Document:

EX-10.1

  EXHIBIT 10.1

  CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH “[***]”. SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) THE TYPE OF INFORMATION THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

   

  TWIST BIOSCIENCE ANTIBODY DISCOVERY AGREEMENT

  	 

  This Antibody Discovery Agreement (“Agreement”) is entered into as of the Effective Date set forth below by and between Twist Bioscience Corporation, a Delaware corporation (“Twist”) and the customer identified below (“Company”) for the purpose of Twist providing performing certain antibody discovery activities, all as described under and subject to the terms and conditions of this Agreement below. Company and Twist may be referred to herein individually as a “Party” and collectively as the “Parties.”

   

  		
	Company: 
	Adicet Bio, Inc.

	Company Address: 
	Adicet Bio, Inc.
200 Constitution Drive
Menlo Park, CA 94025

	Twist Contact Information:
	Twist Bioscience Corporation
Attention: [***] General Counsel
681 Gateway Boulevard,
South San Francisco, CA 94080
[***]

	Effective Date:
	March 23, 2021

	Company Billing and Payment Instructions:
	Payment by ACH or Wire transfer is preferred:
[***]
 
*Please include invoices number(s) with your wire transfer.
 
For payment by check, please mail it to:
 
Twist Bioscience Corporation
[***]
681 Gateway Boulevard
South San Francisco, CA 94080 
USA
 
For billing inquiries, contact: [***]

  	  

  	This Agreement includes terms and conditions attached hereto and incorporated herein and may be modified only in accordance with such terms and conditions. 

   

   

   

   

   

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  	This Agreement, including the terms and conditions attached hereto, are hereby accepted and agreed to by duly authorized representatives of Twist and Company as follows:

   

  		
	Twist Bioscience Corporation
	COMPANY: ADICET BIO, INC.

	By: /s/ Emily Leproust
	By: /s/ Chen Schor

	Name: Emily Leproust
	Name: Chen Schor

	Title: CEO
	Title: President and CEO

   

   

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  TWIST BIOSCIENCE ANTIBODY DISCOVERY AGREEMENT

  1.Definitions

  	The following capitalized terms shall have the following meanings as used in this Agreement:

  1.1	 “Activities” means those antibody discovery activities and related services Twist shall provide as described in a Project Order.

  1.2 	 “Affiliate” means, with respect to Party, any other entity directly or indirectly controlling, controlled by or under common control with such Party, but only for so long as such control shall continue.  For purposes of this definition, “control” (including, with correlative meanings, “controlling,” “controlled by” and “under common control with”) means (a) possession, direct or indirect, of the power to direct or cause the direction of the management or policies of an entity (whether through ownership of securities or other ownership interests, by contract or otherwise), or (b) beneficial ownership of at least fifty percent (50%) of the voting securities or other ownership interest of an entity.

  1.3 	 [***].

  1.4 	 “Antibody” means any antibody (or similar molecule) including variants, [***] components thereof and multi-specifics and antibody-drug conjugates, identified or generated using the Antibody Library from a Sequence in the course of performing the Activities under a Project Order.

  1.5	 “Antibody Library” means Twist’s proprietary [***] to be used in the performance of the Activities.

  1.6	 “API” means any active pharmaceutical (including biological) ingredient or component (other than an adjuvant or excipient). 

  1.7	 “Combination Product” means any Product in the form of a combination product or combination therapy that includes one or more APIs in addition to a Program Antibody (whether such API is combined with the Product in a single formulation or package, as applicable, or formulated or packaged separately but sold together for a single price).

  1.8	 “Company Materials” means information and/or materials that Company provides to Twist as specified in the Project Order or otherwise agreed by the Parties 

  1.9 	 “Covered” means, including with correlative meanings, “Cover,” and “Covering,” with respect to a Product in a particular country, that the manufacture, use, sale or importation of such Product, as applicable, in such country would, but for the licenses granted herein, infringe a Valid Patent Claim.

  1.10 “Confidential Information” means all information disclosed or provided by a Party (the “Disclosing Party”) to the other Party (the “Receiving Party”) pursuant to this Agreement that the Disclosing Party clearly identifies as confidential at the time of disclosure or that should reasonably be understood by the Receiving Party to be proprietary or confidential to the Disclosing Party, either because of the circumstances of disclosure or the nature of the information itself. Confidential Information may be disclosed to the Receiving Party hereunder in oral, written or other tangible form

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  1.11 “FDA” means the United States Food and Drug Administration

  1.12“Fees” means the amounts payable to Twist as specified in each Project Order, including [***].

  1.13“First Commercial Sale” means the first [***] following receipt of a marketing approval for such Product in such country.

  1.14 “Indication” means a disease, disorder or medical condition in humans, or a specified population of patients, that a Product is intended to treat, prevent, diagnose, monitor or ameliorate, as set forth in the IND or label for such Product, as approved by the applicable Regulatory Authority.

  1.15“Library” means Twist’s proprietary Antibody library.

  1.16 “Negotiation Period” means the [***] period from signing of that certain non-binding term sheet by and between the Company and Twist, dated as of February 9, 2021 (the “Term Sheet”) or other time period as mutually agreed to by the parties.

  1.17 “Net Sales” means the total amount actually received from Third Parties on sales of Product, by or under the authority of Company, less the following reasonable and customary deductions: [***]. 

  Solely for purposes of calculating Net Sales, if Company or any of its Affiliates, licensees or sublicensees sells any Product in the form of a Combination Product, then [***].

  1.18“Phase I Clinical Trial” means a human clinical study the principal purpose of which is a preliminary determination of safety in healthy individuals or patients, as described in 21 C.F.R. 312.21(a) (as amended or any replacement thereof), or a similar human clinical study prescribed by the Regulatory Authority in a country other than the United States.

  1.19“Phase II Clinical Trial” means a human clinical study of a Product, the principal purpose of which is a preliminary determination of safety and efficacy in the target patient population and establishing appropriate dosage ranges for use in Phase III Clinical Trials of a Product, as further described in 21 C.F.R. 312.21(b) (as amended or any replacement thereof), or a similar human clinical study prescribed by the Regulatory Authority in a country other than the United States.  Phase II Clinical Trial also includes the portion of any human clinical study that meets the foregoing definition, as in the case of a study designated as a “Phase I/II” clinical trial.

  1.20“Phase III Clinical Trial” means a human clinical study of a Product on a sufficient number in a target patient population that is designed to establish that the Product is safe and efficacious for its intended use and which clinical trial support a Regulatory Approval for the further described in 21 C.F.R. 312.21(c) (as amended or any replacement thereof), or a similar human clinical study prescribed by the Regulatory Authority in a country other than the United States.  Phase III Clinical Trial also includes (a) the portion of any human clinical study that meets the foregoing definition, as in the case of a study designated as a “Phase II/III” clinical trial, and (b) any other human clinical study serving as a pivotal study from which the data are actually submitted to the applicable Regulatory Authority in connection with an application for Regulatory Approval, whether or not such study is expressly designated as a “Phase III” clinical trial.

  1.21“Product” means a product containing, incorporating or using a Program Antibody.  For clarity, a Product includes [***]. 

  1.22“Program Antibody” means those Antibodies provided to Company that meet pre-defined criteria set forth in a Project Order.

  1.23“Program Antibody Patents” means all issued patents and pending patent applications (which, for purposes of this Agreement, include certificates of invention, applications for certificates of invention and propriety rights)  in any country or region that claim [***]. Patent and patent applications include all provisional applications, substitutions, continuations, continuations-in-part, continued prosecution applications including requests for 

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  continued examination, divisional applications and renewals, and all letters patent or cert or certificates of invention granted thereon, and all reissues, reexaminations, extensions (including, without limitations, pediatric exclusivity patent extensions), term restorations, renewals, substitutions, confirmations, registrations, revalidations, revisions and additions of or to any of the foregoing.

  1.24“Project” means a project in which Twist performs certain Activities, including in connection with the panning of Library(ies), as set forth in a Project Order.

  1.25“Project Order” means an Exhibit to this Agreement which describes the Parties obligations in performing a Project, an example of which is set forth in Exhibit A. Project Orders will be set forth as a consecutively numbered Exhibit A-X (e.g. “Exhibit A-1”, “Exhibit A-2”, etc.).

  1.26"Regulatory Approval” means any approval, license, registration or authorization of the applicable Regulatory Authority that is necessary for the marketing and sale of a Product in the applicable country or jurisdiction, excluding pricing and reimbursement approvals, provided however, [***].

  1.27“Regulatory Authority” means, with respect to the applicable country or jurisdiction, the agency, department, bureau, commission, council or other governmental body having authority to grant Regulatory Approvals in such country or jurisdiction, such as the FDA with respect to the United States.

  1.28 “Sequence” means an antibody amino acid sequence [***].

  1.29 “Sublicensee” means a Third Party that obtains rights from a Company or its Affiliate to further develop or commercialize an Invention, Program Antibody or Product. For avoidance of doubt, each Party’s Affiliates will not constitute a Sublicensee. [***].

  1.30 “Suggestions” means any suggestions, feedback, recommendations, improvement ideas or input provided by or on behalf of Company regarding the Twist Technology.

  1.31“Target” means any clinically relevant [***] set forth in the Project Order.

  1.32“Third Party” means any person, corporation, partnership, joint venture or other entity other than the Parties and their respective Affiliates.

  1.33“Twist Technology” means [***].

  1.34“Valid Patent Claim” means any claim of (a) an issued and unexpired patent or (b) a pending patent application, in each case included within the [***]; provided that such claim has not been abandoned, revoked or held unenforceable, invalid or unpatentable by a court or other government body of competent jurisdiction with no further possibility of appeal and which claim has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue, re-examination or disclaimer or otherwise.  A claim within a pending patent application that has been pending issuance for more than [***] from the date of filing of the earliest priority patent application to which such pending patent application is entitled shall not be a Valid Patent Claim, unless and until it issues.  

  2.Activities and Work Product 

  2.1	Project Orders. During the Term (as set forth in Section 10.1 below), Company may wish to retain Twist for certain Projects. In the event that Company and Twist reach agreement with respect to a particular Project, a Project Order for such Project shall be attached to this Agreement and together with this Agreement shall collectively constitute the entire agreement for the specific Project. No Project Order or any modifications thereto, shall be attached to or made a part of this Agreement without first being executed by the Parties hereto in a writing which specifically references this Agreement. To the extent any terms set forth in the Project Order conflict with the terms of this Agreement, the terms of this Agreement shall control unless otherwise expressly agreed by the Parties in such Project Order. 

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  2.2	Work Product. Twist agrees to use commercially reasonable efforts to provide Activities and perform Activities in accordance with the terms and conditions of this Agreement. Such Activities may include supplying [***], “Work Product”). For clarity, Work Product excludes [***]. Twist may cancel Activities if Twist determines (in its reasonable discretion) a need to do so for biosecurity, biosafety, patent infringement, export restrictions and/or feasibility reasons. Any cancellation of Activities as described above shall be without penalty or liability to Twist (provided that any prepaid amounts for such Activities shall be promptly refunded to Company by Twist, or if Company so requests, credited toward future Activities under this Agreement). Notwithstanding anything to the contrary herein, nothing in the Agreement shall limit or restrict Twist’s right and ability at all times to provide products and services to Third Parties which are similar to the Work Product made, or Activities provided or supplied, under this Agreement, provided that no Company Material nor Company’s Confidential Information are used in the providing of such services to Third Parties. 

  2.3	Subcontracting. Twist may assign, delegate or subcontract any of the Activities without the prior written approval of Company; provided that Twist shall remain responsible for its obligations under this Agreement, including the performance of all of its subcontractors under this Agreement. 

  2.4	Gatekeeping. A Sequence and its corresponding Antibody will “Available” if Twist [***]. 

  3.Company Materials, Restrictions and Responsibilities

  3.1	Company Materials. To the extent required for a particular Project, Company shall provide the Company Materials, at Company’s sole expense (including without limitation any shipping and handling) and according to the timelines and other details in the Project Order or, if not so specified, in a prompt and timely manner so as to allow Twist’s timely performance of its supply of Work Product and otherwise under this Agreement. Company agrees to label, package, and transport the Company Materials in accordance with applicable laws. Company represents and warrants that: (a) Company has all rights, licenses, consents and permissions required to provide the Company Materials to Twist and for Twist to use such Company Materials to perform the Activities, to generate and supply to Company the applicable Work Product with respect thereto, and otherwise perform under this Agreement and the applicable Project Order; and (b) Twist’s possession and use of the Company Materials and any Work Product that Company orders under and in accordance with this Agreement and the applicable Project Order shall not violate any applicable laws or agreement to which Company is a party, nor require registration or other action under Federal Select Agent Program regulations or other biosecurity requirements (collectively, “Biosecurity Requirements”), nor infringe or misappropriate the intellectual property rights of any Third Party. Without limiting the foregoing, Company represents and warrants that no Company Materials provided, and no Work Product contemplated in a particular Project Order, are or contain the full protein coding sequence for [***]. Company further represents and warrants that it has provided Twist with all material information of which Company is aware regarding any toxic substances or material hazards associated with the handling, transport, exposure or other usage of the Company Materials. Twist reserves the right (but has no obligation under this Agreement) to screen all Company Materials as Twist believes is appropriate to help ensure legal compliance with respect to Project Orders including by, without limitation, screening against the list of select agents published by the International Gene Synthesis Consortium (IGSC), the list of Select Agents and Toxins covered by Biosecurity Requirements, and any similar list to promote biosecurity (and if applicable, cancel any Project Orders). Company shall cooperate with Twist in connection with such screening by, among other steps, on request providing written confirmation regarding Company’s identity, use of Work Product, Work Product’s status under Biosecurity Requirements, or other matters. Company guarantees the accuracy of any such written confirmation, and Company’s supply of any inaccurate written confirmation or Company actions that conflict with such written confirmation shall constitute a breach of this Agreement.

  3.2	Twist Use of Company Materials. Company hereby grants Twist and its Affiliates a nonexclusive license to use, develop and transfer the Company Materials solely in connection with the performance of the Activities, to generate and supply to Company the applicable Work Product ([***]), as reasonably required to comply with applicable laws and regulations, and otherwise to perform its obligations and exercise its rights under this Agreement and the applicable Project Order in accordance with its terms (including in connection with a permitted subcontracting arrangement (as contemplated in Section 2.3 above) or a Permitted Assignment (as defined below) of this Agreement). Any third-party disclosure of Company Materials shall be under comparable confidentiality restrictions. Except to the extent the Project Order or this Agreement expressly states otherwise, or pursuant to Company’s prior written consent, 

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  Twist agrees (a) to use the Company Materials solely for the licensed purposes described above; (b) not to analyze the Company Materials or cause the Company Materials to be further analyzed, except to the extent necessary for the licensed purposes described in this Agreement; and (c) not to transfer Company Materials to any location other than the facilities of Twist. Twist will provide access to Company Materials only to those of its employees who have a need for such access for purposes of conducting the Activities. Twist acknowledges that the Company Materials are experimental in nature and may have unknown characteristics and therefore agrees to use prudence and reasonable care in the use, handling, storage, transportation and disposition and containment of Company Materials. Twist shall conduct studies utilizing the Company Materials under suitable containment conditions and in accordance with existing laws and regulations. Twist shall, at Company’s request and expense, return unused Company Materials. Twist shall not be liable for any damage to or destruction of any Company Materials unless such damage or destruction was caused by Twist’s gross negligence or willful misconduct. Notwithstanding the foregoing, with respect to personal data and information within the Company Materials, Twist may use such data for certain limited internal purposes as expressly authorized in Twist’s published Privacy Policy (https://www.twistbioscience.com/privacy). Notwithstanding any other provision of this Agreement, Twist reserves the right, at its sole discretion, to reject any Company Material or to cancel any Project Order on the grounds that, in Twist’s opinion, such Company Material, Project Order presents a health or safety risk.

  3.3	Company Responsibilities. In addition to providing the Company Materials as set forth above, Company will provide Twist with reasonable cooperation and assistance in connection with Twist’s production and supply of Work Product and other performance of Activities under this Agreement. In addition to and without limiting the foregoing, Company will perform those tasks and fulfill those responsibilities specified in this Agreement (including without limitation the provision of Company Materials) and the applicable Project Order (collectively, “Company Responsibilities”). Company understands and agrees that Twist’s performance of the Activities and otherwise under this Agreement and each Project Order is dependent on and subject to Company’s timely and complete performance of Company Responsibilities and Company’s provision of complete and accurate information. Company shall comply with all applicable laws in connection with its activities and performance under this Agreement.

  3.4	Limitations and Restrictions on Use of Work Product. Company shall be solely responsible for its use of any Work Product and other deliverables provided by Twist to Company hereunder. Neither the Activities nor any Work Product has been approved, cleared, authorized or licensed by FDA or any other applicable governmental agency, within or outside the United States, for any use. Company shall not use any Work Product in humans to treat or diagnose any condition nor for any other diagnostic or therapeutic purposes, for investigational use in foods, drugs, devices or cosmetics of any kind, or for consumption by or use in connection with or administration or application to humans or animals unless Company first obtains all necessary and/or appropriate approvals, clearances, authorizations and/or licenses from the FDA or other applicable governmental agency within or outside the United States. In any event, Company shall use all Work Product and other deliverables provided by Twist to Company hereunder in accordance with applicable laws, rules, regulations and governmental policies and in accordance with the terms and conditions of this Agreement and the applicable Project Order. Twist will not be responsible or liable for any losses, costs, expenses, or any other forms of liability arising out of Company’s use of the Activities or any Work Product or other deliverables provided by Twist to Company hereunder. 

  4.Fees and Payment Terms

  4.1	Fees. Company shall pay Twist the Fees as set forth below and as specified in each Project Order. Fees do not include [***], which Company is responsible for paying and which, as applicable, Twist may add to Company’s invoice. Only the pricing in this Agreement and the Project Order are valid and Twist shall not be bound or subject to any other pricing, regardless of where stated or published.

  4.1.1     Project Initiation Fee.  Prior to commencement of any Activities, Company shall have paid Twist an upfront, non-refundable Project Initiation Fee of [***]. The Project Initiation Fee [***]. For clarity, the Project Initiation Fee is equal to [***] and [***] of the applicable Cumulative Payment amount as set forth in the multi-Target discount schedule of Annex 1 (“Multi-Target Discount Schedule”) [***]. In consideration of the Project Initiation Fee, Twist has committed to work on [***] per a mutually agreed upon work plan (the “Pre-Work”). If the Agreement is not executed [***], Twist shall cease all Pre-Work and shall have no continued obligation or liability to Company. For clarity, Twist has no continued obligation or liability to Company with respect to the 

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  Pre-Work until such Agreement is signed, provided that neither Party is obligated to enter into this Agreement. This Agreement shall govern all Pre-Work which occurred during the Negotiation Period or otherwise prior to the Effective Date. [***]. 

  4.1.2    Technology Access Fee. Company shall pay Twist an upfront, non-refundable, technology access fee equal to the applicable amount as set forth in the Multi-Target Discount Schedule within [***] of execution of the Agreement, and for any future Project Order, within [***] of execution of such Project Order. [***].

  4.1.3    Project Fees. Company shall pay Twist a non-refundable Project Fee equal to the applicable amount as set forth in the Multi-Target Discount Schedule in Annex 1, according to the payment schedule and payment terms set forth in Section 4 of this Agreement. 

  4.2	Royalty Payments. Company shall pay Twist a royalty (each such royalty payment, a “Royalty”)  on [***] Net Sales of each Product at the rates set forth below:

  		
	[***] Net Sales on a Product-by-Product Basis
	Royalty Rate

	[***]
	[***]%

	[***]
	[***]%

	[***]
	[***]%

   

  4.2.1      Royalty Term.  The Royalty will be payable on a Product-by-Product and country-by-country basis from the First Commercial Sale in such country until [***].

  4.2.2      Reports; Payments.  After the First Commercial Sale by or under the authority of Company of a Product, Company shall deliver a written report to Twist within [***], during the royalty term showing, on a country-by-country basis: [***].  Royalties shown to have accrued by each report provided pursuant to this Section 4.2.2 shall be due and payable on the date such report is due.

  4.2.3      Royalty Stacking.  In the event that Company, its Affiliates or Sublicensees are required to pay a royalty to a Third Party with respect to any intellectual property rights, including patents Covering a particular Product, then Company shall have the right [***].

  4.2.4      Milestone Payments. Within [***] after the first achievement of each milestone event set forth in the table below for each Product (each, a “Milestone Event”), Company shall notify Twist in writing of the achievement of each Milestone Event and make the corresponding milestone payment to Twist (each, a “Milestone Payment”).  [***]. 

  			
	 
	Development Milestone Event
	Payment

	1.
	[***]
	$[***]

	2.
	[***]
	$[***]

	3.
	[***]
	$[***]

	4.
	[***]
	$[***]

	5.
	[***]
	$[***]

	6.
	[***]
	$[***]

	 
	   [***]
	 

   

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  4.3	Payment Terms. Company shall pay the Fees to Twist within [***] of the dates or occasions specified in the Project Order, or if not so specified in the Project Order, within [***] of receipt by the Company of Twist’s invoice for such Fees. Except to the extent expressly provided otherwise in this Agreement, all Fees are non-cancelable, non-creditable and non-refundable. Any Fees not paid when due hereunder will accrue interest starting upon the due date and running until the date paid at a rate of [***] or, if lower, the highest rate allowed by applicable law. Payments shall be addressed to and sent via the means specified in the Agreement or Project Order or otherwise as designated in writing by Twist. Unless the Project Order states otherwise, all Fees shall be payable in US dollars with immediately available funds. If any currency conversion shall be required in connection with the payment of Fees under a Project Order, such conversion shall be made by using the average of the exchange rates for the purchase and sale of United States Dollars reported by The Wall Street Journal (Internet Edition) on the last business day of the calendar quarter to which such royalty or other payments relate. Without limiting any other rights or remedies of Twist, failure of Company to pay any Fees when due shall entitle Twist to suspend Activities under any pending Project Orders unless and until such Fees are paid. If Twist appoints a collection agency or an attorney to recover any unpaid amounts from Company, Twist may charge Company and Company agrees to pay all reasonable costs of collection, including all associated reasonable attorneys’ fees. 

  4.4	Taxes. Twist’s Fees do not include applicable taxes. [***]. If applicable and/or legally required for Twist to collect and pay any such taxes, Twist may add such taxes to Company’s invoice which Company shall be obligated to pay as part of the Fees. The Parties will cooperate in good faith to seek to obtain any legally available reductions or exemptions from such taxes to the extent legally permissible. 

  5.Development and Commercialization 

  5.1	Company (itself or through its Affiliates or Sublicensees) shall use [***] to further develop, commercialize and market [***] Products following the conclusion of the Project. Company shall keep Twist reasonably informed as to its (and/or its Affiliates or Sublicensees) development, commercialization and marketing activities for such Product(s), including pre-launch and launch activities, by providing to Twist on an annual basis a written report describing in reasonable detail such activities conducted during the previous annual period and the activities planned to be conducted during the upcoming annual period.

  6.Intellectual Property

  6.1	Retention of Rights. Company shall retain all right, title, and interest in and to the Company Materials (subject to the rights and licenses expressly provided for in this Agreement) and all of Company’s other technology and intellectual property. Twist shall retain all right, title, and interest in and to the Twist Technology. No rights or licenses in, to or under either Party’s intellectual property are granted or provided hereunder, by implication, estoppel or otherwise, except to the extent expressly provided for in this Agreement. 

  6.2	Work Product Rights. Subject to Section 6.1 above and Section 6.4 below, [***] agrees that all Work Product (including any Program Antibodies delivered to Company), and information, discoveries, and inventions pertaining specifically to [***] (the “Inventions”) shall, as between the Parties, be the sole and exclusive property of [***]. [***] shall have the right to use such Inventions for any and all purposes, and shall have the full, unrestricted right to patent, assign, license or otherwise transfer any such Inventions, in each case [***]; provided that [***] neither represents nor warrants that patent rights in Inventions are available and [***] shall be solely responsible for obtaining any authorizations, approvals, permits or licenses required from any governmental authority or Third Party in connection with any use of such Inventions. [***]. No assignments, rights or licenses to any Twist Technology or other technology or intellectual property of Twist are provided or granted to Company by Twist in connection with the performance of any Activities or any such supply and shipment of Work Product or otherwise in connection with this Agreement, except for the conditional and limited license set forth in the following sentence. [***]. Company is solely responsible for determining if there are any restrictions on use of Work Product as a result of any third-party patents or other proprietary rights (the “FTO Search”) prior to acceptance under a Project Order and Twist shall have no responsibility in connection with any such restrictions or patents or other proprietary rights. [***].

  6.3	Before providing Activities, all Twist personnel must have agreed in writing to [***].

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  6.4	Program Antibody Patents. Company hereby grants Twist a non-exclusive, worldwide, royalty-free, perpetual, irrevocable right, including the right to grant and authorize sublicenses through multiple tiers, to practice and otherwise exploit Program Antibody Patents and any Inventions owned or controlled by Company, solely in connection with the use and exploitation by or under the authority of Twist of the Antibody Libraries.

  6.5	Patent Prosecution and Maintenance. [***], at [***] expense, shall have the first right to control the preparation, filing, prosecution and maintenance of Program Antibody Patents. [***].

  6.6	Suggestions. It is not anticipated that Company will be providing Suggestions, but,  in the unlikely event that Company does provide any such Suggestions to Twist, Company hereby grants to Twist a worldwide, royalty-free, fully paid-up, non-exclusive, irrevocable, perpetual license, with the right to grant and authorize sublicenses, to use, make, have made, reproduce, offer to sell, sell, publicly perform, publicly display, adapt, modify, create derivative works of, distribute, import, and otherwise exploit the Suggestions solely in connection with the use by Twist of Program Antibodies in connection with Antibody Libraries.. The foregoing license will survive any termination or expiration of this Agreement. 

  7.Confidentiality

  7.1	Confidential Information. Company Materials shall be Confidential Information of Company. Twist Technology and any Suggestions shall be the Confidential Information of Twist. Except for the fees and costs proposed by Twist with respect to the Activities or specified in any Project Order, this Agreement and any other aspects of a Project Order shall be the Confidential Information of both Parties. All Confidential Information is subject to the exceptions set forth in Section 7.2 below. Except to the extent expressly authorized by this Agreement or by the Disclosing Party in writing, the Receiving Party shall maintain in strict trust and confidence and shall not use for any purpose (other than to perform its obligations or exercise its rights under this Agreement), or disclose to any Third Party any Confidential Information of the Disclosing Party. The Receiving Party shall only disclose Confidential Information of the Disclosing Party to those expressly authorized by this Agreement or the Disclosing Party in writing hereunder and to those of its employees, consultants, advisors and representatives with a reasonable need to know such information and who are bound by obligations of confidentiality at least as protective as those contained herein. The Receiving Party shall protect the Confidential Information of the Disclosing Party by using at least the same degree of care as the Receiving Party uses to protect its own confidential materials and information, but in any event no less than reasonable care. 

  7.2	Exceptions. The obligations of confidentiality and nonuse set forth in Section 7.1 shall not apply to any information that: (a) is in the public domain or comes into the public domain through no fault of the Receiving Party; (b) is furnished to the Receiving Party by a Third Party rightfully in possession of such information not subject to a duty of confidentiality with respect thereto; (c) is already known by the Receiving Party at the time of receiving such Confidential Information; or (d) is independently developed by the Receiving Party without use of or reference to the Confidential Information of Disclosing Party, as demonstrated by independent written records contemporaneous with such development.

  7.3	Authorized Disclosure. Notwithstanding any of the foregoing in this Section 7, (a) the Receiving Party may disclose Confidential Information to the extent such disclosure is required by law or regulation, or pursuant to a valid order of a court or other governmental body having jurisdiction, provided that the Receiving Party provides the Disclosing Party with reasonable prior written notice of such disclosure to the extent legal and practicable and reasonable assistance in the Disclosing Party’s efforts to obtain a protective order or confidential treatment preventing or limiting the disclosure and/or requiring that the Confidential Information so disclosed be used only for the purposes for which the law or regulation required, or for which the order was issued; and (b) the Receiving Party may disclose Confidential Information to cognizant law enforcement officials if and to the extent that the Receiving Party reasonably believes that such disclosure is needed to report to such officials unlawful activity involving the Disclosing Party. Notwithstanding anything in this Section 7, either Party may disclose terms of this Agreement, without the consent of the other Party, to existing or prospective investors, acquirers, partners, collaborators, licensees, contractors, and to such Party’s accountants, attorneys and other professional advisors; in each case on a need-to-know basis and subject to customary confidentiality restrictions.

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  7.4	Return of Confidential Information. Upon written request of the Disclosing Party at any time, and within [***] of expiration or termination of this Agreement, the Receiving Party shall promptly return or destroy all documents, notes and other tangible materials representing the Disclosing Party’s Confidential Information and all copies thereof (excluding any Confidential Information that is subject to a surviving license granted to the Receiving Party hereunder); provided, however, that the Receiving Party may retain a copy of such Confidential Information under conditions of confidentiality solely for legal archival purposes and for compliance with the surviving provisions of this Agreement and applicable laws and regulations. Receiving Party’s obligations in this Section 7 shall survive for [***] after expiration or termination of this Agreement. 

  7.5	Injunctive Relief. The Parties expressly acknowledge and agree that any breach or threatened breach of this Section 7 by the Receiving Party may cause immediate and irreparable harm to the Disclosing Party that may not be adequately compensated by damages. Each Party therefore agrees that in the event of such breach or threatened breach by the Receiving Party, and in addition to any remedies available at law, the Disclosing Party shall have the right to seek equitable and injunctive relief, without bond, in connection with such a breach or threatened breach.

  8.Limitation and Disclaimer of Warranties

  8.1	Disclaimer of Warranties. EXCEPT AS EXPLICITLY SET FORTH IN THIS AGREEMENT, TWIST MAKES NO, AND HEREBY DISCLAIMS ALL, REPRESENTATIONS AND WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, WITH RESPECT TO THE ACTIVITIES AND ANY WORK PRODUCT OR OTHER DELIVERABLES PROVIDED BY TWIST TO COMPANY HEREUNDER AND WITH RESPECT TO ANY OTHER SUBJECT MATTER OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT, AS WELL AS WARRANTIES REGARDING SECURITY, RESULTS OBTAINED THROUGH THE USE OF ANY ACTIVITIES OR WORK PRODUCT AND ANY WARRANTY ARISING FROM A STATUTE OR OTHERWISE IN LAW OR FROM A COURSE OF PERFORMANCE, DEALING OR USAGE OF TRADE, ALL OF WHICH ARE EXPRESSLY DISCLAIMED. [***].

  9.Indemnification; Limitation of Liability

  9.1	By Twist. Twist shall indemnify, defend and hold harmless Company and its Affiliates and their respective directors, officers, employees, and agents (the “Company Indemnitees”) from and against any and all costs, expenses, liabilities, damages and losses (including reasonable legal expenses and attorneys’ fees) arising out of any Third Party suits, claims, actions, or proceedings (collectively, “Claims”) brought against any Company Indemnitees to the extent resulting from or caused by: [***]. 

  9.2	By Company. Company shall indemnify, defend and hold harmless Twist and its directors, officers, employees, and agents (the “Twist Indemnitees”) from and against any and all Claims brought against any Twist Indemnitees to the extent resulting from or caused by: [***].

  9.3	Indemnification Conditions and Procedures. Each Party’s agreement to indemnify, defend and hold harmless the other Party is conditioned on the indemnified Party: (a) providing written notice to the indemnifying Party of any Claim for which is it seeking indemnification hereunder promptly after the indemnified Party has knowledge of such claim; (b) permitting the indemnifying Party to assume full control over the defense and settlement of such Claim, except that the indemnified Party may participate in the defense at its own expense using its own counsel; (c) providing reasonable cooperation, information and assistance to the indemnifying Party, at the indemnifying Party’s reasonable expense, with respect to the defense and settlement of such Claim; and (d) not compromising, settling, or admitting any liability for such Claim without the indemnifying Party’s written consent. Notwithstanding the foregoing, the indemnifying Party shall not enter into any settlement that admits the fault of the indemnified Party or otherwise materially adversely prejudices the indemnified Party without such indemnified Party’s prior written consent, such consent not to be unreasonably withheld, conditioned or delayed.

  9.4	Limitation of Liability. EXCEPT FOR DAMAGES FOR [***], NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY HEREUNDER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, 

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  PUNITIVE OR INDIRECT DAMAGES OF ANY KIND (INCLUDING BUT NOT LIMITED TO COSTS OF COVER, COST OF PROCUREMENT OF SUBSTITUTE GOODS, LOST PROFITS, LOST DATA, LOSS OF BUSINESS, LOSSES FROM BREACHES OF SECURITY, OR LOSS OF GOODWILL) ARISING FROM OR IN CONNECTION WITH THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES AND REGARDLESS OF THE THEORY OF LIABILITY. 

  [***].

  WITHOUT LIMITING THE FOREGOING, [***].

  THE PARTIES AGREE THAT THE AMOUNTS PAYABLE HEREUNDER ARE BASED IN PART ON THESE LIMITATIONS, AND THESE LIMITATIONS WILL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. ALL OF THE FOREGOING LIMITATIONS OF LIABILITY SHALL APPLY TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW.

  10.Term and Termination

  10.1Term. This Agreement shall commence on the Effective Date and continue thereafter for [***], unless earlier terminated or extended in accordance with the express provisions herein (the “Initial Term”). Following the end of the Initial Term or any Renewal term, the Agreement shall automatically renew for successive [***] periods (each a “Renewal Term” and, collectively with this Initial Term, the “Term”) unless either Party notifies the other Party at least [***] before the end of the then-current term that it desires to end this Agreement (in which case this Agreement shall expire at the end of the then-current term). 

  10.2Termination. Either Party may terminate this Agreement or a particular Project Order at any time with or without cause for its convenience, effective upon [***] prior written notice to the other Party. In addition, either Party may terminate this Agreement or a particular Project Order upon notice to the other Party if the other Party fails to cure material breach of this Agreement or such Project Order, as the case may be, within [***]  after the breaching Party is given written notice of such material breach. 

  10.3Insolvency. Either Party may terminate this Agreement immediately without further action (including without any written notice to the other Party) in the event that (i) the other Party is declared insolvent or bankrupt by a court of competent jurisdiction, and such declaration or order remains in effect for a period of [***], (ii) a voluntary petition of bankruptcy is filed in any court of competent jurisdiction by such other Party, or (iii) this Agreement is assigned by such other Party for the benefit of creditors.

  10.4Effects of Termination. Within a reasonable period of time following any termination or expiration of this Agreement or a particular Project Order, at Company’s expense, Twist shall transfer to Company all work in progress and records that form a part of the Activities with respect to which Company has paid the applicable Fees prior to such termination or expiration. Each Party shall return or destroy the other Party’s Confidential Information, as contemplated in Section 7.4 above. Upon termination of this Agreement or any Project Order, Company shall promptly compensate Twist for all undisputed amounts relating to Activities performed, if any, hereunder or under the applicable Project Order prior to the effective date of termination for which Twist has not yet been compensated (including any appropriate delay or cancellation fees as may be set forth in a Project Order). Twist agrees to reasonably assist and cooperate with Company to provide for an orderly wind-down of Activities (not to exceed [***] following such termination or expiration) and Company agrees to pay Twist for all such wind-down services and any other costs and expenses incurred and for any non-cancellable costs. Company shall be obligated to pay for all unused supplies and materials or dedicated equipment that were ordered by Twist specifically in order to perform the Activities as well as any non-cancellable commitments made. [***].

  10.5Survival. Sections [***] shall survive any termination or expiration of this Agreement. Termination or expiration of this Agreement shall not affect Company’s liability for any obligations or liabilities that have accrued prior to such expiration or termination (including without limitation any Fees owed by Company) or any breach of this Agreement committed before such expiration or termination.

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  11.Export Controls

  11.1Export Compliance. Work Product, other deliverables and information that Company receives from Twist hereunder may be subject to United States, European Union and local export control laws and regulations. Company may not, directly or indirectly, sell, export, re-export, transfer, divert, or otherwise dispose of any such Work Product, deliverables or information (including products derived from or based on our Work Products or information) to any destination, entity, person or end user prohibited or restricted by United States, European Union or local laws or regulations (unless the required licenses and approvals are obtained by Company to legally do so, if available). 

  11.2Assistance. Upon written request from Twist, Company shall promptly provide Twist with reasonable assistance and information to which it has access as needed for completion of exportation or importation governmental processes, including licensing, with respect to Twist’s performance under this Agreement.

  12.General Provisions

  12.1Interactions with Regulatory Authorities. Except as required by applicable law, rule, or regulation, Company will be solely responsible for all contacts and communications with any regulatory authorities with respect to matters directly pertaining to any Activities. Unless required by applicable law or otherwise specified in a Project Order, Twist will have no contact or communication with any regulatory authority specific to Activities without the prior written consent of Company. Twist will notify Company promptly after Twist receives any contact or communication from any regulatory authority directly pertaining to Activities to the extent allowed by applicable law, rule or regulation. To the extent permissible by applicable law or regulation, Twist will promptly provide Company with copies of any such correspondence or other communication. As legally permissible, Twist will consult with Company regarding the response to any inquiry or observation from any regulatory authority directly related to Activities and will allow Company, at its discretion, to control and/or participate in any further contacts or communications related to Activities. Twist will consider reasonable requests and comments by Company with respect to all contacts and communications with any regulatory authority directly related to Activities to the extent consistent with applicable laws. Twist will provide Company with drafts of any correspondence or other reports to be submitted to regulatory authorities concerning Activities for review prior to submission, will consider in good faith Company’s comments, and will provide final copies to Company promptly after submission as permitted by applicable law or otherwise specified in a Project Order.

  12.2Books and Records. Company shall keep (and shall cause its Affiliates and Sublicensees to keep) complete, true and accurate books and records in sufficient detail for Twist to determine payments due to Twist under this Agreement and any Project Order, including Royalties and Milestone Payments (as such terms are defined in a Project Order).  Company will keep such books and records for at least [***] following the end of the calendar year to which they pertain.

  12.3Audit Rights. Twist shall have the right to appoint at its expense an independent certified public accountant of nationally recognized standing (the “Accounting Firm”) to inspect or audit the relevant records of Company and its Affiliates and Sublicensees to verify that the amount of such payments (“Payments”) were correctly determined.  Company and its Affiliates and Sublicensees shall each make its records available for inspection or audit by the Accounting Firm during regular business hours at such place or places where such records are customarily kept, upon reasonable notice from Twist, to verify the Payments hereunder were correctly determined.  Such inspection or audit right shall not be exercised by Twist more than [***] in any calendar year and may cover a period ending not more than [***] prior to the date of such request.  All records made available for inspection or audit shall be deemed to be Confidential Information of Company or its Affiliates or Sublicensees, as applicable.  In the event the amount of Payments was underreported according to the Accounting Firm, Company shall promptly (but in any event no later than [***] after Twist’s receipt of the Accounting Firm’s report so concluding) make payment to Twist of the underreported amount or elect to refer the finding of the Accounting Firm to be settled by arbitration administered by the American Arbitration Association (“AAA”) under its Commercial Arbitration Rules .  Twist shall bear the full cost of such audit unless such audit discloses an underreporting by Company of more than [***] of the aggregate amount of the Payments reportable in any calendar year, in which case Company shall reimburse Twist for all costs incurred by Twist in connection with such inspection or audit.

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  12.4Governing Law; Arbitration. This Agreement is governed by the laws of the State of Delaware without reference to any conflict of laws principles. The United Nations Convention on Contracts for the International Sale of Goods does not apply to this Agreement. 

  12.5Severability. If any provision of this Agreement is, for any reason, held to be invalid or unenforceable, the other provisions of this Agreement will be unimpaired and remain in full force and effect while the invalid or unenforceable provision will be deemed modified so that it is valid and enforceable to the maximum extent permitted by law. 

  12.6No Assignment. Without limiting Section 2.3 above, this Agreement, and the rights and obligations hereunder, may not be assigned or otherwise transferred, in whole or in part, by operation of law or otherwise, by either Party without the other Party’s express prior written consent; provided, however, that either Party may assign this Agreement (and its rights and obligations hereunder), without the other Party’s consent, to its successor in interest in connection with any merger, consolidation, reorganization or sale of such Party or all or substantially all of its business or assets to which this Agreement relates (any such consented to assignment or assignment not requiring consent being a “Permitted Assignment”). In the case of any Permitted Assignment of this Agreement, this Agreement shall be binding upon, and inure to the benefit of, the successors, executors, heirs, representatives, administrators and assigns of each of the Parties hereto. Any attempted assignment, delegation, or transfer in violation of the foregoing will be null and void.

  12.7Notices. Each Party must deliver all notices, consents, and approvals required or permitted under this Agreement in writing to the other Party at the address specified in the Project Order or Agreement, by personal delivery, by certified or registered mail (postage prepaid and return receipt requested), by a nationally recognized overnight carrier or by email (except for notices of breach or termination) with electronic verification of receipt. Notice will be effective upon receipt or refusal of delivery. Each Party may change its address for receipt of notice by giving notice of such change to the other Party.

  12.8Construction. Section headings are included in this Agreement merely for convenience of reference; they are not to be considered part of this Agreement or used in the interpretation of this Agreement. No rule of strict construction will be applied in the interpretation or construction of this Agreement. 

  12.9Waiver. No waiver by any Party of any breach of this Agreement or failure of any Party to take action to enforce or assert any right or remedy hereunder shall be deemed a waiver of any prior, concurrent, or subsequent breach. No waiver shall be effective unless made in a signed writing. 

  12.10Entire Agreement; Amendments. This Agreement, together with any Project Orders executed hereunder, is the final, complete, and exclusive agreement of the Parties and supersedes all prior or contemporaneous communications and understandings, oral or written, between the Parties with respect to the subject matter hereof. Twist’s offer to provide Activities to Company is expressly limited to the terms of the Agreement and the applicable Project Order(s). No conflicting terms on service requests or similar documents or invoices issued between the Parties with respect to the Activities shall apply or be binding on the Parties. No modification of or amendment to this Agreement or any Project Order will be effective unless in writing and signed by both Parties.

  12.11Force Majeure. Neither Party will be liable for any delays or failures in performance under this Agreement (other than payment obligations under this Agreement) due to circumstances beyond its reasonable control, including without limitation, acts of God, disease, war, terrorism or the public enemy, riot, civil commotion or sabotage, expropriation, condemnation of facilities, changes in law, national or state emergencies or other governmental action, strikes, lockouts, work stoppages or other such labor difficulties, floods, droughts or other severe weather, fires, explosions or other catastrophes, or any other reason where failure to perform is beyond the reasonable control of the nonperforming Party.

  12.12Independent Contractors. Twist’s relation to Company under this Agreement is that of an independent contractor. Nothing in this Agreement is intended or should be construed to create a joint venture, agency or employer-employee relationship between Company and Twist or any of Twist’s employees or agents. Neither Party is authorized to bind, make any commitment, or otherwise act on behalf of the other Party.

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  12.13Exclusion of Government Contracts. This Agreement and the products and services hereunder are not for government customers or government contractors. Company represents and warrants that the Activities and transactions under this Agreement are not subject to the U.S. Federal Acquisition Regulations or comparable regulations of other jurisdictions (collectively, “FARs”). If Company is a governmental entity or seeking to enter into this Agreement as a government contractor (or if any FARs would otherwise apply hereto), Company shall notify Twist in advance and obtain Twist’s prior written consent (and/or enter into such additional agreements or terms requested by Twist through a mutually executed document) prior to requesting or receiving any services hereunder. 

  12.14Publicity. The Parties agree to issue a mutually-agreed upon press release announcing the execution of this Agreement within [***] after the Effective Date, or as otherwise mutually agreed by the Parties, and either Party may make subsequent public disclosure of the contents of such press release. Subject to the foregoing, neither Party shall use the other Party’s logos or trade names for publicity, marketing, or any other external communications without such Party’s prior written consent. 

  12.15Counterparts. This Agreement may be entered into or executed in two or more counterparts (including by .pdf), each of which shall be deemed an original and all of which shall constitute together the same instrument. 

   

   

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  Exhibit A

  Project Order

  This Project Order is entered into as of _____, 20__ (“Order Effective Date”) by and between Twist Bioscience Corporation, a Delaware corporation with an office at 681 Gateway Boulevard, South San Francisco CA, 94080 (“Twist”) and Adicet Bio, Inc. a Delaware corporation with an office at 200 Constitution Drive Menlo Park, CA 94025 (“Company”), and shall be governed by the terms and conditions of the Antibody Discovery Agreement dated March 23, 2021 between Twist and Company (the “Agreement”). In the event of any conflict or inconsistency between the terms of this Project Order and the terms of the Agreement, the terms of the Agreement shall control unless otherwise expressly agreed by the Parties in this Project Order. 

  1.PROJECT INFORMATION

         	1.1	Twist shall perform the following Activities for this Project Order:

  [INSERT RELEVANT PROJECT AND ACTIVITIES INFORMATION]

  	1.2	Twist’s Activities will be directed to the following Target(s) for this Project Order: [IDENTIFY TARGET]

  	1.3	Twist shall provide Company with those Antibodies that are Available and meet the following criteria (such Antibodies, the “Program Antibodies”). Timeline per target ([***]) shall be [***].

   

  	1.4	Twist shall use the following Antibody Libraries to perform the Activities for this Project Order: 

  	Antibody Library(ies): [IDENTIFY ANTIBODY LIBRARIES]

  2. 	PROJECT SCHEDULE

  2.1 	 [***].

  [Insert specific deliverables timelines where appropriate]

  		2.2	Upon conclusion of the Activities and payment of all Fees, this Project Order shall expire. 

  3. 	ACTIVITIES FEES

  	3.1	Technology Access Fee.  The Technology Access Fee to be paid by Company to Twist in accordance with this Agreement is [$XX].

  	3.2	Project Fees.   The Project Fees to be paid by Company to Twist in accordance with this Agreement is [$XX]. 

  This Project Order is hereby accepted and agreed to by duly authorized representatives of Twist and Company as follows:

   

  		
	Twist Bioscience Corporation
	Company: ADICET BIO, INC.

	By:
 
	By:

	Name: 
 
	Name: 

	Title: 
 
	Title: 

   

   

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  *NOT FOR SIGNATURE IN MSA – FOR EXAMPLE ONLY

   

   

   

   

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  Annex 1

   

   

  Multi-Target Discount Schedule

   

  [***]

  [***]. Additional services such as, but not limited to, [***] may be subject to additional charges (“Additional Service Fees”). [***].

   

   

   

   

  ACTIVE/119122939.7Document

Exhibit 10.13
EXECUTION COPY

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of February 12, 2018 (the “Effective Date”) by and between Shift4 Payments, LLC, with an address at 2202 N. Irving Street, Allentown, PA 18109 (the “Company”), and Mr. David Taylor Lauber, an individual having an address at 93 Dogwood Terrace, Millington, NJ 07946 (“Employee”). The Company and Employee are collectively referred to herein as the “Parties” and, individually as a “Party”.

WHEREAS, the Company is engaged in the business of selling and providing payment processing services and related equipment and software that facilitate the exchange of goods and services provided by merchants for payments made by credit, debit, prepaid, electronic gift and loyalty cards (the “Business”);

WHEREAS, the Company desires to employ Employee as Vice President of Strategic Projects
of the Company, and to enter into an agreement memorializing the terms of such employment; WHEREAS, Employee desires to accept such employment and enter into such an agreement.
NOW, THEREFORE, in consideration of the premises and mutual covenants herein and for other good and valuable consideration, the Parties agree as follows:

Section 1. Employment. The  Company  shall  employ  Employee,  and  Employee  accepts employment with the Company, upon the terms and conditions set forth in this Agreement for the period beginning on the date hereof and ending as provided in Section 3 (the “Employment Term”).

Section 2.    Position and Duties.

(a)As of the Effective Date, Employee will serve as the Vice President of Strategic Projects and Employee will be responsible for helping execute against various initiatives related to corporate strategy. Employee will report directly to the CEO of the Company. Employee agrees to perform such other duties and functions as shall from time to time be assigned or delegated to Employee consistent with Employee’s position as Vice President of Strategic Projects of the Company or as otherwise determined by the CEO.

(b)During the Employment Term, Employee will serve the Company faithfully and to the best of his ability, devote his entire business time, energy and skill to such employment, and use his best efforts, skill and ability to promote the Company’s interest in a manner consistent with his position for the duration of the Employment Term, Employee agrees not to engage in any other employment, occupation or consulting activity for any direct or indirect remuneration without the prior approval of the CEO of the Company which may be granted or withheld in its sole discretion.

Section 3.    Employment Term.   The Employment Term shall end  on the  third (3rd) anniversary of the date of this Agreement (the “Initial Term”), subject to the right of the parties to terminate Employee’s employment under this Agreement pursuant to Sections 8, 9 or 10 hereof. At the end of the Initial Term and any subsequent renewal term Employee’s employment under this Agreement shall be extended by the Company for an additional term of two (2) years unless written notice given by the

Company to the Employee no later than three (3) months prior to the expiration of the Initial Term or any renewal term of its decision not to extend to an additional term.

Section 4.   Handbook.   Employee  has  been advised  that the Company reserves  the right to adopt and amend an Employee Handbook which shall apply to all employees (a copy of the current Employee Handbook having been provided to and reviewed by Employee). Employee accepts the terms of any present or future Employee Handbook of the Company, as amended from time to time, with the understanding that this Agreement will be read together with such Employee Handbook. If there is a conflict between this Agreement and the Employee Handbook, and in the absence of a written amendment to this Agreement signed by the Company and Employee, this Agreement shall prevail and control.

Section 5. Compensation. The compensation set forth in this Section 5 shall be Employee’s sole compensation from the Company and shall replace any prior agreements, whether oral or in writing regarding the same.

(a)Base Salary. During the Employment Term, the Company will pay Employee as compensation for his services a base salary at a rate of Two Hundred Fifty Thousand ($250,000) Dollars per year (the “Base Salary”). The Base Salary will be paid in regular installments in  accordance with the Company’s normal payroll practices (subject to required withholdings).

(b)Benefit Plans. During the Employment Term, Employee will be entitled to participate in the standard employee benefit plans maintained by the Company of general applicability to other employees of the Company as may be in effect from time to time and in accordance with the terms thereof. Employee acknowledges the Company reserves the right to cancel or change such employee benefit plans and programs it offers to its employees at any time without any prior or further notice to Employee or any other action.

(c)Change of Control Bonus. Employee shall be eligible to receive a bonus, subject to required withholdings, in the event of a COC Transaction (as defined below) or an IPO (as defined below), as the case may be, subject to the conditions set forth in this Section 5(c) as follows.

(i)In the event there is a Change of Control of the Company that occurs after the date hereof (a “COC Transaction”) or an initial public offering by the Company that does not otherwise fall within the definition of Change of Control (an “IPO”), Employee shall be entitled to a bonus in the amount of $500,000 (the “COC Bonus”), subject to the conditions set forth in Section 5(c)(iv) below and the adjustments set forth in Section 5(c)(iii) below. The COC Bonus shall be paid in  a single lump sum in cash, less applicable withholdings, within sixty (60) days following the closing of the COC Transaction or the IPO, with the exact date of payment being determined by the Company or the successor thereto in its sole and absolute discretion.

(ii)In the event a COC Transaction has not occurred prior to the second anniversary of this Agreement the COC Bonus shall be increased by $125,000 upon the first calendar day following the second anniversary and the first calendar day each following subsequent anniversary for a period of four years so that at the end of such period such additional COC Bonus shall be equal to
$500,000 subject to the conditions set forth in Section 5(e)(iv) below and the adjustments set forth in

Section 5(e)(v) below (“Additional COC Bonus”). Employee shall only be entitled to the portion of the Additional COC Bonus that has vested prior to a COC Transaction

(iii)Subject to the Employee being terminated for cause as set forth in Section 9 or Employee voluntarily terminating this Agreement as set forth in Section 10:

a.for each full twelve (12) months of employment up through the first (36) months of employment, Employee shall be deemed to have a vested interest in thirty three percent (33%) of the COC Bonus as defined in Section 5(c) above. In month (25) (two twelve-month periods  completed), Employee will be vested in sixty-six percent (66%) of COC Bonus as defined in Section 5(c) above, and after the completion of (36) thirty-six months of employment, Employee will be fully vested in the COC Bonus as defined in Section 5(c)(i) above.

b.for each full twelve (12) months and one calendar day of employment  after the first anniversary of this Agreement and through the fifth anniversary plus one calendar day of employment, Employee shall be deemed to have a vested interest in $125,000 of the Additional COC Bonus as defined in Section 5(c)(ii) above.

(iv)Notwithstanding any other provision contained herein, the COC Bonus and Additional COC Bonus shall become due and payable to Employee only upon the closing of a COC Transaction or an IPO, as the case may be, that occurs on or before June 1, 2026; except if the Employee is terminated prior to such date by the Company pursuant to Section 9(c) below or by Employee pursuant to Section 10 below.

(v)Bonus Adjustment. The COC Bonus will be adjusted up or down based on the percentage difference between the Value of the Company (as defined below) and $1,500,000,000 (the “Current Value”). The Additional COC Bonus will be adjusted up or down based on the percentage difference between the Value of the Company and 14x TTM EBITDA for the period immediately preceding Employees vesting of the portion of the Additional COC Bonus. By way of example, if the Value of the Company increases by 10% from the Current Value, then the COC Bonus will increase by 10%. If the Value of the Company decreases from the Current Value by 10%, then the COC Bonus will decrease by 10%. The “Value of the Company” shall be the value of the Company at the time of the COC Transaction or an IPO, as the case may be.

“Change of Control” means the occurrence of any of the following: (a) the consummation of any transaction or series of related transactions (including, without limitation, any merger or consolidation) the result of which is that any one person, or more than one person acting as a group, other than an Affiliate (as hereinafter defined) of the Company immediately after the date hereof (including as an Affiliate any holding company formed by any such Affiliate or the Company as part of an internal restructuring after such date), acquires ownership of the issued and outstanding units of beneficial interest of the Company (“Beneficial Interests”) that, together with the issued and outstanding Beneficial Interests already owned by such person or group, exceed fifty percent (50%) of the fair market value of all of the issued and outstanding Beneficial Interests; (b) the consummation of any

transaction or series of related transactions (including, without limitation, any merger or consolidation) the result of which is that any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of at least thirty percent (30%) of the total voting power of all of the issued and outstanding Beneficial Interests; or (c) the consummation of any transaction or series of related transactions the result of which is that any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company having a total gross fair market value of at least forty percent (40%) of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions. For purposes of this Agreement, (i) “fair market value” will be determined in accordance with the reasonable valuation factors set forth in Section 409A of the Internal Revenue Code of 1986, as amended and the Treasury regulations and other applicable guidance issued thereunder (collectively, “Section 409A”); (ii) “gross fair market value” means the value of assets determined without regard to any liabilities associated with such assets; and (iii) the rules of Section 409A shall apply in determining whether a Change of Control has occurred.

(d)Annual Bonus. Employee shall be entitled to an annual bonus during the term of the Agreement as determined in the sole discretion of the Compensation Committee (“Annual Bonus”) Annual Bonus will be earned only if Employee is continuously employed by the Company on the date that such Annual Bonus is declared by the Company. The Company shall pay the Annual Bonus at the same time as such bonuses are normally paid to senior management of the Company.

Section 6. Vacation. Employee will be entitled to paid vacation of 20 days per calendar year in accordance with the Company’s then current vacation policy for such year, with the timing and duration of specific vacations mutually and reasonably agreed to by Employee and the Company.

Section 7. Business Expenses. The Company will reimburse Employee for reasonable travel, automobile (in the amount up to $2,000.00 to cover an automobile, auto insurance, gas, maintenance and other auto-related expenses), entertainment or other business expenses incurred by Employee in the furtherance of or in connection with the performance of Employee’s duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time to time. To the extent taxable, the following rules (and any other applicable rules of Treasury Regulation Section 1.409A-3(i)(1)(iv)) shall apply to all reimbursements under this Section 7: (i) the amount of expenses eligible for reimbursement during one taxable year of the Employee shall not affect the amount of expenses eligible for reimbursement during any subsequent taxable year of the Employee; (ii) all reimbursements shall be made no later than the last day of the Employee’s taxable year immediately following the taxable year in which the expense is incurred; and (iii) the Employee’s right to reimbursement shall not be subject to liquidation or exchange for another benefit. During the Employment Term, the Company shall also provide Employee a cellphone and laptop for business use.

Section 8. Termination on Death or Disability.

(a)Employee’s employment with the Company will terminate automatically upon Employee’s death or, upon thirty (30) days prior written notice by the Company to Employee, in the event of Disability (as defined below).

(b)Upon any termination for death or Disability, Employee (or Employee’s
beneficiary(ies) or estate in the event of Employee’s death) shall be entitled to:

(i)Employee’s Base Salary through the effective date of termination, payable in a single lump sum in cash, less applicable withholdings, on the earlier of the pay date coincident with or next following the effective date of termination or the date required under applicable law;

(ii)any COC Bonus earned prior to the date of death or the deemed effectiveness of the Disability which remains unpaid and outstanding at such time, to be paid in accordance with Section 5(e);

(iii)the right to continue health care benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) at Employee’s (or in the case of Employee’s death, his spouse’s and eligible dependents’, as applicable) cost, to the extent required and available under applicable law;

(iv)reimbursement of expenses for which Employee is entitled to be reimbursed pursuant to Section 7 above, but for which Employee has not yet been reimbursed; and

(v)no severance or benefits of any kind, unless required by applicable law or pursuant to any other written Company plans or policies applicable to and inuring to the benefit of Employee, as in effect as of the effective date of termination.

(c)Employee shall be deemed to have suffered a disability (“Disability”) if he is unable to substantially perform Employee’s duties under this Agreement by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted, or can be expected to last, for not less than ninety (90) days (whether or not occurring consecutively) during any twelve (12) consecutive month period, with such determination of whether Employee is subject to a Disability to be made in good faith by the board of directors or managers or other equivalent or similar governing body of the Company after consultation with a physician who has examined and diagnosed Employee.

Section 9.    Termination for Cause.

(a)Notwithstanding any other provision of this Agreement, the Company may terminate Employee’s employment at any time for Cause (as defined below). Termination for Cause shall be effective on the date the Company gives notice to Employee of such termination in accordance with this Agreement.

(b)In the case of the Company’s termination of Employee’s employment for Cause,
Employee shall be entitled to receive:

(i)Employee’s Base Salary through the effective date of termination, payable in a single lump sum in cash, less applicable withholdings, on the earlier of the pay date coincident with or next following the effective date of termination or the date required under applicable law;

(ii)the right to continue health care benefits under COBRA, at Employee’s cost, to the extent required and available under applicable law, unless Cause constitutes “gross misconduct” under COBRA;

(iii)reimbursement of expenses for which Employee is entitled to be reimbursed pursuant to Section 7 above, but for which Employee has not yet been reimbursed; and

(v) no other severance or  benefits  of any kind,  unless required by applicable  law or pursuant to any other written Company plans or policies applicable to and inuring to the benefit of Employee, as in effect as of the effective date of termination

(c)“Cause” shall mean that Employee has committed an act of Misconduct (as defined below) or that there has been a willful and continuing failure of Employee to substantially perform his obligations under this Agreement, other than as a result of Employee’s death or Disability. “Misconduct” shall mean: (i) embezzlement, fraud, or breach of fiduciary duty by Employee, in each case, with respect to the Company; (ii) unauthorized and intentional disclosure of any Confidential Information of the Company in breach of Employee’s duty of loyalty to the Company; or (iii) conviction of, or entering a plea of nolo contendere or guilty to, a felony criminal offense.

Section 10.  Voluntary Termination. The Company or  the Employee shall be entitled to terminate   this Agreement, at any time, with or without reason, upon (a) sixty (60) days written notice, or (b) at any time upon written notice in the event of a change of control, effective immediately thereafter (“Voluntary Termination”). Upon a Voluntary Termination by the Company, Employee shall be entitled to the benefits as set forth in Section 8(b). Upon a Voluntary Termination by the Employee, Employee shall be entitled to the benefits as set forth in Section 9(b).

Section 11. Restrictive Covenants. Employee acknowledges  and  agrees  that (i)  as an employee of the Company, he has possessed and learned, and shall in the future possess and learn, valuable trade secrets and other confidential or proprietary information relating to the Company and its Affiliates and their businesses and properties, (ii) Employee’s services to the Company are unique in nature, (iii) the Company’s business is national in scope, and (iv) the Company would be irreparably damaged if the Employee were to provide services to any other person or entity in violation of the restrictions contained in this Agreement. Accordingly, as an inducement for the Company to enter into this Agreement, Employee agrees that during the period that he is employed by the Company and for a period of three
(3)years thereafter (such period being referred to herein as the “Restricted Period”), Employee shall not, directly or indirectly, either for himself or for any other person or entity (whether as a shareholder, member, equityholder, officer, director, employee, partner, member, manager, trustee, agent, representative or otherwise):

(a)take any action in connection with a Competing Business (as defined below) which might divert from the Company or its Affiliates any opportunity which would be (at the time of such action) within the scope of their business, including without limitation, owning any stock, membership or partnership interest or other equity interest in, managing, controlling, rendering services, working or consulting for, or providing any financing or other assistance to, any Competing Business;

(b)solicit or attempt to induce any person or entity who is or has been a customer or client of the Company or its Affiliates at any time during (i) the period of 3 years prior to the Effective Date, (ii) the Employment Term, or (iii) the Restricted Period, to retain or employ the services of a Competing Business;

(c)solicit or attempt to induce any person or entity who is or has been a customer, client, supplier or other business relation of the Company or its Affiliates, including independent sales organization owner, operator or agent, at any time during (i) the period of three (3) years prior to the Effective Date, (ii) the Employment Term, or (iii) the Restricted Period, to cease doing business with the Company or its Affiliates;

(d)take any actions which are calculated or intended to persuade any person or entity who is a director, manager, officer, employee or agent of the Company or its Affiliates to terminate his or her association with the Company or its Affiliates; or

(e)solicit or hire any person or entity who is a director, manager, officer, employee  or agent of the Company to perform services for any person or entity other than the Company or its Affiliates;

provided, however, that nothing herein shall prohibit Employee from owning not more than 1% of the outstanding stock or other equity interest of any publicly traded entity engaged in the Business, so long as Employee is merely a passive investor and has no role in the operation or management of such person or entity.

“Competing Business” shall mean a business which engages or is making plans or intends to engage, in whole or in part, in the rendering of services which are competitive with, are similar to, may be used as substitutes for, or may detract from the services provided by the Company or any of its Affiliates at any time during the period of 3 years prior to the Effective Date, the Employment Term or the Restricted Period.

Section 12. Non-Disclosure of Confidential Information. Employee recognizes  that,  as  an  employee of the Company, he has possessed and learned and will possess and learn Confidential Information (as defined below). Accordingly, as an additional inducement for the Company to enter  into this Agreement, Employee covenants and agrees that:

(a)during his employment with the Company, except as necessary in  the performance of his duties hereunder, or at any time after the termination of his employment with the Company, Employee shall hold in strictest confidence and shall not, without the prior written consent of the Company, use for his own benefit or that of any third party or disclose to any person or entity, except to the Company or any employees of the Company, any Confidential Information. For purposes of this Agreement, and intending that the term shall be broadly construed to include anything protectable by the Company or any of its Affiliates as a trade secret under applicable law, “Confidential Information” shall mean and include all information, and all documents and other tangible items which record information, relating to the operation, development, sale and marketing by the Company or any of its Affiliates of services or products from time to time, which at the time or times concerned are protectable by the Company or its Affiliates as a trade secret under applicable law, and which have been or are from

time to time disclosed to or known by Employee, including, without limitation, the following especially sensitive types of information relating to the operation, development sale and marketing of services or products by the Company or its Affiliates:

(i)information concerning the Company’s or its Affiliate’s business, including cost information, profits, sales information, accounting and unpublished financial information, business plans, markets and marketing methods, customer/client lists and information, including, the identity and particular needs of customers/clients, purchasing techniques, supplier lists and supplier information and advertising strategies;

(ii)information concerning the employees (including Employee), including their salaries, bonuses, other compensation, strengths, skills and weaknesses, and the terms of this Agreement;

(iii)information    submitted    by    the    Company’s    or    its    Affiliate’s customer/clients, suppliers, employees, consultants or co-venturers for study, evaluation or use;

(iv)information relating to the Company’s or its Affiliate’s independent sales offices including their identity, location and amount of their business; and

(v)any other information not generally known to the public which, if misused
or disclosed, could reasonably be expected to adversely affect the Company’s or its Affiliate’s business;

provided, however, that Confidential Information shall not be deemed to include any of the foregoing which (A) is generally available to the public other than as a result of Employee’s fault or the fault of any other person known by the Employee to be bound by a duty (contractual or otherwise) of confidentiality to the Company or its Affiliates (or, if applicable, any of its successors or assigns); or (B) is required by law or court order or subpoena to be disclosed by the Employee, provided that the Employee gives the Company prompt advance written notice of such requirement and cooperates with any attempt by the Company to eliminate, limit or reduce such requirement so as to minimize disclosure or otherwise protect its rights and interests.

(b)Employee agrees not to remove any property or information  of the Company or its Affiliates from the Company’s premises, except in discharge of his duties or when otherwise authorized by the Company. Employee (or if Employee is deceased, his personal representative) shall promptly, following a request therefore from the Company, return to the Company, without retaining copies, all tangible items which are or which contain Confidential Information and Employee shall, upon demand by the Company, promptly return all Company-issued equipment, supplies, accessories, vehicles, keys, instruments, tools, devices, computers, cellphones, pagers, materials, documents, plans, records, notebooks, drawings or papers and other personal property belonging to the Company. Upon request by the Company, Employee shall certify in writing that all copies of information subject to this Agreement located on Employee’s computers or other electronic storage devices have been permanently deleted; provided, however, Employee may retain copies of documents relating to the Company’s employee benefit plans applicable to Employee and income records to the extent necessary for Employee to prepare Employee’s tax returns. Nothing contained herein shall limit the Company’s rights under statutory or common law, including without limitation laws related to trade secrets, which may

provide for other restrictions or rights on use or disclosure for the benefit of the Company or its Affiliates.

(c)At the request of the Company made at any time or from time to time hereafter, Employee (or if Employee is deceased, his personal representative) shall make, execute and deliver all applications, papers, assignments, conveyances, instruments or other documents and shall perform or cause to be performed such other lawful acts as the Company may reasonably deem necessary to implement any of the provisions of this Agreement, and shall give testimony and cooperate with the Company or its Affiliates and their employees, agents and representatives in any controversy or legal proceedings involving the Company, any of its Affiliates or their employees, agents and representatives with respect to any Confidential Information.

For purposes of this Agreement, “Affiliate” shall mean and include any person or entity, which controls a party, which such party controls or which is under common control with such party. “Control” means the power, direct or indirect, to direct or cause the direction of the management and policies of a person or entity through voting securities, contract or otherwise.

Section 13. Work Made for Hire. In the course of his duties, Employee may create intellectual property rights in his work product that may be capable of protection under the copyright, trademark or patent laws of the United States or another country (the “Work Product”). The parties agree that any Intellectual Property rights in Work Product created by Employee shall be deemed WORKS MADE FOR HIRE and shall belong to and be the exclusive property of Company. This shall include any rights created by 17 USC Section 201(b) as it relates to Company’s ownership of copyrights created by this Agreement. Employee further agrees to waive any and all claims for compensation or benefits derived from the creation, use or sale of such Work Product by Company and shall execute all documents required to evidence ownership of said Work Product by Company at Company’s request. In addition, Employee shall not be granted any type of license to use any work product for his own benefit. If for  any reason, the Work Product is not considered a work made for hire under applicable law, Employee does hereby assign and transfer to Company, its successors, and assigns, the entire right, title and interest in and to the copyright/patent and trademarks in the Work Product and any registrations and copyright/patent or trademark applications relating thereto and any renewals and extensions thereof; in and to all works based upon, derived from, or incorporating the Work Product; in and to all income, royalties, damages, claims and payments now or hereinafter due or payable with respect to the Work Product, and in all causes of action, either in law or in equity for past, present, or future infringement based on the copyrights/patents or trademarks, and in and to all rights corresponding to the foregoing throughout the world. Employee agrees to execute all papers and to perform such acts as Company may deem necessary to secure for Company or its designee the rights herein assigned.

Section 14. Intentionally Omitted

Section 15. Injunctive Relief. Notwithstanding the provisions of Section 18 hereof, Employee acknowledges and agrees that in the event of a breach or threatened breach of any of the provisions of Section 11, Section 12 or Section 13, the Company shall have no adequate remedy at law and shall therefore be entitled to enforce each such provision by temporary or permanent injunctive relief or mandatory relief obtained in any court of competent jurisdiction without the necessity of proving damages, posting any bond or other security, and without prejudice to any other remedies which may be available at law or in equity to the Company. Employee and the Company agree that the Superior Court

in and for the County of Lehigh, Commonwealth of Pennsylvania or the United States District Court for the Eastern District of Pennsylvania are courts of competent jurisdiction and Employee and the Company each consent to the personal jurisdiction of those courts for purposes of such an action or proceeding instituted to obtain equitable relief or monetary damages relating to the provisions of Section 11, Section 12 or Section 13, and in connection therewith Employee and the Company agree that process in any action may be served upon Employee and the Company, as the case may be, and shall be deemed to be complete when the same is delivered to Employee (by personal service or by such method as may be ordered by a court) or the Company, as the case may be, in the same manner as notices are required  to be given pursuant to this Agreement.

Section 16. Representations and Warranties. Employee hereby represents and warrants to the Company that:

(a)the execution, delivery and performance of this Agreement by Employee does not and shall not conflict with, breach, violate or cause a default under any agreement, contract or  instrument to which the Employee is a party or any judgment, order or decree to which Employee is subject;

(b)other than this Agreement, Employee is not a party to or bound by any employment agreement, consulting agreement, non-compete agreement, confidentiality agreement or any other similar agreement with any other person or entity; and

(c)upon the execution and delivery of this Agreement by the Company and Employee, this Agreement will be a valid and binding obligation of the Employee, enforceable against Employee in accordance with its terms. The Employee further represents and warrants that he has not disclosed, revealed or transferred to any third party any of the Confidential Information or any trade secrets or work product of the Company and that he has safeguarded and maintained the secrecy of the Confidential Information and trade secrets and work product of the Company to which he has had access or of which he has knowledge.

Section 17. Notices. All notices and other communications permitted or required  under  this  Agreement shall be in writing and may be served personally, transmitted by facsimile or email (in each case with confirmation of delivery) or nationally recognized overnight delivery service (e.g., Federal Express) or sent by prepaid, certified mail, return receipt requested to the party’s address as set forth below:

						
	To the Company:
	To Employee:

	Shift4 Payments, LLC 2202 N. Irving Street Allentown, PA 18109 Attn: Jordan Frankel Facsimile #: 973-630-9029 
Email Address: jfrankel@shift4.com
	Taylor Lauber
93 Dogwood Terrace
Millington, NJ 07946
Email Address: tlauber@shift4.com

	

With a copy to (which shall not constitute notice):

Chiesa Shahinian & Giantomasi PC
One Boland Drive
West Orange, New Jersey 07052
Attn: Sean M. Aylward, Esq.
Facsimile #: (973) 530-2105
Email Address: saylward@csglaw.com
	

Section 18.    Arbitration.

(a)In the event that any dispute shall arise among the Company and Employee as to any matter or thing covered hereby or as to the meaning of this Agreement, or to any state of facts which may arise, same shall be settled by the agreement of such parties, or if they are unable to agree, same shall be settled, upon written demand of any party hereto, by arbitration in Lehigh Country, Pennsylvania before a single arbitrator, selection of the arbitrator and the conduct of the arbitration to be in accordance with the rules of the American Arbitration Association. Any award or decision rendered shall be made by means of a written opinion explaining the arbitrator’s reasons for the award or decision, and the award or decision shall be final and binding upon the parties. The arbitrator may not amend or vary any provision of this Agreement. Judgment upon the award or decision rendered by the arbitrator may be entered in any court of competent jurisdiction.

(b)Refusal of any party to arbitrate shall entitle any other party hereto to specifically enforce this Agreement in a court of competent jurisdiction, and as a result of said refusal to arbitrate, the remaining parties shall be entitled to receive costs, reasonable attorney’s fees and their share of the arbitration fee, if any, on a pro-rata basis. Arbitration by the parties shall take place at a time and place as may be agreed upon, but if no agreement shall be reached, then at the offices of the Company’s attorneys at a time selected by the arbitrator.

(c)If the arbitrator determines, in his or her absolute discretion, that any party has (i) been in default hereof, (ii) instituted the arbitration proceeding without reasonable cause, or (iii) has taken an action or failed to take an action without reasonable cause which warranted the institution of the arbitration proceeding (each a “Defaulting Party”), as the case may be, the arbitrator shall have the right to award to the party or parties injured by such conduct an amount equal to the reasonable attorney’s fees and costs incurred by such injured party in such proceedings, together with the actual  cost of such arbitration proceedings itself. If the Defaulting Party does not pay to the other party the arbitration award within ten (10) days of written demand therefor, and the other party shall institute suit in a court of competent jurisdiction to enforce said decision, the Defaulting Party shall pay to the other party the reasonable attorney’s fees and court costs incurred in such action. Nothing in this Section 18 is intended to preclude any party hereto from seeking, in an action in a court of competent jurisdiction, (i) specific performance of an obligation of any other party, or (ii) enforcement of rights hereunder after the entry of an Arbitration Award.

Section 19.    General Provisions.

(a)Severability. In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement will continue in full force and effect without said provision.

(b)Integration. This Agreement represents the entire agreement and understanding between the Parties as to the subject matter herein and supersedes all prior or contemporaneous agreements, whether written or oral. No waiver, alteration or modification of any of the provisions of this Agreement will be binding unless in writing and signed by duly authorized representatives of the Parties hereto.

(c)Confidentiality. Employee agrees that the terms of this Agreement shall be kept confidential by Employee.

(d)Assignment. This Agreement will be binding upon and inure to the benefit of: (a) the heirs, executors and legal representatives of Employee upon Employee’s death, and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. For the purposes of this paragraph, “successor” means 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. None of the rights of Employee to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution and in compliance with the requirements of Section 409A. Any other attempted assignment, transfer, conveyance or other disposition of Employee’s right to compensation or other benefits will be null and void.

(e)Tax Withholding. All payments made pursuant to this Agreement will be subject to withholding of applicable taxes.

(f)Waiver. No Party shall be deemed to have waived any right, power or privilege under this Agreement or any provisions hereof unless such waiver shall have been duly executed in writing and acknowledged by the Party to be charged with such waiver. The failure of any Party at any time to insist on performance of any of the provisions of this Agreement shall in no way be construed to be a waiver of such provisions, nor in any way to affect the validity of this Agreement or any part hereof. No waiver of any breach of this Agreement shall be held to be a waiver of any other subsequent breach.

(g)Governing Law; Forum. This Agreement will be governed by the laws of the Commonwealth of Pennsylvania without regard for conflict of law provisions. All litigation or other disputes or claims shall be subject to the exclusive jurisdiction of, and be brought only in, the United States Federal Courts or the courts of the Commonwealth of Pennsylvania sitting within the Commonwealth of Pennsylvania subject to the provisions of Section 18 hereof.

(h)Acknowledgment. Employee acknowledges that he has had the opportunity to discuss this matter with and obtain advice from his legal counsel, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and

voluntarily entering into this Agreement. No provision of this Agreement shall be construed against a party who drafted this Agreement or any portion hereof.

(i)Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, and all such counterparts shall constitute but one instrument.

(j)Headings.    The section and subsection headings contained herein are for convenience only and shall not affect the construction hereof.

(k)Construction. This Agreement has been negotiated by the respective Parties, and the language shall not be construed for or against either Party.

(l)Section 409A. This Agreement is intended to comply with the requirements of Section 409A and shall be construed in a manner consistent with such requirements. For purposes  of this Agreement, each amount to be paid or benefit to be provided, including, without limitation, each installment payment of Severance, will be construed as a separate identified payment for purposes of Section 409A, and any payments that are due within the "short-term deferral period" as defined in Section 409A will not be treated as deferred compensation unless applicable law requires otherwise. Without in any way limiting the generality of the foregoing, all payments of compensation hereunder, including, without limitation, the Severance, are intended to be exempt from the requirements of Section 409A under the short-term deferral rule set forth in Treasury Regulation Section 1.409A-1(b)(4) and/or the separation pay exemption set forth in Treasury Regulation Section 1.409A-1(b)(9)(iii), as applicable, to the maximum extent provided thereunder, and the provisions of this Agreement shall be construed accordingly. Neither the Company nor the Employee will have the right to accelerate or defer the delivery of any payments or benefits that constitute  deferred compensation under Section 409A except to the extent Section 409A specifically permits or requires. Payments of any compensation that constitutes deferred compensation under Section 409A and that is contingent on Employee’s termination by the Company, including, without limitation, the Severance, or resignation shall be made to Employee only if such termination or resignation constitutes a “separation from service” under Section 409A (applying the default rules thereof). Notwithstanding the foregoing, the Company shall not be liable to Employee or any other person or entity if the Internal Revenue Service or any court or other authority having jurisdiction over such matters determined for any reason that any payments or benefits to be provided hereunder are subject to taxes, penalties or interest as a result of failing to comply with Section 409A.

(m)Attorneys Fees. Subject to the provisions of Section 18(b) and (c), if any suit, action or proceeding is brought concerning any provision of this Agreement or the rights and duties of any person in relation thereto, the prevailing party in such action shall be entitled to reasonable attorneys fees and expenses incurred in connection therewith, in addition to any other relief to which it may be entitled.

[Remainder of page is intentionally blank -- signature page follows]

IN WITNESS WHEREOF, each of the Parties has executed this Agreement as of the day and year first above written.

SHIFT 4 PAYMENTS, LLC

By:     
Name: Jared Isaacman Title: CEO

[Signature Page to Employment Agreement]

IN WITNESS WHEREOF, each of the Parties has executed this Agreement as of the day and year first above written.

SHIFT4 PAYMENTS, LLC

By:         Name: Jared Isaacman
Title: CEO

EMPLOYEE:

Name: Taylor Lauber

[Signature Page to Employment Agreement]

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