Document:

execution version   

 Exhibit 10.3

 

AMENDMENT #5 TO THE RESEARCH, DEVELOPMENT AND LICENSE AGREEMENT

This AMENDMENT #5 TO THE RESEARCH, DEVELOPMENT AND LICENSE AGREEMENT (this "Amendment No. 5") is entered into and made effective as of the 27th day of June, 2014 (the "Amendment No. 5 Effective Date") by and between Isis Pharmaceuticals, Inc., a Delaware corporation, having its principal place of business at 2855 Gazelle Court, Carlsbad, CA 92010 ("Isis"), and Glaxo Group Limited, a company existing under the laws of England and Wales, having its registered office at 980 Great West Road, Brentford London TW8 9GS, United Kingdom ("GGL"), and GlaxoSmithKline Intellectual Property Development Limited,  a company existing under the laws of England and Wales, having its registered office at 980 Great West Road, Brentford London TW8 9GS, United Kingdom ("GSK IPDL"). GGL and GSK IPDL are referred to together as "GSK".  Isis and GSK are each referred to herein by name or as a "Party" or, collectively, as "Parties."

RECITALS

Whereas, Isis and GGL are parties to the Research, Development and License Agreement dated March 30, 2010, as amended (the "Agreement") and (to the extent applicable) GGL has sub-licensed its rights under the Agreement to GSK IPDL;

Whereas, Isis and GSK are Developing the molecule known as [***] under the Collaboration Program focused on [***] (the "[***] Program"); and

Whereas, Isis and GSK desire to amend certain terms of the Agreement solely with respect to the [***] Program, and to amend the activities being conducted under the [***] Program to include work on [***] ASOs discovered by Isis that bind to [***] and [***] (the "[***] Compounds");

WHEREAS, Isis and GSK wish to conduct research and development activities to identify and advance, [***], an [***] on the terms and conditions set forth herein.

Now, therefore, in consideration of the premises and mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and solely with respect to the [***] Program, the Parties, intending to be legally bound, do hereby agree as follows:

Capitalized terms used but not defined herein will have the meaning ascribed to such terms in the Agreement.

	
1.

	
Amendment of Activities under [***] Program. The [***] Program is hereby amended to include work on the compounds listed on Appendix 4 attached hereto (each, a "Research Lead") which (unless excluded under Section 11(a) of this Amendment No. 5) are acknowledged to be Compounds under the [***] Program.

	
2.

	
***] DC Development Plan.  The initial Development plan for the potential [***] DC is attached hereto as Appendix 1.  After the selection of the [***] DC in accordance with Section 3 of this Amendment No.5, GSK will promptly provide Isis with an updated Development plan for the [***] DC, and thereafter will update such Development plan on at least [***] basis until such time as the [***] Option is exercised (or otherwise expires).  After Option exercise, GSK will provide updates as required under Section 4.3.2 and Section 4.3.3 of the Agreement.

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3.

	
Research Activities; Selection of [***] DC.   Isis will use Commercially Reasonable Efforts to conduct the [***] DC Confirmation Activities set out in Column 3 of Appendix 2 attached hereto, with the goal of achieving the [***] DC Criteria, as follows:

	
a.

	
Isis will use Commercially Reasonable Efforts to complete a study testing [***] (as further described and in accordance with Column 3 of Appendix 2 of this Amendment No.5) to provide [***] (the "Research Lead Study").

	
b.

	
Once the Research Lead Study has been completed, Isis will provide GSK written notice thereof, including a summary of the results of the Research Lead Study (such notice and summary the "Research Lead Data Package").  Within [***] ([***]) days of its receipt of the Research Lead Data Package, GSK will designate [***] (the "Prioritized Lead") to advance as described in Section 3.c. of this Amendment No. 5.

	
c.

	
For the Prioritized Lead, Isis will use Commercially Reasonable Efforts to complete (i) [***], and (ii) [***], (all as further described and in accordance with Column 3 of Appendix 2 of this Amendment No.5) such [***] to be agreed and finalized in advance by the JSC (the "Prioritized Lead Studies").  Once the Prioritized Lead Studies have been completed, Isis will provide the JSC written notice thereof, including the data and results of the Prioritized Lead Studies (the "Prioritized Lead Data Package").  Within [***] days of its receipt of the Prioritized Lead Data Package, [***] will determine whether the Prioritized Lead meets the applicable criteria for designating a development candidate under Column 3 of Appendix 2 (the "[***] DC Selection Criteria").  Unless within such [***] day period [***] determines (or by written notice GSK informs Isis that) the Prioritized Lead has not met the [***] DC Selection Criteria, then the Prioritized Lead will be the [***] DC.  If within such [***] day period [***] determines (or by written notice GSK informs Isis that) the Prioritized Lead has not met the [***] DC Selection Criteria, then within [***] days of such determination, GSK may designate an additional Research Lead as a Prioritized Lead, and Isis and GSK will repeat the process set forth in this Section 3.c. of this Amendment No. 5 until the earlier of the date (y) an [***] DC is designated, or (z) each Research Lead has been tested in the studies set forth in this Section 3.c of this Amendment No. 5, but no such Research Lead has been designated an [***] DC.  If the Parties do not designate an [***] DC under this Section 3.c. of this Amendment No. 5 then, unless otherwise mutually agreed to by the Parties in writing, no Compound will be an [***] DC and Isis will have no further obligations under this Amendment No. 5.

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d.

	
Isis will be responsible for all costs and expenses associated with the studies under this Section 3 of this Amendment No. 5.

	
4.

	
[***] DC Development Activities Conducted by Isis and Paid for by GSK.

	
a.

	
Isis' Manufacturing Responsibilities; CMC Characterization.

	
i.

	
Isis will manufacture [***] of API for the Research Lead known as [***], to generate [***] of API.  Isis will begin such activities within [***] ([***]) Business Days of Isis' receipt of the $[***] payment under clause (i) of Section 4.c. of this Amendment No. 5.  Such API will be manufactured in accordance with cGMP and [***].  In addition, Isis will formulate an amount of such API into drug product that is sufficient (but no more than is necessary) to conduct the [***] and the [***] for the [***] DC, and which meets the requirements of cGLP.  As soon as reasonably practicable (and using Commercially Reasonable Efforts  to meet such timeframe as necessary to meet the scheduled start of the [***] as agreed between the Parties), Isis will deliver such drug product to the CRO, and deliver the remaining quantity of API to GSK, in each case [***].  GSK will pay Isis for its [***] to manufacture such API and drug product (subject to the principles set out in Section 4(a)(ii) below with respect to failed batches) as set out in Rows A and B of Appendix 3 attached hereto, which include the actual cost charged by its appointed Third Party contract manufacturing organization to perform the conjugation work for such API and Isis' [***].

	
ii.

	
If Isis encounters any difficulties or hazards during the  manufacture of such API that prevents Isis from successfully manufacturing API that meets the requirements of Section 4(a)(i) above with respect to quality and quantity, Isis will notify GSK within [***] days of such failure and will use Commercially Reasonable Efforts to manufacture a replacement batch of API, such that the CRO receives the formulated API in accordance with the requirements of Section 4(a)(i) above as close to the originally-scheduled delivery date as possible.  For any such failed batch, the cost of the manufacture incurred by Isis will be [***] as follows:  [***]; and, to the extent [***], [***]; except, that [***].  Any such [***] under Section 4.a.i of this Amendment No. 5.

	
iii.

	
Isis will also use Commercially Reasonable Efforts to [***] (and perform the related [***] for the [***] for the [***] for the [***] DC.  GSK will pay Isis for its internal FTE costs reasonably estimated to conduct such activities which have been calculated in accordance with [***] set out in Section 4(d) of this Amendment No. 5 and included in the costs outlined in Row A of Appendix 3 hereto.

	
iv.

	
Isis and GSK will agree to a technology transfer plan and schedule pursuant to which Isis will provide to GSK (or to a Third Party manufacturer selected by GSK and reasonably agreed to by Isis) a technology transfer under Section 4.2.1 of the Agreement solely to the extent necessary to enable GSK to fulfill its obligations to Develop the [***] DC under Section 5 of this Amendment No. 5 prior to the [***] Option Deadline (including use of the API and formulated product supplied by Isis according to this Amendment No.5), and solely for the sole purpose of Developing the [***] DC.  Isis will provide such transfer in a timely manner to facilitate GSK's activities in accordance with the [***] DC Development plan.   If GSK believes in good faith that additional API for the [***] DC is necessary for GSK to fulfill its obligations to Develop the [***] DC under Section 5 of this Amendment No. 5, then GSK will provide Isis written notice thereof, and the technology transfer plan will be expanded accordingly by mutual agreement.  Isis will provide the first [***] ([***]) hours of such technology transfer [***], and thereafter GSK will pay Isis for [***] and any out-of-pocket costs to perform such activities ([***] in accordance with the principles set out in Section 4(d) of this Amendment No. 5). Isis will provide GSK an [***] GSK pursuant to this Section 4(a)(iv) in advance of initiating such activities.  Until GSK approves the estimated cost to perform such an activity, Isis will not incur such cost and Isis will not be obligated to perform such activity.

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v.

	
At GSK's request, Isis will use its Commercially Reasonable Efforts to refer the conduct of [***] for the [***] and [***] for the [***] DC manufactured by Isis to an established contract research organization Isis uses to perform such work; provided GSK will be solely responsible for managing such studies and the cost of such studies.

	
vi.

	
If a Compound that is not [***] is designated as the [***] DC, then at the same time as such designation, GSK will (i) pay Isis the Remaining Payment Due under Section 4.c (iii) of this Amendment No. 5 related to [***], and (ii) notify Isis if GSK intends to manufacture the API and drug product for such [***] DC itself or if GSK intends Isis to manufacture such API and drug product for such [***] DC.  If GSK notifies Isis that GSK intends Isis to manufacture such API for such [***] DC, then at GSK's expense, as soon as reasonably practicable Isis will manufacture [***] of the API and related drug product for such [***] DC under the same terms and conditions as set forth in Section 4.a. of this Amendment No. 5 by adding such [***] DC to Isis' then existing queue for manufacturing compounds at Isis' facility [***] and the Parties will adjust the planned start of the [***] and [***] accordingly.

	
b.

	
[***].  Following [***], Isis will contract for the conduct of [***] and the [***] under the initial [***] DC Development Plan with an established contract research organization (the "CRO") consistent with the requirements of Section 4.1.7 and other applicable terms of the Agreement (with respect to sub-contracting), and will monitor the performance of such [***] by such CRO, including compliance with all Applicable Law.  GSK will pay Isis for all of [***] and [***], as set out in Row D of Appendix 3.

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Isis will also use Commercially Reasonable Efforts to [***] for the [***] DC.  GSK will pay Isis [***].

Isis will provide GSK an estimate of all such costs to be charged to GSK pursuant to this Section 4(b) in advance of initiating such activities.  Until GSK approves the estimated cost to perform such an activity, Isis will not incur such cost and Isis will not be obligated to perform such activity.  Isis currently estimates that it will use [***] to conduct the work under this Section 4.b. of this Amendment No. 5.  For clarity, Isis will only be required to conduct the activities under this Section 4.b for [***].

	
c.

	
Payment by GSK.  GSK will pay Isis for the activities under this Section 4 in accordance with the amounts set forth in Appendix 3 attached hereto, as follows, (i) with respect to the payments due under Section 4(a) of this Amendment No. 5, upon [***], Isis will issue an invoice to GSK for $[***] (being the total amount due under the Initial Payment Column for Rows A, B and C of Appendix 3), and GSK will pay such invoice within [***] ([***]) Business Days following receipt of such invoice by GSK, (ii) with respect to the payments due under Section 4(b) of this Amendment No. 5, upon [***], Isis will invoice GSK for [***]% of the [***] and [***]% of the [***] to conduct the work under Section 4.b of this Amendment No. 5 (as described in the Initial Payment Column of Row D of Appendix 3), and GSK will pay such invoice within [***] ([***]) days of receipt of such invoice by GSK, and (iii) upon the occurrence of the applicable "Event Triggering Remaining Payment" listed on Appendix 3 for the relevant activity, Isis will issue an invoice to GSK for the balance of any remaining payment due in respect of such activity as shown in the Remaining Payment Due column of Appendix 3, and GSK will pay such invoice within [***] ([***]) days of receipt of such invoice by GSK; provided always that in the case of remaining payments under this sub-section  (iii)  of this Section 4(c), such payments will only be due from GSK to Isis to the extent that [***].

	
d.

	
FTEs.  With respect to activities under this Amendment No. 5 that require GSK to reimburse Isis FTE costs, Isis will [***], and the then applicable [***] will apply. Isis' applicable [***] for the 2014 Calendar Year is $[***].

	
5.

	
GSK's Manufacturing and  Development  Responsibilities.

	
a.

	
Except as expressly set forth in Section 3 and Section 4 of this Amendment No. 5, without prejudice to GSK's obligations under Section 4.3 of the Agreement, as from the Amendment No.5 Effective Date until such time as GSK exercises its Option to the [***] Program (or until such Option expires), and provided Isis has fulfilled its obligations under Section 4.a and Section 4.b of this Amendment No. 5 (to the extent necessary for GSK to perform its obligations), GSK will use Commercially Reasonable Efforts to conduct all activities related to [***] the [***] DC, including but not limited to (i) [***] and [***] for the [***], (ii) [***], including the [***], (iii) [***], (iv) [***].  GSK will be responsible for all costs and expenses associated with the activities under this Section 5.  Following GSK's exercise of its Option to the [***] Program, GSK's Development and Commercialization obligations shall be as set forth in Section 4.3 of the Agreement.

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b.

	
Commitment to Develop [***] DC. Without limiting GSK's obligations under Section 2.2 of the Agreement and except as otherwise required for GSK to fulfil its obligations under the Agreement or as otherwise requested by Isis, prior to GSK's exercise of its Option to the [***] Program, GSK will [***] without Isis' prior written consent.

	
c.

	
Development of Alternative [***] DC.  If based on the results of the [***] or the [***] for the first [***] DC, GSK in good faith (acting in accordance with its Commercially Reasonable Efforts) determines Development of such [***] DC should be terminated, GSK may terminate the Development of such [***] DC by providing Isis a written notice thereof within [***] ([***]) days following the completion of the [***] of such [***], or completion of the [***] (as applicable).  In such case, the Parties will, as soon as reasonably practicable, hold a meeting of the JSC to discuss the merits of Developing a different Research Lead.  Within [***] ([***]) days following such meeting of the JSC (or, in any event if the JSC has not met within [***] ([***]) days of the termination notice from GSK), GSK may provide Isis a written notice designating a Research Lead as a replacement [***] DC, in which case (i) such Research Lead will be the [***] DC, (ii) Isis will have no obligation to research, Develop or Manufacture such [***] DC, and (iii) GSK will use Commercially Reasonable Efforts to Develop such [***] DC up through the [***] Option Deadline [***].

	
6.

	
Safety Reporting; Data Integrity.

	
a.

	
Safety Reporting.  GSK will report to Isis any serious adverse events (SAEs) and suspected unexpected serious adverse reactions (SUSARs) under any Clinical Study for the [***] DC being conducted by or on behalf of GSK prior to the date of [***] Option exercise, strictly in accordance with the timelines set out in the Safety Data Exchange Agreement (such timelines to ensure that each Party is able to meet all applicable legal and regulatory obligations in line with its own respective internal processes).  In addition, GSK will provide Isis with [***] and [***] regarding adverse events and material lab findings under any Clinical Study for the [***] DC being conducted by or on behalf of GSK prior to the date of [***] Option exercise.

	
b.

	
Safety Data Exchange Agreement (or equivalent).  As soon as reasonably practicable following the Amendment No. 5 Effective Date, and in any event no later than [***] days prior to the expected start of the first Clinical Study of the [***] DC (or such other date as may be agreed between the Parties), the pharmacovigilance representatives of each of Isis and GSK will meet and determine the appropriate approach to be taken for the collection, review, assessment, tracking, exchange and filing of information related to adverse events and safety data associated with a [***] DC during the period prior to GSK's exercise of its Option to the [***] Program, based on the activities being conducted by each Party under the Agreement and this Amendment No.5. Such approach will be documented between the Parties in writing in a separate safety data exchange agreement (to the extent such agreement is necessary) or other appropriate documentation, which will control with respect to the subject matter covered therein. Such documentation will be in accordance with, and will enable the Parties to fulfill, local and international regulatory reporting obligations to Regulatory Authorities and other Applicable Law as well as to meet their own respective internal policy requirements.  After GSK's exercise of its Option to the [***] Program, the Parties will wind-down and discontinue the activities provided for under any such arrangements, but GSK will continue to provide Isis the cooperation and information described in Section 4.4.1 of the Agreement as it relates to the [***] Program.

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c.

	
Isis  Database.  Notwithstanding the fact that GSK has not exercised its Option for the [***] Program, GSK will provide Isis the cooperation and information described in Section 4.4.1 of the Agreement as it relates to activities undertaken by GSK in relation to the [***] DC prior to the date of [***] Option exercise.

	
d.

	
Data Integrity.  GSK agrees that it will carry out its activities under the [***] Program and collect and record any data generated therefrom in a manner consistent with Good Data Management Practices.  Prior to GSK's exercise of its Option for the [***] Program, GSK will, upon reasonable request by Isis permit review of relevant notebooks and records in GSK's possession or control by Isis during normal business hours.  

	
7.

	
Option.

	
a.

	
Once Isis has obtained the data generated under the statistical analyses plan for the Phase 2 PoC Trial for [***], Isis will provide GSK with (i) a notice from Isis that the PoC Trial is completed, and (ii) the Phase 2 PoC Data Package for [***] (such notice and package, the "[***] PoC Trial Completion Package") in accordance with Section 3.1 of the Agreement.  Once the data are generated under the statistical analysis plan for the Phase 2 PoC Trial for the [***] DC, GSK will notify Isis and provide a copy of the data package through the JSC.   GSK will provide written notice to Isis of its decision whether to exercise its Option to the [***] Program on or before 5:00 p.m. (US Eastern time) on the [***] day following the earlier of (y) GSK's receipt of the [***] PoC Trial Completion Package, and (z) the data are generated under the statistical analyses plan for the Phase 2 PoC Trial for the [***] DC (the "[***] Option Deadline").  If GSK does not provide written notice to Isis of GSK's exercise of the Option for the [***] Program before the [***] Option Deadline, then GSK's Option to the [***] Program will expire and, subject to Section 5.10 of the Agreement, Isis will be free to Develop and Commercialize any Compounds that had been  included in the [***] Program on its own or with a Third Party and, except as specified in Section 5.10 of the Agreement, GSK will have no further rights to the [***] Program (including all Compounds included therein) and [***] will no longer be a Collaboration Target. For the avoidance of doubt, if GSK exercises its Option for the [***] Program, then the license granted to GSK pursuant to Section 4.1 of the Agreement will include all Compounds within the [***] Program, including the Research Leads, but will not include any Compounds that are excluded under Section 11 of this Amendment No. 5.

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b.

	
Early Exercise of an Option. For the avoidance of doubt, notwithstanding anything to the contrary in this Amendment No. 5 or in the Agreement, GSK will have the right to exercise its Option for the [***] Program at any time prior to the [***] Option Deadline.

	
8.

	
Financial Provisions. The following revised financial provisions will apply solely to the [***] Program:

	
a.

	
Upfront Payment. Upon execution of this Amendment No. 5, in consideration for the amended scope of activities under the [***] Program described in this Amendment No.5, Isis will issue to GSK an invoice for, and GSK will pay to Isis within [***] ([***]) Business Days following the receipt of such invoice for, a payment equal to $[***] ([***] US Dollars).

	
b.

	
Milestone Payments for First Achievement of Development Milestone Event. Solely with respect to Compounds under the [***] Program that first achieve a Development Milestone Event as a result of activities by or on behalf of GSK or its Affiliates or Sublicensees, Table 3 set forth in Section 5.6.1 (Milestone Payments for First Achievement of Development Milestone Event) of the Agreement is hereby deleted in its entirety and replaced with Table 3A below.

	
Table 3A

	
Development Milestone Events for the [***] Program

	
Milestone Payment 1st Indication

	
Milestone Payment 2nd Indication

 

	
[***]

	
$[***]

  ([***])

	
$[***]

	
[***]

	
$[***] ([***])

	
$[***]

	
[***]

	
$[***]

	
$[***]

	
[***]

 

	
$[***] ([***])

	
$[***]

	
[***]

	
$[***]

	
$[***]

	
[***]†

 

	
$[***]

	
$[***]

	
[***]†

 

	
$[***]

	
$[***]

	
[***]

 

	
$[***]

	
$[***]

	
[***]††

	
$[***]

	
$[***]

	
[***]††

	
$[***]

	
$[***]

	
[***]†††

	
$[***]

	
$[***]

	
[***]

	
$[***]

	
$[***]

	
Total Development Milestone Payments for the [***] Program

	
$[***]

	
$[***]

 

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†  In the unlikely event that the [***] with a [***] DC is achieved prior to the [***] by [***], GSK will pay a total of $[***] at the time that the [***] with a [***] DC is achieved, consisting of the $[***] milestone payment and the $[***] with the [***] DC milestone payment. 

†† For clarity with respect to this Milestone Event, "[***]" by the applicable Regulatory Authority in [***] (or any other [***] such as [***] or the [***]) of the equivalent of [***] in [***] (or any other [***] such as [***] or the [***]) will satisfy the requirements for achievement of this Development Milestone Event.

††† For clarity with respect to this Milestone Event, "[***]" by the applicable Regulatory Authority in [***] (or any other [***] such as [***] or the [***]) of the equivalent of [***] in [***] (or any other [***] such as [***] or the [***]) will satisfy the requirements for achievement of this Development Milestone Event.

Except as expressly set forth in Section 5.6.2 of the Agreement (as Section 5.6.2 of the Agreement relates to Compounds that are not [***] or the [***]), each milestone set forth in Table 3A above will be paid only once for the [***] Program upon the first achievement of the Milestone Event, regardless of the number of Licensed Compounds, Follow-On Compounds or Licensed Products resulting under the [***] Program.

For avoidance of doubt, except as expressly amended by this Amendment No. 5, the terms and conditions of Section 5.6.2 of the Agreement continue to apply to the [***] Program with respect to Compounds that are not [***] or the [***] DC.

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c.

	
Milestone Payments for First Achievement of Sales Milestone Event for [***] DC. GSK will pay to Isis the applicable one-time milestone payments as set forth in Table 4B below after a Licensed [***] Product first achieves the listed events (as set forth in  Table 4B) as a result of sales by or on behalf of GSK, its Affiliates or Sublicensees:

 

	
Table 4B

	
Sales Milestones for each Licensed [***] Product

	
Milestone Payment

	
$[***] in worldwide Annual Net Sales

 

	
$[***]

	
$[***] in worldwide Annual Net Sales

 

	
$[***]

	
$[***] in worldwide Annual Net Sales

 

	
$[***]

	
Total Sales Milestone Payments for the [***] DC Program

	
$[***]

 

	
9.

	
[***] DC Program Royalties.  Solely with respect to the Licensed [***] Products sold by GSK, its Affiliates or Sublicensees, Table 5 set forth in Section 5.9.1 (GSK Patent Royalty) of the Agreement is deleted in its entirety and replaced with Table 5B below:

	
Table 5B

	
Worldwide Annual Net Sales of each Licensed [***] Product

	
Royalty Rate

	
For the portion up to and including $[***]

 

	
[***]%

 

	
For the portion above $[***] and up to and including $[***]

 

	
[***]%

	
For the portion above $[***]

 

	
[***]%

	
10.

	
No Impact on Other Collaboration Programs. Except as otherwise expressly amended by this Amendment No. 5, the Agreement (including Section 5.7.1 and Section 5.9.1 as it applies to Licensed Products under the [***] Program that are not Licensed [***] Products) remains in full force and effect in accordance with its terms. For the avoidance of doubt, this Amendment No. 5 is solely intended to modify certain terms of the Agreement regarding the [***] Program, and does not amend the Agreement in any way with respect to the other Collaboration Programs.

	
11.

	
Termination by Isis of Rights to [***] DC.   (a) If GSK, in Isis' reasonable determination, fails to use Commercially Reasonable Efforts under Section 5(a) of this Amendment No.5, Isis will notify GSK and within [***] ([***]) days thereafter, Isis and GSK will meet and confer to discuss and resolve the matter in good faith, and attempt to devise a mutually agreeable plan to address any outstanding issues related to GSK's use of Commercially Reasonable Efforts in Section 5(a).  Following such a meeting, if GSK fails to use Commercially Reasonable Efforts as contemplated by Section 5(a), then subject to Section 11(b) below, Isis will have the right, at its sole discretion, to terminate GSK's rights under this Amendment No. 5 and the Agreement with respect to the [***] DC and the other Research Leads.  In the case of such a termination, the [***] DC and other Research Leads will be excluded from the [***] Program, including GSK's Option and licenses to the [***] Program under Sections 3.1 and Section 4.1 under the Agreement.

(b) This Section 11 and Section 12 below of this Amendment No. 5 set forth Isis' sole and exclusive remedy for GSK's breach of its obligation to use Commercially Reasonable Efforts under Section 5(a) of this Amendment No.5.

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12.

	
Special Consequences for Termination by Isis or Voluntary Termination  by GSK.  In addition to the consequences set forth in Section 9.3.2 of the Agreement (as applicable), in the event of (i) a termination of the Agreement either in its entirety or with respect to the [***] Program by Isis pursuant to Section 9.2.2 or by GSK pursuant to Section 9.2.1, or (ii) a termination by Isis pursuant to Section 11 above of this Amendment No.5, in each case ((i) and (ii)) prior to GSK's exercise of its Option for the [***] Program by GSK or upon the unexercised expiration of GSK's Option for the [***] Program and solely with respect to the [***] DC:

	
a.

	
GSK will perform the obligations under Section 4.2.1 of the Agreement , as though such obligations under Section 4.2.1 were obligations owed by GSK to Isis, mutatis mutandis, with respect to the [***] DC, except for such information as is already in Isis' possession at the date of termination;

	
b.

	
GSK will, at GSK's election and at its sole cost and expense, either (i) complete any ongoing Clinical Study for the [***] DC or (ii) subject to applicable law and regulatory consents, transfer sponsorship of any ongoing Clinical Study for the [***] DC  to Isis together with the transfer of all of the rights and responsibilities thereunder, except as described in Section 12(c) below;

	
c.

	
If as part of terminating the [***] Program GSK terminates a Clinical Study for a [***] DC due to safety reasons as confirmed by GSK's Global Product Safety Board, then GSK cannot elect to complete such Clinical Study under Section 12(b)(i)  above but will: (i) take such action consistent with its internal policies and applicable regulatory requirements to close out such Clinical Study (including, without limitation, notification to the FDA and withdrawal of the IND), and  (ii) provide to Isis all data and information contained within or referenced in the IND and such other data and information within GSK's possession or control generated under the [***] Program (except for such information as is already in Isis' possession at the date of termination or as a result of the technology transfer under Section 12.a. above), at GSK's sole cost and expense. For clarity, in the circumstances described in this Section 12(c), GSK will not be required to transfer the sponsorship of such terminated Clinical Study pursuant to Section 12(b)(ii) above.

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d.

	
If GSK elects to transfer sponsorship to Isis under Section 12(b)(ii) above, the Parties agree to, as soon as practicable following the date of such termination or expiration according to this Section 12, negotiate in good faith a separate agreement to effect such transfer consistent with industry standards under similar circumstances and in accordance with each Party's respective internal policies.

	
13.

	
Governing Law; Counterparts.  This Amendment No. 5 and any dispute arising from the performance or breach hereof will be governed by and construed and enforced in accordance with the laws of the State of Delaware, U.S.A., without reference to conflicts of laws principles.  This Amendment No. 5 may be signed in counterparts, each and every one of which will be deemed an original, notwithstanding variations in format or file designation which may result from the electronic transmission, storage and printing of copies of this Amendment No. 5 from separate computers or printers.  Facsimile signatures and signatures transmitted via PDF will be treated as original signatures.

	
14.

	
Definitions.  Capitalized terms used in this Amendment No. 5 will have the meaning set forth in Appendix A attached hereto.

* - * - * - *

[Signature page follows]

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execution version    Exhibit 10.3

IN WITNESS WHEREOF, the Parties have caused this Amendment No. 5 to be executed by their duly authorized representatives as of the Amendment No. 5 Effective Date.

Isis Pharmaceuticals, Inc.

By: /s/ B. Lynne Parshall

Name: B. Lynne Parshall

Title: Chief Operating Officer

Date: __                              

 

Glaxo Group Limited

By: /s/ Paul Williamson  

Name: Paul Williamson   

Title: Authorised Signatory For and on behalf

Of Edinburgh Pharmaceutical Industries Limited

Corporate Director  

Date: __                              

                      

Glaxosmithkline intellectual property 

development limited 

By: /s/ Paul Williamson  

Name: Paul Williamson     

Title: Authorised Signatory For and on behalf

Of Edinburgh Pharmaceutical Industries Limited

Corporate Director    

Date: __                              

13

 

execution version    Exhibit 10.3

Appendix A 

Defined Terms

Capitalized terms used in this Amendment No. 5 but not otherwise defined herein will have the meanings given in the Agreement. For purposes of this Amendment No. 5, the following capitalized terms will have the following meanings:

	
a.

	
"CRO" has the meaning set forth in Section 4.b of this Amendment No. 5.

	
b.

	
"[***] DC Development Plan" means the Development plan attached to this Amendment No. 5 as Appendix 1, which may be amended from time to time by the JSC.

	
c.

	
"[***] DC" means the Compound designated as the [***] DC under Section 3.c. of this Amendment No. 5.

	
d.

	
"[***] DC Selection Criteria" has the meaning set forth in Section 3.c of this Amendment No. 5.

	
e.

	
[***]

	
f.

	
"[***] Option Deadline" has the meaning set forth in Section 7 of this Amendment No. 5.

	
g.

	
"[***] PoC Trial Completion Package" has the meaning set forth in Section 7 of this Amendment No. 5.

	
h.

	
"[***] Program" has the meaning set forth in the recitals of this Amendment No. 5.

	
i.

	
"[***]" means the compound known as [***] (which is ISIS [***]).

	
j.

	
"Licensed [***] Product" means a Licensed Product having the [***] DC as an active ingredient.

	
k.

	
"Prioritized Lead" has the meaning set forth in Section 3.b of this Amendment No. 5.

	
l.

	
"Prioritized Lead Studies" has the meaning set forth in Section 3.c of this Amendment No. 5.

	
m.

	
 "Prioritized Lead Data Package" has the meaning set forth in Section 3.c of this Amendment No. 5.

	
n.

	
 "Research Leads" has the meaning set forth in Section 1 of this Amendment No. 5.

14

 

	
o.

	
"Research Lead Study" has the meaning set forth in Section 3.a. of this Amendment No. 5.

	
p.

	
"Research Lead Data Package" has the meaning set forth in Section 3.b. of this Amendment No. 5.

15

execution version    Exhibit 10.3

Appendix 1 

[***] DC Development Plan

[***]

16

execution version    Exhibit 10.3

Appendix 2  

Isis' Development Candidate Criteria and Activities for [***] DC

[***]

17

execution version    Exhibit 10.3

Appendix 3 

Payment Schedule for [***] DC Development Activities Managed or Conducted by Isis

[***]

18

Appendix 4 

Research Leads

[***]

19Exhibit 10.12(g)

 

CHANGE IN CONTROL TERMINATION AGREEMENT

 

 

This Change in Control Termination
Agreement (the “Agreement”) is entered into as of March 17, 2014, between Middlesex Water Company, a New Jersey
corporation, with its principal place of business located at 1500 Ronson Road, P.O. Box 1500, Iselin, New Jersey 08830-0452,
(the “Company”), and Jay L. Kooper, residing at 40 Tremont Terrace, Livingston, New Jersey 07039 (referred to as
“You” in this Agreement).

 

Recitals

 

A.          The Company considers it essential to the best interests of
its shareholders to foster the continuous employment of key management personnel. In this connection, the Board of Directors of
the Company (the “Board”) recognizes that, as is the case with many publicly held Companies, the possibility of a Change
in Control may exist. This possibility, and the uncertainty and questions that it may raise among management, may result in the
departure or distraction of management personnel to the detriment of the Company and its shareholders.

 

B.          The Board has determined that appropriate steps should be
taken to reinforce and encourage the continued attention and dedication of members of the Company’s management, including
You, to the assigned duties without distraction in the face of circumstances arising from the possibility of a Change in Control
of the Company.

 

C.          To induce You to remain in the employ of the Company, while
simultaneously representing the best interests of the Company’s shareholders, and in consideration of your agreement set
forth below, the Company agrees that You shall receive the severance benefits set forth in this Agreement in the event your employment
with the Company is terminated by the Company, or is terminated by You for “Good Reason,” as defined herein, in connection
with a “Change in Control of the Company” (as defined in Section 2 below). This Agreement supersedes any other specific
written agreements that may have been entered into between yourself and the Company concerning termination of employment.

 

Therefore, in consideration of your continued
employment and the parties’ agreement to be bound by the terms contained in this Agreement, the parties agree as follows:

 

1. Term of Agreement.
This Agreement shall commence as of March 17, 2014 and shall continue in effect through December 31, 2014. However,
commencing on December 31, 2014, and each December 31 afterwards, the term of this Agreement shall automatically be extended
for one (1) additional year unless, no later than the preceding November 1st, the Company shall have given notice that it
does not wish to extend this Agreement. Notwithstanding the foregoing, if a Change in Control of the Company shall be
proposed to occur, or have occurred, during the original or any extended term of this Agreement, this Agreement shall
continue in effect until your termination of employment with the Company or its successor or, when all amounts due under this
Agreement following a termination have been paid, whichever is later.

 

    	Page 1 of 11

    	 

    

2. Change In Control. No benefits
shall be payable under this Agreement unless there shall have been a Change in Control of the Company, as set forth herein. For
purposes of this Agreement, a “Change in Control” of the Company shall be deemed to occur if any party or group acquires
beneficial ownership of 20 percent or more of the voting shares of the Company; or if shareholder approval is obtained for a transaction
involving the acquisition of the Company through the purchase or exchange of the stock or assets of the Company by merger or otherwise;
or if one-third or more of the Board elected in a 12-month period or less are so elected without the approval of a majority of
the Board as constituted at the beginning of such period; or a liquidation or dissolution of Company.

 

3. Termination Following Change In Control.
If any of the events described in Section 2 above constituting a Change in Control of the Company shall have occurred, then unless
the termination is (A) because of your death, Disability or Retirement, (B) by the Company for Cause, or (C) by You other than
for Good Reason, on the subsequent termination of your employment during the term of this Agreement, You shall be entitled to the
severance benefits provided in Section 4.3 below if such termination occurs on or before the third (3rd) anniversary
of the Change in Control date .

 

3.1 Disability; Retirement. If,
as a result of your incapacity due to physical or mental illness, You shall have been absent from the full-time performance of
your duties with the Company for 6 consecutive months, and within 30 days after written notice of termination is given You shall
not have returned to the full-time performance of your duties, your employment may be terminated for "Disability." Termination
of your employment by the Company or You due to your "Retirement" shall mean termination in accordance with the Company's
retirement policy, including early retirement, generally applicable to its salaried employees or, in accordance with any retirement
arrangement established with your consent with respect to You.

 

3.2 Cause. Termination by the Company
of your employment for "Cause" shall mean termination as a result of:

 

3.2.1 The willful and continued failure by You to substantially
perform your duties with the Company as such employment was performed by You prior to the Change in Control (other than any such
failure resulting from your Disability or any such actual or anticipated failure after the issuance by You of a Notice of Termination
for Good Reason as defined herein) after a written demand for substantial performance is delivered to You by the Board, which demand
specifically identifies the manner in which the Board believes that You have not substantially performed your duties; or

 

    	Page 2 of 11

    	 

    

3.2.2 The willful act by You in conduct that is demonstrably
and materially injurious to the Company, and which the Board deems to cause or will cause substantial economic damage to the Company
or injury to the business reputation of the Company, monetarily or otherwise. For purposes of this Section, no act, or failure
to act, on your part shall be deemed “willful" unless done, or omitted to be done, by You not in good faith and without
a reasonable belief that your action or omission was in the best interest of the Company. Notwithstanding the foregoing, You shall
not be deemed to have been terminated for Cause unless and until there shall have been delivered to You a copy of a resolution
duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Board at a meeting of the
Board called and held for such purpose (after reasonable notice to You and an opportunity for You, together with your counsel,
to be heard before the Board), finding that in the good faith opinion of the Board You were guilty of conduct set forth above in
clauses 3.2.1 or 3.2.2 of this Section and specifying the particulars in detail.

 

3.3 Good Reason. You shall be entitled
to receive severance benefits as provided in this Agreement if You terminate your employment with the Company for “Good Reason.”
For purposes of this Agreement, "Good Reason" shall mean, without your consent, the occurrence in connection with a Change
in Control of the Company of any of the following circumstances unless, in the case of Sections 3.3.1, 3.3.5, 3.3.6, 3.3.7, or
3.3.8, the circumstances are fully corrected prior to the Date of Termination specified in the Notice of Termination, as defined
in Sections 3.5 and 3.4, respectively, given in respect of them. If You terminate your employment with the Company for Good Reason,
as provided below, your employment with the Company shall be considered to have been involuntarily terminated by the Company:

 

3.3.1 The assignment to You of any significant employment
duties which are inconsistent with your status and position (i) prior to the Change in Control where such change is a direct result
of any pending Change in Control; or (ii) as such status exists immediately prior to the Change in Control of the Company, or (iii)
which are a substantial adverse alteration in the nature or status of your responsibilities from those in effect immediately prior
to the Change in Control of the Company whichever is applicable;

    	Page 3 of 11

    	 

    

 

3.3.2 A reduction by the Company in your annual base
salary as in effect on the initial date of this Agreement, or as same may be increased from time to time irrespective of future
Company policies including any across-the-board salary reductions similarly affecting all key employees of the Company;

 

3.3.3 Your relocation, without your consent, to an
employment location not within twenty-five (25) miles of your present office or job location, except for required travel on the
Company's business to an extent substantially consistent with your present business travel obligations;

 

3.3.4 The failure by the Company, without your consent,
to pay to You any part of your current compensation, or to pay to You any part of an installment of deferred compensation under
any deferred compensation program of the Company, within fourteen (14) days of the date the compensation is due;

 

3.3.5 The failure by the Company to continue in effect
any bonus to which You were entitled, or any compensation plan in which You participate (i) prior to the Change in Control where
such change is a direct result of any pending Change in Control, or (ii) immediately prior to the Change in Control of the Company
that is material to your total compensation, including but not limited to the Company's Restricted Stock Plan, 401(k) Plan, and
Benefit Plans, or any substitute plans adopted prior to the Change in Control of the Company, unless an equitable arrangement (embodied
in an ongoing substitute or alternative plan) has been made with respect to the plan, or the failure by the Company to continue
your participation in it (or in such substitute or alternative plan) on a basis not materially less favorable, both in terms of
the amount of benefits provided and the level of your participation relative to other participants, as existed at the time of the
Change in Control;

 

3.3.6 The failure by the Company to continue to provide
You with (i) benefits substantially similar to those enjoyed by You under any of the Company's life insurance, medical, health
and accident, or disability plans in which You were participating at the time of the Change in Control of the Company was in effect
for the employees of the Company generally at the time of the Change in Control, (ii) the failure to continue to provide You with
a Company automobile or allowance in lieu of it at the time of the Change in Control of the Company, (iii) the taking of any action
by the Company that would directly or indirectly materially reduce any of such benefits or deprive You of any material fringe benefit
enjoyed by You at the time of the Change in Control of the Company, or (iv) the failure by the Company to provide You with the
number of paid vacation days to which You are entitled on the basis of years of service with the Company in accordance with the
Company's normal vacation policy or other vacation allowance provided to you by written agreement in effect at the time of the
Change in Control of the Company;

    	Page 4 of 11

    	 

    

 

3.3.7 The failure of the Company to obtain a satisfactory
agreement from any successor to assume and agree to perform this Agreement, as contemplated in Section 5 of this Agreement; or

 

3.3.8 Any purported termination of your employment
that is not effected pursuant to a Notice of Termination satisfying the requirements of Section 3.4 below (and, if applicable,
the requirements of Section 3.2 above); for purposes of this Agreement, no such purported termination shall be effective.

 

3.4 Notice of Termination. Any purported
termination of your employment by the Company or by You shall be communicated by written Notice of Termination to the other party
to this Agreement in accordance with Section 6 of this Agreement. For purposes of this Agreement, a "Notice of Termination"
shall mean a notice that shall indicate the specific termination provision in this Agreement relied on, and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the provision
so indicated. Your rights to terminate your employment pursuant to this Section shall not be affected by your incapacity due to
Disability. Your continued employment shall not constitute consent to, or a waiver of rights with respect to, any circumstance
constituting Good Reason under this Agreement. In the event You deliver Notice of Termination based on circumstances set forth
in Sections 3.3.1, 3.3.5, 3.3.6, 3.3.7, or 3.3.8 above, which are fully corrected prior to the Date of Termination set forth in
your Notice of Termination, the Notice of Termination shall be deemed withdrawn and of no further force or effect.

 

3.5 Date of Termination, etc. "Date
of Termination" shall mean (A) if your employment is terminated for Disability, 30 days after Notice of Termination is given
(provided that You shall not have returned to the full-time performance of your duties during such 30-day period), and (B) if your
employment is terminated pursuant to Section 3.2 or 3.3 above or for any other reason (other than Disability), the date specified
in the Notice of Termination (which, in the case of a termination pursuant to Section 3.2 above shall not be less than 30 days,
and in the case of a termination pursuant to Section 3.3 above shall not be less than 15 nor more than 60 days, respectively, from
the date the Notice of Termination is given). However, if within 15 days after any Notice of Termination is given, or, if later,
prior to the Date of Termination (as determined without regard to this provision), the party receiving the Notice of Termination
notifies the other party that a dispute exists concerning the termination, then the Date of Termination shall be the date on which
the dispute is finally determined, either by mutual written agreement of the parties, by a binding arbitration award, or by a final
judgment, order, or decree of a court of competent jurisdiction (which is not appealable or with respect to which the time for
appeal has expired and no appeal has been perfected). The Date of Termination shall be extended by a notice of dispute only if
the notice is given in good faith and the party giving the notice pursues the resolution of the dispute with reasonable diligence.
Notwithstanding the pendency of any such dispute, the Company will continue to pay You your full compensation in effect when the
notice giving rise to the dispute was given (including, but not limited to, base salary) and continue You as a participant in all
compensation, benefit, and insurance plans in which You were participating when the notice giving rise to the dispute was given,
until the dispute is finally resolved in accordance with this Section. Amounts paid under this Section are in addition to all other
amounts due under this Agreement and shall not be offset against or reduce any other amounts due under this Agreement.

 

    	Page 5 of 11

    	 

    

4. Compensation on Termination or During
Disability. Following a Change in Control of the Company, as defined by Section 2, on termination of your employment or
during a period of Disability You shall be entitled to the following benefits:

 

4.1 During any period that You fail to
perform your full-time duties with the Company as a result of incapacity due to Disability, You shall continue to receive your
base salary at the rate in effect at the commencement of any such period, together with all amounts payable to You under any compensation
plan of the Company during the period, until this Agreement is terminated pursuant to section 3.1 above. Thereafter, or in the
event your employment shall be terminated by the Company or by You for Retirement, or by reason of your death, your benefits shall
be determined under the Company's retirement, insurance, and other compensation programs then in effect in accordance with the
terms of those programs.

 

4.2 If your employment shall be terminated by
the Company for Cause or by You other than for Good Reason, Disability, death, or Retirement, the Company shall pay You your full
base salary through the Date of Termination at the rate in effect at the time Notice of Termination is given, plus all other amounts
and benefits to which You are entitled under any compensation plan of the Company at the time the payments are due. The Company
shall have no obligations to You under this Agreement.

 

    	Page 6 of 11

    	 

    

4.3 On or before the third anniversary of the
Change in Control, if your employment by the Company shall be terminated (a) by the Company other than for Cause, Retirement or
Disability, or (b) by You for Good Reason (as defined in Section 3.3 herein), then You shall be entitled to the benefits provided
below:

 

4.3.1 The Company shall pay You your full salary
through the Date of Termination at the rate in effect at the time Notice of Termination is given, plus all other amounts and benefits
to which You are entitled under any compensation plan of the Company, at the time the payments are due, except as otherwise provided
below.

 

4.3.2 In lieu of any further salary payments
to You for periods subsequent to the Date of Termination, the Company shall pay to You, as severance pay the following: (i) a lump
sum severance payment equal to three (3) times the average of your Compensation for the five (5) years prior to the occurrence
of the circumstance giving rise to the Notice of Termination (or if employed less than 5 years, the average annualized compensation
of the period worked to date), plus (ii) the amounts in the forms set forth in paragraphs 4.3.3, 4.3.4 and 4.3.5 (the “Severance
Payments”). In addition to the Severance Payments, the Company shall pay to You an additional amount equal to the amount
of the Excise Tax, if any, that is due or determined to be due under Section 4999 of the Internal Revenue Code of 1986, as amended,
resulting from the Severance Payments or any other payments under this Agreement or any other agreement between You and the Company
and an amount sufficient to pay the taxes on any such Excise Taxes (the “Gross-up”).

 

4.3.3 The Company shall continue coverage
for You and your dependents under any health or welfare benefit plan under which You and your dependents were participating prior
to the Change in Control for a period ending on the earlier to occur of (i) the date You become covered by a new employer’s
health and welfare benefit plan, (ii) the date You become covered by Medicare, or (iii) the date which is thirty-six (36) months
from the Date of Termination. The coverage for your dependents shall end earlier than (i), (ii) or (iii) if required by the health
or welfare benefit plan due to age eligibility.

 

4.3.4 The Company shall pay to You any
deferred compensation, including, but not limited to deferred bonuses, allocated or credited to You or your account as of the Date
of Termination.

 

4.3.5 Outstanding stock options or Restricted
Stock grants, if any, granted to You under the Company's Stock Plans which are not vested on Termination shall immediately vest.

    	Page 7 of 11

    	 

    

 

4.3.6 Where You shall prevail in any action
against the Company to recover benefits hereunder, the Company shall also pay to You all reasonable legal and accounting fees and
expenses incurred by You as a result of the termination, including all such fees and expenses incurred by You as a result of the
termination, (including all such fees and expenses, if any, incurred in contesting or disputing any termination or in seeking to
obtain or enforce any right or benefit provided by this Agreement or in connection with any tax audit or proceeding to the extent
attributable to the application of Code Section 4999 to any payment or benefit provided under this Agreement) or any other agreement
with the Company.

 

4.3.7 The amount of Severance Payments
and any Gross-up due to You under this or any other relevant agreement with the Company shall be determined by a third party agreed
to by You and the Company. If You cannot agree on a third party, then both third parties shall determine the amounts due under
this Agreement. If the third parties do not agree on the amount to be paid to You, then either party may submit the calculation
of the amounts which are in dispute to Arbitration in accordance with this Agreement. The payments provided for in Paragraphs 4.3.2,
4.3.4 and 4.3.5 above, shall be made no later than the thirtieth (30th) day following the Date of Termination. However,
if the amounts of the payments cannot be finally determined on or before that day, the Company shall pay to You on that day an
estimate, as determined in good faith by the Company, of the minimum amount of such payments and shall pay the remainder of those
payments (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code) as soon as the amount can be determined
but in no event later than the 30th day after the Date of Termination. In the event that the amount of the estimated payments exceeds
the amount subsequently determined to have been due, the excess shall constitute a loan by the Company to You payable on the 30th
day after demand by the Company (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code).

 

4.4 For purposes
of this Agreement, “Compensation” shall mean the gross earnings reported on Form W-2 during a calendar year (which
may include but is not limited to the value of the personal use of an automobile, any third-party sick pay, and any fees paid to
You for serving as a Director of the Company or its subsidiaries); awards under the Company’s Restricted Stock Plan or other
equity awards; and Company contributions to your 401(k) account.

 

4.5 You shall not be required to mitigate
the amount of any payment provided for in this Section 4 by seeking other employment or otherwise, nor shall the amount of any
payment or benefit provided for in this Section 4 be reduced by any compensation earned by You as the result of employment by another
employer, by retirement benefits, by offset against any amount claimed to be owed by You to the Company, or otherwise except as
specifically provided in this Section 4.

    	Page 8 of 11

    	 

    

4.6 In addition to all other amounts payable
to You under this Section 4, You shall be entitled to receive all qualified benefits payable to You under the Company's 401(k)
Plan, Defined Benefit Plan and any other plan or agreement relating to retirement benefits, in accordance with the terms of those
Plans, to the extent you were a participant in such Plan or Plans as of the date of a Change in Control .

 

5. Successors; Binding Agreement.

 

5.1 The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business and/or
assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain the assumption
and agreement prior to the effectiveness of any succession shall be a breach of this Agreement and shall entitle You to compensation
from the Company in the same amount and on the same terms as You would have been entitled to under this Agreement if You had terminated
your employment for Good Reason following a Change in Control of the Company, except that for purposes of implementing the foregoing,
the date on which any such succession becomes effective shall be deemed the Date of Termination.

 

5.2 This Agreement shall inure to the benefit
of, and be enforceable by, your personal or legal representatives, executors, administrators, heirs, distributees, and legatees.
If You should die while any amount would still be payable to You if You had continued to live, all such amounts, unless otherwise
provided in this Agreement, shall be paid in accordance with the terms of this Agreement to your legatee or other designee or,
if there is no such designee, to your estate.

 

6. Notice. For the purpose of
this Agreement, all notices and other communications provided for in the Agreement shall be in writing and shall be deemed to have
been duly given when delivered or mailed by United States registered or certified mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth on the first page of this Agreement, provided that all notices to the Company shall
be directed to the attention of the Board with a copy to the President of the Company, or to such other address as either party
may have furnished to the other in writing in accordance this Agreement, except that notice of a change of address shall be effective
only on receipt.

 

7. Miscellaneous

 

7.1 No provision of this Agreement may
be modified, waived, or discharged unless the waiver, modification, or discharge is agreed to in writing and signed by You and
such officer as may be specifically designated by the Board.

 

    	Page 9 of 11

    	 

    

7.2 No waiver by either party to this Agreement
at any time of any breach by the other party of, or compliance with, any condition or provision of this Agreement to be performed
by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent
time.

 

7.3 No agreements or representations, oral
or otherwise, express or implied, with respect to the subject matter of this Agreement have been made by either party that are
not expressly set forth in this Agreement.

 

7.4 Nothing in this Agreement is intended
to reduce any benefits payable to You under any other agreement You may have with the Company or in any Company plan in which You
may participate.

 

7.5 The validity, interpretation, construction,
and performance of this Agreement shall be governed by the law of New Jersey without reference to its conflict of laws principles.

 

7.6 All references to sections of the Exchange
Act or the Code shall be deemed also to refer to any successor provisions to such sections. Any payments provided for shall be
paid net of any applicable withholding or deduction required under federal, state or local law.

 

7.7 The obligations of the Company under
Section 4 shall survive the expiration of the term of this Agreement.

 

8. Validity. The validity or enforceability
of any provision of this Agreement shall not affect the validity or unenforceability of any other provision of this Agreement,
which shall remain in full force and effect.

 

9. Counterparts. This Agreement
may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute
one and the same instrument.

 

10. Arbitration. Any dispute or
controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in New Jersey in accordance
with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator's award in any
court having jurisdiction. However, You shall be entitled to seek specific performance of your right to be paid until the Date
of Termination during the pendency of any dispute or controversy arising under or in connection this Agreement.

    	Page 10 of 11

    	 

    

11. Entire Agreement. This Agreement
sets forth the entire understanding of the parties with respect to its subject matter and supersedes all prior written or oral
agreements or understandings with respect to the subject matter.

 

In witness whereof, the parties have executed
this Agreement as of the day and year first above written.

 

 

	 	 	MIDDLESEX WATER COMPANY
	 	 	 	 
	 	 	 	 
	 	 	By:	/s/Dennis W. Doll
	 	 	 	Dennis W. Doll
	 	 	 	President & CEO
	 	 	 	 
	ATTEST:	 	 	 
	 	 	 	 
	/s/A. Bruce O’Connor	 	 	 
	A. Bruce O’Connor 	 	 	 
	Vice President, Chief Financial Officer & Treasurer 	 	 	 
	 	 	 	 
	 	 	 	/s/Jay L. Kooper
	 	 	 	Jay L. Kooper

 

    	Page 11 of 11

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