Document:

airg-ex102_129.htm

 

 

Exhibit 10.2

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”), effective as of August 8, 2019 (the “Effective Date”), is made by and between AIRGAIN, INC. (the “Company”), and JIM K. SIMS (“Employee”).  

WHEREAS, Employee is currently serving as Chairman of the Board of Directors of the Company (the “Board”) and Chief Executive Officer of the Company pursuant to that certain Amended and Restated Employment Agreement between the Company and Employee effective as of March 13, 2019 (the “Prior Agreement”);

WHEREAS, the Board has determined that it is in the best interests of the Company and its shareholders to appoint Employee as Advisor to the newly-appointed Chief Executive Officer of the Company, while still serving as Chairman of the Board, effective as of the Effective Date, under the following terms and conditions; and

WHEREAS, Employee desires to continue to be employed by the Company as its Chairman and Advisor to the Chief Executive Officer and to accept such terms and conditions of employment as are contained in this Agreement, in each case as of the Effective Date. 

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt of which is mutually acknowledged, the Company and Employee (individually a “Party” and together the “Parties”) agree as follows:

AGREEMENT

 

1.Effective Date; Term.

Employee’s employment under the terms of this Agreement shall commence on the Effective Date.  The term of this Agreement and Employee's employment with the Company will expire on February 9, 2020 (the “Term”), unless earlier terminated by either Party for any reason prior to such date.  Employee's employment pursuant to this Agreement will terminate automatically upon expiration of the Term.

2.At-will Employment. 

Employee’s employment relationship with the Company under this Agreement (“Employment”) is at-will, terminable at any time and for any reason by either the Company or Employee. While certain sections of this Agreement describe events that could occur at a particular time in the future, nothing in this Agreement shall be construed as a guarantee of employment of any length.

3.Employment Duties. 

	
a.
	
Title/Responsibilities.  On the Effective Date, Employee shall be the Chairman of the Board and the Advisor to the Chief Executive Officer, reporting to the Board. Employee shall perform all of the duties and responsibilities of such offices set forth in the Bylaws of the Company and those commonly associated with such offices and such further 

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duties and responsibilities as may from time to time be assigned to him by the Board.  During the term of this Agreement, Employee will also continue to serve as a member of the Board and Chairman of the Board until the earlier of his resignation, removal from the Board or death, or his successor is duly appointed by the Board.   Employee’s termination of employment will not affect his service as Chairman of the Board or a member of the Board, which will remain subject to Delaware law and the Company’s bylaws and charter.  However, Employee may resign or be removed as Chairman of the Board or a member of the Board in accordance with Delaware law and the Company’s bylaws and charter.

	
b.
	
Responsibilities/Work Location.  Employee’s duties and authority shall be prescribed by the Board.  Employee agrees that while serving as Chairman and Advisor to the Chief Executive Officer under this Agreement Employee shall use best efforts and devote such business time to the Company as reasonably necessary to perform such duties.  Employee’s primary place of work shall be the Company’s offices in Melbourne, Florida, but shall travel to other Company locations as his duties may reasonably require.

	
c.
	
Policy Compliance.  Employee shall comply with all of the Company’s policies, practices and procedures, as well as, all applicable laws.  Employee has previously executed and delivered to the Company the Confidentiality and Inventions Assignment Agreement (the “Confidentiality and Inventions Assignment Agreement”) attached hereto as Exhibit 1.

4.Compensation.

	
a.
	
Base Salary.   The Company shall pay Employee a base salary of $400,000 per year, or such higher amount as the Board may determine from time to time, less applicable federal and state withholding taxes, in accordance with the Company’s regular payroll practices (the “Base Salary”).  

	
b.
	
Annual Bonus Compensation.  In addition to the Base Salary, Employee may be awarded a discretionary bonus by the Board in connection with his employment hereunder.  Employee will be eligible to receive an incentive bonus (the “Bonus”) with his target incentive equal to ninety percent (90%) of his Base Salary for the applicable year (the “Target Bonus”), or such higher amount as the Board may determine from time to time.  Employee's Bonus will be prorated for any partial year of employment.  Employee shall not be entitled to a bonus for 2020.

	
c.
	
Director Compensation.  Employee acknowledges and agrees that, except as provided in this Section 4(c), during the Term of this Agreement, he will not be entitled to any additional fees or other compensation for serving as a member of the Board, including any fees or equity grants in accordance with the Company’s policy for non-employee members of the Board, provided, that the Equity Awards (as defined below) previously granted to Employee in connection with his service as a member of the Board will continue to vest based on his employment hereunder.  Commencing February 1, 2020, Employee will be eligible to receive equity grants in accordance with the Company’s policy for non-employee members of the Board.  Following the cessation of Employee’s employment under this Agreement, subject to his remaining as a member of the Board thereafter, Employee will again be eligible to receive cash compensation in accordance with the Company’s policy for non-employee members of the Board; provided, however, that, notwithstanding anything to the contrary contained in such policy, Employee will receive a cash retainer for his service as the non-employee Chairman of the Board for the remainder of 2020 following the expiration of the Term based on an annualized rate of $240,000 per year, and the Company shall amend such policy prior to the expiration of the Term to reflect such increased annual cash retainer.  

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Employee's cash compensation for his service as the non-employee Chairman of the Board for 2021 and thereafter will be determined in accordance with the Company's policy for non-employee members of the Board.  Employee and the Company acknowledge and agree that the cash compensation payable to Employee under this Agreement prior to the expiration of the Term is solely for Employee’s services as an employee and not for his service as a non-employee member of the Board.  

	
d.
	
Equity Awards.  Employee shall be entitled to participate in any equity or other employee benefit plan that is generally available to senior executive officers, as distinguished from general management, of the Company.  Except as otherwise provided in this Agreement, Employee’s participation in and benefits under any such plan shall be on the terms and subject to the conditions specified in the governing document of the particular plan.  All of Employee’s Equity Awards shall vest in full upon the occurrence of a Change in Control (as defined in the Company’s 2016 Incentive Award Plan).  For purposes of this Agreement, “Equity Awards” means all stock options, restricted stock and such other awards granted pursuant to the Company’s stock option and equity incentive award plans or agreements and any shares of stock issued upon exercise thereof.

	
e.
	
Employee Benefits. Employee shall be entitled to participate in all employee benefit plans, programs and arrangements maintained by the Company and made available to employees generally, including, without limitation, bonus, retirement, profit sharing and savings plans and medical, disability, dental, life and accidental death and dismemberment insurance plans. 

	
f.
	
Reimbursement of Expenses. During his Employment with the Company, Employee shall be entitled to reimbursement for all reasonable and necessary business expenses incurred on behalf of the Company, including without limitation, travel and entertainment expenses, business supplies and communication expenses, in accordance with the Company’s policies and procedures.

5.Voluntary Resignation, Termination for “Cause” or Expiration of Term.  

a.Payment upon Voluntary Resignation other than for Good Reason or Termination for Cause or Expiration of Term. If Employee voluntarily resigns his Employment other than for Good Reason or if Employee is terminated for Cause, or in the event of the expiration of the Term, the Company shall pay Employee the following: (i) all accrued and unpaid Base Salary, if any is due, through the date of termination and any vacation which is accrued but unused as of such date; (ii) Employee’s business expenses that are reimbursable pursuant to this Agreement and Company policies, but which have not been reimbursed by the Company as of the date of termination; and (iii) the Employee’s Bonus compensation for the calendar year immediately preceding the year in which the date of termination occurs if such Bonus has been determined but not paid as of the date of termination (payable at the time such Bonus would otherwise have been paid to Employee, but in no event later than March 15 of the year in which the date of termination occurs) (collectively, the “Accrued Obligations”).  Employee shall not be eligible for severance payments under Sections 6 or 7, or any continuation of benefits (other than as required by law), or any other compensation pursuant to this Agreement or otherwise.

b.Definition of “Cause”. As set forth above, the employment relationship between the Parties is at-will, terminable at any time by either Party for any reason or no reason. The termination may nonetheless be for “Cause”. For purposes of this Agreement, “Cause” is 

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defined as the Company’s good faith determination of: (i) Employee’s material breach of this Agreement or the Confidentiality and Inventions Assignment Agreement; (ii) Employee’s continued substantial and material failure or refusal to perform the duties reasonably assigned to him by the Board consistent with his position ; (iii) the appropriation (or attempted appropriation) of a material business opportunity of the Company, including attempting to secure or securing any personal profit in connection with any transaction entered into on behalf of the Company; (iv) the misappropriation (or attempted appropriation) of any of the Company’s funds or property of any kind; (v) willful gross misconduct; (vi) Employee’s conviction of a felony involving moral turpitude that is likely to inflict or has inflicted material injury on the business of the Company; or (vii) any violation by Employee of any fiduciary duties owed by Employee to the Company; provided, however, that except for Cause being the result of item (vi) above, the Board shall provide written notice to Employee, which notice specifically identifies the nature of the alleged Cause claimed by the Company with enough specificity for Employee to be able to cure, and Employee shall thereafter have fifteen (15) days to cure the purported ground(s) for Cause.

 

c.Definition of “Good Reason”. For purposes of this Agreement, “Good Reason” and “Resignation for Good Reason” are defined as the occurrence of any of the following events after the Effective Date: (i) a material reduction by the Company in Employee’s Base Salary relative to Employee’s Base Salary in effect immediately prior to such reduction (and the Parties agree that a reduction of ten percent (10%) or more will be considered material for purposes of this clause (i)), other than a general reduction in the base salaries of similarly-situated employees of the Company; or (ii) the Company’s material breach of this Agreement; provided, however, that Employee must provide written notice to the Board of the condition that could constitute a “Good Reason” event within ninety (90) days of the initial existence of such condition and such condition must not have been remedied by the Company within thirty (30) days (the “Cure Period”) of such written notice. Employee’s Resignation for Good Reason must occur within six (6) months following the initial existence of such condition.

6.Termination Without “Cause” or “Resignation for Good Reason” Prior to the Expiration of Term. In the event Employee is terminated without Cause or resigns for Good Reason prior to the expiration of the Term, Employee shall be entitled to:

a.the Accrued Obligations; plus

b.subject to Employee’s execution and non-revocation of a full and final Release (as defined in Section 8 below) and Employee’s continued compliance with the Confidentiality and Inventions Assignment Agreement, severance pay in an amount equal to the sum of (i) Employee’s Base Salary as in effect immediately prior to the date of termination for the remainder of the Term, plus (ii) if such termination occurs prior to December 31, 2019, Employee’s Target Bonus for the calendar year in which the Termination Date occurs, payable in a lump sum on the date that is thirty (30) days following the date of termination; plus

c.subject to Employee’s execution and non-revocation of a full and final Release and Employee’s continued compliance with the Confidentiality and Inventions 

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Assignment Agreement, for the period beginning on the date of Employee’s termination of employment and ending on the last day of the Term (or, if earlier, the date on which the applicable continuation period under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) expires) (the “COBRA Coverage  Period”), the Company shall arrange to provide Employee and his eligible dependents who were covered under the Company’s health insurance plans as of the date of Employee’s termination of employment with health (including medical and dental) insurance benefits substantially similar to those provided to Employee and his dependents immediately prior to the date of such termination. If the Company is not reasonably able to continue health insurance benefits coverage under the Company’s insurance plans, the Company shall provide substantially equivalent coverage under other third-party insurance sources. If any of the Company’s health benefits are self-funded as of the date of Employee’s termination of employment, or if the Company cannot provide the foregoing benefits in a manner that is exempt from or otherwise compliant with applicable law (including, without limitation, Section 409A of the Code and Section 2716 of the Public Health Service Act), instead of providing continued health insurance benefits as set forth above, the Company shall instead pay to Employee an amount equal to the monthly premium payment for Employee and his eligible dependents who were covered under the Company’s health plans as of the date of Employee’s termination of employment (calculated by reference to the premium as of the date of termination) as currently taxable compensation in substantially equal monthly installments over the COBRA Coverage Period (or the remaining portion thereof); plus

d.subject to Employee’s execution and non-revocation of a full and final Release and Employee’s continued compliance with the Confidentiality and Inventions Assignment Agreement, effective as of the Termination Date, all of Employee’s Equity Awards shall become fully vested and/or exercisable.

7.Employee’s Disability or Death. Employee’s employment shall terminate automatically in the event of Employee’s death or termination of employment by reason of his “Disability.” In the event of Employee’s death or termination of employment as a result of Employee’s Disability, Employee or his heirs shall be entitled to (a) the Accrued Obligations, plus (b) payment of an amount equal to Employee’s “earned” Bonus for the calendar year during which Employee’s date of termination occurs calculated as of the date of termination (wherein “earned” means that Employee has met the applicable bonus metrics as of date of such termination, as determined by the Board), prorated for such portion of the calendar year during which such termination occurs that has elapsed through the date of termination, payable in a lump sum on the date that is thirty (30) days following the date of termination. For purposes of this Agreement, “Disability” shall mean the Employee’s failure to perform his duties hereunder, for a period of not less than one hundred twenty (120) consecutive days because of Employee’s incapacitation due to physical or mental injury, disability, or illness.

8.Release. Notwithstanding any provision to the contrary in this Agreement, no amount shall be paid or benefit provided pursuant to Section 6 (other than the Accrued Obligations) unless, on or prior to the thirtieth (30th) day following the date of Employee’s termination of employment, an effective general release of claims agreement (the “Release”) in substantially the form attached hereto as Exhibit 2 has been executed by Employee and remains effective on such date and any applicable revocation period 

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thereunder has expired.

9.Notices.  Any reports, notices or other communications required or permitted to be given by either Party hereto, shall be given in writing by personal delivery, overnight courier service, or by registered or certified mail, postage prepaid, return receipt requested, addressed to the Company at its principal executive offices and to Employee at his most recent address on the Company’s payroll records.

10.Notice of Termination.  Any purported termination of Employment by the Company or the Employee shall be communicated by written Notice of Termination to the other Party. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which indicates, if applicable, the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Employee’s employment under the provision so indicated. For purposes of this Agreement, no such purported termination of employment shall be effective without delivery of such a Notice of Termination.

11.General Provisions.

	
a.
	
Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflicts of laws principles thereof.  Employee and the Company agree that any litigation regarding this Agreement shall be conducted in San Diego, California. Employee and the Company hereby consent to the jurisdiction of the courts of the State of California and the United States District Court for the Southern District of California.

	
b.
	
Assignment; Assumption by Successor.  The rights of the Company under this Agreement may, without the consent of Employee, be assigned by the Company, in its sole and unfettered discretion, to any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly, acquires all or substantially all of the assets or business of the Company.  The Company will require any successor (whether direct or indirect, by purchase, merger or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and to agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place; provided, however, that no such assumption shall relieve the Company of its obligations hereunder.  As used in this Agreement, the “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law or otherwise.

	
c.
	
No Waiver of Breach. The failure to enforce any provision of this Agreement shall not be construed as a waiver of any such provision, nor prevent a Party thereafter from enforcing the provision or any other provision of this Agreement. The rights granted the Parties are cumulative, and the election of one shall not constitute a waiver of such Party’s right to assert all other legal and equitable remedies available under the circumstances.

	
d.
	
Severability. The provisions of this Agreement are severable, and if any provision shall be held to be invalid or otherwise unenforceable, in whole or in part, the remainder of the provisions, or enforceable parts of this Agreement, shall not be affected.

	
e.
	
Entire Agreement.  As of the Effective Date, this Agreement and the 

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Confidentiality and Inventions Assignment Agreement constitute the entire agreement of the Parties with respect to the subject matter of this Agreement and supersede all prior and contemporaneous negotiations, agreements and understandings between the Parties, whether oral or written, including the Prior Agreement.

	
f.
	
Modifications and Waivers. No modification or waiver of this Agreement shall be valid unless in writing, signed by the Party against whom such modification or waiver is sought to be enforced.

	
g.
	
Amendment. This Agreement may be amended or supplemented only by a writing signed by both of the Parties hereto.

	
h.
	
Duplicate Counterparts; Facsimile. This Agreement may be executed in duplicate counterparts, each of which shall be deemed an original; provided, however, such counterparts shall together constitute only one agreement. Facsimile signatures or signatures sent via electronic mail shall be as effective as original signatures.

	
i.
	
Interpretation. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

	
j.
	
Non-transferability of Interest.  None of the rights of Employee to receive any form of compensation payable pursuant to this Agreement shall be assignable or transferable except through a testamentary disposition or by the laws of descent and distribution upon the death of Employee.  Any attempted assignment, transfer, conveyance, or other disposition (other than as aforesaid) of any interest in the rights of Employee to receive any form of compensation to be made by the Company pursuant to this Agreement shall be void.

k.Construction.  The language in all parts of this Agreement shall in all cases be construed simply, according to its fair meaning, and not strictly for or against any of the parties hereto.  Without limitation, there shall be no presumption against any party on the ground that such party was responsible for drafting this Agreement or any part thereof.

	
l.
	
Section 409A.  

i.Notwithstanding anything to the contrary in this Agreement, no payment or benefit to be paid or provided to Employee upon his termination of employment, if any, pursuant to this Agreement that, when considered together with any other payments or benefits, are considered deferred compensation under Section 409A (together, the “Deferred Payments”) will be paid or otherwise provided until Employee has a “separation from service” within the meaning of Section 409A. Similarly, no amounts payable to Employee, if any, pursuant to this Agreement that otherwise would be exempt from Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(9) will be payable until Employee has a “separation from service” within the meaning of Section 409A.

 

ii.Notwithstanding anything to the contrary in this Agreement, if Employee is a “specified employee” within the meaning of Section 409A at the time of Employee’s termination of employment (other than due to death), then the Deferred Payments that are payable within the first six (6) months following Employee’s separation from service, will become payable on the first payroll date that occurs on or after the date six (6) months and 

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one (1) day following the date of Employee’s separation from service. All subsequent Deferred Payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Employee dies following Employee’s separation from service, but prior to the six (6) month anniversary of the separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of Employee’s death and all other Deferred Payments will be payable in accordance with the payment schedule applicable to each payment or benefit. Each payment and benefit payable under this Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.

iii.Any amount paid under this Agreement that satisfies the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations will not constitute a Deferred Payment for purposes of clauses (i) and (ii) above.

iv.Any amount paid under this Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the limits set forth therein will not constitute a Deferred Payment for purposes of clauses (i) and (ii) above.

v.This Agreement is intended to be written, administered, interpreted and construed in a manner such that no payment or benefits provided under the Agreement become subject to (A) the gross income inclusion set forth within Code Section 409A(a)(1)(A) or (B) the interest and additional tax set forth within Code Section 409A(a)(1)(B) (together, referred to herein as the “Section 409A Penalties”), including, where appropriate, the construction of defined terms to have meanings that would not cause the imposition of Section 409A Penalties.  In no event shall the Company be required to provide a tax gross-up payment to Employee or otherwise reimburse Employee with respect to Section 409A Penalties.   The Company and Employee agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any Section 409A Penalties on Employee.

vi.Any reimbursement of expenses or in-kind benefits payable under this Agreement shall be made in accordance with Treasury Regulation Section 1.409A-3(i)(1)(iv) and shall be paid on or before the last day of Employee’s taxable year following the taxable year in which Employee incurred the expenses.  The amount of expenses reimbursed or in-kind benefits payable in one year shall not affect the amount eligible for reimbursement or in-kind benefits payable in any other taxable year of Employee’s, and Employee’s right to reimbursement for such amounts shall not be subject to liquidation or exchange for any other benefit.

 

	
m.
	
Whistleblower Provision. Nothing herein shall be construed to prohibit Employee from communicating directly with, cooperating with, or providing information to, any government regulator, including, but not limited to, the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, or the U.S. Department of Justice. Employee acknowledges that the Company has provided Employee with the following 

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notice of immunity rights in compliance with the requirements of the Defend Trade Secrets Act: (i) Employee shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of proprietary information of the Company that is made in confidence to a Federal, State, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, (ii) Employee shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of proprietary information of the Company that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal and (iii) if Employee files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Employee may disclose the proprietary information to my attorney and use the proprietary information in the court proceeding, if Employee files any document containing the proprietary information under seal, and does not disclose the proprietary information, except pursuant to court order.

(Signature Page Follows)

m.

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date(s) set forth below.

 

AIRGAIN, INC.

Dated:  August 8, 2019By:/s/ Anil Doradla_____________

Name:Anil Doradla_______________

Title:Chief Financial Officer_______

 

EMPLOYEE

Dated:  August 8, 2019/s/ James K Sims_______

JIM K. SIMS

 

 

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EXHIBIT 2

 

GENERAL RELEASE OF CLAIMS

 

[The language in this Release may change based on legal developments and evolving best practices; this form is provided as an example of what will be included in the final Release document.]

This General Release of Claims (“Release”) is entered into as of this _____ day of ________, ____, between JIM K. SIMS (“Employee”), and AIRGAIN, INC., a California corporation (the “Company”) (collectively referred to herein as the “Parties”).

 

WHEREAS, Employee and the Company are parties to that certain Employment Agreement effective as of the Effective Date (as defined therein) (the “Agreement”);

 

WHEREAS, the Parties agree that Employee is entitled to certain severance benefits under the Agreement, subject to Employee’s execution of this Release; and

 

WHEREAS, the Company and Employee now wish to fully and finally to resolve all matters between them.

 

NOW, THEREFORE, in consideration of, and subject to, the severance benefits payable to Employee pursuant to the Agreement, the adequacy of which is hereby acknowledged by Employee, and which Employee acknowledges that he would not otherwise be entitled to receive, Employee and the Company hereby agree as follows:

 

1.General Release of Claims by Employee.  

 

(a)Employee, on behalf of himself and his executors, heirs, administrators, representatives and assigns, hereby agrees to release and forever discharge the Company and all predecessors, successors and their respective parent corporations, affiliates, related, and/or subsidiary entities, and all of their past and present investors, directors, shareholders, officers, general or limited partners, employees, attorneys, agents and representatives, and the employee benefit plans in which Employee is or has been a participant by virtue of his employment with or service to the Company (collectively, the “Company Releasees”), from any and all claims, debts, demands, accounts, judgments, rights, causes of action, equitable relief, damages, costs, charges, complaints, obligations, promises, agreements, controversies, suits, expenses, compensation, responsibility and liability of every kind and character whatsoever (including attorneys’ fees and costs), whether in law or equity, known or unknown, asserted or unasserted, suspected or unsuspected (collectively, “Claims”), which Employee has or may have had against such entities based on any events or circumstances arising or occurring on or prior to the date hereof or on or prior to the date hereof, arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever Employee’s employment by or service to the Company or the termination thereof, including any and all claims arising under federal, state, or local laws relating to employment, including without limitation claims of wrongful discharge, breach of express or implied contract, fraud, misrepresentation, defamation, or liability in tort, and claims of any kind that may be brought in any court or administrative agency including, without 

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limitation, claims under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. Section 2000, et seq.; the Americans with Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.; the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701 et seq.; the Civil Rights Act of 1866, and the Civil Rights Act of 1991; 42 U.S.C. Section 1981, et seq.; the Age Discrimination in Employment Act, as amended, 29 U.S.C. Section 621, et seq. (the “ADEA”); the Equal Pay Act, as amended, 29 U.S.C. Section 206(d); regulations of the Office of Federal Contract Compliance, 41 C.F.R. Section 60, et seq.; the Family and Medical Leave Act, as amended, 29 U.S.C. § 2601 et seq.; the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. § 201 et seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; and the California Fair Employment and Housing Act, California Government Code Section 12940, et seq.

 

Notwithstanding the generality of the foregoing, Employee does not release the following claims:

 

(i)Claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable state law; 

 

(ii)Claims for workers’ compensation insurance benefits under the terms of any worker’s compensation insurance policy or fund of the Company; 

 

(iii)Claims pursuant to the terms and conditions of the federal law known as COBRA;

 

 (iv)Claims for indemnity under the bylaws of the Company, as provided for by California law or under any applicable insurance policy with respect to Employee’s liability as an employee, director or officer of the Company;

 

(v)Employee’s right to bring to the attention of the Equal Employment Opportunity Commission or the California Department of Fair Employment and Housing or any other federal, state or local government agency claims of discrimination, or from participating in an investigation or proceeding conducted by the Equal Employment Opportunity Commission or any other federal, state or local government agency; provided, however, that Employee does release his right to secure any damages for alleged discriminatory treatment;

 

(vi)Claims based on any right Employee may have to enforce the Company’s executory obligations under the Agreement; 

 

(vii)Claims Employee may have to vested or earned compensation and benefits; and

 

(viii)Employee’s right to communicate or cooperate with any government agency.

 

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(b)EMPLOYEE ACKNOWLEDGES THAT he HAS BEEN ADVISED OF AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

 

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

 

BEING AWARE OF SAID CODE SECTION, EMPLOYEE HEREBY EXPRESSLY WAIVES ANY RIGHTS he MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

 

[Note:  Clauses (c), (d) and (e) apply only if Employee is age 40 or older at time of termination]

 

(c)Employee acknowledges that this Release was presented to him on the date indicated above and that Employee is entitled to have twenty-one (21) days’ time in which to consider it.  Employee further acknowledges that the Company has advised him that he is waiving his rights under the ADEA, and that Employee should consult with an attorney of his choice before signing this Release, and Employee has had sufficient time to consider the terms of this Release.  Employee represents and acknowledges that if Employee executes this Release before twenty-one (21) days have elapsed, Employee does so knowingly, voluntarily, and upon the advice and with the approval of Employee’s legal counsel (if any), and that Employee voluntarily waives any remaining consideration period.

 

(d)  Employee understands that after executing this Release, Employee has the right to revoke it within seven (7) days after his execution of it.  Employee understands that this Release will not become effective and enforceable unless the seven (7) day revocation period passes and Employee does not revoke the Release in writing.  Employee understands that this Release may not be revoked after the seven (7) day revocation period has passed.  Employee also understands that any revocation of this Release must be made in writing and delivered to the Company at its principal place of business within the seven (7) day period.

 

(e)  Employee understands that this Release shall become effective, irrevocable, and binding upon Employee on the eighth (8th) day after his execution of it, so long as Employee has not revoked it within the time period and in the manner specified in clause (d) above.  

 

(f)Employee further understands that Employee will not be given any severance benefits under the Agreement unless this Release is effective on or before the date that is thirty (30) days following the date of Employee’s termination of employment.

 

2.No Assignment.  Employee represents and warrants to the Company Releasees 

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that there has been no assignment or other transfer of any interest in any Claim that Employee may have against the Company Releasees.  Employee agrees to indemnify and hold harmless the Company Releasees from any liability, claims, demands, damages, costs, expenses and attorneys’ fees incurred as a result of any such assignment or transfer from Employee.

 

3.Whistleblower Provision. Nothing herein shall be construed to prohibit Employee from communicating directly with, cooperating with, or providing information to, any government regulator, including, but not limited to, the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, or the U.S. Department of Justice. Employee acknowledges that the Company has provided Employee with the following notice of immunity rights in compliance with the requirements of the Defend Trade Secrets Act: (i) Employee shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of proprietary information of the Company that is made in confidence to a Federal, State, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, (ii) Employee shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of proprietary information of the Company that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal and (iii) if Employee files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Employee may disclose the proprietary information to my attorney and use the proprietary information in the court proceeding, if Employee files any document containing the proprietary information under seal, and does not disclose the proprietary information, except pursuant to court order.

 

4.Severability.  In the event any provision of this Release is found to be unenforceable by an arbitrator or court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by law.  If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby. 

 

5.Interpretation; Construction.  The headings set forth in this Release are for convenience only and shall not be used in interpreting this Agreement.  This Release has been drafted by legal counsel representing the Company, but Employee has participated in the negotiation of its terms.  Furthermore, Employee acknowledges that Employee has had an opportunity to review and revise the Release and have it reviewed by legal counsel, if desired, and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Release.  Either party’s failure to enforce any provision of this Release shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from enforcing each and every other provision of this Release.

 

6.Governing Law; Venue.  This Release shall be governed by and construed in accordance with the laws of the State of California without regard to the conflicts of laws principles thereof.  Employee and the Company agree that any litigation regarding this Release  

4

 

 

 

shall be conducted in San Diego, California.  Employee and the Company hereby consent to the jurisdiction of the courts of the State of California and the United States District Court for the Southern District of California.

 

7.Entire Agreement.  This Release and the Agreement constitute the entire agreement of the Parties in respect of the subject matter contained herein and therein and supersede all prior or simultaneous representations, discussions, negotiations and agreements, whether written or oral.  This Release may be amended or modified only with the written consent of Employee and an authorized representative of the Company.  No oral waiver, amendment or modification will be effective under any circumstances whatsoever.  

 

8.Counterparts.  This Release may be executed in multiple counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.

 

(Signature Page Follows)

 

 

 

5

 

 

 

IN WITNESS WHEREOF, the Parties have executed this Release as of the date(s) set forth below.

 

AIRGAIN, INC.

Dated:  By:_____________________________

Name:_____________________________

Title:_____________________________

 

EMPLOYEE

Dated:  ___________________________________

JAMES SIMS

 

6bardassleditsv4

                                                                                                                                                                                                Exhibit 10.1                                            Confidential Materials Omitted – To be filed separately with the                   Securities and Exchange Commission upon request. Double asterisks denote omissions.                                                                                                                                                                                                                    1      1   .       CONTRACT ID CODE                       PAGE OF PAGES   AMENDMENT  OF  SOLICITATION/MODIFICATION OF CONTRACT                                                                                                                        I                                                                                                                                                                                       1      I            5   2. AMENDMENT/MODIFICATION NO.                                   3. EFFECTIVE DATE                           4.  REQUISITION/PURCHASE       REQ.  NO                   1 5. PROJECT NO, (If applicable)   P00003                                                          See Block 16C                              OS244568   6. ISSUED BY                                          CODE                                                                   ASPR-BARDA                                   7. ADMINISTERED BY (If  other than Item 6)                 CODE   IASPR-BARDA                ASPR-BARDA                                                                                                   ASPR-BARDA   20 0 Independence Ave., S.W.                                                                                 200 Independence Ave., S.W.   Room 640-G                                                                                                   Room 638-G   Washington DC 20201                                                                                          Washington DC 20201                                                                                                                               8. NAME AND ADDRESS OF CONTRACTOR (No., Street, county, State and ZIP                                      (√)  9A AMENDMENT OF SOLICITATION NO      Code)                                                                                                                                                                                                                                                                                                                                       EMERGENT PRODUCT  DEVELOPMENT GAITHESBURG                                                                        9B. DATED (SEE ITEM 11)                                                                                                                  INC.                                                                                                                                                                                                                           EMERGENT PRODUCT DEVELOPMENT GAITHE                                                                              10A M ODIFICATION OF CONTRACT/ORDER NO.                                                                                                               X   HHS0100201600030C  300 PROFESSIO NAL DR# 100  GAITHERSBURG MD  208793419                                                                                                                                1OB. DATED (SEE ITEM 13)   CODE        1365869                                             FACILITY CODE                                     09/30/2016                                                                      11. THIS ITEM ONLY APPUES TO AMENDMENTS OF SOLICITATIONS                                                                                                                                                                                                                                                   The above numbered solicitation is amended as set forth in Item 14.  The hour and date specified for receipt of Offers __ is extended, __ is not extended.    Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:      (a) By completing Items 8 and 15, and returning _________ copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or       (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers.  FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE      PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER.  If by virtue of this      amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this      amendment, and is received prior to the opening hour and date specified.         12.  ACCOUNTING AND APPROPRIATION   DATA ( If required )                                            Net Increase:                                                  $260,988,090   [**]                                                                                                                                                                                                                                                    13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS, IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.                                  CHECK ONE        A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority)                    THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT                        ORDER NO. IN ITEM 10A.                      B. THE ABOVE NUMBERED CONTRACTIORDE R IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office,                        appropriation data, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b)                      C. THIS SUPPLEMENTALAGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:         X          FAR 52.217 -7 Option for Increased Quantity - Separately Priced Line Item                     D. OTHER (Specify type of modification and authority)                                                                                                                                                                                                                                               E. IMPORTANT:  Contractor                       is not,        is required to sign this document and return ____2____ copies to the issuing office.   14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)  Tax ID Number:                      [**]  DUNS Number:                   [**]   The purpose of this modification is to modify ARTICLES B.3. OPTION PRICES, B.5, ADVANCE  UNDERSTANDINGS, C. 1. STA TEMENT OF WORK, G.3. KEY PERSONNEL, and SECTION J - LIST OF  ATTACHMENTS.  Funds Obligated Prior to this Modification: $203,704, 113  Funds Obligated with Mod #3: $260,988 ,090  Total Funds Obligated to Date: $464,692,203  Continued ...                provided herein, all terms and conditions or the document referenced in Item 9 A or 1 0A , as heretofore changed, remains unchanged ed and in full force and effect.                                                                                                                                CHRISTOPHER SCOTT                                                                                     15C. DATE SIGNED                                                                                         16C . DATE SIGNED          ADAM HAVEY, EVP                                                                                                                                                                     07/30/2019                   ( Srgnat ure of person authorized to s,gn)                                                  16 B. UNITED STATES OF AMERICA (Signature of Contracting                                                                                                               Officer) 

 

                                          REFERENCE NO. OF DOCUMENT BEING CONTINUED                                               AGE   OF    CONTINUATION SHEET HHSO1002 0 l 600030C/P00003                                                                 2        5                                                                                                                                   NAME OF OFFEROR OR CONTRACTOR  EMERGENT PRODUCT DEVELOPMENT GAITHERSBURG INC. 1365869             ITEM NO.                           SUPPLIES/SERVICES                       QUANTI UNIT        UNIT               AMOUNT                                                                               TY                PRICE     (A)                                     (B)                                      (D)                               (F)                                                                                 (C)              (E)                                                                                                                      Expiration Date: September 29,2021 (Unchanged)                                                           Delivery:      07/30/2019                                                                                                                                                                                         Delivery Location Code: HHS             HHS                                                                                                      200 Independence Avenue, SW                                                                                                                                                                                       Washington DC 20201 US                                                                                                                                                                                                                               Appr. Yr.: 2019 CAN: 1990051 Object Class: 26088                                                         FOB: Destination                                                                                                                                                                                                  Period of Performance: 09/30/2016 to 09/29/2021                                                                                                                      Change Item 4 to read as follows (amount shown is                                                                                                                                                                 the obligated amount).                                                                            260,988,090.00   4              CLIN 0004- Option Funding to support procurement of              AV7909 Anthrax Vaccine to the Strategic National              Stockpile.    NSN 7540-01-152-8067                                                                                    OPTIONAL FORM 336 (4-86)                                                                                                          Sponsored by GSA                                                                                                          FAR (48 CFR) 53.110 

 

                                                         ARTICLE B.3. OPTION PRICES are hereby modified as follows:              CUN        Period of        Supplies/Services                        Doses          Price per      Total Cost                 Performance                                                                Dose   CLIN 0004     07/29/19 -      Additional Surge Capacity                10[**]*         $[**]        $260,988,090    (Option -    09/29/21        (EUA)                                 Funded\***                                                                                   *25 million doses procured under the options will be reduced by $[**] per dose           (regardless of the year these doses may be procured).           **Under this option 10[**]doses are expected to be procured at the unit price of           $[**]. (This is the unit price of $[**] negotiated for surpassing the [**] million dose           threshold and inclusive of $[**] per dose reduction.) If fully delivered there will be [**]           doses that will be applicable for the $[**] per dose reduction in future procurement           options                   **CLIN 0004 is funded with this modification                   ARTICLE B.5. ADVANCE UNDERSTANDINGS is hereby modified as follows:                       k.  Terms and conditions for payment                           Subject to the availability of funds the government intends to procure 3,000,000 doses of                   AV7909 as outlined in the base period of the contract at a unit price of $[**]per dose                   and an additional 10[**]doses under an option exercised in FY2019 at a unit price of                   $[**]per dose. This Advance Understanding counts as COA approval for the delivery of                   3,000,000 doses funded in the Base Period.                           Invoices shall be submitted upon delivery of product to government specified locations                   and government acceptance of product. A delivery schedule along with expected doses                   to be delivered will be included as an attachment to this option.                       I.  Stability                           BARDA understands that the stability testing is ongoing to support long-term stability of                   AV7909. The contractor will continue to perform ICH compliant stability studies on                   AV7909. While EBS and BARDA believe that a [**] month expiration dating will be                   achieved, this cannot be confirmed until FDA licensure of the vaccine.                           For the agreed upon price, AV7909 will be delivered to the SNS that is no older than                   [**] months from the date of manufacture stamped on the vial label.                       o   BARDA does agree to a one-time exception to the [**]-month limitation to allow                           delivery of approximately [**] doses of AV7909 that were initially manufactured                           as PPQ material intended for qualification of a Redundant Fill Site at PAR.                       m.  Shipment to the Strategic National Stockpile and Storage                           Emergent shall develop a delivery schedule that is in agreement with BARDA. Delivery                   estimates are dependent on product release. Shipping will be FOB destination.                           At least 48 hours before each scheduled shipment by the Contractor, the Contractor                   shall provide the following to the Contracting Officer and COR:                                i. Packing Slip                                                           3 

 

                                                             ii. Certificate(s) of Analysis                      iii. Confirm the number of pallets, vials and doses to be loaded                      iv.  Diagram of product shipment pallet (how many vials per box, per                           pallet)                  The Contractor will assume responsibility for the cost of shipping and transport of finished          product to the SNS for long-term storage once usable product requirements have been          met. The USG will assume responsibility for long-term storage of the finished product, and          emergency distribution of the finished product. The USG shall incur only the storage costs          while the product is held within the USG's control. The product shall be stored in          compliance with cGMP at the Contractor's facility until the delivery of finished product to          the SNS.                  The Contractor shall ensure that vaccine delivery follows cGMPs to maintain the integrity          of the product en route. The Contractor shall file the necessary documentation to the          FDA/CBER for the safe movement of the product to include any protocol deviations en          route.                  The Contractor shall be responsible for the secure and segregated storage of held          intermediates and the FOP prior to lot release and subsequent arrival at the SNS. The          Contractor will agree upon a delivery schedule. Thirty days advance notice is required          prior to shipment to the SNS. However, while the product is in long-term storage with the          USG (i.e., in the SNS), the Contractor shall continue to be responsible for all quality          control/quality assurance monitoring and subsequent reporting necessary to ensure          appropriate storage conditions of the product until said product is licensed.                  The Contractor, via this contract with the USG, will be expected to comply with a written          Quality Agreement (attached) as to the manner in which the product will be stored within          the specific USG stockpile facility (ies) that have been identified post contract award. In          addition, this Quality Agreement will outline the responsibilities of both the Contractor and          the USG (i.e., SNS- Quality Control). These documents shall be drafted and signed by          both parties prior to the transport and storage of the product.                  BARDA will not accept considerations for stability failures/reduced shelf-life. Any lots          deemed non-conforming will be placed in quarantine and must be replaced by Emergent.          If there is an indication of trending stability issues, then an investigation will need to be          opened and deliveries suspended until resolved.                  SECTION C - DESCRIPTION/SPECIFICATIONS/WORK STATEMENT   ARTICLE C.1. STATEMENT OF WORK   Independently and not as an agent of the Government, the Contractor shall furnish all the  necessary services, qualified personnel, material, equipment, and facilities not otherwise provided  by the Government as needed to perform the Statement of Work dated July, 30 2019 set forth in  SECTION J - List of Attachments, attached hereto and made a part of the contract.                  ARTICLE G.3. KEY PERSONNEL is hereby modified as follows:          The key personnel specified in this contract are considered to be essential to work performance.  At least 30 days prior to diverting any of the specified individuals to other programs or contracts  (or as soon as possible, if an individual must be replaced, for example, as a result of leaving the  employ of the Contractor), the Contractor shall notify the Contracting Officer and shall submit                                                  4                                                  

 

comprehensive justification for the diversion or replacement request (including proposed  substitutions for key personnel) to permit evaluation by the Government of the impact on  performance under this contract. The Contractor shall not divert or otherwise replace any key  personnel without the written consent of the Contracting Officer. The Government may modify the  contract to add or delete key personnel at the request of the Contractor or Government.          The following individuals are considered to be essential to the work being performed hereunder:                                                              Name                                           Position  [**]                                                         [**]  [**]                                                         [**]  [**]                                                         [**]  [**]                                                         [**]  [**]                                                         [**]   [**]                                                         [**]  [**]                                                         [**]          'Bold indicated changes in this modification          SECTION J - LIST OF ATTACHMENTS is hereby modified as follows:              1. Statement of Work, dated July 30, 2019, 11 pages              9.  Quality Agreement              10. AV7909 Delivery Schedule                                         Q3 2019                         Q4 2019                                          Total                 August        September  October       November     December     Q1 2020    Q2 2020       Doses  Doses                                                       [**]       [**]          [**]         [**]      [**]     [**][**] Delivered:    [**]          [**]          [**]      [**]          [**]         [**]       [**]       [**]  Base Doses  [**]            [**]                                                                     [**]  Option                                    [**]      [**]          [**]         [**]       [**]       [**]  Doses                                  2H 2019 Delivery                                                  1H 2020 Delivery  [**]                                                              [**]                                                                                                                                                                                                   All other terms and conditions of this contract remain unchanged.                                                   End of Modification #3                                                    5          

 

                                                                ATTACHMENT 1; STATEMENT OF WORK                            NEXT GENERATION ANTHRAX VACCINE                                      RFP 16-100-SOL-0015                                     AV7909 Anthrax Vaccine    1.0 Contractual Statement of Work    Preamble to the Statement of Work   Independently and not as an agent of the Government, the Contractor shall be required to furnish all the  necessary services, qualified personnel, material, equipment, and facilities, not otherwise provided by the  Government, as needed to perform the Statement of Work submitted in response to RFP 16-100-SOL-  00015.     1.1 Scope.     The scope of work for this contract includes AV7909 development activities through licensure that fall  into the following areas: program management, nonclinical, clinical, regulatory, and chemistry,  manufacturing, and controls (CMC). The scope of work also includes activities to support post-marketing  requirements.         1.2 Objective.     The objective of this Statement of Work (SOW) is to conduct all necessary activities to advance the  development of AV7909 through Biologics License Application (BLA) submission and approval and  post- marketing requirements. Activities to meet the objective of this SOW fall in three separate contract  line item number (CUN):      •   CLIN 0001 - Approval of Emergency Use Authorization (EUA), licensure, approval,          and clearance of product through the FDA (Base)      •   CUN 000IA - Conduct of a Phase 2 clinical [**] study or other studies required by the FDA for          the establishment of a [**] specification (Option)      •   CLIN 0002 - Initial purchase, storage, and delivery of product (Base)      •   CLIN 0003 - Phase 4 post marketing requirements (Option)      •   CLIN 0004 - Surge Capacity-Additional procurement of product (Option)         1.3 CLIN 0001 - Approval of Emergency Use Authorization (EUA), licensure, approval. and  clearance of product through the FDA (Base)         This section identifies representative tasks and sub-tasks for CUN 0001 with associated WBS code for  each task or subtask.         [**] Program Management    Emergent shall provide program management activities. The activities shall include but are not limited to:             •   Identification of and management to, distinct stages of the product development pathway that are         gates for Go/No Go decisions for advancing to the next stage of the Integrated Product         Development Plan.      •   Establishment of and tracking of milestones and timelines for the initiation conduct, and         completion of product development activities for each stage with a budget (in direct costs) linked         to each stage.      July 30, 2019                                                                     

 

    •  Ongoing evaluation of qualitative and quantitative criteria and accompanying data used to         assess the scientific merit and technical feasibility of proceeding to the next stage of product         development.      •   Maintaining and managing staff (in-house and contracted) to assure the necessary expertise and          dedicated effort to perform the work.      •   Directing and overseeing subcontractors and consultants to assure successful performance of          planned activities within the cost and schedule constraints of          the contract.      •   Conducting performance measurement that shall include establishing an initial plan; defining          measurable parameters; defining how these parameters relate to cost and schedule impacts; their          approach in providing a detailed schedule that generates a critical path for the project; and a          description of the cost-accounting system used or intended to be used based on budget estimates          to monitor all costs related to the contract award for both Emergent and subcontractors on a real          time basis.      •   Manage contract activities in accordance with Earned Value Management. In this regard,          Emergent shall:             o   Provide an Integrated Master Project Plan (including tabular and Gantt forms) to BARDA                 that clearly indicates the critical path to support product approval. The Integrated Master                 Project Plan shall outline key, critical path milestones, with "Go/No-Go" decision criteria                 and a contract Work Breakdown Structure (due within 90 days of contract award with                 updates as requested by the Contracting Officer's Representative (COR).             o   Submit an updated Integrated Master Schedule in an approved format.             o   Use principles of Earned Value Management System (EVMS) in the management of this                 contract.             o   Submit a plan for a Performance Measurement Baseline Review (PMBR) electronically                 via email to the Contracting Officer (CO) and COR for a PBMR to occur within 90days                 of contract award.      •   Develop and maintain a risk management  plan.      •   Participate in regular meetings to coordinate and oversee the contracting effort.         [**] Non-Clinical Toxicology    Emergent shall conduct safety and toxicology of AV7909 using animal models following Good  Laboratory Practice guidelines (OLP: as defined in the U.S. Code of Federal Regulations, 21CFR Part  58), as appropriate. The activities shall include but are not limited to:         [**]    [**] Non-Clinical Efficacy    Emergent shall conduct efficacy, pharmacokinetics/pharmacodynamics, bioavailability, solubility,  formulation, dose, route and schedule of the medical countermeasure using both in vitro and animal  models following Good Laboratory Practice guidelines (OLP: as defined in the U.S. Code of Federal  Regulations, 21 CFR Part 58), as appropriate. The activities shall include but are not limited to:         [**]    [**]  Clinical Evaluation    Emergent shall design and conduct Phase 2 and Phase 3 clinical studies in accordance with all Federal  regulations and Good Clinical Practice (GCP) guidelines. The activities shall include but are not limited  to:                             July 30, 2019                                                                     

 

               [**]      [**] Regulatory Activities   Emergent shall conduct all required regulatory activities to support submission of BLA licensure for   AV7909. The activities shall include but are not limited to:          [**]      [**] Chemistry and Manufacturing Controls (CMC)   Emergent shall complete the manufacturing activities necessary to support BLA submission.   The activities shall include but are not limited to:         [**]    [**]    [**] Program Management   Emergent shall provide program management activities. The activities shall include but are not limited to:             •  Identification of and management to, distinct stages of the product development pathway         that are gates for Go/No Go decisions for advancing to the next stage of the Integrated         Product Development Plan.      •  Establishment of and tracking of milestones and timelines for the initiation conduct, and         completion of product development activities for each stage with a budget (in direct costs)         linked to each stage.      •  Ongoing evaluation of qualitative and quantitative criteria and accompanying data used to assess        July 30, 2019                                                                     

 

                                                  the scientific merit and technical feasibility of proceeding to the next stage of product          development.      •   Maintaining and managing staff (in-house and contracted) to assure the necessary expertise and          dedicated effort to perform the work.      •   Directing and overseeing subcontractors and consultants to assure successful performance of          planned activities within the cost and schedule constraints of          the contract.      •   Conducting performance measurement that shall include establishing an initial plan; defming          measurable parameters; defining how these parameters relate to cost and schedule impacts; their          approach in providing a detailed schedule that generates a critical path for the project; and a          description of the cost-accounting system used or intended to be used based on budget estimates          to monitor all costs related to the contract award for both Emergent and subcontractors on a real          time basis.      •   Manage contract activities in accordance with Earned Value Management. In this regard,          Emergent shall:             o   Provide an Integrated Master Project Plan (including tabular and Gantt forms) to BARDA                 that clearly indicates the critical path to support product approval. The Integrated Master                 Project Plan shall outline key, critical path milestones, with "Go/ No Go" decision                 criteria and a contract Work Breakdown Structure (due within 90 days of contract award                 with updates as requested by the Contracting Officer's Representative (COR).             o   Submit an updated Integrated Master Schedule in an approved format.             o   Use principles of Earned Value Management System (EVMS) in the management of this                 contract.             o   Submit a plan for a Performance Measurement Baseline Review (PMBR) electronically                 via email to the Contracting Officer (CO) and COR for a PBMR to occur within 90days                 of contract award.      •   Develop and maintain a risk management plan.      •   Participate in regular meetings to coordinate and oversee the contracting  effort.         [**] Clinical Evaluation  Emergent shall design and conduct a Phase 2 clinical study in accordance with all Federal regulations and  Good Clinical Practice (GCP) guidelines unless other studies are required by the FDA for the  establishment of [**] specification. The activities shall include, but are not limited to:         [**]    [**] Chemistry and Manufacturing Controls (CMC)  Emergent shall complete the manufacturing activities necessary to support AVA.214 Phase 2 [**] Study.  The activities  below are specific  to  conducting  a  Phase  2 [**]  clinical  study.  If  the FDA  requires  an  alternate strategy for establishment of [**], the activities below may no longer be applicable. Upon new  guidance from the FDA, Emergent will update the SOW accordingly.         [**]         1.5 CLIN 0002 - Initial purchase, storage, and delivery or product (Base)  Under the Base Period funding Emergent shall manufacture, fill, and deliver 3,000,000 doses procured in  fiscal year 2019 as an initial procurement to the Strategic National Stockpile (SNS). Emergent is  approved to use management reserve funding for shipping costs associated with these deliveries.                July 30, 2019                                                                               

 

                                          1.6   CLIN 0003 - Phase 4  post marketing requirements (Option)        [**]          Program Management   Emergent shall provide program management activities. The activities shall include but are not limited to:             •   Identification of and management to, distinct stages of the product development pathway that are          gates for Go/No Go decisions for advancing to the next stage of the Integrated Product          Development Plan.      •   Establishment of and tracking of milestones and timelines for the initiation conduct, and          completion of product development activities for each stage with a budget (in direct costs) linked          to each stage.      •   Ongoing evaluation of qualitative and quantitative criteria and accompanying data used to assess          the scientific merit and technical feasibility of proceeding to the next stage of product          development.      •   Maintaining and managing staff (in-house and contracted) to assure the necessary expertise and          dedicated effort to perform the work.      •   Directing and overseeing subcontractors and consultants to assure successful performance of          planned activities within the cost and schedule constraints of          the contract.      •   Conducting performance measurement that shall include establishing an initial plan; defining          measurable parameters; defining how these parameters relate to cost and schedule impacts; their          approach in providing a detailed schedule that generates a critical path for the project; and a          description of the cost-accounting system used or intended to be used based on budget estimates          to monitor all costs related to the contract award for both Emergent and subcontractors on a real          time basis.      •   Manage contract activities in accordance with Earned Value Management. In this regard,         Emergent shall:             0   Provide an Integrated Master Project Plan (including tabular and Gantt forms) to BARDA                 that clearly indicates the critical path to support product approval. The Integrated Master                 Project Plan shall outline key, critical path milestones, with "Go/No Go" decision criteria                 and a contract Work Breakdown Structure (due within 90 days of contract award with                 updates as requested by the Contracting Officer's Representative (COR).             0   Submit an updated Integrated Master Schedule in an approved  format.             0    Use principles of Earned Value Management System (EVMS) in the management of this                 contract.             0    Submit a plan for a Performance Measurement Baseline Review (PMBR) electronically                 via email to the Contracting Officer (CO) and COR for a PBMR to occur within 90 days                 of contract award.      •   Develop and maintain a risk management plan.      •   Participate in regular meetings to coordinate and oversee the contracting effort.              [**]                          July 30,  2019                                                                             

 

                                                  1.7 CLIN 0004 through 11- Surge Capacity - Additional procurement of Product (Option) Emergent shall   deliver up to 25 million dose regimens (equivalent to 50 million doses of AV7909). This option may be   triggered after EUA pre-authorization approval by FDA, which is currently linked to release of PPQ lots, and   deliveries will start within [**] months after trigger.          Under CLIN 4 Emergent shall manufacture, fill, and deliver 10[**]doses procured in fiscal year 2019 as   an  initial  procurement  to  the  Strategic  National  Stockpile  (SNS).  Emergent  will  be  responsible  for   shipping and transport of filled and finished AV7909 product to the SNS and the costs associated with the   delivery.          For delivery to the SNS, Emergent shall comply with the relevant associated activities and deliverables as  outlined in the Quality Agreement (attached) as signed by Emergent, BARDA, and the SNS. Emergent  shall  provide  appropriate  documentation  to  BARDA  for  quality  assurance  of  the  final  drug  product  delivered to the SNS and invoice appropriately.         1.8 Reporting Requirements and Deliverables   Reports  As part of the work to be performed under this contract, Emergent will prepare and deliver the following   reports throughout the period of performance.          Monthly Technical Progress Reports  On the fifteenth (15) day of each month for the previous calendar month, Emergent will submit to the  COR and the CO a Technical Progress Report covering the previous calendar month. The first reporting  period consists of the first full month of performance plus any fractional part of the initial month.  Thereafter, the reporting period will consist of each calendar month. The frequency of Technical Progress  Reporting will be determined by the CO and COR during negotiations of the contract. The format and  type of Technical Progress Report and Executive Summary will be provided by the COR. The Technical  Progress Reports will summarize progress for the reporting period, such as: management and  administrative updates, technical progress, issues, proposed work, manufacturing and supply chain  management, and a summary of invoices. A Technical Progress Report will not be required for the period  when the same month Annual Progress Reports or a Final Report are due. Emergent will submit one copy  of the Technical Progress Report electronically via e-mail to the CO and COR.          Annual Progress Reports  On the thirtieth (30th) calendar day following the last day of each reporting period, Emergent will submit  to the COR and the CO an Annual Progress Report. The first reporting period consists of the first full year  of performance plus any fractional part of the initial year. Thereafter, the reporting period shall consist of  each calendar year. Annual Progress Reports will summarize progress for the reporting period, such as:  management and administrative updates, technical progress, issues, proposed work, manufacturing and  supply chain management, and a summary of invoices. An Annual Progress Report will not be required  for the period when the Final Technical Progress Report is due.         Draft Final Report and Final Report  Emergent will submit the Draft Final Progress Report forty-five (45) calendar days prior to the expiration  date of the contract and the Final Progress Report on or before the expiration date of the contract. These  reports will include a summation of the work performed and results obtained for execution of various  studies or technical work packages during the entire contract period of performance. This report will be in        July 30, 2019                                                                              

 

                                           sufficient detail to describe comprehensively the results achieved. An electronic copy of the Draft Final   Report and Final Report will be submitted to the COR and CO.          FDA Regulatory Agency Correspondence Meeting Summaries and Submissions   With regard to interactions with the FDA, Emergent shall:      •   Forward the initial draft minutes to BARDA within five business days of any formal meeting          with the FDA or other regulatory agency and forward the final minutes when available.      •   Forward the initial draft minutes to BARDA within five business days of any informal meeting          with the FDA or other regulatory agency and forward the final minutes when available and if          applicable.      •   Forward the dates and times of any meeting with the FDA and other regulatory agencies to          BARDA as soon as the meeting times are known and make arrangements for appropriate          BARDA staff to attend the meetings.      •   Provide BARDA the opportunity to review and comment upon any documents to be submitted to          the FDA or other regulatory agency. Emergent will provide BARDA with five (5) business days          in which to review and provide comments prior to Emergent’s submission to the FDA.         Emergent will notify the COR and CO within 24 hours of all FDA arrivals to conduct site visits/audits by  any regulatory agency and provide the USG with an exact copy (non-redacted) of the FDA Form 483 and  the Establishment Inspection Report (EIR). Emergent will provide the COR and CO copies of the plan for  addressing areas of non-conformance to FDA regulations for Good Laboratory Practice (GLP) guidelines  as identified in the audit report, status updates during the plan’s execution, and a copy of all final  responses to the FDA. Emergent will also provide redacted copies of any FDA audits received from  subcontractors that occur as a result of this contract or for this product. Emergent will make arrangements  with the COR for the appropriate BARDA representative(s) to be present during the final debrief by the  regulatory inspector.               July 30, 2019                                                                              

 

Key Deliverables  A summary of Key Deliverables for this contract follow [*]                                                                                                                                        July 30, 2019                                                                         

 

                                                                                                                                                                                                                        July 30, 2019                                                                              

 

                                              Milestone #  WBS #  Milestone          Deliverables           Quantity  Estimated                                                       Summary (Details as               Completion                                                       specified in the                  Date                                                       Deliverables)                                                                                                                               [**]          [**]         [**]      [**]       [**]     [**]                [**]          [**]       [**]         [**]         [**]       [**]       [**]                [**]          [**]                                    CLIN 0001                                                [**]       [**]          [**]        [**]       [**]     [**][**]   [**]                [**]          [**]       [**]         [**]         [**]       [**]       [**]                [**]                                                                     [**]                                                [**]       [**]          [**]        [**]       [**]     [**][**]   [**]                [**]          [**]       [**]         [**]         [**]       [**]       [**]                [**]                                                                     [**]                                                [**]       [**]          [**]        [**]       [**]     [**][**]   [**]                [**]          [**]       [**]         [**]         [**]       [**]       [**]                [**]                                                                     [**]                                                [**]       [**]          [**]        [**]       [**]     [**][**]   [**]                [**]          [**]       [**]         [**]         [**]       [**]       [**]  CLIN 0002     [**]          --         Completion   Delivery of [**]        [**]       [**]                                         of delivery  3 million                                         of 3 million doses of                                         doses of     AV7909                                         AV7909                     July 30, 2019

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