shall be furnished in writing by any party in accordance with this Section 14.7.  Unless otherwise provided, all notices shall be sent:

_____________________________________________________________________________________________________________________
                                                                                LICENSE AGREEMENT    PAGE 22 

If to CyDex, to:        CyDex Pharmaceuticals, Inc.    
11119 North Torrey Pines Road
Suite 200
La Jolla, CA 92037
Attention:  Secretary
Fax: [***]

With a copy to:        General Counsel
Ligand Pharmaceuticals Incorporated
11119 North Torrey Pines Road
Suite 200
La Jolla, CA 92037
Fax:    [***]

If to Spectrum, to:    Spectrum Pharmaceuticals, Inc.
157 Technology Drive
Irvine, CA 92618
Attention:  Legal Counsel
Fax:  [***]

With a copy to:        Stradling Yocca Carlson & Rauth 
660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660
Attention: Shivbir Grewal
Facsimile: [***]

If sent by facsimile transmission, the date of transmission shall be deemed to be the date on which notice of successful transmission thereof is received by the notifying party.  If sent by overnight courier, the next business day after the date of deposit with such courier shall be deemed to be the date on which such notice, request or communication was given.  If sent by certified mail, the third business day after the date of mailing shall be deemed the date on which such notice, request or communication was given.  
14.8    Use of Name.  No party shall use the name, trademark, trade name or logo of the other party, its Affiliates or their respective employee(s) in any publicity, promotion, news release or public disclosure relating to this Agreement or its subject matter, without the prior express written permission of the other party, except as may be required by law.  The parties agree that a party may disclose this Agreement and its terms, and material developments or material information generated under this Agreement, in (i) securities filings with the SEC (or equivalent foreign agency) to the extent required by law after complying with the procedure set forth in this Section 14.8, or (ii) under conditions of confidentiality in connection with investment and similar corporate transactions. In the event of a required public announcement, the party making such announcement shall provide the other party with a copy of the proposed text prior to such announcement sufficiently in advance of the scheduled release of such announcement to afford such other party a reasonable opportunity to review and comment upon the proposed text and the timing of such disclosure.    
[***]:  CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

_____________________________________________________________________________________________________________________
                                                                                LICENSE AGREEMENT    PAGE 23 

14.9    Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of California (without giving effect to any conflicts of law principles that require the application of the law of a different state).
14.10    Entire Agreement; Amendment.  This Agreement and all Exhibits attached hereto or thereto contain the entire agreement of the parties relating to the subject matter hereof and supersede any and all prior agreements, written or oral, between CyDex and Spectrum relating to the subject matter of this Agreement.  This Agreement may not be amended unless agreed to in writing by both parties.
14.11    Binding Effect.  This Agreement shall be binding upon, and the rights and obligations hereof shall apply to the CyDex and Spectrum and any successor(s) and permitted assigns.  The name of a party appearing herein shall be deemed to include the names of such party’s successors and permitted assigns to the extent necessary to carry out the intent of this Agreement. 
14.12    Waiver.  The rights of either party under this Agreement may be exercised from time to time, singularly or in combination, and the exercise of one or more such rights shall not be deemed to be a waiver of any one or more of the others.  No waiver of any breach of a term, provision or condition of this Agreement shall be deemed to have been made by either party unless such waiver is addressed in writing and signed by an authorized representative of that party.  The failure of either party to insist upon the strict performance of any of the terms, provisions or conditions of this Agreement, or to exercise any option contained in this Agreement, shall not be construed as a waiver or relinquishment for the future of any such term, provision, condition or option or the waiver or relinquishment of any other term, provision, condition or option.
14.13    Severability.  If a final judicial determination is made that any provision of this Agreement is unenforceable, this Agreement shall be rendered void only to the extent that such judicial determination finds such provisions unenforceable, and such unenforceable provisions shall be automatically reconstituted and become a part of this Agreement, effective as of the date first written above, to the maximum extent they are lawfully enforceable.
14.14    Assignment.  Neither party may assign its rights or delegate its obligations under this Agreement, in whole or in part, by operation of law or otherwise, to any Third Party without the prior written consent of the other party, which consent shall not be unreasonably withheld.  Notwithstanding the foregoing, either party may assign its rights and delegate its obligations under this Agreement without the other party’s prior written consent to an Affiliate or to a Third Party successor pursuant to (a) a sale of all of its assets relating to this Agreement, (b) a sale of substantially all its assets, or (c) a merger, consolidation, reorganization or other similar transaction.  Any assignment not in accordance with this Section 14.14 shall be void.
14.15    Third Party Beneficiaries. Except for the rights of Indemnitees pursuant to Section 10 hereof, and subject to Section 8.5 hereof, the terms and provisions of this Agreement are intended solely for the benefit of each party hereto and their respective successors or permitted assigns and it is not the intention of the parties to confer third-party beneficiary rights upon any other person, including without limitation Sublicensees. The enforcement of any obligation of CyDex under this Agreement shall only be pursued by Spectrum or such Indemnitees, and not Sublicensees.
14.16    Headings.  The descriptive headings of this Agreement are for convenience only, and shall be of no force or effect in construing or interpreting any of the provisions of this Agreement.

_____________________________________________________________________________________________________________________
                                                                                LICENSE AGREEMENT    PAGE 24 

14.17    Counterparts.  This Agreement may be executed in two counterparts, each of which shall constitute an original document, but both of which shall constitute one and the same instrument.
[Remainder of this page left blank intentionally]

_____________________________________________________________________________________________________________________
                                                                                LICENSE AGREEMENT    PAGE 25 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
CYDEX PHARMACEUTICALS, INC.

By:      /s/  John L. Higgins                

Name:     John L. Higgins                

Title:      President and CEO                

SPECTRUM PHARMACEUTICALS, INC.

By:     /s/ Rajesh C. Shrotriya                

Name:    Rajesh C. Shrotriya                

Title:    Chairman, President and CEO            

_____________________________________________________________________________________________________________________
                                                                                LICENSE AGREEMENT    PAGE 26 

EXHIBIT A: CAPTISOL PATENTS

	
					
	[***]

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	Application No.
	Patent No.
	Expiration Date

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                                                                                LICENSE AGREEMENT    EXHIBIT A-1 

EXHIBIT A – CONTINUED 

	
					
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	Patent No.
	Expiration Date

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                                                                                LICENSE AGREEMENT    EXHIBIT A-2 

EXHIBIT A – CONTINUED 

	
					
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	Application No.
	Patent No.
	Expiration Date

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                                                                                LICENSE AGREEMENT    EXHIBIT A-3 

EXHIBIT A – CONTINUED 

	
					
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                                                                                LICENSE AGREEMENT    EXHIBIT A-4 

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EXHIBIT B:  LICENSED PRODUCT PATENTS

	
						
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LICENSE AGREEMENT     EXHIBIT B

_____________________________________________________________________________________________________________________

EXHIBIT C: SPECIFICATIONS

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_____________________________________________________________________________________________________________________
LICENSE AGREEMENT     EXHIBIT C

EXHIBIT D: SPECIFIED DILIGENCE REQUIREMENTS

Using Commercial Reasonable Efforts, Spectrum will engage in Substantial Development Activities [***].  “Substantial Development Activities” shall mean [***].  

In the event that Spectrum fails to achieve the above goal as determined within [***] ([***]) days following the specified date, the parties shall meet to discuss and agree upon a mutually acceptable remediation plan within [***] ([***]) days from the specified date.  If it is mutually determined that Spectrum failed to either engage in Substantial Development Activities or to use Commercially Reasonable Efforts in developing a Licensed Product, and if the parties are unable to mutually agree upon a remediation plan, then CyDex has the right to terminate the Agreement pursuant to Section 13.2.  In the event that the parties cannot agree on such determination or plan, then the parties CEO’s or their mutually agreed upon designees shall have a face-to-face meeting to attempt to solve any dispute within the next [***] ([***]) days.  In the event that the dispute is still not resolved, the parties agree to be subject to short-form arbitration pursuant to Section 14.4(b).

On a country-by-country basis, the Commercial Launch Date shall occur no later than [***] ([***]) months following the date of Regulatory Approval in a Major Market.  For at least [***] ([***]) months following the Commercial Launch Date, Spectrum shall assign the Licensed Product to the primary call position those physicians who treat multiple myeloma or perform transplant for multiple myeloma and allocate greater than [***] of sales efforts and sales representative’s time as demonstrated by activity analysis and compensation.  For [***] ([***]) months following the Commercial Launch Date, Spectrum shall provide commercially reasonable medical science liason support for phase IV and investigator sponsored studies.  For [***] ([***]) years following the Commercial Launch Date, Spectrum shall allocate no less than Commercially Reasonable Efforts to selling the Licensed Product.  For avoidance of doubt, the decision whether to seek Regulatory Approval in a particular Major Market other than the United States is at the sole discretion of Spectrum, subject to its obligation to use Commercially Reasonable Efforts as set forth in Section 6.1. 

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____________________________________________________________________________________________________________________    
LICENSE AGREEMENT    EXHIBIT  D

EXHIBIT E: MAJOR MARKETS

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____________________________________________________________________________________________________________________    
LICENSE AGREEMENT    EXHIBIT EExhibit
10.14

 

David
Dineen Employment Agreement

 

This
Employment Agreement (the “Agreement”) is made and entered into as of July 11, 2016 effective July 11, 2016
by and among David Dineen (the “Executive”) on the one side, and Bankwell Financial Group, Inc., a Connecticut
bank holding company (the “Company”) and its wholly-owned bank subsidiary, Bankwell Bank (the "Bank").
Unless a distinction is appropriate, the term "Company" in this Agreement shall include the Bank.

 

WHEREAS,
the Executive currently is not employed by the Company;

 

WHEREAS
Company desires to employ the Executive on the terms and conditions set forth herein; and

 

WHEREAS,
the Executive desires to be employed by the Company on such terms and conditions.

 

NOW,
THEREFORE, in consideration of the mutual covenants, promises and obligations set forth herein, the parties agree as follows:

 

1.         Term.
The Executive’s employment hereunder shall be effective as of July 11, 2016 (the “Effective Date”) and
shall continue until July 11, 2017, unless terminated earlier pursuant to Section 5 of this Agreement. The period during which
the Executive is employed by the Company hereunder including any renewal term is hereinafter referred to as the “Employment
Term.” The Company shall notify the Executive no later than April 11, 2017 if it wishes to extend the Employment Term
for an additional two years. If the Company provides such notice, the Employment Term shall not expire until July 11, 2019. If
so extended, the Company may further extend the Employment Term for additional one year terms on an annual basis thereafter by
providing such notice no later than April 11 in the year in which the Term is to expire. If the Company does not provide such
notice by April in the applicable year, the Employment Term shall expire on the June termination date. If the Employment Term
is extended as provided herein, all of the provisions of this Agreement shall remain in effect during the period of such extension
unless otherwise agreed in writing. If the Employment Term is not extended by the Company for two years following the initial
term expiration date of July 11, 2017, Company shall pay to Executive a one time lump sum cash severance payment of $137,500;
this shall be in addition to any payments due to Executive under Section 5.1(a) below.

 

2.         Position
and Duties.

 

2.1      Position.
The Executive will serve as Executive Vice President, Head of Deposit Strategy of the Bank, having such power, authority and responsibility
and performing such duties as are prescribed by or under the Bylaws of the Company and as are customarily associated with such
position as reasonably determined by the Company’s Chief Executive Officer. The Executive shall, if requested, also serve
as a member of the Board of Directors of Bank affiliates or as an officer or director of any affiliate of the Company for no additional
compensation.

 

2.2      Reporting/Flexibility.
Executive shall report directly to the Chief Executive Officer of the Company. The Company’s Chief Executive Officer may,
during the Employment Term, alter Executive’s job, position and/or reporting responsibilities as he deems appropriate to
the effective management of the Company, provided that Executive shall at all times be on the senior executive team and shall
at all times be a direct report to the Company’s Chief Executive Officer.

 

    	 	1	 

     

    

 

2.3      Effort
and Exclusivity. The Executive shall devote substantially all of his business time and attention (other than during weekends,
holidays, vacation periods, and periods of illness or leaves of absence) to the performance of the Executive's duties hereunder
and will not engage in any other business, profession or occupation for compensation or otherwise which could conflict or interfere
with the performance of such services either directly or indirectly without the prior written consent of the Chairman of the Compensation
Committee. Notwithstanding the foregoing, the Executive will be permitted to:

 

(a)       (i)
with the prior written consent of the Company’s Chairman of the Compensation Committee act or serve as a director, trustee,
committee member or principal of any type of business, civic or charitable organization, (ii) deliver lectures or fulfill speaking
engagements, and (iii) manage personal investments; and

 

(b)       with
the prior written consent of the Company’s Chairman of the Compensation Committee purchase or own less than two percent
(2%) of the securities or ownership interests of any corporation, partnership or limited liability company; provided that, such
ownership represents a passive investment and that the Executive is not a controlling person of, or a member of a group that controls,
such corporation, partnership or limited liability company; provided further that, the activities described in clauses (a) and
(b) do not materially interfere with the performance of the Executive's duties and responsibilities to the Company as provided
hereunder.

 

Attached
as Schedule A to the Agreement is a list of pre-approved outside engagements of the Executive.

 

3.         Place
of Performance. The principal place of the Executive’s employment shall be the Company’s executive office currently
located in New Canaan, Connecticut; provided that, the Executive will be required to travel on Company business during the Employment
Term as his responsibilities require.

 

4.         Compensation.

 

4.1      Base
Salary. The Company shall pay the Executive an annual rate of base salary of $275,000.00 in periodic installments in accordance
with the Company’s customary payroll practices, but no less frequently than monthly. The Executive’s annual base salary
may be increased from time to time by the Compensation Committee, but may not be decreased without the Executive’s written
consent. The Executive’s annual base salary, as in effect from time to time, is hereinafter referred to as “Base
Salary”.

 

Annual
Incentive Plan or Program. The Executive shall be entitled to participate in the annual incentive compensation plan or program
(“Annual Incentive”) available to other similarly situated executives of the Company, with customized targets
and incentives as determined by the Company. The target cash incentive for calendar year 2016 is 30% of base salary.

 

4.2      Long
Term Plan. The Executive shall be entitled to participate in any long term incentive compensation plan or program available
to other similarly situated executives of the Company, with customized targets and incentives as determined by the Company. The
long term plan may be incorporated into or overlap with the Equity Awards program.

 

    	 	2	 

     

    

 

4.3      Equity
Awards. During the Employment Term, the Executive shall be eligible to participate in equity awards under the 2012 Bankwell
Financial Group, Inc. Stock Plan or any successor plan (“Equity Awards”) as available to other similarly situated
executives of the Company, with customized targets and incentives as determined by the Company. In addition, an initial equity
award will be made of 7,500 shares of restricted stock vesting ratably over the first 4 anniversary dates of your hire (1,875
shares per year). This restricted stock and any future grants will be granted pursuant to a separate Restricted Stock Agreement.

 

4.4      Fringe
Benefits and Perquisites. During the Employment Term, the Executive shall be entitled to participate in programs or policies
that provide fringe benefits and perquisites consistent with the practices of the Company and as available to other similarly
situated executives of the Company, with customized targets and benefits as determined by the Company.

 

4.5      Employee
Benefits. During the Employment Term, the Executive shall be entitled to participate in all general employee benefit plans,
practices and programs maintained by the Company, as in effect from time to time (collectively, “Employee Benefit Plans”),
on a basis which is no less favorable than is provided to other similarly situated executives of the Company, to the extent consistent
with applicable law and the terms of the applicable Employee Benefit Plans. The Company reserves the right to amend or cancel
any Employee Benefit Plan at any time in its sole discretion, subject to the terms of such Employee Benefit Plan and applicable
law.

 

4.6      Business
Expenses. Upon submission of appropriate invoices or vouchers, the Company shall pay or reimburse the Executive for all reasonable
expenses incurred by him in the performance of his duties under this Agreement in furthering the business, and in keeping with
the policies, of the Company; provided, however, that the Executive will receive a monthly allowance of five hundred dollars ($500)
in lieu of receiving reimbursements for business mileage and business phone usage.

 

4.7      Vacation.
The Executive is entitled to paid time-off (“PTO”) as outlined in the Company’s personnel policy.

 

4.8      Insurance
Policies.

 

(i)          Key
Man/BOLI Insurance.  The Executive shall permit the Company to insure his life under a policy or policies of life
insurance issued by an insurance company or companies selected by the Company, and to name the Company as sole or primary beneficiary
thereunder. The Executive agrees to submit to any physical examinations which may be reasonably required in connection with such
policies.

 

(ii)         Life
Insurance.  The Company shall provide the Executive with life insurance coverage in such form and amount
as is consistent with that provided to other Company employees.

 

(iii)        Disability
Insurance. The Company shall provide the Executive with short term and long term disability insurance coverage in such
form and amount as is consistent with that provided to other Company employees.

 

In
accordance with HIPAA, all information obtained in connection with the above-referenced insurance will be regarded as confidential
and subject to applicable privacy laws.

 

    	 	3	 

     

    

 

4.9      Clawback
Provisions. Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any
other compensation, paid to the Executive pursuant to this Agreement or any other agreement or arrangement with the Company which
is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions
and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or
any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement).

 

4.10    Required
Regulatory Provisions. Notwithstanding anything herein contained to the contrary, any payments to the Executive by the Company,
whether pursuant to this Agreement or otherwise, are subject to and conditioned upon their compliance with Section 18(k) of the
Federal Deposit Insurance Act, 12 U.S.C. Section 1828(k), and the regulations promulgated thereunder in 12 C.F.R. Part 359.

 

4.11    Standard
Deductions. All payments made under this Agreement shall be subject to any and all applicable taxes and withholdings and to
the Company’s standard payroll practices.

 

5.         Termination
of Employment. The Employment Term and the Executive’s employment hereunder may be terminated by the Company at any
time and for any reason. The Executive may resign his employment at any time subject to the terms hereof. Upon termination of
the Executive’s employment during the Employment Term, the Executive shall be entitled to the compensation and benefits
described in this Section 5 and shall have no further rights to any compensation or any other benefits from the Company,
the Bank or any of their affiliates.

 

5.1      Expiration
of the Term, for Cause or Without Good Reason.

 

(a)  The
Executive’s employment hereunder may be terminated upon the expiration of the Employment Term without renewal by the Company
in accordance with Section 1, or during the Employment Term by the Company for Cause or by the Executive without Good Reason.
If the Executive’s employment is so terminated, the Executive shall be entitled to receive:

 

(i)    any
accrued but unpaid Base Salary and accrued but unused vacation pay which shall be paid on the pay date immediately following the
Termination Date (as defined in Section 5.6 below) in accordance with the Company’s customary payroll procedures;

 

(ii)   any
earned but unpaid Annual Incentive with respect to any completed calendar year immediately preceding the Termination Date, which
shall be paid on the otherwise applicable payment date, except to the extent payment is otherwise deferred pursuant to any applicable
deferred compensation arrangement;

 

(iii)   reimbursement
for unreimbursed business expenses properly incurred by the Executive, which shall be subject to and paid in accordance with the
Company’s expense reimbursement policy; and

 

(iv)  such
employee benefits (including equity compensation), if any, as to which the Executive may be entitled under the Company’s
employee benefit plans or Equity Awards as of the Termination Date; provided that, in no event shall the Executive be entitled
to any payments in the nature of severance or termination payments except as specifically provided herein.

 

    	 	4	 

     

    

 

Items
5.1(a)(i) through 5.1(a)(iv) are referred to herein collectively as the “Accrued Amounts”.

 

(b  For
purposes of this Agreement, “Cause” shall mean:

 

(i)    the
Executive’s conviction of any crime involving fraud, embezzlement, theft or dishonesty, moral turpitude or any similar issue
that in the reasonable opinion of the Board of Directors of the Company would materially and negatively impact the reputation
of the Company, the Bank or any of their affiliates or the Executive’s ability to perform his duties hereunder;

 

(ii)   serious
willful misconduct by the Executive, including a material violation of the Company’s Code of Conduct or the Executive’s
material personal dishonesty in connection with the business or customers of the Company or the material breach of fiduciary duty
to the Company, the Bank or their customers for personal profit;

 

(iii)   any
material breach by the Executive of this Agreement;

 

(iv)   any
willful failure by the Executive to follow a reasonable and lawful directive of the Company as described in Sections 2.1 and 2.2
above, other than any failure resulting from the Executive’s incapacity due to physical or mental injury or illness;

 

(v)   any
willful failure to keep Confidential Information of the Company, Bank or their affiliates confidential in violation of the terms
of this Agreement;

 

(vi)  the
Executive’s arrest for any crime involving fraud, embezzlement, theft or dishonesty that in the reasonable opinion of a
majority of the full membership of the Board of Directors of the Company excluding the Executive which, as direct result of such
arrest, has caused a material negative impact on the reputation of the Company or the Bank or prevents the Executive’s from
substantially performing his duties hereunder; or

 

(vii)  if
the regulatory authorities of the Company or the Bank issue an order removing the Executive from his positions at the Company
or the Bank, or if such regulatory authorities inform the Board of Directors that the continuation of the Executive in his officer
positions at the Company or the Bank would constitute an unsafe and unsound banking practice.

 

For
purposes of this Agreement, no act or failure to act on the part of the Executive shall be considered “willful” unless
it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action
or omission was in the best interests of the Company and the Bank. Any act or failure to act based upon authority given pursuant
to a resolution duly adopted by the Board of Directors of the Company or either of the Bank or based upon the written advice of
counsel for the Company or the Bank shall be conclusively presumed to be done, or omitted to be done, by the Executive in good
faith and in the best interests of the Company and the Bank. The Executive’s termination of employment shall not be deemed
to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative
vote of the majority of the Board of Directors of the Company called and held for such purpose (after reasonable notice is provided
to the Executive and the Executive is given an opportunity, together with counsel, to be heard before the Board of Directors)
finding that, in the good faith opinion of the Board of Directors, the Executive is guilty of any of the conduct described above,
and specifying the particulars thereof in detail. To the extent that the Board of Directors wishes to terminate the Executive
for Cause and the action or actions giving rise to Cause may be cured by the Executive, the Board of Directors will provide the
Executive a thirty (30) day period within which he may cure such action or actions.

 

    	 	5	 

     

    

 

In
the event that the Executive is terminated for Cause based on Section 5.1(b)(i) or (vii) above and, after the case is fully
adjudicated (including all appeals), the Executive is subsequently found innocent of these charges on the merits of the case by
any court of competent jurisdiction or the appropriate administrative agency, then the Executive will be entitled to receive at
that time the amounts payable due to a termination without Cause. Such amounts will be paid no later than the end of the calendar
year in which the Executive is fully adjudicated to be innocent of the charges.

 

(c)     For
purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following, in each case during
the Employment Term without the Executive’s written consent:

 

(i)    a
reduction in the Executive's Base Salary;

 

(ii)   a
material reduction in the Executive's target annual incentive opportunity under any annual incentive compensation or incentive
plan or program;

 

(iii)  any
breach by the Company of any material provision of this Agreement;

 

(iv)  the
Company's failure to obtain an agreement from any successor to the Company to assume and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to perform if no succession had taken place, except where
such assumption occurs by operation of law;

 

(v)   a
material, adverse change in the Executive's title, authority, duties or responsibilities (other than with consent as provided
for in Section 2.2 above and/or temporarily while the Executive is physically or mentally incapacitated or as required by applicable
law); or

 

(vi)   relocation
of Executive’s principal place of business more than 50 miles from the Company’s executive office currently located
in New Canaan, Connecticut, without Executive’s agreement.

 

The
Executive cannot terminate his employment for Good Reason unless he has provided written notice to the Company of the existence
of the circumstances providing grounds for termination for Good Reason within thirty (30) days of Executive’s knowledge
of the initial existence of such grounds and the Company has had thirty (30) days from the date on which such notice is provided
to cure such circumstances. If the Company remedies the condition within such thirty (30) day cure period, then no Good Reason
shall be deemed to exist with respect to such condition. If the Company does not remedy the condition within such thirty (30)
day cure period, then the Executive may deliver a notice of termination for Good Reason at any time within sixty (60) days following
the expiration of such cure period. If the Executive does not terminate his employment for Good Reason within sixty (60) days
following the expiration of the cure period, then the Executive will be deemed to have waived his right to terminate for Good
Reason with respect to such grounds.

    	 	6	 

     

    

 

 

5.2           Without
Cause or for Good Reason. The Employment Term and the Executive's employment hereunder may be terminated by the Executive
for Good Reason or by the Company without Cause. In the event of such termination (unless Section 5.4 below is applicable),
the Executive shall be entitled to receive the Accrued Amounts and, subject to the Executive's compliance with Section 6, Section
7 and Section 8 of this Agreement and his execution of a release of claims in favor of the Company, the Bank and their
affiliates and their respective officers and directors in a commercially reasonable form provided by the Company (a "Release"
attached hereto as Exhibit A) and such Release becoming effective as provided therein ("Release Execution Period"),
the Executive shall be entitled to receive the following:

 

(a)      A
lump sum payment equal to the greater of (i) the amount of Base Salary that would otherwise be due through the end of the Term
of Employment; and (ii) a minimum payment of 0.5 times Base Salary. The lump sum payment shall be paid within thirty (30) business
days following the expiration of the Release Execution Period;

 

(b)      A
payment equal to the product of (i) the target annual Incentive that the Executive could have earned under any incentive compensation
or incentive plan or program (the “Target Incentive”) for the full calendar year in which the Date of Termination
occurs and (ii) a fraction, the numerator of which is the number of days the Executive was employed by the Company during the
year of termination and the denominator of which is the number of days in such year. This amount shall be paid no later than March
15th of the year following the year in which the Termination Date occurs;

 

(c)      If
the Executive timely and properly elects continuation coverage under the Consolidated Omnibus Reconciliation Act of 1985 ("COBRA"),
the Company shall reimburse the Executive for the difference between the monthly COBRA premium paid by the Executive for himself
and his dependents and the monthly premium amount paid by similarly situated active executives. Such reimbursement shall be paid
to the Executive on or before the fifteenth (15th) day of the month immediately following the month in which the Executive timely
remits the premium payment. The Executive shall be eligible to receive such reimbursement until the earliest of: (i) the expiration
of the twelve (12) month period beginning on the Termination Date (the “Severance Period”); (ii) the date the
Executive is no longer eligible to receive COBRA continuation coverage; and (iii) the date on which the Executive receives/becomes
eligible to receive substantially similar coverage from another employer; and

 

(d)      The
treatment of any outstanding equity awards shall be determined in accordance with the terms of the relevant plan and the applicable
award agreements, provided however with respect to the initial equity award set forth in Section 4.3, the Restricted Shares that
would have vested on the vesting date immediately following termination for any reason other than Cause or Executive’s voluntary
resignation shall automatically become vested upon such termination.

 

5.3           Death
or Disability.

 

(a)      The
Executive’s employment hereunder shall terminate automatically upon the Executive’s death during the Employment Term,
and the Company may terminate the Executive’s employment on account of the Executive’s Disability.

 

(b)      If
the Executive’s employment is terminated during the Employment Term on account of the Executive’s death or Disability,
the Executive (or the Executive’s estate and/or beneficiaries, as the case may be) shall be entitled to receive the following:

    	 	7	 

     

    

 

 

(i)    the
Accrued Amounts; and

 

(ii)   the
treatment of any outstanding equity awards shall be determined in accordance with the terms of applicable plan and the applicable
award agreements.

 

(c)  For
purposes of this Agreement, Disability shall mean that the Executive is entitled to receive long-term disability benefits under
the Company's long-term disability plan, or if there is no such plan, the Executive's inability, due to physical or mental incapacity,
to substantially perform his duties and responsibilities under this Agreement for ninety (90) days out of any three hundred sixty-five
(365) day period; provided however, in the event the Company temporarily replaces the Executive, or transfers the Executive's
duties or responsibilities to another individual on account of the Executive's inability to perform such duties due to a mental
or physical incapacity which is, or is reasonably expected to become, a Disability, then the Executive shall not be able to resign
with Good Reason as a result thereof.

 

Any
question as to the existence of the Executive's Disability as to which the Executive and the Company cannot agree shall be determined
in writing by a qualified independent physician mutually acceptable to the Executive and the Company. If the Executive and the
Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall
select a third who shall make such determination in writing. The determination of Disability made in writing to the Company and
the Executive shall be final and conclusive for all purposes of this Agreement.

 

5.4        Change
in Control Termination.

 

(a)  Notwithstanding
any other provision contained herein, if the Executive's employment hereunder is terminated by the Executive for Good Reason or
by the Company without Cause (other than on account of the Executive's death or Disability), in each case either concurrently
with or within twenty-four (24) months following a Change in Control, the Executive shall be entitled to receive the Accrued Amounts
and, subject to the Executive's compliance with Section 6, Section 7 and Section 8 of this Agreement and his execution
of a Release which becomes effective as provided therein, for which the Company assigns significant value in agreeing to this
Section 5.4, the Executive shall be entitled to receive the following:

 

(i)    a
lump sum payment equal to two (2) times the sum of the Executive’s Base Salary and Target Incentive for the year in which
the Termination Date occurs, which shall be paid within thirty (30) business days following the expiration of the Release Execution
Period;

 

(ii)   a
payment equal to the product of (i) the Target Bonus for the full calendar year in which the Date of Termination occurs and (ii)
a fraction, the numerator of which is the number of days the Executive was employed by the Company during the year of termination
and the denominator of which is the number of days in such year. This amount shall be paid no later than March 15th of the year
following the year in which the Termination Date occurs;

 

    	 	8	 

     

    

 

 

(iii)   If
the Executive timely and properly elects continuation coverage under COBRA, the Company shall reimburse the Executive for the
difference between the monthly COBRA premium paid by the Executive for himself and his dependents and the monthly premium amount
paid by similarly situated active executives. Such reimbursement shall be paid to the Executive on the fifteenth (15th) day of
the month immediately following the month in which the Executive timely remits the premium payment. The Executive shall be eligible
to receive such reimbursement until the earliest of: (A) the two year anniversary of the termination date; (B) the date the Executive
is no longer eligible to receive COBRA continuation coverage; and (C) the date on which the Executive receives or becomes eligible
to receive substantially similar coverage from another employers; and

 

(iv)  The
terms of any equity incentive plan or award agreements will determine to what extent, if any, such awards are accelerated for
vesting and/or exercise periods, provided however with respect to the initial equity award set forth in Section 4.3, the Restricted
Shares that would have vested on the vesting date immediately following such termination shall automatically become vested upon
such termination.

 

(b)  For
purposes of this Agreement, “Change in Control” shall mean the occurrence of any of the following:

 

(i)    one
person (or more than one person acting as a group) acquires ownership of stock of the Company that, together with the stock held
by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the
stock of the Company; provided that, a Change in Control shall not occur if any person (or more than one person acting as a group)
owns more than fifty percent (50%) of the total fair market value or total voting power of the Company's stock and acquires additional
stock; and

 

(ii)   a
majority of the members of the Board of Directors of the surviving Company following the Change in Control were not Directors
of the Company before the Change in Control.

 

For
purposes of this Agreement, the terms "person" and "acting as a group" shall have the meanings specified in
the Internal Revenue Code and the regulations thereunder. In no event, however, shall a Change in Control be deemed to have occurred
as a result of any acquisition of securities or assets of the Company, the Bank, or a subsidiary of either of them, by the Company,
the Bank, or any subsidiary of either of them, or by any employee benefit plan maintained by any of them. The defined circumstances
herein are intended to be read to be consistent with the provisions of Section 409A of the Code and the regulations thereunder.

 

In
no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts
payable to the Executive under any of the provisions of this Agreement and except as provided with respect to COBRA reimbursements,
any amounts payable pursuant to this Agreement shall not be reduced by compensation the Executive earns on account of employment
with another employer.

 

5.5           Notice
of Termination. Any termination of the Executive’s employment hereunder by the Company or by the Executive during the
Employment Term (other than termination pursuant to Section 5.3(a) on account of the Executive’s death) shall be communicated
by a written notice of termination (“Notice of Termination”) to the other party hereto in accordance with Section
23. The Notice of Termination shall specify:

 

    	 	9	 

     

    

 

(a)      The
termination provision of this Agreement relied upon;

 

(b)      To
the extent applicable, the facts and circumstances claimed to provide a basis for termination of the Executive’s employment
under the provision so indicated; and

 

(c)      The
applicable Termination Date.

 

5.6           Termination
Date. The Executive’s Termination Date shall be:

 

(a)      If
the Executive’s employment hereunder terminates on account of the Executive’s death, the date of the Executive’s
death;

 

(b)      If
the Executive’s employment hereunder is terminated on account of the Executive’s Disability, the date that it is determined
that the Executive has a Disability;

 

(c)      If
the Company terminates the Executive’s employment hereunder for Cause, the date the Notice of Termination is delivered to
the Executive;

 

(d)      If
the Company terminates the Executive’s employment hereunder without Cause, the date specified in the Notice of Termination,
which shall be no less than thirty (30) days following the date on which the Notice of Termination is delivered; provided that,
the Company shall have the option to provide the Executive with a lump sum payment equal to thirty (30) days’ Base Salary
in lieu of such notice, which shall be paid in a lump sum on the Executive’s Termination Date and for all purposes of this
Agreement, the Executive’s Termination Date shall be the date on which such Notice of Termination is delivered;

 

(e)      If
the Executive terminates his employment hereunder with or without Good Reason, the date specified in the Executive’s Notice
of Termination, which shall be no less than thirty (30) days following the date on which the Notice of Termination is delivered;
provided that, the Company may waive all or any part of the thirty (30) day notice period for no consideration by giving written
notice to the Executive and for all purposes of this Agreement, the Executive’s Termination Date shall be the date determined
by the Company; and

 

(f)      If
the Executive’s employment hereunder terminates because the Company provides notice of non-renewal pursuant to Section 1,
the end of the Employment Term.

 

Notwithstanding
anything contained herein, the Termination Date shall not occur until the date on which the Executive incurs a “separation
from service” within the meaning of Section 409A.

 

5.7           Mitigation.
In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts
payable to the Executive under any of the provisions of this Agreement and except as provided with respect to COBRA reimbursements,
any amounts payable pursuant to this Section 5 shall not be reduced by compensation the Executive earns on account of employment
with another employer.

 

    	 	10	 

     

    

 

5.8           Resignation
of All Other Positions. Upon termination of the Executive’s employment hereunder for any reason, the Executive agrees
to resign, effective on the Termination Date and shall be deemed to have resigned from all positions that the Executive holds
as an officer or member of the Board of Directors (or a committee thereof) of the Company, the Bank or any of their affiliates.

 

5.9           Section
280G.

 

(a)      If
any of the payments or benefits received or to be received by the Executive (including, without limitation, any payment or benefits
received in connection with a Change in Control or the Executive’s termination of employment, whether pursuant to the terms
of this Agreement or any other plan, arrangement or agreement, or otherwise) (all such payments collectively referred to herein
as the “280G Payments”) constitute “parachute payments” within the meaning of Section 280G of the
Internal Revenue Code of 1986, as amended (the “Code”) and will be subject to the excise tax imposed under
Section 4999 of the Code (the “Excise Tax”), the Executive shall receive the greatest of the following, whichever
gives the Executive the highest net after-tax amount (after taking into account federal, state, local and social security taxes):

 

(1)          the
280G Payments or

 

(2)          one
dollar less than the amount of the Payments that would subject the Executive to the Excise Tax (the “Safe Harbor Amount”).

 

If
a reduction in the 280G Payments is necessary so that the 280G Payments equal the Safe Harbor Amount and none of the 280G Payments
constitute a deferral of compensation within the meaning of and subject to Section 409A (“Nonqualified Deferred Compensation”),
then the reduction shall occur in the manner the Executive elects in writing prior to the date of payment. If any 280G Payments
constitute Nonqualified Deferred Compensation or if the Executive fails to elect an order, then the 280G Payments to be reduced
will be determined in a manner which has the least economic cost to the Executive and, to the extent the economic cost is equivalent,
will be reduced in the inverse order of when payment would have been made to you, until the reduction is achieved.

 

(b)    All
calculations and determinations under this Section 5.9 shall be made by an independent accounting firm or independent tax
counsel appointed by the Company (the “Tax Counsel”) whose determinations shall be conclusive and binding on
the Company and the Executive for all purposes. For purposes of making the calculations and determinations required by this Section
5.9, the Tax Counsel may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G
and Section 4999 of the Code. The Company and the Executive shall furnish the Tax Counsel with such information and documents
as the Tax Counsel may reasonably request in order to make its determinations under this

 

Section
5.9. The Company shall bear all costs the Tax Counsel may reasonably incur in connection with its services.

 

(c)    The
Executive hereby agrees with the Company and any successor thereto to in good faith consider and take steps commonly used to minimize
or eliminate any “parachute payments” within the meaning of Section 280G of the Code if requested to do so by the
Company or any successor thereto; provided, however, that the foregoing language shall neither require the Executive to take or
not take any specific action in furtherance thereof nor contravene, limit or remove any right or privilege provided to the Executive
under this Agreement.

 

    	 	11	 

     

    

 

6.          Cooperation.
The parties agree that certain matters in which the Executive will be involved during the Employment Term may necessitate the
Executive’s reasonable cooperation post termination of employment. Accordingly, following the termination of the Executive’s
employment for any reason, to the extent reasonably requested by the Board and subject to the Executive’s reasonable availability
due to his commitment to a new employer or business, the Executive shall cooperate with the Company in connection with matters
arising out of the Executive’s service to the Company; provided that, the Company shall make reasonable efforts to minimize
disruption of the Executive’s other activities. The Company shall reimburse the Executive for reasonable expenses incurred
in connection with such cooperation and, to the extent that the Executive is required to spend substantial time on such matters,
the Company shall compensate the Executive at an hourly rate based on the Executive’s Base Salary on the Termination Date.

 

7.          Confidential
Information. The Executive understands and acknowledges that during the Employment Term, he will have access to and learn
about Confidential Information, as defined below.

 

7.1          Confidential
Information Defined.

 

(a)      Definition.

 

For
purposes of this Agreement, “Confidential Information” includes, but is not limited to, all information not
generally known to the public, in spoken, printed, electronic or any other form or medium, relating directly or indirectly to
the Company, the Bank or their affiliates, or of any other person or entity that has entrusted information to the Company in confidence.

 

The
Executive understands and agrees that Confidential Information includes information developed by him in the course of his employment
by the Company as if the Company furnished the same Confidential Information to the Executive in the first instance. Confidential
Information shall not include information that is generally available to and known by the public at the time of disclosure to
the Executive or later; provided that, such disclosure is through no direct or indirect fault of the Executive or person(s) acting
on the Executive’s behalf.

 

(b)    Disclosure
and Use Restrictions.

 

The
Executive agrees and covenants: (i) to treat all Confidential Information as strictly confidential; (ii) not to directly or indirectly
disclose, publish, communicate or make available Confidential Information, or allow it to be disclosed, published, communicated
or made available, in whole or part, to any entity or person whatsoever except as required in the performance of the Executive's
authorized employment duties to the Company; and (iii) not to access or use any Confidential Information, and not to copy any
documents, records, files, media or other resources containing any Confidential Information, or remove any such documents, records,
files, media or other resources from the premises or control of the Company, except as required in the performance of the Executive's
authorized employment duties to the Company and the Bank. Nothing herein shall be construed to prevent disclosure of Confidential
Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction
or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law,
regulation or order.

 

    	 	12	 

     

    

 

 

The Executive understands
and acknowledges that his obligations under this Agreement with regard to any particular Confidential Information shall commence
immediately upon the Executive first having access to such Confidential Information (whether before or after he begins employment
by the Company) and shall continue during and after his employment by the Company until such time as such Confidential Information
has become public knowledge other than as a result of the Executive's breach of this Agreement or breach by those acting in concert
with the Executive or on the Executive's behalf. Nothing herein shall prevent the Executive from disclosing Contract Information
to his personal attorneys, accountants and other advisors, as necessary for the performance of their duties and on a confidential
basis. Additionally nothing herein shall prohibit the Executive from retaining, at any time, his personal correspondence and documents
related to his own personal benefits, entitlements and obligations.

 

8.          Restrictive
Covenants.

  

8.1          Acknowledgment.
The Executive understands that the nature of the Executive's position may give him access to and knowledge of Confidential Information
and places him in a position of trust and confidence with the Company. The Executive understands and acknowledges that the intellectual
services he provides to the Company are unique, special or extraordinary.

 

The Executive further
understands and acknowledges that the Company’s ability to reserve these services for the exclusive knowledge and use of
the Company is of great competitive importance and commercial value to the Company, and that improper use or disclosure by the
Executive is likely to result in unfair or unlawful competitive activity.

 

Non-competition. Because
of the Company's legitimate business interest as described herein and the good and valuable consideration offered to the Executive,
during the Employment Term and for the term of six (6) months, beginning on the last day of the Executive's employment with the
Company, for any reason or no reason and whether employment is terminated at the option of the Executive or the Company, the Executive
agrees and covenants not to engage in Prohibited Activity within Fairfield or New Haven Counties or any other county in which the
Company, the Bank or any of their affiliates maintains as of the Termination Date a branch, loan production office, or mortgage
production office and from which the Company does a significant portion of its business. For the purposes of this Agreement, “significant
portion of its business” shall mean ten percent (10%) or more of the Company’s total interest income for the most recent
full twelve month period preceding termination is attributable to the office(s) in such county (the “Restricted Area”).
Without otherwise limiting the foregoing, the Restricted Area shall not include New York County (Manhattan), New York. Notwithstanding
the foregoing and for the avoidance of doubt, nothing herein shall prevent Executive from engaging in any activity with, or holding
any financial interest in, a non-competitive affiliate or division of an entity engaged in a business that may engage in a Prohibited
Activity, provided, that none of Executive’s activities or financial interests in respect of such non-competitive affiliate
or division would be a Prohibited Activity under this Agreement in respect of the entity engaged in a business that competes with
Company.

 

For purposes of this Section 8.2:

 

(a)    “Prohibited
Activity” is activity in which the Executive, directly or indirectly, solely or jointly with any person or persons, as
an employee, consultant, or advisor (whether or not engaged in business for profit), or as an individual proprietor, partner, shareholder,
director, officer, joint venturer, investor or lender, or in any other capacity: (i) becomes affiliated with any bank or commercial
lender headquartered or with branches in the counties in which the Company has branches at the time of employment termination;
or (ii) becomes affiliated with a different Community Banking Institution in the Restricted Area;

 

    	 	13	 

     

    

  

(b)    “become
affiliated” shall mean, without limitation, engaging, participating, or being involved in any respect in the business
of banking (other than as a depositor, borrower or other customer), or furnishing any aid, assistance or service of any kind to
any person in connection with the business of the Company, the Bank and any of their affiliates, and shall include without limitation
being employed by any Community Banking Institution which has a branch or other place of business in the Restricted Area; and

 

(c)    “Community
Banking Institution” shall mean a bank with assets equal to or less than five billion dollars.

 

Nothing herein shall
prohibit the Executive from purchasing or owning less than five percent (5%) of the securities or ownership interests of any corporation,
partnership or limited liability company, provided that such ownership represents a passive investment and that the Executive is
not a controlling person of, or a member of a group that controls, such corporation, partnership or limited liability company.

 

Notwithstanding the
foregoing, the provisions of this Section 8.2 shall not apply in the event the Executive is employed by the Company for
the entire Employment Term and the Company determines not to renew or extend this Agreement on substantially similar terms.

 

This Section 8
does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such rights cannot be
waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction
or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation or order.
The Executive shall promptly provide written notice of any such order to the Board of Directors.

 

8.2          Non-solicitation
of Employees. The Executive agrees and covenants not to directly or indirectly solicit, hire, recruit, attempt to hire or
recruit, or induce the termination of employment of any employee of the Company, the Bank or any of their Affiliates for the term
of one (1) year, beginning on the last day of the Executive's employment with the Company provided that a general, broad-based
solicitation or advertisement not intentionally directed at such employees shall not be deemed to be a violation of this provision.

 

8.3          Non-solicitation
of Clients. The Executive understands and acknowledges that because of the Executive's experience with and relationship to
the Company, he will have access to and learn about much or all of the clients, prospective clients and referral sources of the
Company, the Bank and their affiliates. The Executive understands and acknowledges that loss of these client and referral relationships
and/or goodwill will cause significant and irreparable harm. The Executive agrees and covenants, for a period of one (1) year,
beginning on the last day of the Executive's employment with the Company, not to directly or indirectly (a) solicit (for services
that are competitive with the Company, the Bank or its Affiliates) any actual or prospective client or client-referral source
who Executive had a direct or indirect business relationship with the Company, the Bank or any of their Affiliates during the
period of time in which the Executive was employed by the Company, it being expressly agreed that soliciting a referral from a
prospective client or client-referral source is included within this prohibition; or (b) encourage any such client or client-referral
source to turn down, terminate or materially reduce a business relationship with the Company, the Bank or any of their affiliates.

 

    	 	14	 

     

    

  

8.4          Non-disparagement.
The Executive agrees and covenants that he will not at any time make, publish or communicate to any person or entity or in any
public forum any defamatory or disparaging remarks, comments or statements concerning the Company, the Bank, any of their affiliates
or their respective businesses, or any of their employees, officers, and existing and prospective clients, and the Company and
the Bank will not, and shall cause their Board of Directors and their senior executives not to, at any time make, publish or communicate
to any person or entity or in any public forum any defamatory or disparaging remarks, comments or statements concerning the Executive,
provided, however, nothing herein shall prevent a party from (i) responding publicly to incorrect, disparaging or derogatory public
statements to the extent reasonably necessary to correct or refute such public statement or (ii) making any truthful statements
in response to legal or bank regulatory examination process, required governmental testimony or filings, or administrative or
arbitral proceedings

 

8.5          Non-Interference
Covenant. For a period of one (1) year, beginning on the last day of the Executive's employment with the Company, the Executive
covenants and agrees that he will not, directly or indirectly and for whatever reason, whether for his own account or for the
account of any other person, firm, corporation or other organization:

 

(a)     solicit,
employ, or otherwise materially interfere with any of the contracts or relationships of the Company, the Bank or any of their affiliates
with any employee, officer, director or any independent contractor who is employed by or associated with the Company, the Bank
or any of their affiliates as of the Termination Date; or

 

(b)    actively
solicit or cause to be solicited, or otherwise actively and materially interfere with, any of the contracts or relationships of
the Company, the Bank or any of their affiliates with any independent contractor, customer, client or supplier of the Company,
the Bank or any of their affiliates.

 

8.6          Business
Materials and Property Disclosure. All written materials, records, and documents made by the Executive or coming into his
possession concerning the business or affairs of the Company, the Bank or any of their affiliates shall be the sole property of
the Company. Upon termination of his employment with the Company, the Executive shall deliver the same to the Company and shall
retain no copies, including but not limited to copies in paper, electronic, digital or any other format. The Executive shall also
return to the Company all other property in his possession owned by the Company upon the termination of his employment. The Executive
may retain the Executive’s rolodex and similar address books provided that such items only include contact information.

 

If a court or arbitration
panel concludes that the time period of the restriction set forth in this Section 8 is not enforceable or that a specific
geographical scope must be stated herein, then the parties agree that such court or arbitration panel may rewrite the time period
of this restriction and/or prescribe a geographical restriction to the maximum enforceable time period and geographical area permitted
by law.

 

9.          Acknowledgement.
The Executive acknowledges and agrees that the services to be rendered by him to the Company are of a special and unique character;
that the Executive will obtain knowledge and skill relevant to the Company’s industry, methods of doing business and marketing
strategies by virtue of the Executive’s employment; and that the restrictive covenants and other terms and conditions
of this Agreement are reasonable and reasonably necessary to protect the legitimate business interest of the Company.

    	 	15	 

     

    

  

The Executive further
acknowledges that the amount of his compensation reflects, in part, his obligations and the Company's rights under Section 7 and
Section 8 of this Agreement; that he has no expectation of any additional compensation, royalties or other payment of any kind
not otherwise referenced herein in connection herewith; and that he will not be subject to undue hardship by reason of his full
compliance with the terms and conditions of Section 7 and Section 8 of this Agreement or the Company's enforcement thereof.

 

10.         Remedies.
In the event of a breach or threatened breach by the Executive of Section 7 or Section 8 of this Agreement, the Executive
hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a temporary or
permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction,
without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the
necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal
remedies, monetary damages or other available forms of relief.

 

11.         Arbitration.
Any dispute whatsoever relating to the Executive’s employment by the Company, or any other dispute arising out of this Agreement
which cannot be resolved by any party upon thirty (30) days’ written notice to the other party, shall be settled by binding
arbitration at a mutually agreed location in Fairfield County, Connecticut in accordance with the then prevailing Employment Dispute
Resolution Rules of the American Arbitration Association. The judgment upon the award rendered by the arbitrators may be entered
in any court of competent jurisdiction. It is the purpose of this Agreement, and the intent of the parties hereto, to make the
submission to arbitration of any dispute or controversy arising out of this Agreement, as set forth hereinabove, binding upon all
parties hereto. This Section 11 shall not in any way restrict the right of the Company to obtain injunctive relief from a court
of competent jurisdiction.

 

All arbitration costs
and all other costs, including but not limited to reasonable attorneys’ fees, incurred by the Executive in an arbitration
proceeding shall be paid by the Company in the event the Executive materially or substantively prevails in such arbitration proceeding.
All arbitration costs and all other costs, including but not limited to reasonable attorneys’ fees, incurred by the Company
in an arbitration proceeding shall be paid by the Executive in the event the Company materially or substantively prevails in such
arbitration proceeding. As part of the judgment rendered by the arbitrators in an arbitration proceeding, the arbitrators shall
determine which party (if any) has materially or substantively prevailed in such arbitration proceeding.

 

12.         Governing
Law: Jurisdiction and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of Connecticut
without regard to conflicts of law principles. Any action or proceeding by either of the parties to enforce this Agreement that
is not covered by the Arbitration provision of Section 11 above shall be brought only in a state or federal court located in the
state of Connecticut, county of Fairfield. The parties hereby irrevocably submit to the non-exclusive jurisdiction of such courts
and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.

 

13.         Legal
Fees. The Company shall pay or reimburse the Executive for all reasonable and documented legal fees incurred by him in connection
with the negotiation of this Agreement and any other agreements related to Executive’s employment arrangement with the Company,
up to $6,000.

 

    	 	16	 

     

    

  

14.         Source
of Payments: No Duplication of Payments. All payments provided in this Agreement shall be timely paid in cash or check from
the general funds of the Company or the Bank. Payments pursuant to this Agreement shall be allocated between the Company and the
Bank in proportion to the approximate level of activity and the time expended on such activities by the Executive as determined
by the Company and the Bank on a quarterly basis, unless the applicable provision of this Agreement specifies that the payment
shall be made by either the Company or the Bank. In no event shall the Executive receive duplicate payments or benefits from the
Company and the Bank.

 

15.         Entire
Agreement. Unless specifically provided herein, this Agreement contains all of the understandings and representations between
the Executive and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings,
agreements, representations and warranties, both written and oral, with respect to such subject matter. The parties mutually agree
that the Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the
Agreement.

 

16.         Modification
and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in
writing and signed by the Executive and by Chairman of the Board of Directors of the Company. No waiver by either of the parties
of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto
shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall
the failure of or delay by either of the parties in exercising any right, power or privilege hereunder operate as a waiver thereof
to preclude any other or further exercise thereof or the exercise of any other such right, power or privilege.

 

17.         Severability.
Should any provision of this Agreement be held by a court of competent jurisdiction to be enforceable only if modified, or if any
portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder
of this Agreement, the balance of which shall continue to be binding upon the parties with any such modification to become a part
hereof and treated as though originally set forth in this Agreement.

 

The parties further agree that any such
court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing such unenforceable
provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or all of the offending
provision, adding additional language to this Agreement or by making such other modifications as it deems warranted to carry out
the intent and agreement of the parties as embodied herein to the maximum extent permitted by law.

 

The parties expressly agree that this Agreement
as so modified by the court shall be binding upon and enforceable against each of them. In any event, should one or more of the
provisions of this Agreement be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions hereof, and if such provision or provisions are not modified as provided above, this Agreement
shall be construed as if such invalid, illegal or unenforceable provisions had not been set forth herein.

 

18.         Captions.
Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of
this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

 

19.         Counterparts.
This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together
shall constitute one and the same instrument.

 

    	 	17	 

     

    

 

20.         Tolling.
Should the Executive violate any of the terms of the restrictive covenant obligations articulated herein, the obligation at issue
will run from the first date on which the Executive ceases to be in violation of such obligation.

 

21.         Section
409A. This Agreement is intended to comply with Section 409A or an exemption thereunder and shall be construed and administered
in accordance with Section 409A. Notwithstanding any other provision of this Agreement, payments provided under this Agreement
may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this
Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a
short- term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment
payment provided under this Agreement shall be treated as a separate payment. Notwithstanding any other provision of this Agreement,
in the event any payment is to be made during a specified time period following the expiration of the Release Execution Period
and the time period for such payment begins in one calendar year and ends in a second calendar year, then such amount shall be
payable in the second calendar year. Notwithstanding the foregoing, the Company makes no representations that the payments and
benefits provided under this Agreement comply with Section 409A and in no event shall the Company be liable for all or any portion
of any taxes, penalties, interest or other expenses that may be incurred by the Executive on account of non-compliance with Section
409A.

 

Notwithstanding any
other provision of this Agreement, if any payment or benefit provided to the Executive in connection with his termination of employment
is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A and the Executive
is determined to be a "specified employee" as defined in Section 409A(a)(2)(b)(i), then such payment or benefit shall
not be paid until the first payroll date to occur following the six-month anniversary of the Termination Date (the "Specified
Employee Payment Date"), unless the payment otherwise satisfies the short-term deferral exemption or another exemption
under Section 409A of the Code. The aggregate of any payments that would otherwise have been paid before the Specified Employee
Payment Date shall be paid to the Executive in a lump sum on the Specified Employee Payment Date and thereafter, any remaining
payments shall be paid without delay in accordance with their original schedule.

 

22.         Successors
and Assigns. This Agreement is personal to the Executive and shall not be assigned by the Executive. Any purported assignment
by the Executive shall be null and void from the initial date of the purported assignment. The Company may assign this Agreement
to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially
all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and permitted successors
and assigns.

 

23.         Indemnification.

 

(a)    In
the event that the Executive is made a party or threatened to be made a party to any action, suit, or proceeding, whether civil,
criminal, administrative or investigative (a “Proceeding”), other than any Proceeding initiated by the Executive
or the Company related to any contest or dispute between the Executive and the Company or any of its affiliates with respect to
this Agreement or the Executive’s employment hereunder, by reason of the fact that the Executive is or was a director or
officer of the Company, or any affiliate of the Company, or is or was serving at the request of the Company as a director, officer,
member, employee or agent of another corporation or a partnership, joint venture, trust or other enterprise, the Executive shall
be indemnified and held harmless by the Company to the fullest extent permitted by applicable law from and against any liabilities,
costs, claims and expenses, including all costs and expenses incurred in defense of any Proceeding (including attorneys’
fees).

 

    	 	18	 

     

    

  

(b)    During
the Employment Term and for a period of six (6) years thereafter, the Company or any successor to the Company shall purchase and
maintain, at its own expense, directors’ and officers’ liability insurance providing coverage to the Executive on terms
that are no less favorable than the coverage provided to other directors and senior officers of the Company.

 

24.         Notice.
Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent
by registered or certified mail, return receipt requested, or by overnight carrier to the parties at the addresses set forth below
(or such other addresses as specified by the parties by like notice):

 

If to the Company:

 

Chairman

Compensation Committee

Bankwell Financial Group, Inc.

208 Elm Street

New Canaan, CT 06840

 

If to the Executive:

 

David Dineen

20 Bayberry Lane

Darien, CT 06820

 

With a copy to:

 

Nedder & Associates LLC

Robert Lia, Esq.

3 Parklands Drive

Suite 201

Darien, CT 06820

 

25.         Representations
of the Executive. The Executive represents and warrants to the Company that:

 

25.1        The
Executive’s acceptance of employment with the Company and the performance of his duties hereunder will not conflict with
or result in a violation of, a breach of, or a default under any contract, agreement or understanding to which he is a party or
is otherwise bound.

 

25.2        The
Executive’s acceptance of employment with the Company and the performance of his duties hereunder will not violate any non-solicitation,
non-competition or other similar covenant or agreement of a prior employer.

 

26.         Withholding.
The Company shall have the right to withhold from any amount payable hereunder any Federal, state and local taxes in order for
the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.

 

    	 	19	 

     

    

 

27.         Survival.
Upon the expiration or other termination of this Agreement, the respective rights and obligations of the parties hereto shall survive
such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement.

 

28.         Acknowledgment
of Full Understanding. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO
THER AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY
OF HIS CHOICE BEFORE SIGNING THER AGREEMENT.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	20	 

     

    

  

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

 

	 	BANKWELL FINANCIAL GROUP, INC.
	 	 
	 	By	/s/ James A. Fieber
	 	Name: James A. Fieber
	 	Title: Chairman of the Compensation Committee
	 	 
	 	BANKWELL BANK
	 	 
	 	By	/s/ James A. Fieber
	 	Name: James A. Fieber
	 	Title: Chairman of the Compensation Committee

 

EXECUTIVE

 

Signature: /s/ David Dineen

 

Print Name: David Dineen

 

    	 	21	 

     

    

 

SCHEDULE A

 

The Executive’s involvement in the following outside activities
is approved:

 

Boards

Darien Board of Education

Town of Darien Firefighters Foundation

[Lincoln Center Business Council - based on role at Bank - currently
off this board - but good networking opportunity - would like to stay in touch for future ]

 

Memberships

Darien Volunteer Fire Department

The Tiny Miracles Foundation

Darien RTC - on and off

Darien RTM - off based on being elected to Board of Education

 

     

     

    

  

EXHIBIT A

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