Document:

EXECUTIVE
RETENTION AGREEMENT

 

This AGREEMENT is made as of July 26, 2013
(the “Effective Date”), by and between Novelos Therapeutics, Inc., a Delaware corporation (the “Company”),
with its executive offices located at One Gateway Center, Suite 504, Newton, Massachusetts 02458, and Dr. Christopher J. Pazoles
(the “Employee”).

 

WITNESSETH

 

WHEREAS, the Company desires to retain the
services of the Employee; and

 

WHEREAS, the Company and the Employee desire
to set forth the terms and conditions on which, from and after the Effective Date, the Employee is willing to continue in the employ
of the Company if the Company will agree to pay to the Employee certain amounts, in accordance with the provisions and conditions
hereinafter set forth

 

NOW THEREFORE, in consideration of the mutual
covenants contained herein, the Company and the Employee agree as follows:

 

1. Retention 

 

1.1. Retention Benefit. On December
31, 2013, (the “Retention Date”) if the Employee is actively employed by the Company as of such date, the Company
will pay to the Employee a lump sum retention payment in an aggregate amount equal to $79,560.001 (the “Retention
Payment”). The Retention Payment shall be payable not later than the tenth day following the Retention Date.

 

2. Payments Upon Termination 

 

2.1. Severance Benefit. Upon termination
of the Employee’s employment by the Company without Cause or by the Employee for Good Reason at any time prior to June 30,
2014 (the “Expiration Date”), so long as the Employee is actively employed by the Company at the time of such
termination, the Company will (i) pay to the Employee a lump sum severance payment in an aggregate amount of $132,600.002
(the “Severance Payment”), and (ii) for the six (6) month period subsequent to the date of termination,
the Employee shall continue to receive the disability and medical benefits that he receives as of the date hereof at the same level
in effect on, and at the same out-of-pocket cost to the Employee as of, the date hereof. The Severance Payment shall be payable
not later than the tenth day following such termination upon delivery to the Company of a release of any and all claims against
the Company, its officers, directors, stockholders, employees and agents in form reasonably satisfactory to the Company.

 

 

1Equal to 30% Base Salary as of the date hereof.

2Equal to six months’ Base Salary as of the
date hereof.

 

    	 

    	 

    

 

2.2. Unavailability of Benefit. Other
than benefits payable pursuant to this Agreement, no benefits will be paid under this Agreement (a) if the Employee is employed
by the Company as of the Expiration Date or (b) in the event of termination of the Employee’s employment by the Company for
Cause or by the Employee without Good Reason.

 

2.3. Cause. For purposes of this
Agreement, termination for “Cause” shall mean any of the following:

 

(a) gross neglect of duties for
which employed (other than on account of a medically determinable disability which renders the Employee incapable of performing
such services);

 

(b) use of alcohol materially
interfering with the performance of the Employee’s duties or use of illegal drugs;

 

(c) commission of any act constituting
sexual or any other form of illegal harassment, discrimination or retaliation;

 

(d) commission of any fraud, misappropriation
or embezzlement in the performance of the Employee’s duties;

 

(e) conviction or guilty or nolo
plea of a felony or misdemeanor involving moral turpitude, dishonesty, theft, unethical or unlawful conduct; or

 

(f) willful action or failure
to take action which is materially injurious to the Company.

 

2.4. Good Reason. For purposes of
this Agreement, the term “Good Reason” shall mean any of the following:

 

(a) reduction of the Employee’s
annual base salary and/or aggregate level of incentive compensation and employee benefits;

 

(b) material change by the Company
to the Employee’s function, duties, authority, or responsibilities in effect on the date hereof or as set forth in this Agreement,
which change would cause the Executive’s position with the Company to become one of lesser responsibility, importance, or
scope from the position and attributes thereof in effect on the date hereof or as set forth in this Agreement; or

 

(c) relocation of the Employee’s
principal place of employment to a location beyond 50 miles of Newton, Massachusetts.

 

3. Option Acceleration and Exercise.

 

3.1. Upon termination of the Employee prior
to the Expiration Date, by the Company without Cause or by the Employee for Good Reason, all unvested options held by the Employee
shall be credited with an additional six months vesting and all vested options held by the Employee shall remain exercisable for
a period of eighteen months following the date of such termination. The Company shall file a registration statement on Form S-8
for the shares underlying Employee’s options within ninety days from the date of termination.

 

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4. Miscellaneous.

 

4.1. Term and Termination. The term
of this Agreement shall commence on the Effective Date and shall continue until the earliest to occur of (a) the payment of all
amounts that may become payable under this Agreement, (b) the Expiration Date, and (c) termination by the parties’ mutual
written agreement.

 

4.2. Independence of Agreement. The
benefits under this Agreement will be independent of, and in addition to, any other Agreement that may exist from time to time
between the parties hereto, or any other compensation payable by the Company to the Employee, whether as salary, bonus or otherwise.
This Agreement shall not be deemed to constitute a contract of employment between the parties hereto, nor will any provision hereof
restrict the right of the Company to discharge the Employee, or restrict the right of the Employee to resign his employment.

 

4.3. Definition of “Person”.
For purposes of this Agreement, the term “Person” shall mean an individual, a corporation, an association, a
partnership, an estate, a trust and any other entity or organization.

 

4.4. Withholding. All payments made
by the Company under this Agreement shall be net of any tax or other amounts required to be withheld by the Company under applicable
law.

 

4.5. Assignment; Successors and Assigns,
etc. Neither the Company nor the Employee may make any assignment of this Agreement or any interest herein, by operation of
law or otherwise, without the prior written consent of the other party and without such consent any attempted transfer or assignment
shall be null and of no effect; provided, however, that the Company may assign its rights under this Agreement without the
consent of the Employee in the event either Company shall hereafter effect a reorganization, consolidate with or merge into any
other Person, or transfer all or substantially all of its properties or assets to any other Person. This Agreement shall inure
to the benefit of and be binding upon the Company and the Employee, and their respective successors, executors, administrators,
heirs and permitted assigns. In the event of the Employee’s death prior to the completion by the Company of all payments
due him under this Agreement, the Company shall continue such payments to the Employee’s beneficiary designated in writing
to the Company prior to his death (or to his estate, if he or she fails to make such designation).

 

4.6. Enforceability. If any portion
or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then
the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which
it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall
be valid and enforceable to the fullest extent permitted by law.

 

4.7. Waiver. No waiver of any provision
hereof shall be effective unless made in writing and signed by the waiving party. The failure of any party to require the performance
of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any
subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

 

    	- 3 -

    	 

    

 

4.8. Notices. Any notices, requests,
demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent
by certified mail, postage prepaid, to the Company or the Employee at the last known address or such other address as either party
may designate in writing by notice to the other.

 

4.9. Amendment. This Agreement may
be amended or modified only by a written instrument signed by the Employee and by a duly authorized representative of the Company.

 

4.10. Counterparts; Facsimile Signatures.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument, and in pleading or proving any provision of this Agreement it shall not be necessary
to produce more than one such counterpart. A signature sent by telecopy or facsimile transmission shall be as valid and binding
upon a party as an original signature of such party.

 

4.11. Governing Law. This is a Massachusetts
contract and shall be construed under and be governed in all respects by the laws of The Commonwealth of Massachusetts.

 

    	- 4 -

    	 

    

 

IN WITNESS WHEREOF, this Agreement has been
executed by the Company, by its duly authorized officer, and by the Employee, as of the date first above written.

 

	 	NOVELOS THERAPEUTICS, INC.	 
	 	 	 
	 	By: /s/ Harry S. Palmin	 
	 	Name: Harry S. Palmin	 
	 	Title:  Chief Executive Officer
	 	 	 
	 	 	 
	 	EMPLOYEE:	 
	 	 	 
	 	/s/ Christopher J. Pazoles	 
	 	Dr. Christopher J. Pazoles	 

 

    	- 5 -EXECUTIVE
RETENTION AGREEMENT

 

This AGREEMENT is made as of July 26, 2013
(the “Effective Date”), by and between Novelos Therapeutics, Inc., a Delaware corporation (the “Company”),
with its executive offices located at One Gateway Center, Suite 504, Newton, Massachusetts 02458, and Joanne M. Protano (the “Employee”).

 

WITNESSETH

 

WHEREAS, the Company desires to retain the
services of the Employee; and

 

WHEREAS, the Company and the Employee desire
to set forth the terms and conditions on which, from and after the Effective Date, the Employee is willing to continue in the employ
of the Company if the Company will agree to pay to the Employee certain amounts, in accordance with the provisions and conditions
hereinafter set forth

 

NOW THEREFORE, in consideration of the mutual
covenants contained herein, the Company and the Employee agree as follows:

 

1. Retention 

 

1.1. Retention Benefit. On December
31, 2013, (the “Retention Date”) if the Employee is actively employed by the Company as of such date, the Company
will pay to the Employee a lump sum retention payment in an aggregate amount equal to $67,427.001 (the “Retention
Payment”). The Retention Payment shall be payable not later than the tenth day following the Retention Date.

 

2. Payments Upon Termination 

 

2.1. Severance Benefit. Upon termination
of the Employee’s employment by the Company without Cause or by the Employee for Good Reason at any time prior to June 30,
2014 (the “Expiration Date”), so long as the Employee is actively employed by the Company at the time of such
termination, the Company will (i) pay to the Employee a lump sum severance payment in an aggregate amount of $112,378.502
(the “Severance Payment”), and (ii) for the six (6) month period subsequent to the date of termination,
the Employee shall continue to receive the disability and medical benefits that she receives as of the date hereof at the same
level in effect on, and at the same out-of-pocket cost to the Employee as of, the date hereof. The Severance Payment shall be payable
not later than the tenth day following such termination upon delivery to the Company of a release of any and all claims against
the Company, its officers, directors, stockholders, employees and agents in form reasonably satisfactory to the Company.

 

 

1Equal to 30% Base Salary as of the date hereof.

2Equal to six months’ Base Salary as of the
date hereof.

 

    	 

    	 

    

 

2.2. Unavailability of Benefit. Other
than benefits payable pursuant to Section 1.1 hereof, no benefits will be paid under this Agreement (a) if the Employee
is employed by the Company as of the Expiration Date or (b) in the event of termination of the Employee’s employment by the
Company for Cause or by the Employee without Good Reason.

 

2.3. Cause. For purposes of this
Agreement, termination for “Cause” shall mean any of the following:

 

(a) gross neglect of duties for
which employed (other than on account of a medically determinable disability which renders the Employee incapable of performing
such services);

 

(b) use of alcohol materially
interfering with the performance of the Employee’s duties or use of illegal drugs;

 

(c) commission of any act constituting
sexual or any other form of illegal harassment, discrimination or retaliation;

 

(d) commission of any fraud, misappropriation
or embezzlement in the performance of the Employee’s duties;

 

(e) conviction or guilty or nolo
plea of a felony or misdemeanor involving moral turpitude, dishonesty, theft, unethical or unlawful conduct; or

 

(f) willful action or failure
to take action which is materially injurious to the Company.

 

2.4. Good Reason. For purposes of
this Agreement, the term “Good Reason” shall mean any of the following:

 

(a) reduction of the Employee’s
annual base salary and/or aggregate level of incentive compensation and employee benefits;

 

(b) material change by the Company
to the Employee’s function, duties, authority, or responsibilities in effect on the date hereof or as set forth in this Agreement,
which change would cause the Executive’s position with the Company to become one of lesser responsibility, importance, or
scope from the position and attributes thereof in effect on the date hereof or as set forth in this Agreement; or

 

(c) relocation of the Employee’s
principal place of employment to a location beyond 50 miles of Newton, Massachusetts.

 

3. Option Acceleration and Exercise.

 

3.1. Upon termination of the Employee prior
to the Expiration Date, by the Company without Cause or by the Employee for Good Reason, all unvested options held by the Employee
shall be credited with an additional six months vesting and all vested options held by the Employee shall remain exercisable for
a period of eighteen months following the date of such termination. The Company shall file a registration statement on Form S-8
for the shares underlying Employee’s options within ninety days from the date of termination.

 

    	- 2 -

    	 

    

 

4. Miscellaneous.

 

4.1. Term and Termination. The term
of this Agreement shall commence on the Effective Date and shall continue until the earliest to occur of (a) the payment of all
amounts that may become payable under this Agreement, (b) the Expiration Date, and (c) termination by the parties’ mutual
written agreement.

 

4.2. Independence of Agreement. The
benefits under this Agreement will be independent of, and in addition to, any other Agreement that may exist from time to time
between the parties hereto, or any other compensation payable by the Company to the Employee, whether as salary, bonus or otherwise.
This Agreement shall not be deemed to constitute a contract of employment between the parties hereto, nor will any provision hereof
restrict the right of the Company to discharge the Employee, or restrict the right of the Employee to resign her employment.

 

4.3. Definition of “Person”.
For purposes of this Agreement, the term “Person” shall mean an individual, a corporation, an association, a
partnership, an estate, a trust and any other entity or organization.

 

4.4. Withholding. All payments made
by the Company under this Agreement shall be net of any tax or other amounts required to be withheld by the Company under applicable
law.

 

4.5. Assignment; Successors and Assigns,
etc. Neither the Company nor the Employee may make any assignment of this Agreement or any interest herein, by operation of
law or otherwise, without the prior written consent of the other party and without such consent any attempted transfer or assignment
shall be null and of no effect; provided, however, that the Company may assign its rights under this Agreement without the
consent of the Employee in the event either Company shall hereafter effect a reorganization, consolidate with or merge into any
other Person, or transfer all or substantially all of its properties or assets to any other Person. This Agreement shall inure
to the benefit of and be binding upon the Company and the Employee, and their respective successors, executors, administrators,
heirs and permitted assigns. In the event of the Employee’s death prior to the completion by the Company of all payments
due her under this Agreement, the Company shall continue such payments to the Employee’s beneficiary designated in writing
to the Company prior to her death (or to her estate, if she fails to make such designation).

 

4.6. Enforceability. If any portion
or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then
the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which
it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall
be valid and enforceable to the fullest extent permitted by law.

 

4.7. Waiver. No waiver of any provision
hereof shall be effective unless made in writing and signed by the waiving party. The failure of any party to require the performance
of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any
subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

 

    	- 3 -

    	 

    

 

4.8. Notices. Any notices, requests,
demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent
by certified mail, postage prepaid, to the Company or the Employee at the last known address or such other address as either party
may designate in writing by notice to the other.

 

4.9. Amendment. This Agreement may
be amended or modified only by a written instrument signed by the Employee and by a duly authorized representative of the Company.

 

4.10. Counterparts; Facsimile Signatures.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument, and in pleading or proving any provision of this Agreement it shall not be necessary
to produce more than one such counterpart. A signature sent by telecopy or facsimile transmission shall be as valid and binding
upon a party as an original signature of such party.

 

4.11. Governing Law. This is a Massachusetts
contract and shall be construed under and be governed in all respects by the laws of The Commonwealth of Massachusetts.

 

    	- 4 -

    	 

    

 

IN WITNESS WHEREOF, this Agreement has been
executed by the Company, by its duly authorized officer, and by the Employee, as of the date first above written.

 

	 	NOVELOS THERAPEUTICS, INC.
	 	 
	 	By:	/s/ Harry S. Palmin
	 	Name: Harry S. Palmin
	 	Title:  Chief Executive Officer
	 	 
	 	EMPLOYEE:
	 	 
	 	/s/ Joanne M. Protano
	 	Joanne M. Protano

 

    	- 5 -

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