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Exhibit 10.10    
    

*** Text Omitted and Filed Separately

Confidential Treatment Requested Under

17 C.F.R. §§ 200.80(b)(4) and 230.406  

 
 

BIOSYN—FAVRILLE    
    
    SUPPLY AGREEMENT    
    

        THIS AGREEMENT is made on: November 12, 2004 (the "Effective Date") 

BETWEEN:  

        1.     FAVRILLE, Inc.,
a Delaware corporation, having offices at 10421 Pacific Center Court, San Diego, California, 92121 (along with its Affiliates, "FAVRILLE"); and 

        2.     Biosyn
Arzneimittel GmbH, a company incorporated in Germany, whose registered office is at Schorndorfer Strasse 32, D-70734 Fellbach, Germany (along with its
Affiliates, "BIOSYN" and, collectively with FAVRILLE, the "PARTIES"). 

WHEREAS:  

        A.    BIOSYN
is a pharmaceutical company engaged in the marketing and development of pharmaceuticals, including pharmaceuticals for treating and preventing a number of diseases
and conditions. BIOSYN is also engaged in the manufacturing of keyhole limpet hemocyanin ("KLH" as defined further below). 

        B.    BIOSYN
has agreed to manufacture and sell KLH to FAVRILLE and FAVRILLE has agreed to purchase KLH from BIOSYN subject to the terms below. 

        C.    BIOSYN
has a Drug Master File (DMF) filed with the FDA for KLH. 

        THIS
AGREEMENT WITNESSES as follows: 

        1.    INTERPRETATION.    

        1.1.  In
this Agreement 

        "Affiliate"
means any corporation, association or other entity, which directly or indirectly controls, is controlled by or is under common control with a party. As used in this
definition, the term control shall mean direct or indirect beneficial ownership of more than 50% of the voting or equity interest in such corporation or other business entity. 

1

 

        "biosyn
KLH" means the form of KLH manufactured by BIOSYN corresponding to and having the specifications detailed on the Data Sheet attached hereto as Schedule 1 and incorporated
by reference herein; 

        "Certificate
of Analysis" shall have the meaning set forth in clause 2.3; 

        "Confidential
Information" means all materials, know-how, trade secrets or other information, including, without limitation, proprietary information and materials (whether or
not patentable) regarding a Party's technology, Vaccines or business, which is designated as confidential in writing by such Party, whether by letter or by the use of an appropriate stamp or legend,
prior to or at the time any such information is disclosed by such Party to the other Party. Notwithstanding the foregoing, information that is orally, electronically or visually disclosed by a Party,
or is disclosed in writing without an appropriate letter, stamp or legend, shall constitute Confidential Information of the disclosing Party if the disclosing Party, within 30 days after such
disclosure, delivers to the other Party a written communication describing the information and referencing the place and date of such oral, visual, electronic or written disclosure and the names of
the persons to whom such disclosure was made. Notwithstanding the foregoing, Confidential Information of a disclosing Party shall not include information which the receiving Party can demonstrate by
competent written proof: (i) is now, or hereafter becomes, through no act or failure to act on the part of the receiving Party, generally known or available; (ii) is known by the
receiving Party at the time of receiving such information, as evidenced by its written records; (iii) is hereafter furnished to the receiving Party by a Third Party, as a matter of right and
without restriction on disclosure; or (iv) is independently developed by the receiving Party without the use of or reference to the disclosing Party's Confidential Information; 

        "DMF"
means the Drug Master File for biosyn KLH a copy of which has been filed with the FDA; 

        "FAVRILLE
Requirement" shall have the meaning set forth in Section 2.1.3 below. 

        "FDA"
means the United States Food and Drug Administration; 

        "FD&C
Act" means the United States Food, Drug and Cosmetic Act, as amended, and any regulations and guidelines promulgated thereunder; 

        "Free
Carrier" bears the meaning set out in Incoterms 2000, a copy of the relevant section of which is included as Schedule 3 hereto; 

        "GMP"
means current Good Manufacturing Practices promulgated by the Division of Manufacturing and Product Quality of the FDA; 

        "IND"
means an Investigational New Drug Application (as more fully defined in 21 C.F.R. 312) and all amendments and supplements thereto filed with the FDA; 

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        "KLH"
means Keyhole Limpet Hemocyanin, a protein from the giant limpet Megathura crenulata; 

        "Materials"
means, collectively, all raw materials, ingredients and packaging components required to produce biosyn KLH in accordance with the Specifications; 

        "NDA"
means a New Drug Application (as more fully defined in 21 C.F.R. 314.5 et seq.) or Biologics Licensing Application (as more fully
defined in 21 C.F.R. 601) and all amendments and supplements to any of the foregoing filed with the FDA; 

        "Regulatory
Approval" means approval by the FDA of any applicable filing and satisfaction of any related applicable FDA registration and notification requirements, if any, required to
market and sell a Vaccine in the U.S.; 

        "Specifications"
means the characteristics, processing, formulae, labeling and packaging requirements and standards pertaining to the manufacture or supply of biosyn KLH that are set
forth in Data Sheet attached as Schedule 1 hereto, as it may be amended or supplemented from time to time pursuant to clause 2.5; 

        "Term"
means the first ninety-six (96) months of this Agreement running from the Effective Date for a period of ninety-six (96) months. Thereafter, the Agreement will
automatically extend for successive additional twelve (12) month periods unless, by written notice given at least thirty (30) days prior to the expiration of any such period, either
party elects to cause the Agreement to terminate at the end of the then current period; 

        "Technology"
means intellectual property rights and technology necessary for the manufacture, use or sale of Vaccines; 

        "Third
Party" means any entity other than FAVRILLE or BIOSYN; 

        "Vaccine"
means KLH and any active immuno-therapy or other KLH-conjugate therapy developed by FAVRILLE; 

        "Year"
means calendar year, first month being January and the last month being December. 

        1.2.  In
this Agreement, a reference to: 

        1.2.1. a
document in the "agreed form" is a reference to a document in a form approved and for the purposes of identification signed by or on behalf of the Parties; 

        1.2.2. persons
includes a reference to any body corporate, unincorporated association or partnership; 

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        1.2.3. a
person includes a reference to that person's legal personal representatives, successors and permitted assigns; 

        1.2.4. a
Clause or Schedule, unless the context otherwise requires, is a reference to a clause or schedule of this Agreement; 

        1.2.5. an
agreement or other document is a reference to that agreement or documents as from time to time supplemented or amended. 

        1.3.  The
headings in this Agreement shall not affect the interpretation of this Agreement. 

        2.    OBLIGATIONS OF BIOSYN.    

        2.1.  BIOSYN
shall: 

        2.1.1. fulfill
all orders made by FAVRILLE for biosyn KLH during the Term. Orders by FAVRILLE shall be fulfilled promptly, and in any event on or prior to the delivery date
specified in the applicable purchase order (in substantially the form set out in Schedule 2); 

        2.1.2. maintain
sufficient manufacturing and supply capacity so as to enable it to comply with this clause 2; 

        2.1.3. provide
a [...***...] of biosyn KLH to FAVRILLE ("FAVRILLE Requirement") and such additional
quantities as FAVRILLE may, in its discretion, request pursuant to purchase orders submitted to BIOSYN hereunder during the Term; 

        2.1.4. provide
the FAVRILLE Requirement as [...***...] with  [...***...] of biosyn KLH in approximately [...***...]
total volume and [...***...] with [...***...] of biosyn
KLH in approximately [...***...]. The first [...***...]
with [...***...] shall be delivered to FAVRILLE within  [...***...] of the Effective Date. The remaining  [...***...] with [...***...] shall be delivered to
FAVRILLE in [...***...]. The first [...***...] with  [...***...] shall be delivered to FAVRILLE on or before
 [...***...] and the second shipment [...***...] with  [...***...] shall be delivered to FAVRILLE on or
before  [...***...]. The Parties agree that the Certificate of Analysis and referenced shelf life for the FAVRILLE Requirement will be
that of a [...***...]; provided, however, that all  [...***...] will be marked [...***...], that all vials
supplied will have a minimum of [...***...] shelf life, and that there will be a letter amendment to Certificate of Analysis of
the form attached hereto as Exhibit A. All other aspects of the biosyn KLH, including, but not limited to the closure, will be that of a  [...***...]. 

        2.1.5. ensure
that all biosyn KLH supplied to FAVRILLE is acquired and manufactured in accordance with GMP, applicable Regulatory Approval(s) and all other applicable
requirements of the FDA and other governmental agencies and complies 

*CONFIDENTIAL TREATMENT REQUESTED*

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in
all respects (including with regard to its manufacture) with the Specifications and the DMF. 

        2.1.6. provide
FAVRILLE reasonable access two days per year to the DMF at the facilities of BIOSYN in Fellbach, Germany; provided, however, that BIOSYN shall provide
FAVRILLE additional access to the DMF if FAVRILLE reasonably believes that is necessary to confirm that the DMF is consistent with the Specifications for biosyn KLH. This access shall be limited to
those sections of the DMF relating to the characterization and analytical processing necessary to confirm that DMF is consistent with the Specifications for biosyn KLH to be supplied to FAVRILLE. In
addition, BIOSYN will provide FAVRILLE any updates, correspondence from the FDA relating to those sections of the DMF and any other correspondence relating to GMP compliance. 

        2.2.  BIOSYN
may: 

        2.2.1. in
its discretion, perform its obligations under this Agreement, in whole or in part, through biosyn Corporation, having an office at 5939 Darwin Courts, Suite 114,
Carlsbad, CA 92008 a California corporation; provided, however, that BIOSYN shall remain fully responsible for the performance of BIOSYN Corporation and
that Corporation will be subject to the terms and conditions of this Agreement to the same extent as BIOSYN. 

        2.3.  BIOSYN
shall perform such quality control and quality assurance testing prior to shipment of biosyn KLH to FAVRILLE as is reasonably required to ensure that the biosyn
KLH delivered to FAVRILLE hereunder comply with the Specifications, GMP, applicable Regulatory Approval(s) and all other applicable laws, rules and regulations governing the manufacture, packaging,
labeling, use or sale of biosyn KLH, including, without limitation, the FD&C Act. With each shipment of biosyn KLH to FAVRILLE hereunder, BIOSYN shall provide FAVRILLE with a written certificate of
analysis (i) confirming that BIOSYN has performed such tests on each batch of biosyn KLH in such shipment as required by the Specifications or applicable law; (ii) containing the quality
control and quality assurance test results for each batch shipped; and (iii) confirming that such biosyn KLH conforms to the Specifications (each, a "Certificate of Analysis"). 

        2.4.  BIOSYN
shall be responsible for obtaining, at its own expense, sufficient quantities of Materials necessary for the manufacture of FAVRILLE's requirements of biosyn
KLH. The Materials used to manufacture biosyn KLH hereunder will conform to the applicable Specifications, and BIOSYN shall verify such conformity in accordance with the testing standards and
procedures specified herein. 

        2.5.  BIOSYN
shall not make any changes to the Specifications without the prior written consent of FAVRILLE. In addition, BIOSYN shall obtain FAVRILLE's prior written consent
before it implements any change in the manufacturing site or the Materials, equipment, process or procedures used to manufacture biosyn KLH that would constitute a major change under GMP. 

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        2.6.  BIOSYN
shall complete a GMP stability study to confirm [...***...] stability of the  [...***...] biosyn KLH, within [...***...]
 of the
Effective Date. 

        2.7.  BIOSYN
shall make arrangements for, and shall implement, the imprinting of lot numbers and expiration dates for all biosyn KLH shipped hereunder. Such lot numbers and
expiration dates shall be affixed with labels on the vials containing biosyn KLH and on the shipping carton for such vials as required by GMP and applicable Regulatory Approval(s) with content and
format to be agreed upon by the Parties, similar to that on Schedule 4. 

        2.8.  [...***...] 

        2.9.  [...***...] 

        2.10. BIOSYN
shall, at its own expense, obtain and maintain the necessary permits required for its acquisition, manufacture and supply of biosyn KLH in accordance with this
Agreement, including all required facility licenses. 

        2.11. BIOSYN
shall maintain the DMF in accordance with the requirements of the FDA. BIOSYN agrees to use its commercially reasonable efforts to assist FAVRILLE in obtaining
regulatory approval of Vaccines from the FDA. BIOSYN 

*CONFIDENTIAL TREATMENT REQUESTED*

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specifically
agrees to cooperate with any inspection by the FDA, including, but not limited to, any inspection prior to regulatory approval. 

        2.12. BIOSYN
shall not employ, contract with, or retain any person, directly or indirectly, in any capacity associated with or related to the performance of BIOSYN's
obligations under this Agreement who has been debarred or suspended by the FDA under 21 U.S.C. § 335a, and shall not employ, contract with, or retain any person who has been convicted of a
felony under the laws of the United States for conduct relating to the regulation of any drug product under the FD&C Act. 

        3.    OBLIGATIONS OF FAVRILLE.    

        3.1.  FAVRILLE
shall procure the FAVRILLE Requirement from BIOSYN and such additional quantities as FAVRILLE may, in its discretion, request pursuant to purchase orders
submitted to BIOSYN hereunder during the Term of this Agreement. 

        3.2.  Following
FDA approval and during the Term, at the beginning of each quarter, more specifically within the first month, FAVRILLE shall place an order for the biosyn
KLH. 

        3.3.  [...***...] 

        3.4.  Following
FDA approval and thereafter during the Term, of the KLH purchased by FAVRILLE for the manufacture and sale of Vaccine, not less than  [...***...]. The obligation of FAVRILLE to purchase the FAVRILLE
Requirement  [...***...] from BIOSYN shall be subject to BIOSYN's ability to provide the quantity and quality of KLH required by FAVRILLE.
[...***...] provided, however, FAVRILLE and BIOSYN may discuss alternative terms, including but not but not limited to pricing,  [...***...] the amount of
[...***...]. For the purposes
of this clause 3.4, "[...***...]" shall include but not be limited to,  [...***...]. 

        3.5.  FAVRILLE
shall pay for all freight, duty and associated taxes, including insurance, for the delivery of biosyn KLH to FAVRILLE in accordance with the applicable
purchase order and FAVRILLE's specific shipping instructions. 

        3.6.  FAVRILLE
shall pay all amounts due under this Agreement in accordance with clause 5. 

*CONFIDENTIAL TREATMENT REQUESTED*

7

   
        4.    ORDERS FOR BIOSYN KLH.    

        4.1.  All
orders for biosyn KLH will be placed by FAVRILLE in writing and shall be in substantially the form set out in Schedule 2. 

        4.2.  The
biosyn KLH shall be supplied to FAVRILLE by BIOSYN in accordance with the terms of this Agreement. Within seven (7) days of receipt of any purchase order
from FAVRILLE, BIOSYN shall acknowledge in writing such receipt and acceptance of such order, subject to the terms of clauses 2.1 and 2.2. The biosyn KLH delivered pursuant to this Agreement will be
suitably packaged, marked for shipment and delivered in accordance with FAVRILLE's specifications and preceded or accompanied by a Certificate of Analysis. BIOSYN shall procure insurance, in an amount
sufficient to cover the value of the contents, for all shipments and shall invoice FAVRILLE for the cost of such insurance. 

        4.3.  FAVRILLE
may reject all or any part of any order of biosyn KLH which: 

        4.3.1. has
not been manufactured in accordance with the specifications set out in the DMF filed with the FDA; 

        4.3.2. is
not of GMP quality; or 

        4.3.3. does
not comply with the Specifications, the Certificate of Analysis or any description applied to it and supplied by BIOSYN to FAVRILLE. 

        The
notice of rejection shall be given by FAVRILLE within 30 days of actual receipt of the order (including the Certificate of Analysis) by FAVRILLE at the address for delivery
specified in the purchase order provided by FAVRILLE, except that if, after such 30-day period, FAVRILLE discovers that it has a basis for rejection of any biosyn KLH and the nature of
such basis for rejection is such that it could not have been discovered through the exercise of reasonable diligence within 30 days of FAVRILLE's receipt of such biosyn KLH, FAVRILLE may give
notice of rejection within 15 days of discovery of such latent defect. Within 15 days of receipt of any notice of rejection, BIOSYN will supply replacement biosyn KLH to FAVRILLE at no
additional cost. Within 15 days of receiving any notice of rejection, BIOSYN will respond to FAVRILLE stating whether it accepts or
disputes the rejection. If BIOSYN disputes the rejection, the Parties will refer such dispute to a mutually acceptable independent Third Party laboratory. Such independent laboratory shall analyze the
applicable biosyn KLH and shall determine whether such biosyn KLH was properly rejected. The Parties agree that such independent laboratory's determination shall be final and binding upon the Parties.
The Party against whom the independent laboratory rules shall bear the costs of analysis by such independent laboratory, and if such laboratory determines that FAVRILLE's rejection of biosyn KLH was
incorrect, FAVRILLE will pay for both the initially rejected and replacement biosyn KLH. 

        4.4.  All
orders of biosyn KLH shall be supplied and delivered to FAVRILLE by BIOSYN Free Carrier BIOSYN's manufacturing facility, subject to the terms of clause 4.2. 

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        4.5.  Title
and risk in respect of biosyn KLH supplied by BIOSYN to FAVRILLE shall pass on completion of delivery in accordance with clause 4.4 above, subject to the
terms of clauses 4.2 and 4.3. 

        5.    MILESTONES, PRICE AND PAYMENTS.    

        5.1.  Based
on the completion of the following milestone events, FAVRILLE shall pay to BIOSYN the following milestone payments: 

        5.1.1. Upon
the execution of the Agreement and the grant of the licenses herein, FAVRILLE shall pay to BIOSYN an initial milestone of  [...***...]; 

        5.1.2. Upon
the completion of a GMP, stability study, confirming at least [...***...] stability for
the [...***...] biosyn KLH, FAVRILLE shall pay to BIOSYN a milestone of  [...***...]; 

        5.1.3. Upon
the filing of a NDA by FAVRILLE for its Vaccine with the FDA, FAVRILLE shall pay to BIOSYN a milestone of  [...***...]; 

        5.1.4. Upon
the first commercial sale of the FAVRILLE Vaccine, following marketing approval by the FDA, FAVRILLE shall pay BIOSYN a milestone of  [...***...]. 

        5.2.  The
price to be paid by FAVRILLE to BIOSYN for the FAVRILLE Requirement of biosyn KLH and additional biosyn KLH purchased by FAVRILLE shall be  [...***...] per [...***...]
 and  [...***...] per [...***...]; provided, however, upon
FAVRILLE's request, pursuant to purchase orders submitted to BIOSYN, for greater than [...***...] of biosyn KLH during  [...***...], the price to be paid by
FAVRILLE for biosyn KLH shall be reduced to  [...***...]. 

        5.3.  BIOSYN
shall invoice FAVRILLE for [...***...] of each order, other than the FAVRILLE
Requirement, at the time of receiving such order. Each such invoice shall be payable within [...***...] of receipt by FAVRILLE. 

        5.4.  Payment
for any shipment of biosyn KLH accepted by FAVRILLE (net of the amount previously paid pursuant to clause 5.3) and expenses incurred by BIOSYN under
clause 5.2 with respect to such shipment shall be made by FAVRILLE to BIOSYN within [...***...] of the later of
(a) FAVRILLE's receipt of such shipment of biosyn KLH at the address specified in the purchase order provided by FAVRILLE or (b) FAVRILLE's receipt of the applicable invoice for such
shipment. 

        5.5.  FAVRILLE
shall pay BIOSYN for any special requests by FAVRILLE for biosyn KLH characterization, or any other requests for services not expressly provided for in this
Agreement at a price to be negotiated by the Parties. 

*CONFIDENTIAL TREATMENT REQUESTED*

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        5.6.  All
amounts due and payable under this Agreement shall be made in United States currency. 

        5.7.  If
any undisputed amounts due hereunder are not paid when due, the unpaid balance shall accrue interest at the rate of 1.5% per month until paid in full (not to exceed
the maximum interest rate permissible under applicable law). 

        6.    BIOSYN LICENSE.    

        6.1.  In
consideration of the obligations undertaken by FAVRILLE in this Agreement, BIOSYN hereby grants FAVRILLE a non-exclusive license, including the right to
sublicense, under the biosyn KLH Technology, to develop, make, have made, use, sell, have sold, offer for sale and import Vaccines. 

        6.2.  At
the request of FAVRILLE, BIOSYN shall provide to the FDA appropriate letters of access and/or reference (as FAVRILLE in its discretion directs) to the DMF ("Cross
Reference Letter") authorizing FAVRILLE to reference the DMF for the purpose of obtaining and maintaining regulatory approvals for Vaccines. 

        6.2.1. FAVRILLE
will provide the following information to BIOSYN for cross-reference letter issuance: 

        Title
of the IND/NDA; Name and Address of IND/NDA Holder; IND/NDA number. 

        Name
and address of specific FDA reviewer, if available. 

        6.3.  BIOSYN
will deliver to the FDA and copy to FAVRILLE, the Cross Reference Letter, within 4 weeks from the date of request. 

        7.    CONFIDENTIALITY.    

        7.1.  During
the Initial Term and for five (5) years after expiration or termination of this Agreement, each party shall hold in strictest confidence, shall not use or
disclose to any Third Party, and shall take all necessary and reasonable precautions to secure any Confidential Information of the disclosing party, whether disclosed to by the disclosing party before
or after execution of this Agreement. Disclosure of such information shall be restricted solely to employees, agents, consultants, and representatives who have been advised of their obligation with
respect to Confidential Information. Each party shall be responsible for any breach of this clause 7.1 by its employees, agents, consultants and representatives. Each party may disclose
Confidential Information of the disclosing party to the extent such disclosure is reasonably necessary in the following instances: (a) in regulatory filings and correspondence in support of an
application for approval to market any Vaccine or maintenance of any such marketing approvals; (b) complying with applicable court orders or governmental regulations; and (c) disclosure
to affiliates, licensees, employees, consultants, agents or other third parties in connection with due diligence or similar investigations by such Third Parties or the development or commercialization
of Vaccines, provided that any such person or entity agrees in writing to be bound by similar terms of confidentiality and non-use at least equivalent in scope to those set forth in this
clause 7.1. 

10

 

Notwithstanding
the foregoing, in the event a party is required to make a disclosure of the disclosing party's Confidential Information, it will give reasonable advance notice to the disclosing party
of such disclosure and cooperate with the disclosing party's efforts to secure confidential treatment of such information. 

        8.    REPRESENTATIONS AND WARRANTIES    

        8.1.  Each
Party represents and warrants to the other Party that: (a) such Party is duly organized, validly existing, and in good standing under the laws of the place
of its establishment or incorporation; (b) such Party has taken all action necessary to authorize it to enter into this Agreement and perform its obligations under this Agreement;
(c) this Agreement will constitute the legal, valid and binding obligation of such Party; and (d) neither the execution of this Agreement nor the performance of such Party's obligations
hereunder will conflict with, result in a breach of, or constitute a default under any provision of the organizational documents of such Party, or of any law, rule, regulation, authorization or
approval of any government entity, or of any agreement to which it is a party or by which it is bound. 

        8.2.  BIOSYN
represents and warrants to FAVRILLE that all biosyn KLH delivered hereunder shall, upon delivery to FAVRILLE: (a) conform to the applicable Specifications
and comply with applicable U.S. laws, rules and regulations, including, without limitation, current GMPs and applicable Regulatory Approval(s); (b) be free and clear of any and all liens and
encumbrances; and (c) neither be adulterated or misbranded within the meaning of the FD&C Act, nor be articles that, under the provisions of Sections 404 and 505 of the FD&C Act, may not be
introduced into interstate commerce. BIOSYN further represents and warrants that: (i) the use of the biosyn KLH by FAVRILLE as contemplated by this Agreement will not infringe on or
misappropriate the intellectual property or other rights of any Third Party; and (ii) BIOSYN has not received any citations with respect to its manufacturing facilities including, without
limitation, FDA Form 483 warning letters, and is not currently subject to an FDA consent decree or other regulatory action impacting the manufacture of the biosyn KLH by BIOSYN under this
Agreement. 

        9.    TERM.    

        This
Agreement shall (unless terminated at an earlier date pursuant to clause 10), shall continue in force until the end of the Term. 

        10.    TERMINATION.    

        10.1. A
Party may terminate this Agreement under the following circumstances: (a) for material breach of this Agreement by the other Party upon sixty
(60) days' written notice specifying the nature of the breach, if such breach has not been cured within such sixty (60) day period; or (b) upon the institution by or against the
other Party of insolvency, receivership or bankruptcy proceedings or any other proceeding for the 

11

 

settlement
of such Party's debts, upon the other Party making an assignment for the benefit of creditors, or upon the other Party's dissolution or ceasing to do business. 

        10.2. In
the event of termination of this Agreement, BIOSYN agrees that it will not withdraw supplies of biosyn KLH required for the completion of any clinical trial for the
Vaccines conducted by FAVRILLE pending at the time of BIOSYN's notice of termination, so long as FAVRILLE is not in violation of clauses 3 or 5. 

        10.3. Termination
or expiration of this Agreement shall not (a) affect any other rights of either Party which may have accrued up to the date of such termination or
expiration or (b) relieve FAVRILLE of its obligation to pay to BIOSYN sums due in respect of biosyn KLH delivered prior to termination or expiration of this Agreement. Clauses 2, 5 and 6 will
survive termination or expiration of this Agreement solely with respect to biosyn KLH supplied by BIOSYN prior to such termination or expiration, or pursuant to clause 10.2. In addition,
clauses 1, 6, 7, 10.2, 10.3, 11, 13, 14, 15, 16, 17, 18, and 19 will survive termination or expiration of this Agreement. 

        11.    COSTS.    

        Except
as otherwise expressly provided in this Agreement, each Party shall pay its own costs of and incidental to the negotiation, preparation, execution and implementation by it of this
Agreement and of all other documents referred to in it. 

        12.    FURTHER ASSURANCE.    

        Each
Party shall at its own cost do and execute or procure to be done and executed all necessary acts, agreements, documents and things reasonably within its power to give effect to this
Agreement. 

        13.    DISCLAIMERS    

        13.1. EXCEPT
AS EXPRESSLY SET FORTH IN THIS AGREEMENT, BIOSYN DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES OF ANY KIND RELATING TO biosyn KLH WHETHER EXPRESS OR IMPLIED,
INCLUDING BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTIBILITY AND FITNESS FOR A PARTICULAR PURPOSE. 

        13.2. EXCEPT
FOR LIABILITY FOR BREACH OF CLAUSE 2.1.7 or 3.3, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, OR EXEMPLARY
DAMAGES ARISING OUT OF THE PERFORMANCE OR NON-PERFORMANCE OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS OF PROFITS, LOSS OF BUSINESS, OR BUSINESS INTERRUPTION, EVEN IF
SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; provided, however, that this clause 13.2 shall not be construed to limit either
Party's indemnification obligations under clause 14. 

12

 

        14.    INDEMNIFICATION    

        14.1. FAVRILLE
agrees to indemnify, hold harmless and defend BIOSYN, its affiliates and their respective directors, officers, employees and agents (the "BIOSYN Indemnitees")
from and against any and all Third Party claims, suits, losses, damages, costs, fees and expenses (collectively, "Claims") resulting from or arising out of (i) the use of biosyn KLH supplied to
FAVRILLE hereunder (except to the extent that such Claim arises out of a manufacturing defect in the biosyn KLH or any breach by BIOSYN of its obligations, warranties, or representations under this
Agreement); (ii) the gross negligence or willful misconduct of FAVRILLE or its officers, directors, employees, or agents; or (iii) FAVRILLE's breach of its obligations, warranties or
representations under this Agreement. Such indemnity shall not apply to the extent that BIOSYN has an indemnity obligation for such Claim pursuant to clause 14.2 or if BIOSYN fails to comply
with the indemnification procedures set forth in clause 14.3. 

        14.2. BIOSYN
agrees to indemnify, hold harmless and defend FAVRILLE, its affiliates and their respective directors, officers, employees and agents (the "FAVRILLE
Indemnitees") from and against
any and all Claims resulting from or arising out of (i) the gross negligence or willful misconduct of BIOSYN or its officers, directors, employees, or agents; or (ii) BIOSYN's breach of
its obligations, warranties or representations under this Agreement. Such indemnity shall not apply to the extent that FAVRILLE has an indemnity obligation for such Claim pursuant to
clause 14.2 or if FAVRILLE fails to comply with the indemnification procedures set forth in clause 14.3. 

        14.3. If
either Party is entitled to indemnification under this clause 14 (the "Indemnified Party"), it shall give written notice to the Party providing
indemnification (the "Indemnifying Party") of any Claim that may be subject to indemnification promptly after learning of such Claim, and the Indemnifying Party shall assume the defense of such Claim
with counsel reasonably satisfactory to the Indemnified Party. If such defense is assumed by the Indemnifying Party with counsel so selected, the Indemnifying Party will not be subject to any
liability for any settlement of such Claim made by the Indemnified Party without the Indemnifying Party's consent (but such consent will not be unreasonably withheld or delayed), and will not be
obligated to pay the fees and expenses of any separate counsel retained by the Indemnified Party with respect to such Claim. 

        15.    GENERAL.    

        15.1. This
Agreement constitutes the entire agreement between the Parties relating to the subject matter of this Agreement and supersedes all previous agreements or
understandings, written or oral, with respect to the subject matter hereof. 

        15.2. No
modification of this Agreement shall be valid unless it is in writing and signed by or on behalf of each of the Parties. 

        15.3. The
failure to exercise or delay in exercising a right or remedy under this Agreement shall not constitute a waiver of the right or remedy or a waiver of any other
rights or remedies and no single or partial exercise of any right or remedy or the exercise of any other right or remedy. 

13

 

        15.4. Except
as expressly provided in this Agreement the rights and remedies contained in this Agreement are cumulative and not exclusive of any rights or remedies provided
by law. 

        15.5. Any
date, time or period referred to in this Agreement is of the essence except only to the extent of which the Parties agree in writing to vary it in which event the
varied date, time or period is of the essence. 

        15.6. Nothing
in this Agreement be construed as creating a partnership between the Parties or as constituting either Party as the agent of the other Party for any purpose
whatsoever and neither Party shall have the authority or power to bind the other Party or to contract in the name of or create a liability against the other Party in any way or for any purpose. 

        15.7. In
the event any provision of this Agreement is held to be invalid or unenforceable, the valid or enforceable portion thereof and the remaining provisions of this
Agreement will remain in full force and effect. 

        16.    ASSIGNMENT.    

        Except
as provided in clause 2.2.1, neither Party shall assign or transfer or purport to assign or transfer any of its rights or obligations under this Agreement except with the
prior written consent of the other Party; provided, however, that either Party may assign this Agreement and its rights and obligations hereunder
without the other Party's consent in connection with the transfer or sale of all or substantially all of the business of such Party to which this Agreement relates to a Third Party, whether by merger,
sale of stock, sale of assets or otherwise. The rights and obligations of the Parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the
Parties. Any assignment not in accordance with this Agreement shall be void. 

        17.    NOTICES.    

        17.1. Any
notice or other communication under or in connection with this Agreement shall be in writing in the English language and shall be delivered personally or sent by
first class post pre-paid recorded delivery and air mail or by telefax, to the Party due to receive the notice or communication at its address set forth below or such other address as
either Party may specify by notice in writing to the other. 

	 	 	If to BIOSYN:	 	biosyn Arzneimittel GmbH

Schorndorfer Strasse 32

D-70734 Fellbach, Germany

Attention:          

Facsimile:            
	

 	
 	
If to FAVRILLE:	
 	
FAVRILLE, Inc.

10421 Pacific Center Court

San Diego, CA 92121

14

 

	 	 	 	 	Attention: Tamara A. Seymour

Facsimile: (858) 597-7040

        17.2. In
the absence of evidence of earlier receipt, any notice or other communication shall be deemed to have been duly given: 

        17.2.1. if
delivered personally, when left at the address referred to in clause 16.1; 

        17.2.2. if
sent by mail other than air mail, six (6) days after posting it; 

        17.2.3. if
sent by air mail, six (6) days after posting it; and 

        17.2.4. if
sent by telefax, when clearly received in full. 

        18.    GOVERNING LAW AND JURISDICTION.    

        18.1. This
Agreement is governed by, and shall be construed in accordance with the laws of the State of California, U.S.A., excluding its conflicts of laws principles. 

        18.2. Each
Party irrevocably waives any objection which it might at any time have to the state and federal courts located in the State of California, U.S.A. being nominated
as the forum to hear and determine any proceedings and to settle any disputes and agrees not to claim that such courts are not a convenient or appropriate forum. 

        18.3. Each
Party agrees that the process by which any proceedings are begun in California may be served on either Party by being delivered in accordance with
clause 17. Nothing contained in this paragraph shall affect the right to serve process in any other manner permitted by law. 

        18.4. This
Agreement is drawn up in the English language and if this Agreement is translated into any language other than the English language this version shall prevail. 

        19.    COUNTERPARTS.    

        This
Agreement may be executed in any number of counterparts each of which when executed and delivered shall be an original, but all the counterparts together shall constitute one and
the same instrument. 

15

 

        As
WITNESS the hands of the Parties or their duly authorized representatives the day and year first above written. 

Signed
by: /s/ John P. Longenecker

for and behalf of

FAVRILLE, Inc. 

Signed
by: /s/ S.N. Muddukrishna, Ph.D.

for and behalf of

BIOSYN ARZNEIMITTEL GmbH 

16

  

 
 

Schedule 1    
    
    Data Sheet    
    

[...***...]

*CONFIDENTIAL TREATMENT REQUESTED*

17

 
[...***...]

*CONFIDENTIAL TREATMENT REQUESTED*

18

 
[...***...]  

*CONFIDENTIAL TREATMENT REQUESTED*

19

 
 
 

Schedule 2    
    
    Purchase order    
    

	TO:	 	biosyn Corporation

5939 Darwin Courts, Suite 114

Carlsbad, CA 92008
	FROM:	 	FAVRILLE, Inc.

10421 Pacific Center Court

San Diego, Ca 92121

Please
find below an order for biosyn KLH made in accordance with the terms of the Supply Agreement entered into between us on November 12, 2004, 2004. 

Date
of order: 

Quantity
of order: 

Delivery
Date: within 90 days from date of order 

Address
in the USA for delivery: 

Price:

Please
confirm your acceptance of this order within 7 days of the date hereof by completing the acceptance form below and returning it to us, for the attention of by fax (fax number). 

	

 	
 	

 
	
 Signed

For and on behalf of FAVRILLE, Inc.	 	 
	

 Date, Place	
 	

 
	

 	
 	

 
	

Order acceptance by biosyn Arzneimittel GmbH	
 	

 
	

 Signed

For and on behalf biosyn Arzneimittel GmbH	
 	

 
	

 Date, Place	
 	

 

20

 
 
 

Schedule 3    
    
    Free Carrier    
    

        "Free Carrier" means that the seller fulfils his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named
by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may chose within the place or range stipulated where the carrier shall take the goods into his
charge. When, according to commercial practice, the seller's assistance is required in making the contract with the carrier (such as in rail or air transport) the seller may act at the buyer's risk
and expense. 

        This
term may be used for any mode of transport, including multimodal transport. 

        "Carrier"
means any person who, in a contract of carriage, under-takes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway or buy a combination
of such modes. If the buyer instructs the seller to deliver the cargo to a person, e.g. a freight forwarder who is not a "carrier", the seller is deemed to have fulfilled his obligation to deliver the
goods when they are in the custody of that person. 

        "Transport
terminal" means a railway terminal, a freight station, a container terminal or yard, a multipurpose cargo terminal or any similar receiving point. 

        "Container"
includes any equipment used to unitise cargo, e.g. all types of containers and/or flats, whether ISO accepted or not, trailers, swap bodies, ro-ro equipment,
igloos, and applies to all modes of transport. 

A. The seller must  

A.1 Provision of goods In conformity with the contract  

        Provide the goods and the commercial invoice, or its equivalent electronic message, in conformity with the contract of sale and any other evidence of conformity
which may be required by the contract. 

A.2 Licenses, authorizations and formalities  

        Obtain at his own risk and expense any export license or other official authorization and carry out all customs formalities necessary for the exportation of the
goods. 

A.3 Contract of carriage and insurance  

	a)
	Contract
of carriage 

No
obligation. However, if requested by the buyer or if it is commercial practice and the buyer does not give an instruction to the contrary in due time, the seller may contract for carriage on usual
terms at the buyer's risk and expense. The seller may decline to make the contract and, if he does, shall promptly notify the buyer accordingly. 

21

 

	b)
	Contract
of insurance 

No
obligation. 

A.4 Delivery  

        Deliver the goods into the custody of the carrier or another person (e.g. a freight forwarder) named by the buyer, or chosen by the seller in accordance with
A.3.a), at the named place or point (e.g. transport terminal or other receiving point) on the date or within the period for delivery and in the manner agreed or customary at such point. If no specific
point has been agreed, and if there are several points available, the seller may select the point at the place of delivery which best suits his purpose. Failing precise instructions from the buyer,
the seller may deliver the goods to the carrier in such a manner as the transport mode of that carrier and the quantity and/or nature of the goods may require. 

        Delivery
to the carrier is completed: 

        I)     In
the case of rail transport when the goods constitute a wagon load (or a container load carried by rail) the seller has
to load the wagon or container in the appropriate manner. Delivery is completed when the loaded wagon or container is taken over by the railway or by another person acting on its be-half. 

When
the goods do not constitute a wagon or container load, delivery is completed when the seller has handed over the goods at the railway receiving point or loaded them into a vehicle provided by the
railway. 

        II)   In
the case of road transport when loading takes place at the seller's premises, delivery is completed when the goods
have been loaded on the vehicle provided by the buyer. 

When
the goods are delivered to the carrier's premises, delivery is completed when they have been handed over to the road carrier or to another person acting on his behalf. 

        III)  In
the case of transport by inland waterway when loading takes place at the seller's premises, delivery is completed
when the goods have been loaded on the carrying vessel provided by the buyer. 

When
the goods are delivered to the carrier's premises, delivery is completed when they have been handed over to the inland waterway carrier or to another person acting on his behalf. 

        IV)  In
the case of sea transport when the goods constitute a full container load (FCL), delivery is completed when the loaded
container is taken over by the sea carrier. When the container has been carried to an operator of a transport terminal acting on behalf of the carrier, the goods shall be deemed to have been taken
over when the container has entered into the premises of that terminal. 

22

 

When
the goods are less than a container load (LCL), or are not to be containerised, the seller has to carry them to the transport terminal. Delivery is completed when the goods have been handed over
to the sea carrier or to another person acting on his behalf. 

        V)   In
the case of air transport, delivery is completed when the goods have been handed over to the air carrier or to another
person acting on his behalf. 

        VI)  In
the case of unnamed transport, delivery is completed when the goods have been handed over to the carrier or to another
person acting on his behalf. 

        VII) In
the case of multimodal transport, delivery is completed when the goods have been handed over as specified in
I)—VI), as the case may be. 

A.5 Transfer of risks  

        Subject to the provisions of B.5., bear all risks of loss of or damage to the goods until such time as they have been delivered in accordance with A.4. 

A.6 Division of costs  

        Subject to the provisions of B.6 

	—
	pay
all costs relating to the goods until such time as they have been delivered to the carrier in accordance with A.4.;

	—
	pay
the costs of customs formalities as well as all duties, taxes, and other official charges payable upon exportation. 

A.7 Notice to the buyer  

        Give the buyer sufficient notice that the goods have been delivered into the custody of the carrier. Should the carrier fail to take the goods into his charge at
the time agreed, the seller must notify the buyer accordingly. 

A.8 Proof of delivery, transport document or equivalent electronic message  

        Provide the buyer at the seller's expense, if customary, with the usual document in proof of delivery of the goods in accordance with A.4. 

        Unless
the document referred to in the preceding paragraph is the transport document, render the buyer at the latter's request, risk and expense, every assistance in obtaining a
transport document for the contract of carriage (for example, a negotiable bill of lading, a non-negotiable sea waybill, an inland waterway document, an air waybill, a railway consignment
note, a road consignment note, or a multimodal transport document). 

        When
the seller and the buyer have agreed to communicate electronically, the document referred to in the preceding paragraph may be replaced by an equivalent electronic data interchange
(EDI) message. 

23

 

A.9 Checking packaging—marking  

        Pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) which are necessary for the purpose of delivering the goods
to the carrier. Provide at his own expense packaging (unless it is usual for the particular trade to send the goods of the contract description unpacked) which is required for the transport of the
goods, to the extent that the circumstances relating to the transport (e.g. modalities destination) are made known to the seller before the contract of sale is concluded. Packaging is to be marked
appropriately. 

A.10 Other obligations  

        Render the buyer at the latter's request, risk and expense, every assistance in obtaining any documents or equivalent electronic messages (other than those
mentioned in A.8) issued or transmitted in the country of delivery and/or of origin which the buyer may require for the importation of the goods and, where necessary, for their transit through another
country. 

        Provide
the buyer, upon request, with the necessary information for procuring insurance. 

B. The Buyer Must  

B.1 Payment of the price  

        Pay the price as provided in the contract of sale. 

B.2 Licenses, authorizations and formalities  

        Obtain at his own risk and expense any import license or other official authorization and carry out all customs formalities for the importation of the goods and,
where necessary, for their transit through another country. 

B.3 Contract of carriage  

        Contract at his own expense for the carriage of the goods from the named place, except as provided for in A.3.a). 

B.4 Taking delivery  

        Take delivery of the goods in accordance with A.4. 

B.5 Transfer of risks  

        Bear all risks of loss of or damage to the goods from the time they have been delivered in accordance with A.4. 

        Should
he fail to give notice in accordance with B.7., or should the carrier named by him fail to take the goods into his charge, bear all risks of loss of or damage to the goods 

24

 

from
the agreed date or the expiry date of any period stipulated for delivery, provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or
otherwise identified as the contract goods. 

B.6 Division of costs  

        Pay all costs relating to the goods from the time when they have been delivered in accordance with A,4. 

        Pay
any additional costs incurred, either because he fails to name the carrier, or the carrier named by him fails to take the goods into his charge at the agreed time, or because he has
failed to give appropriate notice in accordance with B.7., provided, however, that the goods have been duly appropriated to the contract, that is to say, clearly set aside or otherwise identified as
the contract goods. 

        Pay
all duties, taxes and other official charges as well as the costs of carrying out customs formalities payable upon importation of the goods and, where necessary, for their transit
through another country. 

B.7 Notice to the seller  

        Give the seller sufficient notice of the name of the carrier and, where necessary, specify the mode of transport, as well as the date or period for delivery the
goods to him, as the case may be, of the point within the place where the goods should be delivered to the carrier. 

B.8 Proof of delivery, transport document or equivalent electronic message  

        Accept the proof of delivery in accordance with A.8, 

B.9 Inspection of goods  

        Pay, unless otherwise agreed, the costs of pre-shipment inspection except when mandated by the authorities of the country of exportation. 

B.10 Other obligations  

        Pay all costs and charges incurred in obtaining the documents or equivalent electronic messages mentioned in A.1O. and reimburse those incurred by the seller in
rendering his assistance in accordance therewith and in contracting for carriage in accordance with A.3.a). 

        Give
the seller appropriate instructions whenever the seller's assistance in contracting for carriage is required in accordance with A.3.a). 

25

 
 
 

Schedule 4    
    
    Label    
    

The label will be 2" × 4" and will display the following information:  

	Product Name:	 	VACMUNE® Liquid [...***...] in [...***...] total volume, or;

VACMUNE® Liquid [...***...] in [...***...] total volume

Lot Number:  

Date of Manufacture:  

Expiration Date:  

Manufacturer:  

*CONFIDENTIAL TREATMENT REQUESTED*

26

QuickLinks

Exhibit 10.10

BIOSYN—FAVRILLE SUPPLY AGREEMENT

Schedule 1 Data Sheet

Schedule 2 Purchase order

Schedule 3 Free Carrier

Schedule 4 LabelQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.11  

 
 

EMPLOYMENT AGREEMENT    
    
    BY AND BETWEEN    
    
    FAVRILLE, INC.    
    
    AND    
    
    TAMARA A. SEYMOUR    
    

 
TABLE OF CONTENTS  

	 
	 	 
	 	Page

	

1.	
 	

EMPLOYMENT	
 	

1
	

2.	
 	

LOYAL AND CONSCIENTIOUS PERFORMANCE; EXCLUSIVE PROPERTY	
 	

2
	

3.	
 	

COMPENSATION OF EXECUTIVE	
 	

2
	

4.	
 	

TERMINATION	
 	

2
	

5.	
 	

CONFIDENTIAL AND PROPRIETARY INFORMATION.	
 	

4
	

6.	
 	

ASSIGNMENT AND BINDING EFFECT	
 	

5
	

7.	
 	

SURVIVAL	
 	

5
	

8.	
 	

NOTICES	
 	

5
	

9.	
 	

CHOICE OF LAW	
 	

5
	

10.	
 	

INTEGRATION	
 	

5
	

11.	
 	

AMENDMENT	
 	

5
	

12.	
 	

WAIVER	
 	

5
	

13.	
 	

SEVERABILITY	
 	

5
	

14.	
 	

INTERPRETATION; CONSTRUCTION	
 	

6
	

15.	
 	

REPRESENTATIONS AND WARRANTIES	
 	

6
	

16.	
 	

COUNTERPARTS	
 	

6
	

17.	
 	

REFERENCES	
 	

6
	

18.	
 	

ARBITRATION	
 	

6
	

19.	
 	

TRADE SECRETS OF OTHERS	
 	

6
	

20.	
 	

ADVERTISING; WAIVER	
 	

6

i

   EMPLOYMENT AGREEMENT  

        THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered
into effective as of January 6, 2005 (the "Effective Date") by and between FAVRILLE, INC.,
a Delaware corporation (the "Company"), and TAMARA A. SEYMOUR
("Executive"). The Company and Executive are collectively referred to herein as the  "Parties," and each is individually referred to herein as a  "Party."

RECITALS  

        A.    The Company desires assurance of the association and services of Executive in order to retain Executive's experience,
skills, abilities, background and knowledge, and is willing to continue to engage Executive's services on the terms and conditions set forth in this Agreement. 

        B.    Executive desires to continue in the employ of the Company on the terms and conditions set forth in this Agreement. 

AGREEMENT  

        In consideration of the foregoing recitals and the mutual promises and covenants herein contained, and for other good and valuable consideration, the Parties,
intending to be legally bound, agree as follows: 

        1.    EMPLOYMENT.    

        1.1    Term.    The Company hereby employs Executive, and Executive
hereby accepts employment by the Company, upon the terms and conditions set forth in this Agreement. The term of this Agreement shall begin on the Effective Date and shall continue until it is
terminated pursuant to Section 4 (the "Term"). On the last day of the Term, Executive shall immediately resign from all positions with the
Company.
Notwithstanding anything herein to the contrary, either Party may terminate Executive's employment under this Agreement at any time, with or without Cause (as defined in Subsection 4.6(b)),
subject to the terms and conditions of Sections 4 and 5. 

        1.2    Title.    Executive shall have the title of Chief Financial
Officer and Vice President of Finance and Administration of the Company and shall serve in such other capacity or capacities as the Board of Directors of the Company (the  "Board") may prescribe
from time to time. Executive shall report to the Chief Executive Officer of the Company (the  "CEO") and the Board. 

        1.3    Duties.    Executive shall do and perform all services, acts or
things necessary or advisable to manage and conduct the business of the Company and that are normally associated with the positions of Chief Financial Officer and Vice President of Finance and
Administration, consistent with the bylaws of the Company and as required by the CEO and the Board. 

        1.4    Policies and Practices.    The employment relationship between
the Parties shall be governed by the policies and practices established by the Company and the Board. Executive hereby acknowledges that Executive has read the Company's Employee Handbook, which,
along with this Agreement, shall govern the terms and conditions of Executive's employment with the Company. In the event that the terms of this Agreement differ from or are in conflict with the
Company's policies or practices or the Company's Employee Handbook, the terms of this Agreement shall control. Normal working hours are from 8:00 a.m. to 5:00 p.m., Monday through
Friday. As an exempt salaried employee, you will be expected to work additional hours as required by the nature of your work assignments. 

        1.5    Location.    Unless the Parties otherwise agree in writing,
during the Term, Executive shall perform the services Executive is required to perform pursuant to this Agreement at the Company's offices located in San Diego, California, or at any other place the
Company maintains 

1

 

a
principal office; provided, however, that the Company may from time to time require Executive to travel temporarily to other locations in connection
with the Company's business. 

        2.    LOYAL AND CONSCIENTIOUS PERFORMANCE; EXCLUSIVE PROPERTY.    

        2.1    Loyalty.    During Executive's employment by the Company,
Executive shall devote Executive's full business energies, interest, abilities and productive time to the proper and efficient performance of Executive's duties under this Agreement. 

        2.2    Exclusive Property.    Executive agrees that all business
procured by Executive on behalf of the Company, and all Company-related business opportunities and plans made known to Executive, while employed by the Company are and shall remain the exclusive
property of the Company. 

        3.    COMPENSATION OF EXECUTIVE.    

        3.1    Base Salary.    The Company shall pay Executive a base salary
of $210,000 per year, less payroll deductions and all required withholdings payable in regular periodic payments in accordance with Company policy. Such base salary shall be subject to annual review
and prorated for any partial year of employment on the basis of a 365-day fiscal year. 

        3.2    Employment Taxes.    All of Executive's compensation shall be
subject to customary withholding taxes and any other employment taxes as are commonly required to be collected or withheld by the Company. 

        3.3    Benefits.    Executive shall, in accordance with Company policy
and the terms of the applicable plan documents, be eligible for the following standard Company benefits: medical, dental and vision insurance, as well as participation in the Company's
Section 125 flexible spending plan and participation in the Company's 401(k) plan, subject to the terms of those plans. Executive also shall, in accordance with Company policy and the terms of
the applicable plan documents, be eligible to participate in benefits under any executive benefit plan or arrangement which may be in effect from time to time and made available to the Company's
executive or key management employees. The Company reserves the right to modify benefits from time to time as it deems necessary in its sole discretion. Executive will also be eligible for paid time
off in accordance with the Company's flexible "time-off" plan. Executive will accrue flexible "time-off" at a rate of 25 days per year and will be entitled to 12
holidays per year. The Company reserves the right to modify its policies from time to time as it deems necessary in its sole discretion. 

        4.    TERMINATION.    

        4.1    Termination for Complete Disability.    Executive's employment
with the Company shall terminate effective upon the date of Executive's Complete Disability (as defined in Subsection 4.6(a)). 

        4.2    Termination by the Company.    Executive's employment with the
Company may be terminated by the Company as follows: 

        (a)    For Cause.    The Company may terminate Executive's employment
under this Agreement at any time for "Cause" (as defined in Subsection 4.6(b)) by delivery of written notice to Executive specifying the
Cause or Causes relied upon for such termination. Any notice of termination given pursuant to this Subsection 4.2(a) shall effect termination as of the date specified in such notice or, in the event
no such date is specified, two business days after written notice is given to Executive. 

        (b)    Without Cause.    The Company may terminate Executive's
employment under this Agreement at any time and for any reason by delivery of written notice of such termination to Executive. Any notice of termination given pursuant to this Subsection 4.2(b) shall
effect 

2

 

termination
as of the date specified in such notice or, in the event no such date is specified, two weeks after written notice is given to Executive. 

        4.3    Termination by Executive.    Executive may terminate
Executive's employment with the Company at any time. 

        4.4    Compensation upon Termination.    

        (a)    Death or Complete Disability.    If Executive's employment by
the Company is terminated by Executive's death or Complete Disability, the Company shall pay to Executive's heirs or Executive, as applicable, Executive's base salary and accrued and unused vacation
benefits earned through the date of termination at the rate in effect at the time of such termination, less standard deductions and withholdings, and the Company shall thereafter have no further
obligations to Executive and/or Executive's heirs under this Agreement. 

        (b)    With Cause.    If Executive's employment is terminated by the
Company for Cause, the Company shall pay Executive's base salary and accrued and unused vacation benefits earned through the date of termination at the rate in effect at the time of such termination,
less standard deductions and withholdings, and the Company shall thereafter have no further obligations to Executive under this Agreement. 

        (c)    Without Cause.    If the Company terminates Executive's
employment without Cause, the Company shall pay Executive's base salary and accrued and unused vacation earned through the date of termination at the rate in effect at the time of such termination,
less standard deductions and withholdings. In addition, subject to the limitations set forth in Subsection 4.5(d) and upon Executive's furnishing to the Company an effective release and waiver
of claims, in substantially the form attached hereto as EXHIBIT A (the "Release and Waiver"),
Executive also shall be entitled to: 

            i.  The equivalent of Executive's annual base salary in effect at the time of termination for a period of 9 months
(the "Severance Period"), in each case, less standard deductions and withholdings, to be paid over a period of 9 months after the date of
termination pursuant to the Company's standard payroll practices; 

           ii.  In the event Executive elects continued coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended ("COBRA"), the Company shall reimburse Executive for the same portion of Executive's COBRA health insurance premium that it paid during
Executive's employment up until the earlier of either (i) the last day of the Severance Period or (ii) the date on which Executive begins full-time employment with another
company, organization or business entity; and 

         iii.  The accelerated vesting of the portion of any outstanding option to purchase common stock of the Company held by
Executive on the date of termination that would have otherwise vested during the Severance Period, so that each such portion is vested and exercisable as of the date of termination to the extent such
portion would otherwise become vested and exercisable as of the end of the Severance Period. 

        (d)    Termination of Obligations.    Notwithstanding any provisions
in this Agreement to the contrary, including any provisions contained in this Subsection 4.5, the Company's obligations, and Executive's rights, pursuant to Subsection 4.5(c) shall cease
and be rendered a nullity immediately should Executive violate any provision of Section 2 and Section 5, or should Executive violate the terms and conditions of either Executive's
Proprietary Information and Inventions Agreement or Nondisclosure Agreement with the Company. 

3

 

        4.5    Definitions.    For purposes of this Agreement, the following
terms shall have the following meanings: 

        (a)    Complete Disability.    "Complete
Disability" shall mean the inability of Executive to perform Executive's duties under this Agreement because Executive has become permanently disabled within the meaning of any
policy of disability income insurance covering employees of the Company then in force. In the event the Company has no policy of disability income insurance covering employees of the Company in force
when Executive becomes disabled, the term "Complete Disability" shall mean the inability of Executive to perform Executive's duties under this Agreement
by reason of any incapacity, physical or mental, that the Board, based upon medical advice or an opinion provided by a licensed physician acceptable to the Board, determines to have incapacitated
Executive from satisfactorily performing all of Executive's usual services for the Company for a period of at least 120 days during any 12-month period (whether or not consecutive).
Based upon such medical advice or opinion, the determination of the Board shall be final and binding and the date such determination is made shall be the date of such Complete Disability for purposes
of this Agreement. 

        (b)    For
Cause.    "Cause" for the Company to terminate Executive's employment hereunder shall mean the occurrence of any of
the following events: 

          (i)  Executive's conviction of any felony or any crime involving fraud or dishonesty; 

         (ii)  Executive's participation (whether by affirmative act or omission) in a fraud, act of dishonesty or other act of
misconduct against the Company and/or an Affiliate; 

       (iii)  Conduct by Executive which, based upon a good faith and reasonable factual investigation by the Board, demonstrates
Executive's gross unfitness to serve; 

        (iv)  Executive's violation of any fiduciary duty or duty of loyalty owed to the Company and/or an Affiliate; 

         (v)  Executive's breach of any material term of any material contract between Executive and the Company and/or an Affiliate; 

        (vi)  Executive's violation of any material Company policy; and 

       (vii)  Executive's violation of state or federal law in connection with the performance of Executive's job. 

        The
determination that a termination is for Cause shall be made by the Board in its sole and exclusive judgment and discretion. 

        5.    CONFIDENTIAL AND PROPRIETARY INFORMATION.    Executive
recognizes that Executive's employment with the Company will involve contact with information of substantial value to the Company that is not generally known in the trade and that gives the Company an
advantage over its competitors who do not know or use it, including but not limited to, techniques, designs, drawings, processes, inventions know how, strategies, marketing, and/or advertising plans
or arrangements, developments, equipment, prototypes, sales, supplier, service provider, vendor, distributor and customer information, and business and financial information relating to the business,
products, services, practices and techniques of the Company (hereinafter referred to as "Confidential and Proprietary Information"). Executive will at
all times regard and preserve as confidential such Confidential and Proprietary Information obtained by Executive from whatever source and will not, either during Executive's employment with the
Company or thereafter, publish or disclose any part of such Confidential and Proprietary Information in any manner at any time, or use the same except on behalf of the Company, without the prior
written consent of the Company. 

4

 

        6.    ASSIGNMENT AND BINDING EFFECT.    Neither this Agreement nor any
rights or obligations hereunder shall be assignable by Executive. This Agreement shall be binding upon and inure to the benefit of the Company and its successors, assigns and legal representatives. 

        7.    SURVIVAL.    Subsections 4.4(c) and 4.4(d) and
Sections 5, 6, 7, 8, 9, 18 and 19 shall survive the termination of this Agreement. 

        8.    NOTICES.    All notices or demands of any kind required or
permitted to be given by the Company or Executive under this Agreement shall be given in writing and shall be personally delivered (and receipted for) or faxed during normal business hours or mailed
by certified mail, return receipt requested, postage prepaid, addressed as follows: 

If
to the Company: 

Favrille, Inc.

10421 Pacific Center Court

San Diego, CA 92121

Phone: (858) 526-8000

Fax: (858) 597-7040

Attn: Chief Executive Officer 

If
to Executive: 

12649
Caminito Radiante

San Diego, CA 92130 

Any
such written notice shall be deemed given on the earlier of the date on which such notice is personally delivered or three days after its deposit in the United States mail as specified above.
Either Party may change its address for notices by giving notice to the other Party in the manner specified in this Section 8. 

        9.    CHOICE OF LAW.    This Agreement is made in San Diego,
California. This Agreement shall be construed and interpreted in accordance with the internal laws of the State of California, excluding its conflicts of laws principles. 

        10.    INTEGRATION.    Except as provided in Executive's Proprietary
Information and Inventions Agreement and Nondisclosure Agreement with the Company, the Company's Amended and Restated 2001 Equity Incentive Plan, as may be amended from time to time (the  "Plan")
and the related Plan documents, this Agreement, including EXHIBIT A hereto, contains the
complete, final and exclusive agreement of the Parties relating to the terms and conditions of Executive's employment with the Company and the termination of Executive's employment, and supersedes all
prior and contemporaneous oral and written employment agreements or arrangements between the Parties. To the extent this Agreement conflicts with the Proprietary Information and Inventions Agreement
or the Nondisclosure Agreement, the terms of such Proprietary Information and Inventions Agreement or Nondisclosure Agreement, respectively, shall control. 

        11.    AMENDMENT.    This Agreement cannot be amended or modified
except by a written agreement signed by Executive and the Company. 

        12.    WAIVER.    No term, covenant or condition of this Agreement or
any breach thereof shall be deemed waived, except with the written consent of the Party against whom the wavier is claimed, and any waiver or any such term, covenant, condition or breach shall not be
deemed to be a waiver of any preceding or succeeding breach of the same or any other term, covenant, condition or breach. 

        13.    SEVERABILITY.    The finding by a court of competent
jurisdiction of the unenforceability, invalidity or illegality of any provision of this Agreement shall not render any other provision of this Agreement unenforceable, invalid or illegal. Such court
shall have the authority to modify or replace 

5

 

the
invalid or unenforceable term or provision with a valid and enforceable term or provision that most accurately represents the Parties' intention with respect to the invalid or unenforceable term
or provision. 

        14.    INTERPRETATION; CONSTRUCTION.    The headings set forth in this
Agreement are for convenience of reference only and shall not be used in interpreting this Agreement. This Agreement has been drafted by legal counsel representing the Company, but Executive has been
encouraged to consult with, and has had the opportunity to consult with, Executive's own independent counsel and tax advisors with respect to the terms of this Agreement. The Parties acknowledge that
each Party and its counsel have reviewed and revised, or had an opportunity to review and revise, this Agreement, and the normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation of this Agreement. 

        15.    REPRESENTATIONS AND WARRANTIES.    Executive represents and
warrants that Executive is not restricted or prohibited, contractually or otherwise, from entering into and performing each of the terms and covenants contained in this Agreement, and that Executive's
execution and performance of this Agreement will not violate or breach any other agreements between Executive and any other person or entity. 

        16.    COUNTERPARTS.    This Agreement may be executed in two
counterparts, each of which shall be deemed an original, both of which together shall constitute one and the same instrument. 

        17.    REFERENCES.    References herein to a  "Section" or a "Subsection" shall be to a Section or a Subsection, respectively, of this Agreement.
 

        18.    ARBITRATION.    To ensure the rapid and economical resolution
of disputes that may arise in connection with Executive's employment with the Company, the Parties agree that any and all disputes, claims, or causes of action, in law or equity, arising from or
relating to Executive's employment, or the termination of that employment, will be resolved, to the fullest extent permitted by law, by final, binding and confidential arbitration in San Diego,
California conducted by the Judicial Arbitration and Mediation Services/Endispute, Inc. ("JAMS"), or its successors, under the then current rules
of JAMS for employment disputes; provided that the arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of
the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision including the arbitrator's essential findings and conclusions and a
statement of the award. Each Party shall be entitled to all rights and remedies that such Party would be entitled to pursue in a court of law. The Company shall pay all arbitration fees.
Nothing in this Agreement is intended to prevent either Party from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. 

        19.    TRADE SECRETS OF OTHERS.    It is the understanding of the
Parties that Executive shall not divulge to the Company and/or an Affiliate any confidential information or trade secrets belonging to others, including Executive's former employers, nor shall the
Company and/or an Affiliate seek to elicit from Executive any such information. Consistent with the foregoing, Executive shall not provide to the Company and/or an Affiliate, and the Company and/or an
Affiliate shall not request, any documents or copies of documents containing such information. 

        20.    ADVERTISING; WAIVER.    Executive agrees to permit the Company
and/or an Affiliate, and persons or other organizations authorized by the Company and/or an Affiliate, to use, publish and distribute advertising or sales promotional literature concerning the
products and/or services of the Company and/or an Affiliate, or the machinery and equipment used in the provision thereof, in which Executive's name and/or pictures of Executive taken in the course of
Executive's provision of services to the Company and/or an Affiliate, appear. Executive hereby waives and releases any claim or right Executive may otherwise have arising out of such use, publication
or distribution. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

6

 

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

	
FAVRILLE, INC.	
 	

 
	 	 	 	 	 
	By:	 	/s/  JOHN P. LONGENECKER      	 	 
	 	 	
	 	 
	

Name:	
 	

John P. Longenecker	
 	

 
	 	 	
	 	 
	

Its:	
 	

Pres. & CEO	
 	

 
	 	 	
	 	 
	 	 	 	 	 
	Dated:	 	January 6, 2005	 	 
	 	 	
	 	 
	 	 	 	 	 
	 	 	 	 	 
	EXECUTIVE:	 	 
	 	 	 	 	 
	/s/  TAMARA A. SEYMOUR      	 	 
	
 TAMARA A. SEYMOUR	 	 
	 	 	 	 	 
	 	 	 	 	 
	Dated:	 	January 6, 2005	 	 
	 	 	
	 	 

7

   EXHIBIT A  

 RELEASE AND WAIVER OF CLAIMS  

        In consideration of the payments and other benefits set forth in Section 4 of the Employment Agreement dated January 6, 2005 to which this form is
attached, I, TAMARA A. SEYMOUR, hereby furnish FAVRILLE, INC., a Delaware corporation (the  "Company"), with the following release and waiver ("Release and Waiver").
 

        In
exchange for the consideration provided to me by the Employment Agreement that I am not otherwise entitled to receive, I hereby generally and completely release the Company and its
directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, Affiliates, and assigns from any and all claims,
liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Release and Waiver. This
general release includes, but is not limited to: (1) all claims arising out of or in any way related to my employment with the Company or the termination of that employment; (2) all
claims related to my compensation or benefits from the Company, including, but not limited to, salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits,
stock, stock options, or any other ownership interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair
dealing; (4) all tort claims, including, but not limited to, claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state,
and local statutory claims, including, but not limited to, claims for discrimination, harassment, retaliation, attorneys' fees, or other claims arising under the federal Civil Rights Act of 1964 (as
amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) ("ADEA"), and the
California Fair Employment and Housing Act (as amended). 

        I
also acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows: "A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the
debtor." I hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to any claims I may
have against the Company. 

        I
acknowledge that, among other rights, I am waiving and releasing any rights I may have under ADEA, that this Release and Waiver is knowing and voluntary, and that the consideration
given for this Release and Waiver is in addition to anything of value to which I was already entitled as an executive of the Company. If I am 40 years of age or older upon execution of this
Release and Waiver, I further acknowledge that I have been advised, as required by the Older Workers Benefit Protection Act, that: (a) the release and waiver granted herein does not relate to
claims under the ADEA which may arise after this Release and Waiver is executed; (b) I have the right to consult with an attorney prior to executing this Release and Waiver (although I may
choose voluntarily not to do so); and (c) I have twenty-one (21) days from the date of termination of my employment with the Company in which to consider this Release and
Waiver (although I may choose voluntarily to execute this Release and Waiver earlier); (d) I have seven (7) days following the execution of this Release and Waiver to revoke my consent
to this Release and Waiver; and (e) this Release and Waiver shall not be effective until the seven (7) day revocation period has expired. 

        If
I am less than 40 years of age upon execution of this Release and Waiver, I acknowledge that I have the right to consult with an attorney prior to executing this Release and
Waiver (although I may choose voluntarily not to do so); and (c) I have five (5) days from the date of termination of my employment with the Company in which to consider this Release and
Waiver (although I may choose voluntarily to execute this Release and Waiver earlier). 

1

 

        I
acknowledge my continuing obligations under my Proprietary Information and Inventions Agreement, a copy of which is attached hereto (the "Proprietary
Agreement"). Pursuant to the Proprietary Information and Inventions Agreement I understand that among other things, I must not use or disclose any confidential or proprietary
information of the Company and I must immediately return all Company property and documents (including all embodiments of proprietary information) and all copies thereof in my possession or control. I
understand and agree that my right to the severance pay I am receiving in exchange for my agreement to the terms of this Release and Waiver is contingent upon my continued compliance with my
Proprietary Information & Inventions Agreement. 

        This
Release and Waiver and the Proprietary Agreement constitute the complete, final and exclusive embodiment of the entire agreement between the Company and me with regard to the
subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated herein. This Release and Waiver may only be modified by a writing signed by both me
and a duly authorized officer of the Company. 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Date:	 	 	 	By:	 	 
	 	 	
	 	 	 	

	 	 	 	 	 	 	TAMARA A. SEYMOUR

2

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EMPLOYMENT AGREEMENT BY AND BETWEEN FAVRILLE, INC. AND TAMARA A. SEYMOUR

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