Document:

Exhibit

Exhibit 10.1
 
CERTAIN MATERIAL (INDICATED BY ASTERISKS) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

PUBLIC HEALTH SERVICE

PATENT LICENSE AGREEMENT - EXCLUSIVE
This Agreement is based on the model Patent License Exclusive Agreement adopted by the U.S. Public Health Service (“PHS”) Technology Transfer Policy Board for use by components of the National Institutes of Health (“NIH”), the Centers for Disease Control and Prevention (“CDC”), and the Food and Drug Administration (“FDA”), which are agencies of the PHS within the Department of Health and Human Services (“HHS”).

This Cover Page identifies the Parties to this Agreement:

The U.S. Department of Health and Human Services, as represented by
The National Cancer Institute
an Institute or Center (hereinafter referred to as the “IC”) of the
NIH

and

Selecta Biosciences,
hereinafter referred to as the “Licensee”,
having offices at 480 Arsenal Street, Building One, Watertown, Massachusetts, 02472,
created and operating under the laws of Delaware.
Tax ID No.: 26-1622110

A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

For the IC internal use only:
License Number:
License Application Number: A-035-2017
Serial Number(s) of Licensed Patent(s) or Patent Application(s):

Group A (Exclusive Rights)
[***]

Group B (Non-exclusive Rights)
[***]

Cooperative Research and Development Agreement (CRADA) Number (if a subject invention): None
Public Benefit(s): The development of new cancer therapeutics can alleviate pain and suffering for many members of the public who are afflicted with certain cancers, which is collectively the second leading cause of death in the United States.
This Patent License Agreement, hereinafter referred to as the “Agreement”, consists of this Cover Page, an attached Agreement, a Signature Page, Appendix A (List of Patent(s) or Patent Application(s)), Appendix B (Fields of Use and Territory), Appendix C (Royalties), Appendix D (Benchmarks and Performance), Appendix E (Commercial Development Plan), Appendix F (Example Royalty Report), and Appendix G (Royalty Payment Options).

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

The IC and the Licensee agree as follows:
		
	1.
	BACKGROUND

		
	1.1
	In the course of conducting biomedical and behavioral research, the IC investigators made inventions that may have commercial applicability.

		
	1.2
	By assignment of rights from IC employees and other inventors, HHS, on behalf of the Government, owns intellectual property rights claimed in any United States or foreign patent applications or patents corresponding to the assigned inventions.  HHS also owns any tangible embodiments of these inventions actually reduced to practice by the IC.

		
	1.3
	The Secretary of HHS has delegated to the IC the authority to enter into this Agreement for the licensing of rights to these inventions.

		
	1.4
	The IC desires to transfer these inventions to the private sector through commercialization licenses to facilitate the commercial development of products and processes for public use and benefit.

		
	1.5
	The Licensee desires to acquire commercialization rights to certain of these inventions in order to develop processes, methods, or marketable products for public use and benefit.

		
	1.6
	All materials required by Licensee from NIH for the performance of the Commercial Development Plan will be obtained by the Licensee under a Cooperative Research and Development Agreement (“CRADA”).  Therefore, no materials will be distributed under the terms and conditions of this Agreement.  If additional materials are required, they will either be obtained by request and amendment of the CRADA, or by request and amendment of this Agreement.

		
	2.
	DEFINITIONS

		
	2.1
	Additional License” means an exclusive or non-exclusive license that includes the Licensed Patent Rights and is granted to a Third Party who is responsible for paying a share of patent expenses, and wherein the exclusive or non-exclusive license has a Licensed Field(s) of Use directed to therapeutic applications.  Additional License specifically excludes exclusive or non-exclusive licenses directed solely to evaluation, internal research use or commercialization of research reagents.

		
	2.2
	“Affiliate(s)” means a corporation or other business entity, which directly or indirectly is controlled by or controls, or is under common control with the Licensee.  For this purpose, the term "control" shall mean ownership of more than fifty percent (50%) of the voting stock or other ownership interest of the corporation or other business entity, or the power to elect or appoint more than fifty percent (50%) of the members of the governing body of the corporation or other business entity.

		
	2.3
	“Benchmarks” mean the performance milestones that are set forth in Appendix D.

		
	2.4
	“Commercial Development Plan” means the written commercialization plan attached as Appendix E.

A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	2.5
	“Commercially Reasonable Efforts” means the level of efforts and resources consistent with the efforts and resources normally used by a similarly situated biotechnology company in the exercise of commercially reasonable business discretion relating to the manufacture, development or commercialization of a biopharmaceutical product with similar product characteristics that is of similar market potential at a similar stage of development or commercialization, taking into account issues of efficacy, safety, product profile, anticipated or approved labeling, present and future market potential, competitive market conditions, the proprietary position of the drug substance or product, the regulatory structure involved, and other key technical, legal, scientific, medical or commercial factors, and the profitability of the product.

		
	2.6
	“CRADA” means a Cooperative Research and Development Agreement.

		
	2.7
	“FDA” means the Food and Drug Administration.

		
	2.8
	“First Commercial Sale” means [***] by or on behalf of the Licensee or its sublicensees of the Licensed Products or the initial practice of a Licensed Process by or on behalf of the Licensee or its sublicensees in exchange for cash or some equivalent to which value can be assigned for the purpose of determining Net Sales.

		
	2.9
	“Government” means the Government of the United States of America.

		
	2.10
	“Licensed Fields of Use” means the fields of use identified in Appendix B.

		
	2.11
	“Licensed Patent Rights” shall mean:

		
	a.
	Patent applications (including provisional patent applications and PCT patent applications) or patents listed in Appendix A, all divisions and continuations of these applications, all patents issuing from these applications, divisions, and continuations, and any reissues, reexaminations, and extensions of these patents;

		
	b.
	to the extent that the following contain one or more claims directed to the invention or inventions disclosed in 2.11(a):

		
	i.
	continuations‐in‐part of 2.11(a);

		
	ii.
	all divisions and continuations of these continuations‐in‐part;

		
	iii.
	all patents issuing from these continuations‐in‐part, divisions, and continuations;

		
	iv.
	priority patent application(s) of 2.11(a); and

		
	v.
	any reissues, reexaminations, and extensions of these patents;

		
	c.
	to the extent that the following contain one or more claims directed to the invention or inventions disclosed in 2.11(a): all counterpart foreign and U.S. patent applications and patents to 2.11(a) and 2.11(b), including those listed in Appendix A; and

		
	d.
	Licensed Patent Rights shall [***].

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	2.12
	“Licensed Processes” means processes which, in the course of being practiced, would be within the scope of one or more claims of the Licensed Patent Rights that have not been held unpatentable, invalid or unenforceable by an unappealed or unappealable judgment of a court of competent jurisdiction.

		
	2.13
	“Licensed Products” means tangible materials which, in the course of manufacture, use, sale, or importation, would be within the scope of one or more claims of the Licensed Patent Rights that have not been held unpatentable, invalid or unenforceable by an unappealed or unappealable judgment of a court of competent jurisdiction.

		
	2.14
	“Licensed Territory” means the geographical area identified in Appendix B.

		
	2.15
	“Net Sales” means the total gross receipts from Third Parties for sales of Licensed Products or practice of Licensed Processes by or on behalf of the Licensee, its Affiliates or its sublicensees, and from leasing, renting, or otherwise making the Licensed Products available to Third Parties without sale or other dispositions, whether invoiced or not, less [***].  No deductions shall be made for commissions paid to individuals, whether they are with independent sales agencies or regularly employed by the Licensee, or sublicensees, and on its payroll, or for the cost of collections.  Notwithstanding the foregoing, the following will not be included in Net Sales: (a) samples of Licensed Products used to promote additional Net Sales, in amounts consistent with normal business practices of Licensee and (b) disposal or use of Licensed Products in clinical studies or under compassionate use, patient assistance, named patient use, test marketing programs or non-registrational studies or other similar programs or studies where the Licensed Product is supplied without charge or at the actual manufacturing cost thereof.

		
	2.16
	“Practical Application” means to manufacture in the case of a composition or product, to practice in the case of a process or method, or to operate in the case of a machine or system; and in each case, under these conditions as to establish that the invention is being utilized and that its benefits are to the extent permitted by law or Government regulations available to the public on reasonable terms.

		
	2.17
	“Pro Rata Share” means one of the following:

		
	a.
	in instances where the Additional License(s) granted by IC recover a pre-determined percentage of patent costs, one hundred percent (100%) of patent prosecution costs minus the percentage of patent prosecution costs recovered by the Additional License(s) which recover a pre-determined percentage of patent costs.  For example, if IC has granted an Additional License which recovers twenty percent (20%) of patent prosecution costs, then the Pro Rata Share would be one hundred percent (100%) minus twenty percent (20%), or eighty percent (80%);

		
	b.
	in instances where the Additional Licenses granted by IC recover a full Pro Rata Share of patent prosecution costs, one (1) minus the value derived from the number of Additional Licenses granted by IC which recover a full Pro Rata Share of patent prosecution costs divided by the total number of licenses granted by IC which recover a full Pro Rata Share of patent prosecution costs.  For example, if IC has granted 4 Additional Licenses which recover a full Pro Rata Share of patent prosecution costs,   then the Pro Rata Share would be, one (1) minus [four (4) divided by five (5)], or one fifth (1/5); or

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	c.
	in instances where the Additional Licenses are granted according to the definition of both 2.17(a) and 2.17(b), the Pro Rata Share paid by Licensee will be the value derived from the Pro Rata Share as determined under paragraph 2.17(a) multiplied by the value derived from the Pro Rata Share as determined under paragraph 2.17(b).  For example, if two (2) Additional Licenses are granted wherein one (1) Additional License recovers twenty percent (20%) of patent prosecution costs and one (1) Additional License recovers a full Pro Rata Share of patent prosecution costs, the Pro Rata Share would be (one hundred percent (100%) minus twenty percent (20%)) multiplied by (one (1) minus (one (1) divided by two (2))), or eighty percent (80%) multiplied by one half (1/2), equaling forty percent (40%).

		
	2.18
	“Research License” means a nontransferable, nonexclusive license to make and to use the Licensed Products or the Licensed Processes as defined by the Licensed Patent Rights for purposes of research and not for purposes of commercial manufacture or distribution or in lieu of purchase.

		
	2.19
	“Third Party” means any entity other than (i) the NIH or (ii) Licensee, its Affiliates or its sublicensses.

		
	3.
	GRANT OF RIGHTS

		
	3.1
	The IC hereby grants and the Licensee accepts, subject to the terms and conditions of this Agreement, an exclusive license to Group A of the Licensed Patent Rights and a non-exclusive license to Group B of the Licensed Patent Rights in the Licensed Territory to make and have made, to use and have used, to sell and have sold, to offer to sell, and to import any Licensed Products in the Licensed Fields of Use and to practice and have practiced any Licensed Process(es) in the Licensed Fields of Use.

		
	3.2
	This Agreement confers no license or rights by implication, estoppel, or otherwise under any patent applications or patents of the IC other than the Licensed Patent Rights regardless of whether these patents are dominant or subordinate to the Licensed Patent Rights.

		
	4.
	SUBLICENSING

		
	4.1
	Upon written approval, [***] and which shall not be unreasonably withheld, the Licensee may enter into sublicensing agreements under the Licensed Patent Rights.  With respect to any proposed sublicense agreement, if the IC does not provide the Licensee with written rejection thereof within [***], the IC shall be deemed to have given its approval of such sublicense agreement and the Licensee shall have the right to enter into such sublicense agreement.

		
	4.2
	The Licensee agrees that any sublicenses granted by it shall provide that the obligations to the IC of Paragraphs 5.1‐5.4, 8.1, 10.1, 10.2, 12.5, and 13.8-13.10 of this Agreement shall be binding upon the sublicensee as if it were a party to this Agreement.  The Licensee further agrees to attach copies of these Paragraphs to all sublicense agreements.

		
	4.3
	Any sublicenses granted by the Licensee shall provide for the termination of the sublicense, or the conversion to a license directly between the sublicensees and the IC, at the option of the sublicensee, upon termination of this Agreement under Article 13.  This conversion is subject to the IC approval and contingent upon acceptance by the sublicensee of the remaining provisions of this Agreement.

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	4.4
	The Licensee agrees to [***].  To the extent permitted by law, the IC agrees to [***].

		
	4.5
	The Licensee may enter into sublicensing agreements under Licensed Patent Rights with Affiliates of Licensee, and Paragraphs 4.1 and 4.4 of the Agreement and Paragraph V in Appendix C of the Agreement shall not apply to such Affiliate sublicense; provided that Licensee shall notify IC in writing of the Affiliate that sublicenses any Licensed Patent Rights within [***] of effectiveness of each sublicense.

		
	5.
	STATUTORY AND NIH REQUIREMENTS AND RESERVED GOVERNMENT RIGHTS

		
	5.1
	a.    the IC reserves on behalf of the Government an irrevocable, nonexclusive, nontransferable, royalty‐free license for the practice of all inventions licensed under the Licensed Patent Rights throughout the world by or on behalf of the Government and on behalf of any foreign government or international organization pursuant to any existing or future treaty or agreement to which the Government is a signatory.  Prior to the First Commercial Sale,  the Licensee agrees to provide the IC with reasonable quantities of the Licensed Products or materials made through the Licensed Processes for IC research use; and  

		
	b.
	in the event that the Licensed Patent Rights are Subject Inventions made under CRADA, the Licensee grants to the Government, pursuant to 15 U.S.C. §3710a(b)(1)(A), a nonexclusive, nontransferable, irrevocable, paid‐up license to practice the Licensed Patent Rights or have the Licensed Patent Rights practiced throughout the world by or on behalf of the Government.  In the exercise of this license, the Government shall not publicly disclose trade secrets or commercial or financial information that is privileged or confidential within the meaning of 5 U.S.C. §552(b)(4) or which would be considered as such if it had been obtained from a non‐Federal party.  [***].

		
	5.2
	The Licensee agrees that products used or sold in the United States embodying the Licensed Products or produced through use of the Licensed Processes shall be manufactured substantially in the United States, unless a written waiver is obtained in advance from the IC.

		
	5.3
	The Licensee acknowledges that the IC may enter into future CRADAs under the Federal Technology Transfer Act of 1986 that relate to the subject matter of this Agreement.  The Licensee [***] requests for a Research License from future collaborators with the IC when acquiring these rights is necessary in order to make a CRADA project feasible.  The Licensee may request an opportunity to join as a party to the proposed CRADA.

		
	a.
	In addition to the reserved license of Paragraph 5.1, the IC reserves the right to grant Research Licenses directly or to require the Licensee to grant Research Licenses on reasonable terms.  The purpose of these Research Licenses is to encourage basic research, whether conducted at an academic or corporate facility.  In order to safeguard the Licensed Patent Rights, however, the IC shall consult with the Licensee and [***] any objections or comments of the Licensee before granting to commercial entities a Research License or providing to them research samples of materials made through the Licensed Processes; and

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	a.
	In exceptional circumstances, and in the event that the Licensed Patent Rights are Subject Inventions made under a CRADA, the Government, pursuant to 15 U.S.C. §3710a(b)(1)(B), retains the right to require the Licensee to grant to a responsible applicant a nonexclusive, partially exclusive, or exclusive sublicense to use the Licensed Patent Rights in the Licensed Field of Use on terms that are reasonable under the circumstances, or if the Licensee fails to grant this license, the Government retains the right to grant the license itself.  The exercise of these rights by the Government shall only be in exceptional circumstances and only if the Government determines:

		
	i.
	the action is necessary to meet health or safety needs that are not reasonably satisfied by the Licensee;

		
	ii.
	the action is necessary to meet requirements for public use specified by Federal regulations, and these requirements are not reasonably satisfied by the Licensee; or

		
	iii.
	the Licensee has failed to comply with an agreement containing provisions described in 15 U.S.C. §3710a(c)(4)(B);

		
	b.
	the determination made by the Government under this Paragraph 5.4 is subject to administrative appeal and judicial review under 35 U.S.C. §203(b).; and

		
	c.
	The IC acknowledges and agrees that a Research License or other right granted pursuant to this Paragraph 5.3 shall only pertain to the Licensed Patent Rights and shall not include a right or license to any patent or other intellectual property right solely owned or solely controlled by Licensee or its Affiliates other than the Licensed Patent Rights. Without limiting the foregoing, except as expressly provided herein, nothing contained in this Agreement shall be construed as granting, by implication, estoppel or otherwise, any licenses or rights under any patents or other intellectual property rights other than the Licensed Patent Rights.

		
	6.
	ROYALTIES AND REIMBURSEMENT

		
	6.1
	The Licensee agrees to pay the IC a noncreditable, nonrefundable license issue royalty as set forth in Appendix C.

		
	6.2
	The Licensee agrees to pay the IC a nonrefundable minimum annual royalty as set forth in Appendix C.

		
	6.3
	The Licensee agrees to pay the IC earned royalties as set forth in Appendix C.

		
	6.4
	The Licensee agrees to pay the IC benchmark royalties as set forth in Appendix C.

		
	6.5
	The Licensee agrees to pay the IC sublicensing royalties as set forth in Appendix C.

		
	6.6
	A patent or patent application licensed under this Agreement shall cease to fall within the Licensed Patent Rights for the purpose of computing earned royalty payments in any given country on the earliest of the dates that:

		
	a.
	the application has been abandoned and not continued;

A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	b.
	the patent expires or irrevocably lapses, or

		
	c.
	the patent has been held to be invalid or unenforceable by an unappealed or unappealable decision of a court of competent jurisdiction or administrative agency.

		
	6.7
	No multiple royalties shall be payable because any Licensed Products or Licensed Processes are covered by more than one of the Licensed Patent Rights.

		
	6.8
	On sales of the Licensed Products made in other than an arms‐length transaction, the value of the Net Sales attributed under this Article 6 to this transaction shall be that which would have been received in an arms‐length transaction, based on sales of like quantity and quality products on or about the time of this transaction.

		
	6.9
	With regard to unreimbursed expenses associated with the preparation, filing, prosecution, and maintenance of all patent applications and patents included within the Licensed Patent Rights and paid by the IC prior to the effective date of this Agreement, the Licensee shall pay the IC, as an additional royalty, within [***] of the IC’s submission of a statement and request for payment to the Licensee, an amount equivalent to these unreimbursed expenses previously paid by the IC.

		
	6.10
	With regard to unreimbursed expenses associated with the preparation, filing, prosecution, and maintenance of all patent applications and patents included within the Licensed Patent Rights and paid by the IC on or after the effective date of this Agreement, the IC, at its sole option, may require the Licensee:

		
	a.
	to pay the IC [***], within [***] of the IC’s submission of a statement and request for payment, a royalty amount equivalent to a Pro Rata Share of these unreimbursed expenses paid during the previous calendar year(s);

		
	b.
	to pay a Pro Rata Share of these unreimbursed expenses directly to the law firm employed by the IC to handle these functions.  However, in this event, the IC and not the Licensee shall be the client of the law firm; or

		
	c.
	in limited circumstances, the Licensee may be given the right to assume responsibility for the preparation, filing, prosecution, or maintenance of any patent application or patent included with the Licensed Patent Rights.  In that event, the Licensee shall directly pay the attorneys or agents engaged to prepare, file, prosecute, or maintain these patent applications or patents and shall provide the IC with copies of each invoice associated with these services as well as documentation that these invoices have been paid.

		
	6.11
	The IC agrees, upon written request, to provide the Licensee with summaries of patent prosecution invoices for which the IC has requested payment from the Licensee under Paragraphs 6.9 and 6.10.  The Licensee agrees that all information provided by the IC related to patent prosecution costs shall be treated as confidential commercial information and shall not be released to a third party except as required by law or a court of competent jurisdiction.

		
	6.12
	The Licensee may elect to surrender its rights in any country of the Licensed Territory under any of the Licensed Patent Rights upon [***] written notice to the IC and owe no payment obligation under Paragraph 6.10 for patent-related expenses paid in that country after [***] of the effective date of the written notice.

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	7.
	PATENT FILING, PROSECUTION, AND MAINTENANCE

		
	7.1
	Except as otherwise provided in this Article 7, the IC agrees to take responsibility for, but to consult with, the Licensee in the preparation, filing, prosecution, and maintenance of any and all patent applications or patents included in the Licensed Patent Rights and shall furnish copies of relevant patent‐related documents to the Licensee.

		
	7.2
	Upon the IC’s written request, the Licensee shall assume the responsibility for the preparation, filing, prosecution, and maintenance of any and all patent applications or patents included in the Licensed Patent Rights and shall, on an ongoing basis, promptly furnish copies of all patent‐related documents to the IC.  In this event, the Licensee shall, [***], select registered patent attorneys or patent agents to provide these services on behalf of the Licensee and the IC. The IC shall provide appropriate powers of attorney and other documents necessary to undertake this action to the patent attorneys or patent agents providing these services. The Licensee and its attorneys or agents shall consult with the IC in all aspects of the preparation, filing, prosecution and maintenance of patent applications and patents included within the Licensed Patent Rights and shall provide the IC sufficient opportunity to comment on any document that the Licensee intends to file or to cause to be filed with the relevant intellectual property or patent office.

		
	7.3
	At any time, the IC may provide the Licensee with written notice that the IC wishes to assume control of the preparation, filing, prosecution, and maintenance of any and all patent applications or patents included in the Licensed Patent Rights.  If the IC elects to reassume these responsibilities, the Licensee agrees to cooperate fully with the IC, its attorneys, and agents in the preparation, filing, prosecution, and maintenance of any and all patent applications or patents included in the Licensed Patent Rights and to provide the IC with complete copies of any and all documents or other materials that the IC deems necessary to undertake such responsibilities.  [***]

		
	7.4
	Each party shall promptly inform the other as to all matters that come to its attention that may affect the preparation, filing, prosecution, or maintenance of the Licensed Patent Rights and permit each other to provide comments and suggestions with respect to the preparation, filing, prosecution, and maintenance of the Licensed Patent Rights, [***].

		
	8.
	RECORD KEEPING

		
	8.1
	The Licensee agrees to keep accurate and correct records of the Licensed Products made, used, sold, or imported and the Licensed Processes practiced under this Agreement appropriate to determine the amount of royalties due the IC.  These records shall be retained for at least [***] following a given reporting period and shall be available during normal business hours for inspection, at the expense of the IC, by an accountant or other designated auditor selected by the IC for the sole purpose of verifying reports and royalty payments hereunder.  The accountant or auditor shall only disclose to the IC information relating to the accuracy of reports and royalty payments made under this Agreement.  If an inspection shows an underreporting or underpayment in excess of [***] for any [***] period, then the Licensee shall reimburse the IC for the cost of the inspection at the time the Licensee pays the unreported royalties, including any additional royalties as required by Paragraph 9.8.  All royalty payments required under this Paragraph shall be due within [***] of the date the IC provides to the Licensee notice of the payment due.

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	9.
	REPORTS ON PROGRESS, BENCHMARKS, SALES, AND PAYMENTS

		
	9.1
	Prior to signing this Agreement, the Licensee has provided the IC with the Commercial Development Plan in Appendix E, under which the Licensee intends to bring the subject matter of the Licensed Patent Rights to the point of Practical Application.  This Commercial Development Plan is hereby incorporated by reference into this Agreement.  Based on this plan, performance Benchmarks are determined as specified in Appendix D.

		
	9.2
	The Licensee shall provide written annual reports on its product development progress or efforts to commercialize under the Commercial Development Plan for each of the Licensed Fields of Use within [***] after December 31 of each calendar year.  These progress reports shall include, but not be limited to: progress on research and development, status of applications for regulatory approvals, manufacture and status of sublicensing, marketing, importing, and sales during the preceding calendar year, as well as, plans for the present calendar year.  The IC also encourages these reports to include information on any of the Licensee's public service activities that relate to the Licensed Patent Rights.  If reported progress differs from that projected in the Commercial Development Plan and Benchmarks, the Licensee shall explain the reasons for these differences.  In the annual report, the Licensee may propose amendments to the Commercial Development Plan, [***].  The Licensee agrees to provide any additional information reasonably required by the IC to evaluate the Licensee's performance under this Agreement.  The Licensee may amend the Benchmarks at any time upon written approval by the IC. The IC [***] of any request of the Licensee to extend the time periods of this schedule [***].  The Licensee shall amend the Commercial Development Plan and Benchmarks at the request of the IC to address any Licensed Fields of Use not specifically addressed in the plan originally submitted.

		
	9.3
	The Licensee shall report to the IC the dates for achieving Benchmarks specified in Appendix D and the First Commercial Sale in each country in the Licensed Territory within [***] of such occurrences.

		
	9.4
	The Licensee shall submit to the IC, within [***] after each [***], a royalty report, as described in the example in Appendix F, setting forth for the preceding [***] the amount of the Licensed Products sold or Licensed Processes practiced by or on behalf of the Licensee in each country within the Licensed Territory, the Net Sales, and the amount of royalty accordingly due.  With each royalty report, the Licensee shall submit payment of earned royalties due.  If no earned royalties are due to the IC for any reporting period, the written report shall so state.  The royalty report shall be certified as correct by an authorized officer of the Licensee and shall include a detailed listing of all deductions made under Paragraph 2.15 to determine Net Sales made under Article 6 to determine royalties due.  The royalty report shall also identify the site of manufacture for the Licensed Product(s) sold in the United States.

		
	9.5
	The Licensee agrees to forward [***] to the IC a copy of these reports received by the Licensee from its sublicensees during the preceding [***] as shall be pertinent to a royalty accounting to the IC by the Licensee for activities under the sublicense.

		
	9.6
	Royalties due under Article 6 shall be paid in U.S. dollars and payment options are listed in Appendix G.  For conversion of foreign currency to U.S. dollars, the conversion rate shall be the [***].  Any loss of exchange, value, taxes, or other expenses incurred in the transfer or conversion to U.S. dollars shall be paid entirely by the Licensee.  The royalty report required by Paragraph 9.4 shall be mailed to the IC at its address for Agreement Notices indicated on the Signature Page.

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	9.7
	The Licensee shall be solely responsible for determining if any tax on royalty income is owed outside the United States and shall pay the tax and be responsible for all filings with appropriate agencies of foreign governments.

		
	9.8
	Additional royalties may be assessed by the IC on any payment that is more than [***] overdue at the rate of [***].  This [***] rate may be [***].  The payment of any additional royalties shall not prevent the IC from exercising any other rights it may have as a consequence of the lateness of any payment.

		
	9.9
	All plans and reports required by this Article 9 and marked “confidential” by the Licensee shall, to the extent permitted by law, be treated by the IC as commercial and financial information obtained from a person and as privileged and confidential, and any proposed disclosure of these records by the IC under the Freedom of Information Act (FOIA), 5 U.S.C. §552 shall be subject to the predisclosure notification requirements of 45 C.F.R. §5.65(d).

		
	10.
	PERFORMANCE

		
	10.1
	The Licensee shall use Commercially Reasonable Efforts to bring the Licensed Products and the Licensed Processes to Practical Application to perform the activities set forth in the Commercial Development Plan in Appendix E and performance of the Benchmarks in Appendix D.  The efforts of a sublicensee or Affiliate shall be considered the efforts of the Licensee.

		
	10.2
	Upon the First Commercial Sale, until the expiration or termination of this Agreement, the Licensee shall use Commercially Reasonable Efforts to make the Licensed Products and the Licensed Processes reasonably accessible to the United States public.

		
	10.3
	The Licensee agrees, after its First Commercial Sale, to make reasonable quantities of the Licensed Products or materials produced through the use of the Licensed Processes available to patient assistance programs.

		
	10.4
	The Licensee agrees, after its First Commercial Sale and as part of its marketing and product promotion, to develop educational materials (e.g., brochures, website, etc.) directed to patients and physicians detailing the Licensed Products or medical aspects of the prophylactic and therapeutic uses of the Licensed Products.

		
	10.5
	The Licensee agrees to supply, to the Mailing Address for Agreement Notices indicated on the Signature Page, the Office of Technology Transfer, NIH with inert samples of the Licensed Products or the Licensed Processes or their packaging for educational and display purposes only.

		
	11.
	INFRINGEMENT AND PATENT ENFORCEMENT

		
	11.1
	The IC and the Licensee agree to notify each other promptly of each infringement or possible infringement of the Licensed Patent Rights, as well as, any facts which may affect the validity, scope, or enforceability of the Licensed Patent Rights of which either party becomes aware.

		
	11.2
	Pursuant to this Agreement and the provisions of 35 U.S.C. Chapter 29, the Licensee may:

		
	a.
	bring suit in its own name, at its own expense, and on its own behalf for infringement of presumably valid claims in the Licensed Patent Rights;

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	b.
	in any suit, enjoin infringement and collect for its use, damages, profits, and awards of whatever nature recoverable for the infringement; or

		
	c.
	settle any claim or suit for infringement of the Licensed Patent Rights [***]; and

		
	d.
	if the Licensee desires to initiate a suit for patent infringement, the Licensee shall notify the IC in writing.  If the IC does not notify the Licensee of its intent to pursue legal action within [***], the Licensee shall be free to initiate suit.  The IC shall have a continuing right to intervene in the suit.  The Licensee shall take no action to compel the Government either to initiate or to join in any suit for patent infringement.  The Licensee may request the Government to initiate or join in any suit if necessary to avoid dismissal of the suit. Should the Government be made a party to any suit, the Licensee shall [***].  In all cases, the Licensee agrees to keep the IC reasonably apprised of the status and progress of any litigation.  Before the Licensee commences an infringement action, the Licensee shall notify the IC and [***].

		
	11.3
	In the event that a declaratory judgment action alleging invalidity or non‐infringement of any of the Licensed Patent Rights shall be brought against the Licensee or raised by way of counterclaim or affirmative defense in an infringement suit brought by the Licensee under Paragraph 11.2, pursuant to this Agreement and the provisions of 35 U.S.C. Chapter 29 or other statutes, the Licensee may:

		
	a.
	defend the suit in its own name, at its own expense, and on its own behalf for presumably valid claims in the Licensed Patent Rights;

		
	b.
	in any suit, ultimately to enjoin infringement and to collect for its use, damages, profits, and awards of whatever nature recoverable for the infringement; and

		
	c.
	settle any claim or suit for declaratory judgment involving the Licensed Patent Rights-[***] and shall have a continuing right to intervene in the suit; and

		
	d.
	if the IC does not notify the Licensee of its intent to respond to the legal action within [***], the Licensee shall be free to do so.  The Licensee shall take no action to compel the Government either to initiate or to join in any declaratory judgment action.  The Licensee may request the Government to initiate or to join any suit if necessary to avoid dismissal of the suit.  Should the Government be made a party to any suit by motion or any other action of the Licensee, the Licensee shall [***].  If the Licensee elects not to defend against the declaratory judgment action, the IC, at its option, may do so at its own expense.  In all cases, the Licensee agrees to keep the IC reasonably apprised of the status and progress of any litigation.  Before the Licensee commences an infringement action, the Licensee shall notify the IC and [***].

		
	11.4
	In any action under Paragraphs 11.2 or 11.3 [***].  The value of any recovery made by the Licensee through court judgment or settlement shall, [***].

		
	11.5
	The IC shall cooperate fully with the Licensee in connection with any action under Paragraphs 11.2 or 11.3.  The IC agrees promptly to provide access to all necessary documents and to render reasonable assistance in response to a request by the Licensee.

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	12.
	NEGATION OF WARRANTIES AND INDEMNIFICATION

		
	12.1
	The IC offers no warranties other than those specified in Article 1.

		
	12.2
	The IC does not warrant the validity of the Licensed Patent Rights and makes no representations whatsoever with regard to the scope of the Licensed Patent Rights, or that the Licensed Patent Rights may be exploited without infringing other patents or other intellectual property rights of third parties.

		
	12.3
	THE IC MAKES NO WARRANTIES, EXPRESS OR IMPLIED, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY SUBJECT MATTER DEFINED BY THE CLAIMS OF THE LICENSED PATENT RIGHTS OR TANGIBLE MATERIALS RELATED THERETO.

		
	12.4
	The IC does not represent that it shall commence legal actions against third parties infringing the Licensed Patent Rights.

		
	12.5
	The Licensee shall indemnify and hold the IC, its employees, students, fellows, agents, and consultants harmless from and against all liability, demands, damages, expenses, and losses, including but not limited to death, personal injury, illness, or property damage in connection with or arising out of:

		
	a.
	the use by or on behalf of the Licensee, its sublicensees, directors, employees, or third parties of any Licensed Patent Rights; or

		
	b.
	the design, manufacture, distribution, or use of any Licensed Products, Licensed Processes or materials by the Licensee, or other products or processes developed in connection with or arising out of the Licensed Patent Rights.

		
	12.6
	The Licensee agrees to maintain a liability insurance program consistent with sound business practice.

		
	13.
	TERM, TERMINATION, AND MODIFICATION OF RIGHTS

		
	13.1
	This Agreement is effective when signed by all parties, unless the provisions of Paragraph 14.16 are not fulfilled, and shall extend to the expiration of the last to expire of the Licensed Patent Rights unless sooner terminated as provided in this Article 13.

		
	13.2
	In the event that the Licensee is in default in the performance of any material obligations under this Agreement, including but not limited to the obligations listed in Paragraph 13.5, and if the default has not been remedied within ninety (90) days after the date of notice in writing of the default, the IC may terminate this Agreement by written notice and pursue outstanding royalties owed through procedures provided by the Federal Debt Collection Act.

		
	13.3
	In the event that the Licensee becomes insolvent, files a petition in bankruptcy, has such a petition filed against it, determines to file a petition in bankruptcy, or receives notice of a third party's intention to file an involuntary petition in bankruptcy, the Licensee shall immediately notify the IC in writing.

		
	13.4
	The Licensee shall have a unilateral right to terminate this Agreement or any licenses in any country or territory by giving the IC sixty (60) days written notice to that effect.

A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	13.5
	The IC shall specifically have the right to terminate or modify, at its option, this Agreement, if the IC determines that the Licensee:

		
	a.
	is not executing the Commercial Development Plan submitted with its request for a license and the Licensee cannot otherwise demonstrate to the IC’s satisfaction that the Licensee has taken, or can be expected to take within a reasonable time, effective steps to achieve the Practical Application of the Licensed Products or the Licensed Processes;

		
	b.
	has not achieved the Benchmarks as may be modified under Paragraph 9.2;

		
	c.
	has willfully made a false statement of, or willfully omitted a material fact in the license application or in any report required by this Agreement;

		
	d.
	has committed a material breach of a covenant or agreement contained in this Agreement;

		
	e.
	is not keeping the Licensed Products or the Licensed Processes reasonably available to the public after commercial use commences;

		
	f.
	cannot reasonably satisfy unmet health and safety needs; or

		
	g.
	cannot reasonably justify a failure to comply with the domestic production requirement of Paragraph 5.2 unless waived.

		
	13.6
	In making the determination referenced in Paragraph 13.5, the IC shall take into account the normal course of such commercial development programs conducted with sound and reasonable business practices and judgment and the annual reports submitted by the Licensee under Paragraph 9.2.  Prior to invoking termination or modification of this Agreement under Paragraph 13.5, the IC shall give written notice to the Licensee providing the Licensee specific notice of, and a ninety (90) day opportunity to respond to, the IC’s concerns as to the items referenced in 13.5(a)-13.5(g).  If the Licensee fails to alleviate the IC’s concerns as to the items referenced in 13.5(a)-13.5(g) or fails to initiate corrective action to the IC’s satisfaction, the IC may terminate this Agreement.

		
	13.7
	When the public health and safety so require, and after written notice to the Licensee providing the Licensee a [***] opportunity to respond, the IC shall have the right to require the Licensee to grant sublicenses to responsible applicants, on reasonable terms, in any Licensed Fields of Use under the Licensed Patent Rights, unless the Licensee can reasonably demonstrate that the granting of the sublicense would not materially increase the availability to the public of the subject matter of the Licensed Patent Rights.  The IC shall not require the granting of a sublicense unless the responsible applicant has first negotiated in good faith with the Licensee.

		
	13.8
	The IC reserves the right according to 35 U.S.C. §209(d)(3) to terminate or modify this Agreement if it is determined that this action is necessary to meet the requirements for public use specified by federal regulations issued after the date of the license and these requirements are not reasonably satisfied by the Licensee.

		
	13.9
	Within [***] of receipt of written notice of the IC’s unilateral decision to modify or terminate this Agreement, the Licensee may, consistent with the provisions of 37 C.F.R. §404.11, appeal the decision by written submission to the designated IC official or designee.  The decision of the designated IC official or designee shall be the final agency decision.  The Licensee may thereafter exercise any and all administrative or judicial remedies that may be accessible.

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	13.10
	Within [***] of expiration or termination of this Agreement under this Article 13, a final report shall be submitted by the Licensee.  Any royalty payments, including those incurred but not yet paid (such as the full minimum annual royalty), and those related to patent expenses, due to the IC shall [***].  If terminated under this Article 13, sublicensees may elect to convert their sublicenses to direct licenses with the IC pursuant to Paragraph 4.3.  Unless otherwise specifically provided for under this Agreement, upon termination or expiration of this Agreement, the Licensee shall return all Licensed Products or other materials included within the Licensed Patent Rights to the IC or provide the IC with certification of the destruction thereof.  The Licensee may not be granted additional IC licenses if the final reporting requirement is not fulfilled.

		
	14.
	GENERAL PROVISIONS

		
	14.1
	Neither party may waive or release any of its rights or interests in this Agreement except in writing.  The failure of the Government to assert a right hereunder or to insist upon compliance with any term or condition of this Agreement shall not constitute a waiver of that right by the Government or excuse a similar subsequent failure to perform any of these terms or conditions by the Licensee.

		
	14.2
	This Agreement constitutes the entire agreement between the parties relating to the subject matter of the Licensed Patent Rights, the Licensed Products and the Licensed Processes, and all prior negotiations, representations, agreements, and understandings are merged into, extinguished by, and completely expressed by this Agreement.

		
	14.3
	The provisions of this Agreement are severable, and in the event that any provision of this Agreement shall be determined to be invalid or unenforceable under any controlling body of law, this determination shall not in any way affect the validity or enforceability of the remaining provisions of this Agreement.

		
	14.4
	If either party desires a modification to this Agreement, the parties shall, upon reasonable notice of the proposed modification by the party desiring the change, confer in good faith to determine the desirability of the modification.  No modification shall be effective until a written amendment is signed by the signatories to this Agreement or their designees.

		
	14.5
	The construction, validity, performance, and effect of this Agreement shall be governed by Federal law as applied by the Federal courts in the District of Columbia.

		
	14.6
	All Agreement notices required or permitted by this Agreement shall be given by prepaid, first class, registered or certified mail or by an express/overnight delivery service provided by a commercial carrier, properly addressed to the other party at the address designated on the following Signature Page, or to another address as may be designated in writing by the other party. Agreement notices shall be considered timely if the notices are received on or before the established deadline date or sent on or before the deadline date as verifiable by U.S. Postal Service postmark or dated receipt from a commercial carrier.  Parties should request a legibly dated U.S. Postal Service postmark or obtain a dated receipt from a commercial carrier or the U.S. Postal Service.  Private metered postmarks shall not be acceptable as proof of timely mailing.

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	14.7
	This Agreement shall not be assigned or otherwise transferred (including any transfer by legal process or by operation of law, and any transfer in bankruptcy or insolvency, or in any other compulsory procedure or order of court) except to the Licensee’s Affiliate(s) without the prior written consent of the IC.  The parties agree that the identity of the parties is material to the formation of this Agreement and that the obligations under this Agreement are nondelegable.  In the event that the IC approves a proposed assignment, the Licensee shall [***].

		
	14.8
	The Licensee agrees in its use of any IC‐supplied materials to comply with all applicable statutes, regulations, and guidelines, including NIH and HHS regulations and guidelines.  The Licensee agrees not to use the materials for research involving human subjects or clinical trials in the United States without complying with 21 C.F.R. Part 50 and 45 C.F.R. Part 46.  The Licensee agrees not to use the materials for research involving human subjects or clinical trials outside of the United States without notifying the IC, in writing, of the research or trials and complying with the applicable regulations of the appropriate national control authorities.  Written notification to the IC of research involving human subjects or clinical trials outside of the United States shall be given no later than [***] prior to commencement of the research or trials.

		
	14.9
	The Licensee acknowledges that it is subject to and agrees to abide by the United States laws and regulations (including the Export Administration Act of 1979 and Arms Export Control Act) controlling the export of technical data, computer software, laboratory prototypes, biological material, and other commodities.  The transfer of these items may require a license from the appropriate agency of the U.S. Government or written assurances by the Licensee that it shall not export these items to certain foreign countries without prior approval of this agency.  The IC neither represents that a license is or is not required or that, if required, it shall be issued.

		
	14.10
	The Licensee agrees to mark the Licensed Products or their packaging sold in the United States with all applicable U.S. patent numbers and similarly to indicate “Patent Pending” status.  All the Licensed Products manufactured in, shipped to, or sold in other countries shall be marked in a manner to preserve the IC’s patent rights in those countries.

		
	14.11
	By entering into this Agreement, the IC does not directly or indirectly endorse any product or service provided, or to be provided, by the Licensee whether directly or indirectly related to this Agreement.  The Licensee shall not state or imply that this Agreement is an endorsement by the Government, the IC, any other Government organizational unit, or any Government employee.  Additionally, the Licensee shall not use the names of the IC, the FDA or the HHS or the Government or their employees in any advertising, promotional, or sales literature without the prior written approval of the IC.

		
	14.12
	The parties agree to attempt to settle amicably any controversy or claim arising under this Agreement or a breach of this Agreement, except for appeals of modifications or termination decisions provided for in Article 13.  The Licensee agrees first to appeal any unsettled claims or controversies to the designated IC official, or designee, whose decision shall be considered the final agency decision.  Thereafter, the Licensee may exercise any administrative or judicial remedies that may be available.

		
	14.13
	Nothing relating to the grant of a license, nor the grant itself, shall be construed to confer upon any person any immunity from or defenses under the antitrust laws or from a charge of patent misuse, and the acquisition and use of rights pursuant to 37 C.F.R. Part 404 shall not be immunized from the operation of state or Federal law by reason of the source of the grant.

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	14.14
	Any formal recordation of this Agreement required by the laws of any Licensed Territory as a prerequisite to enforceability of the Agreement in the courts of any foreign jurisdiction or for other reasons shall be carried out by the Licensee at its expense, and appropriately verified proof of recordation shall be promptly furnished to the IC.

		
	14.15
	Paragraphs 4.3, 8.1, 9.5-9.9, 12.1-12.5, 13.9, 13.10, 14.12 and 14.15 of this Agreement shall survive termination of this Agreement.

		
	14.16
	The terms and conditions of this Agreement shall, at the IC’s sole option, be considered by the IC to be withdrawn from the Licensee’s consideration and the terms and conditions of this Agreement, and the Agreement itself to be null and void, unless this Agreement is executed by the Licensee and a fully executed original is received by the IC within [***] from the date of the IC’s signature found at the Signature Page.

SIGNATURES BEGIN ON NEXT PAGE

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

NIH PATENT LICENSE AGREEMENT - EXCLUSIVE
SIGNATURE PAGE
For the IC:
/s/ Richard U. Rodriguez                                4-14-17    
Richard U. Rodriguez, M.B.A.                            Date
Associate Director
Technology Transfer Center
National Cancer Institute

Mailing Address or E-mail Address for Agreement notices and reports:
License Compliance and Administration
Monitoring & Enforcement
Office of Technology Transfer
National Institutes of Health
6011 Executive Boulevard, Suite 325
Rockville, Maryland  20852-3804 U.S.A.
E-mail: [***]
For the Licensee (Upon, information and belief, the undersigned expressly certifies or affirms that the contents of any statements of the Licensee made or referred to in this document are truthful and accurate.):
by:
/s/ Werner Caultreels, Ph.D.                            4-27-17    
Signature of Authorized Official                            Date
Werner Cautreels, Ph.D.    
Printed Name
CEO and Chairman    
Title
		
	I.
	Official and Mailing Address for Agreement notices:

David Abraham
General Counsel
Selecta Biosciences
480 Arsenal Street, Building One
Watertown, MA 02472
Phone: (617) 923-1400
E-mail: [***]

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

		
	II.
	Official and Mailing Address for Financial notices (the Licensee’s contact person for royalty payments)

David Siewers
Selecta Biosciences
480 Arsenal Street, Building One
Watertown, MA 02472
Phone: (617) 923-1400
E-mail: [***]

Any false or misleading statements made, presented, or submitted to the Government, including any relevant omissions, under this Agreement and during the course of negotiation of this Agreement are subject to all applicable civil and criminal statutes including Federal statutes 31 U.S.C. §§3801-3812 (civil liability) and 18 U.S.C. §1001 (criminal liability including fine(s) or imprisonment).

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

APPENDIX A - Patent(s) or Patent Application(s)
Patent(s) or Patent Application(s):
Group A (Exclusive Rights)
[***]

Group B (Non-exclusive Rights)
[***]

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

APPENDIX B - Licensed Fields of Use and Territory
		
	I.
	Licensed Fields of Use:

The use of anti-mesothelin targeted immunotoxins for the treatment of mesothelin-expressing cancers, [***].
For purposes of clarity, the immunotoxin [***].
		
	II.
	Licensed Territory:

Worldwide

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

APPENDIX C - Royalties
Royalties:
		
	I.
	The Licensee agrees to pay to the IC a noncreditable, nonrefundable license issue royalty in the amount of fifty thousand dollars ($50,000.00) within [***] from the effective date of this Agreement.

		
	II.
	The Licensee agrees to pay to the IC a nonrefundable minimum annual royalty in the amount of [***] as follows:

		
	(a)
	The first minimum annual royalty is due within [***] of the effective date of this Agreement and may be [***]; and

		
	(b)
	Subsequent minimum annual royalty payments are due and payable on [***] of each calendar year and may be credited against any earned royalties due for sales made in that year.

		
	III.
	The Licensee agrees to pay the IC earned royalties of [***] on Net Sales by or on behalf of the Licensee and its sublicensees.

		
	IV.
	Licensee agrees to pay NIH Benchmark royalties within [***] of achieving each Benchmark set forth below.

		
	(a)
	Benchmark #1- The first to occur of:

		
	(1)
	[***] upon the [***], or 

		
	(2)
	[***] within [***];

		
	(b)
	Benchmark #2- The first to occur of:

		
	(1)
	[***] upon the [***], or 

		
	(2)
	[***] within [***];

		
	(c)
	Benchmark #3- [***] upon the [***];

		
	(d)
	Benchmark #4- [***] upon the [***].

		
	V.
	Licensee agrees to pay NIH additional sublicensing royalties in the following manner:

		
	(a)
	For sublicenses granted [***], a sublicensing royalty in the amount of [***] on the fair market value of any consideration received for each sublicense is due no later than [***] after Licensee receives the consideration for each sublicense;

		
	(b)
	For sublicenses granted [***], a sublicensing royalty in the amount of [***] on the fair market value of any consideration received for each sublicense is due no later than [***] after Licensee receives the consideration for each sublicense; and

		
	(c)
	For sublicenses granted [***], a sublicensing royalty in the amount of [***] on the fair market value of any consideration received for each sublicense is due no later than [***] after Licensee receives the consideration for each sublicense.

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

APPENDIX D - Benchmarks and Performance
The Licensee agrees to the following Benchmarks for its performance under this Agreement and, within [***] of achieving a Benchmark, shall notify the IC that the Benchmark has been achieved.
		
	I.
	[***]        [***]

		
	II.
	[***]        [***]

		
	III.
	[***]        [***]

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

APPENDIX E - Commercial Development Plan
The content of commercial development plan set forth in the document below is incorporated by reference.

[***]

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

Appendix F - Example Royalty Report
Required royalty report information includes:
		
	•
	License reference number (L-XXX-200X/0)

		
	•
	Reporting period

		
	•
	Catalog number and units sold of each Licensed Product (domestic and foreign)

		
	•
	Gross Sales per catalog number per country

		
	•
	Total Gross Sales

		
	•
	Itemized deductions from Gross Sales

		
	•
	Total Net Sales

		
	•
	Earned Royalty Rate and associated calculations

		
	•
	Gross Earned Royalty

		
	•
	Adjustments for Minimum Annual Royalty (MAR) and other creditable payments made

		
	•
	Net Earned Royalty due

Example
	
					
	Catalog Number
	Product Name
	Country
	Units Sold
	Gross Sales (US$)

	1
	A
	US
	250
	62,500

	1
	A
	UK
	32
	16,500

	1
	A
	France
	25
	15,625

	2
	B
	US
	0
	0

	3
	C
	US
	57
	57,125

	4
	D
	US
	12
	1,500

  	
				
	Total Gross Sales
	 
	153,250

	Less Deductions:
	 
	 

	Freight
	 
	3,000

	Returns
	 
	7,000

	Total Net Sales
	 
	143,250

	 
	 
	 

	Royalty Rate
	 
	8
	%

	Royalty Due
	 
	11,460

	Less Creditable Payments
	 
	10,000

	Net Royalty Due
	 
	1,460

A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]

Appendix G - Royalty Payment Options

The License Number MUST appear on payments, reports and correspondence.

Credit and Debit Card Payments

Credit and debit card payments can be submitted for amounts up to $29,999.  Submit your payment through the U.S. Treasury web site located at:  https://www.pay.gov/public/form/start/28680443.  

Automated Clearing House (ACH) for payments through U.S. banks only 

The IC encourages its licensees to submit electronic funds transfer payments through the Automated Clearing House (ACH). Submit your ACH payment through the U.S. Treasury web site located at: https://www.pay.gov/public/form/start/28680443.    Please note that the IC “only” accepts ACH payments through this U.S. Treasury web site.  

Electronic Funds Wire Transfers 

The following account information is provided for wire payments.  In order to process payment via Electronic Funds Wire Transfer sender MUST supply the following information within the transmission:

[***]

Drawn on a foreign bank account should be sent directly to the following account.  Payment must be sent in U.S. Dollars (USD) using the following instructions:

[***]

Checks

All checks should be made payable to “NIH Patent Licensing”

Checks drawn on a U.S. bank account and sent by US Postal Service should be sent directly to the following address:

National Institutes of Health
P.O. Box 979071
St. Louis, MO 63197-9000

Checks drawn on a U.S. bank account and sent by overnight or courier should be sent to the following address:

[***]

Checks drawn on a foreign bank account should be sent directly to the following address: 

National Institutes of Health
Office of Technology Transfer
License Compliance and Administration
Royalty Administration
6011 Executive Boulevard
Suite 325, MSC 7660
Rockville, Maryland 20852

[***]  Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. 
Confidential treatment has been requested with respect to the omitted portions.
A-035-2017
CONFIDENTIAL
NIH Patent License Agreement--Exclusive    
Model 10-2015 [Final]    [Selecta Biosciences]    [3 April 2017]ex10-1.htm

 

Exhibit 10.1

 

EXECUTIVE SEVERANCE AGREEMENT

 

 

This Executive Severance Agreement (“Agreement”) is hereby entered into as of May 5, 2017 by and between ENSERVCO CORPORATION (the “Company”) and RICK D. KASCH (the “Executive”), who are collectively referred to herein as the “Parties” and each as a “Party.” 

 

WHEREAS, Executive is employed as President and Chief Executive Officer of the Company pursuant to an Employment Agreement between the Parities entered into effective June 22, 2016 (“Employment Agreement”) and is a member of the Company’s Board of Directors. The Employment Agreement provides for certain benefits and compensation to be paid to the Executive upon termination of his employment. The Company has contemplated termination of the Executive. The Executive and the Company desire to resolve all potential claims of the Executive under the Employment Agreement and the Executive is willing to resign his positions with the Company and its subsidiaries effective on June 30, 2017, although Executive is willing to resign as President, CEO, and as a member of the Company’s Board of Directors sooner should he be requested to do so by the Board of Directors; and

 

WHEREAS, the Executive is willing to facilitate the transition to a new person serving as President and CEO of the Company during the remaining term of the Executive’s employment and as a consultant thereafter; and

 

WHEREAS, Company desires to provide Executive with certain modified severance payments and benefits in recognition of Executive’s service and contributions to the Company and to settle, fully and finally, all matters between them.

 

THEREFORE, in consideration of the terms and promises made in this Agreement, and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

1.     Termination of Executive. Executive’s employment with the Company shall terminate pursuant to the terms of this Agreement, including, but not limited to, his positions as Chief Executive Officer and President and as member of the Company’s Board of Directors, as well as from any officer of director position with any subsidiary of the Company, effective May 31, 2017 (“Salary Termination Date”) but will continue to serve as a consultant to the Company until June 30, 2017 (the “Separation Date”). The parties intend and agree that such termination is involuntary and constitutes an “Involuntary Separation from Service” as defined in Treasury Regulation § 1.409A-1(n). At the request of the Board of Directors, the Executive will resign as President, Chief Executive Officer, and as a member of the Company’s Board of Directors prior to the Salary Termination Date.

  

2.     Executive’s Compensation. In lieu of and in settlement of the amounts due to Executive under the Employment Agreement, the Company agrees to pay and provide to Executive the following amounts and benefits:

 

(a)     Accrued Salary and Benefits. The Company shall pay Executive his base salary through May 31, 2017 in accordance with the normal schedule for such payment subject to the Executive’s agreement that such salary shall be reduced to 50% of his base salary effective May 5, 2017, on which date, pursuant to the Board of Directors’ request, Executive hereby resigns as an officer and director of the Company and its subsidiaries. On the next regular payday of the Company following the Salary Termination Date, Executive shall be paid any remaining balance of the accrued and unpaid amount of his reduced base salary, together with benefits, including unused vacation days (which amount to $25,044.78) and expense reimbursements which are then due and payable under the Employment Agreement. This payment shall be paid regardless of the Executive’s right to revoke this Agreement under Section 15, below.

 

 

1

 

 

(b)     Severance Benefits. If Executive does not exercise his right to revoke this Agreement under Section 15 below, Executive shall receive the following severance payments (“Severance Benefits”), subject to appropriate employer and employee withholding by the Company as contemplated in Section 3 below, all of such payments to be treated as “wages” as defined in C.R.S. § 8-4-101(14)(a) notwithstanding § 8-4-101(14)(b):

  

	 	
(i)
	
Payment to Executive of $391,000 as follows: (1) an initial payment in the amount of $120,000 on the Salary Termination Date and (2) the balance of $271,000 payable in 11 equal monthly installments of $24,636.36 commencing on July 1, 2017 with a final installment of the balance then due on June 1, 2018; and 

 

	 	
(ii)
	
A bonus payment of $120,000 on or before April 1, 2018. 

 

	 	
(iii)
	
Automobile allowance pursuant to Section 5(a)(i) of the Employment Agreement in the amount of $25,199.85 on the first payday following the Separation Date;

 

	 	
(iv)
	
Health care benefits pursuant to Section 5(a)(ii) of the Employment Agreement in the amount of $18,793.71 (not including vision, dental and life insurance which the Company will continue for the Executive for 18 months following the Separation Date) on the first payday following the Separation Date; 

 

	 	
(v)
	
401(k) matching benefit which would be based on the remaining salary and bonus amounts pursuant to Section 5(a) of the Employment Agreement in the amount of $21,839.48 on the first payday following the Separation Date.

 

(c)     Stock Options. Executive holds certain stock options to purchase shares of the Company’s common stock pursuant to the Company’s 2010 Stock Incentive Plan (the “2010 Plan”) and the Replacement Grant that is subject to a new stock incentive plan (the “2016 Plan”) as described in that certain Recession of Excess Option Grants and Grant of New Option Agreements (all of which are referred to herein as the “Option Agreement”) between the Parties dated July 18, 2016. All non-vested stock options held by Executive will immediately vest on the Separation Date and (in accordance with the agreements establishing such options) Executive will have three months from and after the Separation Date to exercise his options in accordance with the applicable Option Agreements between the Parties.

 

(d)     Change of Control. In the event of a Change of Control (as defined in the Employment Agreement), all unpaid obligations to be paid under paragraphs 2(a) or 2(b) will be payable to Executive immediately before the completion of such transaction, and such payment will be subject to the provisions of Section 3, below.

 

3.     Tax Liability. The parties agree that the severance payments as described in Sections 2(a) and 2(b) are employee compensation for the purposes of the Internal Revenue Code, and the Company will make all appropriate employee and employer withholdings relating thereto and report the severance payment on IRS Form W-2. Company will have the right to deduct from any compensation payable to Executive under this Agreement all federal, state and local income taxes, social security taxes and such other mandatory deductions normally deducted from the Executive’s compensation (that is, the Company will not deduct from Executive’s compensation the employer’s share of FICA, FUTA, Medicaid, etc.) as may now be in effect or may be enacted or required after the Effective Date of this Agreement. 

 

 

2

 

 

4.     Section 409A. The parties believe that this Agreement, and the manner and timing of payments, benefits and amounts to be deferred hereunder are exempt from the requirements and provisions of Section 409A of the Code pursuant to the exemptions thereunder, including, but not limited to the short term deferral and payment exemption under Treasury Regulation § 1.409A-1(b)(4)(i) and/or the payment limitations applicable under Treasury Regulation § 1.409A-1(b)(9)(iii) applicable to involuntary terminations, or other applicable exemptions. Each installment payment of salary, compensation, bonuses or other amounts to Executive hereunder, vesting of stock options, or other benefit shall be treated as a separate payment for purposes of Section 409A of the Code and the exemptions thereunder and the parties intend that such exemptions apply to exempt all or as much of the payments to be made to Executive hereunder from Section 409A. Notwithstanding any other provision of this Agreement to the contrary, the provision, time and manner of payment or distribution of all compensation and benefits provided by this Agreement that constitute nonqualified deferred compensation subject to and not exempted from the requirements of Section 409A of the Code (“Section 409A Deferred Compensation”) shall be subject to, limited by and construed in accordance with the requirements of Section 409A of the Code and all regulations and other guidance promulgated by the Secretary of the Treasury pursuant to such Section (such Section, regulations and other guidance being referred to herein as “Section 409A”), including the following: 

 

(a)     Separation from Service. Payments and benefits constituting Section 409A Deferred Compensation otherwise payable or provided pursuant to Section 2(b) upon the Executive’s termination of employment shall be paid or provided only at the time of a termination of the Executive’s employment that constitutes a Separation from Service. For the purposes of this Agreement, a “Separation from Service” is a separation from service within the meaning of Treasury Regulation Section 1.409A-1(h). 

 

(b)     Six-Month Delay. If, at the time of a Separation from Service of the Executive, the Executive is a “Specified Employee” within the meaning of Section 409A(a)(2)(B)(i) (a “Specified Employee”), then any payments and benefits constituting Section 409A Deferred Compensation to be paid or provided pursuant to Section 2(b) upon the Separation from Service of the Executive shall be paid or provided commencing on the later of (i) the date that is six months after the date of such Separation from Service or, if earlier, the date of death of the Executive (in either case, the “Delayed Payment Date”), or (ii) the date or dates on which such Section 409A Deferred Compensation would otherwise be paid or provided in accordance with Section 2(a). All such amounts that would, but for this Section 4(b), become payable prior to the Delayed Payment Date shall be accumulated and paid on the Delayed Payment Date. 

 

(c)     Stock-Based Awards. The vesting of any stock-based compensation awards which constitute Section 409A Deferred Compensation and are held by the Executive, if the Executive is a Specified Employee, shall be accelerated in accordance with this Agreement to the extent applicable; provided, however, that the payment in settlement of any such awards shall occur on the Delayed Payment Date. 

 

(d)     Installments. Executive’s right to receive any installment payments payable hereunder shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at all times be considered a separate and distinct payment for purposes of Section 409A. 

  

 

3

 

 

(e)     Reimbursements. To the extent that any reimbursements payable to Executive pursuant to this Agreement are subject to the provisions of Section 409A, such reimbursements shall be paid to Executive no later than December 31 of the year following the year in which the cost was incurred; the amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year; and Executive’s right to reimbursement under this Agreement will not be subject to liquidation or exchange for another benefit.

 

5.     Section 280G Safe Harbor Cap. If it shall be determined that any payment or distribution or any part thereof of any type to or for the benefit of Executive whether pursuant to this Agreement or any other agreement between Executive and the Company, or any person or entity that acquires ownership or effective control of the Company, or ownership of a substantial portion of the Company's assets (within the meaning of Section 280G of the Code) whether paid or payable or distributed or distributable pursuant to the terms of the Agreement or any other agreement, (the "Total Payments''), is or will be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then the Total Payments shall be reduced to the maximum amount that could be paid to Executive without giving rise to the Excise Tax (the "Safe Harbor Cap"), if the net after-tax payment to Executive after reducing Executive's Total Payments to the Safe Harbor Cap is greater than the net after-tax (including the Excise Tax) payment to Executive without such reduction. 

 

The reduction of the amounts payable hereunder, if applicable, shall be made by reducing payments that trigger the excise tax, and such reductions will be first applied to the payment made pursuant to the Agreement and then to payments pursuant to any other agreements that are not subject to Section 409A of the Code, and finally to payments pursuant to any other agreements that are subject to Section 409A of the Code, provided that Executive shall have no ability to designate the order of such reductions. All mathematical determinations, and all determinations as to whether any of the Total Payments are "parachute payments" (within the meaning of Section 280G of the Code), that are required to be made under this Section 5, including determinations as to whether the Total Payments to Executive shall be reduced to the Safe Harbor Cap and the assumptions to be utilized in arriving at such determinations, shall be made by an accounting firm selected by the Company (the "Accounting Firm'').

 

If the Accounting Firm determines that the Total Payments to Executive shall be reduced to the Safe Harbor Cap (the "Cutback Payment") and it is established pursuant to a final determination of a court or an Internal Revenue Service (the "IRS") proceeding which has been finally and conclusively resolved, that the Cutback Payment is in excess of the limitations provided in this Section 5 (such excess amount hereinafter referred to as an "Excess Payment"), such Excess Payment shall be deemed for all purposes to be an overpayment to Executive made on the date such Executive received the Excess Payment. The Company or Executive, as applicable, shall notify the other within 30 days of its receipt of such final determination of the amount of the Excess Payment, along with a copy of the final determination, and Executive shall repay the Excess Payment amount to the Company within 30 days of such notification; provided, however, if Executive shall be required to pay an Excise Tax by reason of receiving such Excess Payment (regardless of the obligation to repay the Company), Executive shall provide the Company with written evidence of such requirement to pay an Excise Tax amount, and shall then be required to repay the Excess Payment reduced by such Excise Tax amount (or if already paid by Executive, the Company shall reimburse Executive within 10 days of proof of payment).

 

6.     Consultation by Executive. Executive agrees to continue to cooperate and consult with the Company and its executive officers and Board of Directors after the Separation Date, on as as-needed basis, at no cost to the Company, for up to 20 hours per month, through August 31, 2017.

  

 

4

 

 

7.     Disclosure. Executive will be given a reasonable opportunity to review and approve any public disclosure concerning his termination of employment with the Company in a Form 8-K, press release, or other manner. 

 

8.     Restrictive Covenants. 

 

(a)     Confidential Information. For a period of two years following the Separation Date, Executive will not, without the prior written consent of the Board of Directors of the Company, use, divulge, disclose or make accessible to any other person, firm, partnership, corporation or other entity any Confidential Information pertaining to the business of the Company or any of its affiliates, except (a) while employed by, or providing consulting services to, the Company, in the business of and for the benefit of the Company, or (b) as required by law. "Confidential Information" includes without limitation non-public information concerning the financial data, business plans, product development (or other proprietary product data), customer lists, marketing, acquisition and divestiture plans and other non-public, proprietary and confidential information of the Company. Executive or his legal representatives, heirs or designated beneficiaries must return all Confidential Information within 15 days of the termination of Executive's employment for any reason. Executive acknowledges that this subsection (a) survives the termination of Executive's employment and is enforceable by the Company at any time as long as it remains in effect.

 

(b)     Non-competition. For a period of one year following the Separation Date, Executive agrees that, without the prior written consent of the Board of Directors of the Company, he will not (i) engage in or have any direct interest in, as an employee, officer, director, agent, subcontractor, consultant, security holder, partner, creditor or otherwise, any business in direct competition with the Company other than as a 2% or less equity stakeholder; (ii) cause or attempt to cause any person who is, or was at any time during the six months immediately preceding the termination of Executive, an employee of the Company to leave the employment of the Company; or (iii) solicit, divert or take away, or attempt to take away, the business or patronage of any client, customer or account, or prospective client, customer or account, of the Company. For purposes of this subsection, a business will be deemed to be in competition with the Company if it is in the business of providing services to oil and/or gas production companies similar to those provided by the Company at the time of Executive's retirement and resignation. Executive acknowledges that this subsection survives the termination of Executive's employment and is enforceable by the Company at any time as long as it remains in effect.

 

(i)     Executive and the Company agree that this covenant not to compete is a reasonable covenant under the circumstances with respect to both scope and duration, and further agree that if in the opinion of any court of competent jurisdiction such restraint is not reasonable in any respect, such court will have the right, power and authority to excise or modify such provision or provisions of this covenant as to the court will appear not reasonable and to enforce the remainder of the covenant as so amended.

 

(ii)     Executive agrees that any breach of the covenants contained in this subsection (b) would irreparably injure the Company. Accordingly, Executive agrees that the Company may, in addition to pursuing any other remedies it may have in law and equity, obtain an injunction, without the posting of a bond or other security, against Executive from any court having jurisdiction over the matter restraining any further violation of this Agreement by Executive and cease making any payments otherwise required by this Agreement.

 

(c)     Intellectual Property. Executive acknowledges and agrees that all intellectual property created, acquired, adapted, modified or improved, in whole or in part, by or through the efforts of Executive during the course of his employment by the Company, including without limitation all copyrights, patents, trademarks, service marks, trade secrets, know-how or other work product in any way related to the Company's operations and activities, are works for hire and are owned exclusively by the Company, and Executive hereby disclaims any right or interest in or to any such intellectual property.

  

 

5

 

 

(d)     Company Property. Within seven days after the Separation Date, Executive agrees to return to the Company any and all records, files, notes, memoranda, reports, work product and similar items, and any manuals, drawings, sketches, plans, tape recordings, computer programs, disks, cassettes and other physical representations of any information, relating to the Company, or any of its affiliates, whether or not constituting Confidential Information. Executive also agrees to return to the Company any other property belonging to the Company, including but not limited to any laptop computer, no later than seven days after the Separation Date. Notwithstanding the preceding sentences, Executive may retain the LG desktop computer that he currently uses, with all software, with the understanding that the Executive will delete Company files from such computer after the consulting period terminates. The Executive and the Company agree that the Executive’s cell phone (including phone number) and iPad and certain other electronic equipment that he has used for the benefit of the Company, and personal items in his office, are the property of the Executive. Executive acknowledges and agrees that retaining any copies of Confidential Information or other property belonging to the Company will be deemed to be the misappropriation of the property of the Company.

 

9.     Non-Disparagement.     The Executive and the Company (including persons speaking with the authority of the Company whether or not speaking on behalf of the Company) agree to represent the other Party in a positive light and not to disparage or in any way communicate to any person or entity any negative information or opinion concerning the Executive or the Company, its subsidiaries and affiliates, or any of their partners, members, family members, shareholders, officers, directors, executives or agents, or any of them. This provision shall not prohibit either Party from making any statements or taking any actions required by law, or reporting any actions or inactions either Party believes to be unlawful. This provision shall not be interpreted to require or encourage either Party to make any misrepresentations.

 

10.   General Release. 

 

Executive agrees that, in consideration of the Severance Benefits described in Section 2 above, he will, and hereby does, forever and irrevocably release and discharge Company, its officers, directors, executives, independent contractors, agents, affiliates, parents, subsidiaries, divisions, predecessors, executive benefit plans, purchasers, assigns, representatives, successors and successors in interest from any and all claims, actions, agreements causes of action, damages of any kind, demands, debts, defenses, grievances, obligations, contracts, complaints, promises, judgments, expenses, costs, attorneys’ fees, compensation, and liabilities, known or unknown, whatsoever which he now has, has had, or may have, whether the same be at law, in equity, or mixed, in any way arising from or relating to any act, occurrence, or transaction on or before the date of this Agreement, including without limitation his employment and separation of employment from Company. Executive expressly acknowledges that this General Release includes, but is not limited to, claims under any state, local or federal wage and hour law or wage payment or collection law, and claims of discrimination, retaliation or harassment based on age, race, color, sex, religion, handicap, disability, national origin, ancestry, citizenship, marital status, sexual orientation, genetic information or any other protected basis, or any other claim of employment discrimination, retaliation or harassment under the Family and Medical Leave Act (29 U.S.C. §§ 2601 et seq.), the Americans With Disabilities Act (42 U.S.C. §§ 12101 et seq.), the Rehabilitation Act of 1973 (29 U.S.C. §§ 701 et seq.), the Age Discrimination In Employment Act (including the Older Workers Benefit Protection Act) (29 U.S.C. §§ 626 et seq.), Title VII of the Civil Rights Acts of 1964 and 1991 as amended (42 U.S.C. §§ 2000e et seq.), the Executive Retirement Income Security Act (29 U.S.C. §§ 1001 et seq.), the Consolidated Omnibus Budget Reconciliation Act of 1985 (29 U.S.C. §§ 1161 et seq.), the Genetic Information Nondiscrimination Act of 2008 (42 U.S.C. §§ 2000ff et seq.), the Fair Labor Standards Act (29 U.S.C. §§ 201 et seq.), the Colorado Anti-Discrimination Act (C.R.S. § 24-34-402 et seq.), or any other federal, state, or local law, regulation or ordinance prohibiting employment discrimination or governing employment. The Parties agree that this General Release does not release (i) any claims arising out of any alleged breach of this Agreement, (ii) any claims that may result from, or arise as a result of, that certain Indemnification Agreement by and between Company and Executive dated February 21, 2014, which agreement Executive and Company agree remains in full force and effect, (iii) any rights or claims the Executive may have for indemnification under the Certificate of Incorporation of the Company, the bylaws of the Company or Delaware law, or (iv) any claims arising out of any alleged breach of the agreements establishing the options held by the Executive as described in Section 2(c), which such agreements the Executive and Company agree remain in full force and effect.

  

 

6

 

 

11.     Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective personal representatives, heirs, executors, administrators, successors, and assigns. 

 

12.      Governing Law. The Parties agree that this Agreement and the rights and obligations hereunder shall be governed by, and construed in accordance with, the laws of the 
State of Colorado regardless of any principles of conflicts of laws or choice of laws of any jurisdiction, except as to any matter which is governed by federal law. 

 

13.     Venue. The Parties agree that any claimed violation of this Agreement must be submitted for determination in the state courts in the City and County of Denver, Colorado. In any litigation or arbitration of any dispute between the Parties, the prevailing Party shall be entitled to recover reasonable attorney fees and the other costs of the proceeding.

 

14.     Severability; Interpretation of Agreement. If any terms of the above provisions of this Agreement are found null, void or inoperative, for any reason, the remaining provisions will remain in full force and effect provided such interpretation maintains the agreement of the parties represented by this Agreement substantially in effect. The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against either of the Parties.

 

15.     Time to Consider Agreement; Revocation. Executive understands that he has twenty-one (21) days from the date of his receipt of this Agreement to consider his decision to sign it with the release of claims under the Age Discrimination in Employment Act, as amended, contained in Section 10, and that he may unilaterally waive this period at his election. Executive’s signature on this Agreement constitutes an express waiver of the twenty-one (21) day period. The Parties agree that any revisions or modifications to this Agreement, whether material or immaterial, will not and did not restart this time period. Executive acknowledges that he may revoke this Agreement for up to and including seven (7) days after his execution of this Agreement; provided, however, that if Executive elects to revoke this Agreement, Executive will not be paid Severance Benefits he would otherwise be entitled to receive under Section 2(b) if the Agreement is not revoked . 

 

16.     Full and Complete Agreement. The Parties agree and understand that no promises, covenants, representations, understandings or warranties have been made other than those expressly contained herein, and that this Agreement constitutes the entire agreement between the Parties. The Parties agree that this Agreement shall not be modified except in writing signed by each of the Parties hereto. 

  

 

7

 

 

17.     Agreement Freely Entered. Each Party represents to the other Party that it carefully read this Agreement, that it understands all of the terms hereof, that it had a reasonable amount of time to consider its decision to sign this Agreement, that it has been advised in writing and has had the opportunity to discuss all the terms of this Agreement with an attorney of its choice, that in executing this Agreement it does not rely and has not relied upon any representation or statement made by any other Party nor the agents, representatives or attorneys of such Party with regard to the subject matter, basis, or effect of the Agreement, and that it enters into this Agreement voluntarily, of its own free will, without any duress and with knowledge of its meaning and effect. In entering into this Agreement on behalf of the Company, the signatory on behalf of the Company represents to Executive that he does so with all authority necessary to do so.

 

18.     Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original instrument, but all such counterparts together shall constitute but one agreement. Any Party’s delivery of an executed counterpart signature page by facsimile or email is as effective as executing and delivering this agreement in the presence of the other Party. No Party shall be bound until such time as both Parties have executed counterparts of this Agreement. 

 

IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of May 5, 2017.

 

	
RICK D. KASCH
	
 
	
 
	
ENSERVCO CORPORATION
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 By:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Richard Murphy
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Title: Chairman of the Board
	
 

	
 
	
 
	
 
	
 
	
 

	
Dated: May __, 2017
	
 
	
 
	
Dated: May __, 2017
	
 

                           

 

 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00271-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00271-of-00352.parquet"}]]