Document:

Exhibit

EXHIBIT 10.2

MASTER EQUIPMENT AND SERVICES AGREEMENT
 

WHEREAS:
		
	A.
	ATS and its Affiliates are leading providers of design, development, manufacture and testing of automation technology and solutions for the world's leading manufacturers;

		
	B.
	Insulet and its Affiliates are in the business of designing, manufacturing and marketing innovative medical devices; and 

		
	C.
	Insulet (and/or certain of its Affiliates) may, from time to time, desire to engage ATS (or an ATS Affiliate) for the design, development, manufacture and/or testing of such automation technology and/or solutions.

NOW, THEREFORE, in consideration of the foregoing and the mutual promises, covenants and agreements set forth below, and for other good and valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, the parties agree as follows:

1.    DEFINITIONS AND INTERPRETATION

Unless the context otherwise requires, the following capitalized terms have the following meanings:

“Affiliate” means any corporation or entity that: (a) is controlled, either directly or indirectly, by a party; (b) is under common control, either directly or indirectly, with the party; or (c) controls the party; where “control” means the ability to vote greater than fifty percent (50%) of the outstanding voting securities in or otherwise direct the management of a corporation or entity.

“Changes” has the meaning given to it in Section 8 (Changes).

“Custom Software” has the meaning given to it in Section 16 (Property Rights & Software Licenses).

“Customer” means Insulet or the Affiliate thereof which receives the Proposal from, and issues a Purchase Order to, the Seller. 

“Customer Dependencies” has the meaning given to it in Section 7 (Customer Dependencies).

“Customer Designs” has the meaning given to it in Section 17 (Patents). 

“Customer Modifications” means any modifications made to the Deliverables and/or the Additional Documentation (including without limitation any Custom Software) made by or on behalf of Customer by any party other than ATS.

“Deliverables” means any Product, Documentation and/or other items expressly identified in the Proposal and/or the Purchase Order to be provided by Seller to Customer.

“Documentation” means the specific documentation identified in the Proposal and/or the Purchase Order to be provided by Seller to Customer, forming part of the Deliverables, and expressly excludes any Seller Proprietary Technology.

“Excusable Delay” has the meaning given to it in Section 12 (Force Majeure Events and Excusable Delays).

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

“FAT” has the meaning given to it in Section 10(b) (Acceptance Testing).

“Force Majeure Events” has the meaning given to it in Section 12 (Force Majeure Events and Excusable Delays). 

“Installation Site” means the site identified in the Proposal and/or the accepted Purchase Order as the location where the Products will be installed and operated by, or on behalf of, Customer.

“NDA” has the meaning given to it in Section 15 (Confidentiality).

“Power On” means that the Product has been mechanically and electrically assembled to the point where power is applied to the major mechanical and electrical systems and they are ready for software installation.

“Product” means any equipment identified in the Proposal and/or the Purchase Order to be provided by Seller to Customer, forming part of the Deliverables.

“Proposal” means the proposal issued by Seller to Customer, including all attachments to such proposal.

“Purchase Order” means a purchase order issued by Customer to, and accepted in writing by, Seller pursuant to this Agreement as contemplated by Section 3 (Scope of Agreement).

“Releasees” has the meaning given to it in Section 18 (Limitations of Liability and Remedies).

“SAT” has the meaning given to it in Section 10(c) (Acceptance Testing).

“Seller” means ATS or the Affiliate thereof which issues the Proposal to, and receives a Purchase Order from, the Customer.

“Seller Proprietary Technology” has the meaning given to it in Section 16 (Property Rights & Software Licenses).

“Seller Software” has the meaning given to it in Section 16 (Property Rights & Software Licenses).

“Services” means any services identified in the Proposal and/or the Purchase Order to be provided by Seller or its subcontractors to Customer, which may include general consulting services, design services, testing services, and installation services.

“Spare Parts” means the Product parts or components recommended by the Seller to be stocked at Customer’s facility for the operation or maintenance of the Deliverable.  These parts typically include parts that are expected to wear and parts which are reasonably expected to break or fail during normal use.

“Specifications” means the design, functional and performance specifications relating to any Services and/or Deliverables set out in the Proposal, and/or otherwise mutually agreed upon between the parties in a written document signed by both parties.

“Standard Documentation Package” means the documentation identified in Schedule 3.

“Term” has the meaning given to it in Section 2 (Term of Agreement).

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

“Test Plan” has the meaning given to it in Section 10(a) (Acceptance Testing).

“Third Party Rights” has the meaning given to it in Section 16 (Property Rights & Software Licenses).

Section references herein are references to Sections of this Agreement unless otherwise stated.  The division of this Agreement into sections, subsections and paragraphs and any insertion of headings are for convenience of reference only and shall not affect the construction or interpretation thereof.   Where the context so requires, words used herein (including defined terms) importing the singular shall include the plural and vice versa and words used herein (including defined terms) importing gender shall include all genders (including the neuter). 

2.    TERM OF AGREEMENT

This Agreement shall become effective on the Effective Date and shall terminate upon the expiration of five (5) years from the Effective Date, unless earlier terminated in accordance with the termination provisions below (the “Term”).  At any time prior to the expiration or termination of this Agreement, the parties may agree by way of written amendment to either extend the Term of this Agreement or renew this Agreement on substantially the same terms and conditions as set out herein.

3.    SCOPE OF AGREEMENT

During the Term of this Agreement, Customer may issue to Seller one or more Purchase Order(s) for the purchase of Deliverables and/or Services.  The Purchase Orders shall reference this Agreement, and the terms and conditions of this Agreement are deemed to be incorporated into each and every Purchase Order issued by Customer.  Any terms and conditions printed on the reverse or otherwise referenced or incorporated in or accompanying any invoice or other documentation issued by Seller or Purchase Order issued by Customer (other than those terms and conditions incorporated by operation of this Agreement) shall be void and of no force and effect other than provisions on the face of the Purchase Order referencing this Agreement and particularizing quantity, price and delivery dates/locations of Products.  The Purchase Order shall also be deemed to include the technical and commercial terms of any Proposal provided by Seller in relation to such Purchase Order provided that such Proposal is specifically referenced therein unless otherwise expressly agreed.  No Purchase Order shall be binding on Seller unless and until Seller sends a written acknowledgement to Customer confirming Seller’s acceptance of the Purchase Order.  In the event of conflict between terms, the documents shall have the following order of priority from highest to lowest – this Agreement, then the applicable Proposal, and finally, the applicable Purchase Order. 

4.    AFFILIATES

Should an Affiliate of a party to this Agreement enter into what would otherwise be a Purchase Order with the other party to this Agreement or an Affiliate of such other party, and should the parties to that Purchase Order reference this Agreement as governing such Purchase Order, then this Agreement shall apply to the same extent as if the parties to that Purchase Order were parties to this Agreement.

5.    PROVISION OF SERVICES AND DELIVERABLES

Seller shall provide, and Customer shall purchase, the Services and Deliverables specified in the applicable Purchase Order in accordance with the terms and conditions of this Agreement.  

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

6.    PRICE, PAYMENT AND TAXES

Customer shall pay Seller the price for the Services and the Deliverables in accordance with, and within the timeframes set out in, the accepted Purchase Order.  All payments for Services and Deliverables shall be made without any set-off or deduction whatsoever.  Unless otherwise expressly provided in the accepted Purchase Order, all payments for Services and Deliverables are due within [*]([*]) days of the date of the invoice issued by Seller therefor.  Without limiting the remedies available to Seller as set out herein, Customer acknowledges that Seller may, at its sole option, suspend work under this Agreement during the pendency of delays in payment of undisputed overdue invoices by Customer that remain unpaid [*]([*]) days after Customer’s receipt of written notice from Seller.

Unless the parties agree otherwise on a case-by-case basis, Seller shall invoice and Customer shall make payment based on the following milestone schedule:
		
	(a)
	[*]% of [*] upon [*];

		
	(b)
	[*]% of [*] at [*];

		
	(c)
	[*]% at  [*]; and

		
	(d)
	[*]% at [*].

All prices for the Services and Deliverables are exclusive of all applicable federal, state/provincial or local taxes, unless otherwise expressly agreed by the parties in the Purchase Order. Customer shall pay the gross amount of any present or future sales, use, excise, value added, or other similar tax applicable to the price, sale, supply and/or delivery of any Service or Deliverable furnished hereunder.  Customer shall furnish Seller with evidence of exemption from any such taxes acceptable to the taxing authorities.  Customer shall assess and remit any applicable tax to taxing authorities not otherwise invoiced by Seller. If Seller agrees in the Purchase Order that any prices are inclusive of some or all taxes, notwithstanding any such agreement, any new taxes that become effective following the date of the Purchase Order, increases in the rate of tax that become effective following the date of the Purchase Order, and taxes that become payable due to a change in the delivery location of the Services and/or Deliverables following the date of Purchase Order, shall be for the account of and be paid in full by Customer.

7.    CUSTOMER DEPENDENCIES  

Unless otherwise stated in an accepted Purchase Order, Customer agrees to fulfill the following dependencies in relation to each Purchase Order (collectively, “Customer Dependencies”).  In a timely manner, Customer shall, following reasonable notice provided by Seller to Customer:

		
	(a)
	Provide Seller with:

		
	i)
	all necessary information;

		
	ii)
	access to Customer personnel and appropriate subject matter experts;

		
	iii)
	all required production quality sample parts (within the tolerances upon which the Proposal was prepared), reasonably required by Seller to design, manufacture, debug, test, install and commission the Product (and/or other Deliverables, as applicable); 

		
	iv)
	clear and reasonable access to those portions of Installation Site required by Seller for installation, debug, commissioning and testing of the Product (and/or other Deliverables, as applicable) in a condition ready to receive the Product (and/or other Deliverables, as applicable); and

		
	v)
	cooperation of Customer’s contract manufacturer (if any) in the event that the Products are operated by a contract manufacturer engaged by Customer, and/or are located in an Installation Site owned and/or operated by a contract manufacturer engaged by Customer;

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

		
	(b)
	Review for accuracy, completeness and conformance to this Agreement, any and all documents submitted by Seller to Customer for comment or approval, and advise Seller in writing of any material issues associated with such documents within [*] ([*]) business days of submission or resubmission.

If any Customer Dependencies are not met in a timely manner, Seller will not be responsible for any impacts to project schedule and such failure to provide Customer Dependencies shall constitute an Excusable Delay in accordance with Section 12 (Force Majeure Events and Excusable Delays). 

8.    CHANGES

Customer agrees to follow Seller’s ISO procedures regarding the processing of changes in the design, process, materials and/or Specifications of or relating to the Services and/or Deliverables (collectively, “Changes”), and shall ensure that all Changes are properly approved by Customer’s authorized personnel in writing.  The Customer is responsible for and shall pay Seller all increased costs, including overhead and profit thereon, due to Changes.  In the event that a design study is necessary or requested to estimate the cost of, or otherwise related to, a proposed Change, the schedule for all materials or components affected by such study shall be extended by a period of time equal to the hold time, if any, associated with such study, whether or not the Customer authorizes or approves the proposed Change.  In respect of any requested Change, the Agreement price shall be increased or decreased by the amount agreed to in writing by Customer and Seller, and the Agreement schedule shall be extended or compressed by mutual agreement. Seller may decline any Change proposed by Customer, if Seller reasonably believes based on past experience and industry knowledge that the proposed Change will create a safety hazard if implemented.  For clarity, the parties agree that a request by Customer to extend or compress the project schedule shall be treated by the parties as a Change.

9.    EQUIPMENT SAFETY

Seller shall design and build the Product to comply with applicable occupational health and safety legislation and safety standards applicable to the Product as expressly referenced in the Proposal, or if there is no Proposal, in the accepted Purchase Order.  Seller shall review equipment safety including guarding designs with the Customer at a design review meeting with the intent to address Product safety requirements relating to operator safety, particularly with respect to all pinch points and moving parts.  Customer shall advise Seller of any required equipment safety or guarding changes no later than [*] ([*]) days following the date of such design review meeting.  With respect to any Customer Modifications (as defined in Schedule 1 – Access to Confidential and Proprietary Information), Customer shall be solely responsible for the compliance of such Customer Modifications, and any impact therefrom on the Product, for applicable occupational health and safety legislation and safety standards. 

10.    ACCEPTANCE TESTING

The following provisions apply with respect to the acceptance of any Products (other than Products constituting spare parts, prototypes or proof of principle equipment, in respect of which no acceptance test will be required, except as otherwise set out in the Proposal, and/or as otherwise mutually agreed upon between the parties in writing):

		
	(a)
	Within [*] ([*]) days following completion of design review for the Products, Seller and Customer shall agree in writing upon an acceptance test plan (“Test Plan”) setting out the criteria to be met, and the testing process to be employed, during the FAT (as defined below) and the SAT (as defined 

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

below).  Unless otherwise set out in the Proposal or mutually agreed between the parties in writing, the Test Plan will be conducted over a time period reasonable in the circumstances.

		
	(b)
	A factory acceptance test (“FAT”) shall be performed at Seller’s facility or such facilities of Seller’s subcontractors as may be agreed upon in writing by the parties and shall commence within [*] ([*]) business days following notice from Seller to Customer confirming completion of the Products, or at such other time as may be agreed upon in writing by the parties.  Such testing shall be carried out together by Customer and Seller in accordance with the Test Plan.  The FAT shall be deemed successful when [*] the results of the testing are in compliance with the Test Plan’s criteria, at which point the Products are authorized for shipment to the Installation Site.

		
	(c)
	A Customer site acceptance test (“SAT”) shall be performed at the Installation Site within [*] ([*]) business days of the completion of installation of the Products at the Installation Site.  Such testing shall be carried out together by Customer and Seller in accordance with the Test Plan.  The SAT shall be deemed successful when [*] the results of the testing are in compliance with the Test Plan’s criteria, at which point the Products have achieved final acceptance by the Customer. 

		
	(d)
	Seller shall carry out such remedial work as is necessary to achieve a successful FAT and SAT [*], provided that any additional changes requested by Customer beyond those set forth in the Specifications may require additional charges which shall be determined by mutual agreement by both parties and reflected in a change order executed by the parties in accordance with Section 8 (Changes).  Once remedial work is complete, the Products will be re-tested and this process shall continue until a successful FAT and SAT is achieved in accordance with this Section 10.  

		
	(e)
	In the event Seller and Customer are unable to agree upon a Test Plan within the time period provided for in sub-section (a) above, the parties shall immediately escalate the issue within their organizations.

11.    DELIVERY, TITLE, AND RISK OF LOSS

Seller shall use commercially reasonable efforts to provide the Services and Deliverables in accordance with any schedule(s) set out in the accepted Purchase Order or as otherwise agreed upon in writing between the parties.  All scheduled completion dates are based on current projections and on Customer meeting its obligations (including Customer Dependencies) and Seller shall not be liable for delays, including delays in completion or delivery, caused by any Force Majeure Event or Excusable Delay as set out in Section 12 (Force Majeure Events and Excusable Delays).  Unless expressly otherwise provided in the accepted Purchase Order: (a) delivery will be made [*] facility (Incoterms 2010); (b) risks of loss of or damage to the Deliverables shall pass to Customer upon delivery in accordance with subsection (a) above; and (c) Seller shall not be responsible for [*], or similar charges, all of which shall be for the account of and paid by Customer.  In the event Seller does agree to be responsible for any of the foregoing charges, notwithstanding any such agreement, any new such charges that become effective following the date of Seller’s acceptance of the Purchase Order (including, without limitation, new customs, excise, or import duties), any increase in the rates of such charges becoming effective after the date of Seller’s acceptance of the Purchase Order, and/or any increase in such charges resulting from a change in the delivery location for the Services and/or Deliverables after the date of the Seller’s acceptance of the Purchase Order, shall be for the account of and paid by Customer. 

12.    FORCE MAJEURE EVENTS AND EXCUSABLE DELAYS

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

Neither party shall be liable for delays or non-performance as a result of causes outside of their reasonable control, including, without limitation, flood, fire, earthquake, war, invasion, terrorist threats or acts, riot or other civil unrest, government order or law, embargoes or blockades in effect after the date of this Agreement, or national or regional emergency (collectively, “Force Majeure Events”).  The party suffering a Force Majeure Event shall promptly give written notice of the Force Majeure Event to the other party, stating the period of time the occurrence is expected to continue and shall use diligent efforts to end the failure or delay and ensure the effects of such Force Majeure Event are minimized.

Seller shall not be liable for delays in transporting of the Products from Seller’s facility to the Installation Site and/or delays at customs (unless caused by Seller), and/or acts or omissions of Customer, its Affiliates, or any of their respective employees, agents, subcontractors, consultants, contract manufacturers or suppliers or subcontractors that Customer directs Seller to engage (collectively, “Excusable Delays”), which includes but is but not limited to: (a) failure of Customer to reasonably perform or supply any Customer Dependencies; (b) failure of Customer to reasonably supply Seller with all necessary information, approvals, production quality sample parts, or other specified items required by Seller for the design, manufacture, completion, delivery, debugging, testing, installation, and/or commissioning of the Product; (c)  failure or delay by Customer to timely approve or reject proposed Changes; (d) Changes made or proposed by Customer which result in additional time being required to design, manufacture, complete, deliver, debug, test, install and/or commission the Product; (e) failure or delay by Customer to timely provide the necessary release to Seller for delivery of the Product; (f) failure or delay by Customer to timely install the Product; (g) failure or delay by Customer or its contract manufacturer (if any) to release to Seller those portions of the Installation Site required by Seller for installation, debug, testing or commissioning of the Product; or (h) interference by Customer or Customer’s contract manufacturer during installation, debug, testing or commissioning.

In the event of a Force Majeure Event or Excusable Delay, the project schedule (including any agreed upon dates for delivery or performance) shall be extended for a reasonable period of time at least equal to the time lost by reason of delay.  

In addition, Seller shall be [*].

13.    INSTALLATION, OTHER SERVICES, PERMITS, SPARE PARTS AND STANDARD DOCUMENTATION PACKAGE

Installation services are not included in the quoted price of the Product or other Deliverables, unless specifically shown as a separate item in the Proposal.  If installation services are not shown as a separate item in the Proposal, such services may be provided to Customer upon request.  If such installation services, or other services not specifically referenced in the Proposal, are requested by Customer and performed by Seller, such services and any deliverables provided in connection therewith shall constitute “Services” or “Deliverables” hereunder, as the case may be, shall be provided subject to and be governed by this Agreement, including the conditions, and unless otherwise agreed, shall be charged to Customer at the then current Seller standard prices for such services and deliverables.  Standard working hours shall include travel time.  Where overtime hours are required, any statutorily required overtime premium charges shall also be charged to the Customer.  All payments for such installation services and deliverables shall be due within [*] ([*]) days of the date of the invoice issued by Seller therefor.  

If installation Services are provided to Customer (whether referenced in the Proposal or provided as additional services as contemplated by the foregoing paragraph), Seller will not complete final electrical hook-ups to the Installation Site power supply and Customer is responsible for having its own electricians complete such connections.  In the event that local by-laws, ordinances or regulations in effect at the Installation Site require 

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

certain inspections, approvals or supervision of such hook-ups, Customer is responsible for arranging these as required.  Seller shall not be responsible for obtaining required permits that may be specific to the Installation Site.  Any required permits shall be the responsibility of Customer.

The parties’ respective rights and obligations in relation to (a) Spare Parts are as set out in Schedule 2 – Spare Parts and (b) the Standard Documentation Package are as set out in Schedule 3 – Standard Documentation Package.

14.    LIMITED WARRANTY

Seller warrants that it shall perform all Services in a workmanlike manner respecting industry standards and practices for similar Services.  This warranty in respect of any Services shall expire [*] ([*]) months after the rendering of such Services.

Seller warrants that the Product (other than any Products comprising prototypes or proof of principle Products, in respect of which no warranty is provided) shall conform to the Specifications at SAT, and will be free from defects in workmanship and material for a period of [*] ([*]) months from the date of successful completion of SAT, or [*] ([*]) months from successful completion of FAT, whichever occurs first.

Upon prompt notification from Customer of any failure of the Product or Services to conform to these warranties during the applicable warranty period, Seller will make repairs, adjustments, re-performance or replacements to the defective part(s) of the Products or Services at Seller’s option.  Where required by Seller, Customer agrees to return a defective part to Seller at Seller's expense.  Seller will return corrected or replacement parts CPT (Incoterms 2010) Installation Site.  In the event that Customer relocates the Deliverables from the Installation Site identified in the accepted Purchase Order to another facility, the warranties provided by Seller herein shall terminate and Seller shall have no further warranty obligations to Customer, unless otherwise agreed to in writing by the parties.  Seller shall have no responsibility for, and does not warrant against, any problems that occur as a result of improper use of the Product or failure to properly maintain and operate the Product.  Customer shall maintain accurate and complete records regarding equipment operation and maintenance and service procedures performed on the Product.  Seller’s warranty excludes consumable items and wear parts which by their nature require periodic replacement.  With respect to equipment supplied by a third party integrated into the Product, warranties for such items are limited to the warranty extended to Seller by the third party supplier.  Seller hereby assigns to the Customer all warranties received from its suppliers to the extent Seller is able and Seller agrees to assist the Customer in making any claim pursuant to the said third party supplier warranties.

Seller and Customer hereby agree that ATS provides no warranty of any kind with respect to Customer Modifications.  To the extent of Customer Modifications made during the warranty period, ATS’ shall have no warranty obligations in relation to any Deliverables directly affected by such Customer Modification, including without limitation warranty of conformance to Specifications or performance of the Deliverables.  The Customer shall promptly provide ATS will full particulars of any Customer Modifications made during the warranty period.  

Customer acknowledges that this section sets forth Customer's exclusive remedy, and Seller’s exclusive liability, for any breach of these warranties and any other claim during or following the applicable warranty period based on or related to the quality or  failure of, or defect in, the Services and Deliverables provided hereunder, whether the applicable quality issue, failure or defect arises before, during or after the applicable warranty period, and whether the claim, howsoever instituted, is based on contract, warranty, tort (including, without limitation, negligence), strict liability, or otherwise.    

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

Seller makes no other warranty, express or implied, and hereby expressly disclaims any warranty of non-infringement (other than as set out herein), merchantability, and fitness for a particular purpose

15.    CONFIDENTIALITY 

The parties acknowledge that Customer and ATS sortimat USA LLC (an Affiliate of Seller) entered into a Mutual Non-Disclosure Agreement dated as of July 9, 2015 (the “NDA”).  The parties each acknowledge and agree that: (a) the NDA remains in full force and effect; (b) the terms and conditions of the NDA are hereby incorporated by reference into this Agreement; and (c) the terms and conditions of the NDA shall continue to be incorporated by reference into this Agreement notwithstanding any expiration or termination of the NDA in the future. In this Agreement, “Confidential Information” has the meaning given to it in the NDA.

Unless in conflict with the NDA, each party to this Agreement (each a “Recipient”) agrees to keep and maintain the confidentiality of the Confidential Information of the other party hereto (each a “Discloser”).  This Agreement imposes no obligation on the Recipient where Recipient can demonstrate with documentary evidence that such information: (a) was known to the Recipient prior to receipt of the information on a non-confidential basis; (b) is or becomes a matter of public knowledge or publicly available through no fault of the Recipient; (c) is rightfully received by Recipient on a non-confidential basis from a third party; (d) is independently developed by Recipient without use of or reference to the Confidential Information from Discloser as established by the written records of Recipient; or (e) is publicly disclosed by Recipient with Discloser's prior written approval.  Notwithstanding the expiration or termination of this Agreement, the obligations and restrictions on Recipient in relation to Confidential Information shall survive until such time as the Confidential Information otherwise falls into one of the exclusions as set out in the preceding sentence.  Recipient agrees to protect the Confidential Information in strictest confidence by using the same degree of care to prevent the unauthorized use, dissemination or publication of the Confidential Information as Recipient uses to protect its own Confidential Information, provided that in no case shall such standard of care be less than a reasonable degree of care.  Recipient may disclose such Confidential Information only to: (i) those of Recipient's employees, advisors, consultants, Affiliates and vendors who have a need to know such Confidential Information (collectively, the “Recipient’s Representatives”) provided that: (A) such Recipient’s Representatives are under obligations of confidentiality to maintain the confidentiality of such Confidential Information; and (B) Recipient shall be liable for the failure of any of Recipient’s Representatives to whom Confidential Information is disclosed to comply with Recipient’s obligations of confidentiality hereunder; (ii) to the extent required by a court or tribunal; and (iii) to the extent otherwise specifically required by law.  Recipient shall not use Discloser’s Confidential Information for any purpose other than as necessary to carry out the purposes of this Agreement.  Recipient shall not modify, reverse engineer, disassemble, decompile, create other works from, or determine the composition of, any formulations, prototypes, software or other tangible objects that embody Discloser’s Confidential Information.  Notwithstanding the foregoing, the restrictions set forth in the prior sentence shall not prohibit Customer in any way from using any Products in accordance with the terms of this Agreement.  For certainty, the parties agree Seller Proprietary Technology (as defined below) is Confidential Information of Seller.  In the event that the Products are operated by Customer’s contract manufacturer, and/or located in an Installation Site owned and/or operated by Customer’s contract manufacturer, Customer shall be liable for the failure of Customer’s contract manufacturer to comply with Recipient’s obligations hereunder. 

16.    PROPERTY RIGHTS AND SOFTWARE LICENSES

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

Except for Seller Proprietary Technology, Third Party Rights, and as otherwise set out below, Seller shall and does irrevocably grant and assign to Customer all proprietary rights in and to any and all of the Deliverables.

Notwithstanding any provision, express or implied, to the contrary, and for the purposes of clarity, the parties confirm that Seller shall retain ownership of all proprietary rights in and to any Seller Proprietary Technology, including, without limitation, that which forms part of the Deliverables provided under the Agreement, and regardless whether such Seller Proprietary Technology is included in Additional Documentation as defined in Schedule 1 - Access to Confidential and Proprietary Information, or provided to Customer pursuant to Schedule 3 - Standard Documentation Package.  “Seller Proprietary Technology” means any and all technology, know-how, trade secrets, inventions, designs, copyrights, and software and other intellectual property whatsoever that [*]; provided, that (x) Seller Proprietary Technology does not include any [*], and (y) each of (x)(i), and (ii) shall be [*].

The Deliverables may include software that is or has been developed by Seller for general use in the products Seller manufactures and/or sells or otherwise supplies (“Seller Software”).  Computer software (including source and object code thereto) that is custom developed by Seller specifically for Customer under the terms of the Agreement (“Custom Software”) shall be owned by Customer. 

Customer shall have and Seller hereby grants to Customer, an irrevocable, non-transferable, non-exclusive, royalty-free, perpetual right and license (with no right to sub-license other than to its contract manufacturer in the event that the Products are operated by Customer’s contract manufacturer, and/or located in an Installation Site owned and/or operated by Customer’s contract manufacturer) to use such Seller Proprietary Technology including Seller Software as has been incorporated into the Deliverables to operate, maintain, repair, improve and modify the Deliverables provided under this Agreement at the Installation Site including such Seller Proprietary Technology which is described in more detail in Schedule 1 - Access to Confidential and Proprietary Information, Schedule 2 – Spare Parts, or Schedule 3 - Standard Documentation Package each as attached hereto and made a part hereof. 

The Deliverables may incorporate proprietary technology or other intellectual property rights owned by third party suppliers (“Third Party Rights”); provided that Seller assigns, sublicenses or otherwise transfers to Customer all Third Party Rights related to the Deliverables.  Customer shall assume or otherwise be bound by all obligations in relation to any such Third Party Rights which are properly assigned, sublicensed or otherwise transferred to Customer.

Seller reserves all rights to Seller’s own trade-names, logos, trade-marks, or other markings. Customer shall not acquire any right, title or interest in or to any such trade-name, logo, trade-mark, or other markings of the Seller, and shall not alter, obscure, remove, cancel or otherwise interfere with any such markings associated with the Deliverables. 

17.    PATENTS

Seller agrees that it will, at its own expense, indemnify, defend any suit instituted against Customer, hold harmless and will pay any award of damages and reasonable costs made against Customer in a final judgment by a court of competent jurisdiction, or any amount in settlement or compromise thereof, provided that: (a) the same is based upon a claim that the Seller Proprietary Technology as incorporated by Seller into the Product infringes a valid patent, copyright, trade secret or other intellectual property right under the laws of the United States, Canada or the laws of the jurisdiction identified in the Proposal as the Installation Site; (b) Customer gives Seller prompt, detailed notice in writing of any such claims asserted; (c) Customer permits 

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

Seller sole authority through its counsel to defend and/or settle the matter; and (d) Customer cooperates and assists with such defense and/or settlement.

In case the Product is, or may become, the subject of any such proceeding, Seller may, and in the event the Product is held in such suit to constitute an infringement and its use is enjoined, Seller shall, at its expense and option, either: (i) procure for Customer the right to continue to use the Product; or (ii) replace same with a non-infringing product or part; or (iii) modify same so it becomes non-infringing.

Notwithstanding the foregoing, in no event shall Seller be liable or otherwise responsible for any claim for infringement of intellectual property rights that relates to: (A) any Product, or part, or other item which is manufactured to designs, drawings and instructions provided by Customer including designs, drawings or instructions which Customer directed Seller to incorporate as a result of Seller’s authorized access to facilities that house equipment which manufactures Customer’s products (collectively, “Customer Designs”); or (B) any Product or part which is modified by a party other than Seller; (C) any product of a third party as specified by Customer incorporated in the Product; (D) the use or inclusion of any Product or part furnished by Seller in combination with other products not furnished by Seller; (E) Customer’s use of any Product or part furnished by Seller including any infringement relating to Customer’s manufacturing or other processes; or (F) Customer Modifications.  As to any such excluded Product, part, other item, or process, Seller assumes no liability whatsoever for intellectual property right infringement and Customer shall hold Seller harmless against any infringement claim arising therefrom.

The express obligations in this section shall be Seller’s sole obligations and Customer’s sole remedies with respect to any claims for breach or infringement of intellectual property rights relating in any way to the Services or Deliverables. 

In addition to the foregoing, the parties acknowledge and agree that Customer may disclose Customer Designs to Seller for the purpose of facilitating and/or directing Seller’s performance under this Agreement. Customer represents and warrants that Customer has full ownership rights, license and/or authority to the Customer Designs. Seller shall have and Customer hereby grants to Seller, an irrevocable, transferable (including the right to sub-license), non-exclusive, royalty-free, perpetual right and license to use Customer Designs solely to perform its obligations under this Agreement. Customer agrees that it will, at its own expense, defend any suit instituted against Seller and will pay any award of damages and reasonable costs made against Seller in a final judgment by a court of competent jurisdiction, or any amount in settlement or compromise thereof, provided that: (a) the same is based upon a claim that the Customer Designs and/or Customer Modifications infringe a valid patent, copyright, trade secret or other intellectual property right under the laws of the United States, Canada, or the laws of the jurisdiction identified in the Proposal as either: (i) the country of Seller’s facility where the Product will be manufactured; or (ii) the Installation Site; (b) Seller gives Customer prompt, detailed notice in writing of any such claims asserted; (c) Seller permits Customer sole authority through its counsel to defend and/or settle the matter; and (d) Seller cooperates and assists with such defense and/or settlement.

18.    LIMITATIONS OF LIABILITY AND REMEDIES

Except as such damages that may arise out of an indemnification obligation, gross negligence or willful misconduct, in no event, whether as a result of breach of contract, warranty, tort (including, without limitation, negligence), duty of good faith and/or honest performance, strict liability, or otherwise, shall:

		
	(a)
	either party and/or their Affiliates, or their respective employees, officers, directors, suppliers or subcontractors be liable for any indirect, special, consequential, incidental or punitive damages, 

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

including, but not limited to: loss of profit or revenues; loss of use of the Product or any other Deliverable or any associated equipment; damage to associated equipment or affected products, components or materials; cost of capital; cost of substitute products, facilities, services or replacement equipment; down time costs; or claims of Customer's customers or contract manufacturer for such damages; and

		
	(b)
	either party’s liability to the other party for any loss or damage arising out of, connected with, or resulting from the Agreement, performance or breach of the Agreement, or the Deliverables and/or Services covered by or furnished under the Agreement, exceed [*]. 

Seller assumes and relies upon the accuracy and completeness of any and all specifications and other information provided by Customer and/or its agents from time to time and expressly disclaims any responsibility whatsoever for any incompleteness thereof, or inaccuracies contained therein.

If Seller provides any information, advice, assistance or item to Customer in relation to the Services and/or Deliverables, or any system or equipment to be used with or which relate to the Services and/or Deliverables or otherwise related to the business of Customer, and which is not required to be provided by Seller pursuant to the Agreement, the furnishing of such information, advice, assistance or item will not subject Seller to any liability, whether in contract, warranty, indemnity, tort (including, without limitation, negligence), strict liability, or otherwise, unless such information, advice, assistance or item is provided by Seller in connection with another written agreement entered into by the parties.

Customer agrees that it will, at its own expense, defend any suit instituted against Seller, Seller’s Affiliates, and/or any of their respective employees, officers, directors, suppliers and subcontractors (collectively, the “Releasees”) and will pay any award of damages and costs (including, without limitation, legal fees and disbursements) made against the Releasees in a final judgment by a court of competent jurisdiction, or any amount in settlement or compromise thereof, arising from, incidental to or in connection with a claim for personal injury (including, without limitation, death) and/or damage to property arising or allegedly arising directly or indirectly from: (i) the design, manufacture, operation and/or use of Customer’s end product, whether any such claim is advanced as a product liability claim or otherwise, and regardless of whether any such Customer end product is manufactured, assembled or otherwise developed or handled utilizing the Deliverables hereunder; and/or (ii) Customer Modifications.

The remedies provided to the parties in the Agreement are their respective sole and exclusive remedies.

If Customer transfers title to, sells or leases the Services, the Product or any other Deliverable to any third party, Customer shall obtain from such third party a provision affording Seller and its employees, suppliers and subcontractors the protection of this Section.

19.    DISPUTE RESOLUTION

Customer and Seller agree the parties will attempt in good faith to promptly resolve any dispute arising out of or in connection with the execution, interpretation, performance, or nonperformance of this Agreement, through: (a) the parties’ respective employees primarily responsible for the project within their organization; and (b) if not resolved, escalation to the parties’ respective senior management. Nothing in this section prevents a party from seeking equitable relief from a court of competent jurisdiction for the protection of its confidentiality or proprietary rights.  

20.    TERMINATION BY SELLER FOR CAUSE

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

Seller may terminate this Agreement and/or any or all Purchase Orders hereunder: (a) effective immediately if Customer becomes insolvent or bankrupt; or (b) effective [*] ([*]) business days after written notice is given by Seller to Customer, if Customer materially breaches a provision of this Agreement or any Purchase Order hereunder and does not commence to remedy such breach within such [*] ([*]) business day notice period.  In the event of such termination: (i) Seller shall have the right to take possession of all Deliverables and related materials and components, in whatever stage of design, manufacture, production or installation they are in at such time, except such Deliverables, materials, and components which have already been delivered to and/or paid for in full by Customer; (ii) Seller shall be under no obligation to finish the Services or Deliverables or provide any warranty or any further work, support or information to Customer; and (iii) Customer shall pay Seller: (A) an amount to compensate Seller for all Services and other work performed prior to the termination based on a pro rata ratio of the purchase price to the percentage of the work completed by Seller as at the effective date of termination; plus (B) an amount to compensate Seller for all liability incurred by Seller in connection with commitments made to third parties prior to termination for equipment and other goods, services, and labour (including, without limitation, as the case may be, the actual amount of any such commitment, any cancellation or termination fees, any lost deposits and any restocking charges). Seller shall not be entitled to anticipated profit or anticipated overhead charges for the balance of the project. 

21.    TERMINATION BY CUSTOMER FOR CAUSE

Customer may terminate this Agreement and/or any or all Purchase Orders hereunder: (a) effective immediately if Seller becomes bankrupt or insolvent; or (b) effective [*] ([*]) business days after written notice is given by Customer to Seller, if Seller materially breaches a provision of this Agreement or any Purchase Order hereunder and does not commence to remedy such breach within such [*] ([*]) business day notice period.  In the event of such termination, Customer shall take possession of the Deliverables (in whatever state of design or manufacture they are at such time) immediately and shall have the right to receive a refund of all amounts paid to Seller by Customer under the applicable Purchase Order, less an amount representing payment for all Services and other work performed and Deliverables provided by Seller to the date of such termination. Seller shall not be entitled to anticipated profit or anticipated overhead charges.  Upon such payment, Customer shall have the right to the continued use of the Deliverables then delivered subject to the terms of license and confidentiality as contained herein, provided however that Seller shall not provide any warranty in relation to the Deliverables.  

22.     PROMOTIONAL MATERIAL

Seller shall not have the right to use Customer’s name and logo, nor photographic, videographic or descriptive depictions of the Deliverables without Customer’s prior written consent.   

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

23.    ASSIGNMENT AND SUBCONTRACTING

Neither party shall assign this Agreement or any Purchase Order hereunder without the prior written consent of the other party, such consent not to be unreasonably withheld.  Notwithstanding the foregoing, either party may assign this Agreement to an Affiliate; provided that if a party (“Assignor”) assigns or takes steps to assign this Agreement to an Affiliate whose financial condition is of material concern to the other party acting reasonably (“Assignee”), then the non-assigning party may require, and Assignor shall provide to the non-assigning party, reasonable assurance of Assignee’s financial condition.  This Agreement, and any accepted Purchase Orders hereunder, shall be binding on and shall enure to the benefit of the parties hereto and their respective successors and permitted assigns.  Notwithstanding the foregoing, Seller shall have the right to subcontract portions of its scope of work for the provisions of Deliverables and/or Services to one or more of its Affiliates, in Seller’s reasonable discretion; provided that Seller remains primarily liable for the performance hereunder.

24.    SEVERABILITY

If one or more of the provisions contained herein shall be invalid, illegal or unenforceable in any respect, such provision or provisions shall be severed from this Agreement only to the extent necessary, and the validity, legality and enforceability of the remaining provisions hereof, including the provision or provisions remaining after such severance, shall not in any way be affected or impaired thereby.

25.    AGENCY

Seller and the Customer are independent contractors.  No agency relationship or partnership exists between them, and neither of them has the right to enter into a contract on behalf of or as an agent or representative of the other. Customer expressly acknowledges and agrees that in no event shall Customer communicate directly with Seller’s subcontractors and suppliers without the prior written authorization of Seller.

26.    NON-SOLICITATION

During the Term and for a period of [*] months thereafter, neither party shall knowingly solicit for employment any of the other party’s then-current personnel who have been directly involved in the performance of the Agreement, without the prior written consent of the other party.  The foregoing shall not apply to advertisements or general solicitations that do not specifically target the other party’s employees.

27.    NOTICES

All notices required or permitted under this Agreement shall be in writing addressed as follows: 

If to Seller:        Automation Tooling Systems Inc.
730 Fountain Street North, Building 3
Cambridge, ON N3H 4R7
Attention: General Manager, Life Sciences

With a copy to:        Automation Tooling Systems Inc.
730 Fountain Street North, Building 2
Cambridge, ON N3H 4R7
Attention: General Counsel
            

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

If to the Customer:    Insulet Corporation
600 Technology Park Drive, Suite 200
Billerica, MA 01821
Attention: VP, Supplier Development

With a copy to:        Insulet Corporation
600 Technology Park Drive, Suite 200
Billerica, MA 01821
Attention: General Counsel

Seller or Customer may change their respective addresses by written notice. Notice shall be deemed given: (i) if and when personally delivered; (ii) on the next business day after being deposited with a recognized and reputable overnight carrier; or (iii) on the fifth business day after being sent by registered or certified mail, postage prepaid, addressed to the intended recipient at the address above. 

28.    SURVIVAL

The terms, provisions, representations, and warranties contained in this Agreement that by their sense and context are intended to survive the performance thereof by either party or both parties hereunder shall so survive the completion of performance, expiration or termination of this Agreement.  

29.     TRADE COMPLIANCE 

The parties acknowledge that the exportation from the United States or Canada of materials, products and related technical data (and the re-export from elsewhere of items originating in a particular country) may be subject to compliance with relevant export laws, including laws which restrict export, re-export and release of materials, products and their related technical data, and the direct products of such technical data. The parties agree to comply with all export laws and to commit no act that, directly or indirectly, would violate any law, or any other international treaty or agreement, relating to the export, re-export, or release of any materials, products or their related technical data to which the United States or Canada adheres or with which the United States or Canada complies. Notwithstanding anything to the contrary in this Agreement, neither party shall be required to meet its obligations under this Agreement in any way that is inconsistent with laws applicable to it or its Affiliates.

Customer certifies and warrants as follows:

		
	(a)
	Customer is not a citizen, national, permanent resident of, or incorporated or organized to do business in, and is not under the control of a government which is subject to economic sanctions or embargoes imposed by the United States or Canadian government, or to any other destination to which the United States or Canadian governments may in the future prohibit exports.  Customer will not sell, export, re-export or cause to be exported items or any related technology or software, directly (or indirectly through its agents or employees) to the above mentioned countries or to citizens, nationals or permanent residents of those countries.

		
	(b)
	Customer is eligible to receive exports of the Deliverables.  Customer has not been deemed by the United States or Canadian governments to be ineligible to receive exports and, in particular, is not listed on any of OFAC’s list of Specially Designated Nationals or on the U.S. Department of Commerce’s Table of Denial Orders or Entity List or Unverified List, or any designated persons listed under the various special economic measures regulations published by the government of 

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

Canada.  Customer will not sell, or otherwise re-export items, directly or indirectly, to any ineligible persons.

		
	(c)
	Customer will not use the Deliverables and will not enable the Deliverables to be used for any purposes prohibited by United States or Canadian export laws and regulations, including, without limitation, the development, design, manufacture or production of nuclear, missile, chemical and biological weapons and technology, or other defense articles and/or defense services as defined in the US Munitions List pursuant to the Arms Export Control Act [22 U.S.C. 2778 (a)] or the Canadian Export Control List pursuant to the Defense Production Act , R.S.C., 1985, c. D-1.

		
	(d)
	Customer shall be the importer of record, and shall be responsible for obtaining all import licenses and permits as may be required to import the Deliverables into such countries as are subject to this Agreement in accordance with the prevailing laws and regulations of such countries. All such filings and registrations of the Deliverables shall be in Customer’s name. Seller shall provide reasonable cooperation to Customer in its efforts to obtain any such approvals.

		
	(e)
	Customer agrees to keep records of its import declaration and all related customs documentation for a minimum of [*] ([*]) years or such period as required by applicable law, whichever is greater, and shall make those records available to Seller upon request.

		
	(f)
	Customer shall indemnify and hold harmless the Releasees for, from and against any claim that may arise as a result of Customer’s breach of its obligations under this Section.

30.    GOVERNING LAW

The validity, interpretation and performance of this Agreement shall be governed by and construed in accordance with the internal laws of the State of New York and the United States, excluding its conflicts of laws principles.  Customer and Seller hereby submit to the exclusive jurisdiction of the State and Federal Courts of the State of New York for resolution of disputes arising in connection with this Agreement and/or any Purchase Order hereunder.  The provisions of: (a) the United Nations Convention on Contracts for the International Sale of Goods; (b) the 1974 Convention on the Limitation Period in the International Sale of Goods; and (c) the Protocol Amending the 1974 Convention done at Vienna April 11, 1980, shall not apply to this Agreement, nor any Purchase Order hereunder, nor to the rights and obligations of the Customer and Seller under this Agreement or any Purchase Order hereunder.

31.     ENTIRE AGREEMENT

Each party acknowledges that this Agreement (which includes any exhibits and attachments hereto, and any other documents incorporated herein by express reference), together with any and all applicable Proposals, Seller’s written acceptance of any Purchase Order, and any accepted Purchase Orders, constitute the entire agreement of the parties with respect to the subject matter hereof and supersedes all previous and contemporaneous communications.  This Agreement, and any accepted Purchase Orders hereunder, may only be changed by written agreement executed by authorized representatives of both Customer and Seller. No consent or waiver, express or implied, by a party with respect to any breach by the other party in the performance or observance of any term or condition of this Agreement operates as a consent or waiver with respect to any other breach or continuing breach.  Failure on the part of a party to complain of any breach by the other party in the performance or observance of any term or condition of this Agreement, irrespective of how long the breach continues, does not constitute a waiver of rights under this Agreement.  

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

32.    COUNTERPARTS

This Agreement may be executed in any number of counterparts with the same effect as if all parties had signed the same document.  All of these counterparts will for all purposes constitute one agreement, binding on the parties, notwithstanding that all parties are not signatories to the same counterpart.  A faxed copy, photocopy, or electronic copy of this Agreement executed by a party in a counterpart or otherwise will constitute a properly executed, delivered and binding agreement or counterpart of the executing party.
33.    [*]
		
	(a)
	At Customer’s request, Customer and Seller will [*] mutually satisfactory to the parties [*] that will govern [*] that will [*], including any applicable [*]. 

		
	(b)
	Customer shall bear all costs with respect to [*]. 

		
	(c)
	The balance of the provisions within this Section shall apply if Customer requests [*].

		
	(d)
	Within [*] ([*]) days of the date of successful achievement of SAT of the Product, Seller shall [*].  Seller shall promptly confirm the [*].

		
	(e)
	[*] shall provide and [*] shall be [*] after the date of successful achievement of SAT (“[*]”).

		
	(f)
	[*] shall include a copy of this Section 33 of this Agreement and shall include [*] provided for in this Section 33 of this Agreement.

		
	(g)
	Provided that Customer is not then in material default under this Agreement, in the event that [*] (“[*]”), [*].

		
	(h)
	Upon the occurrence of [*] and [*] ([*]) days advance written notice to Seller, Customer may [*]. [*] only if the [*] timely delivery of the required notice to Seller, and provided that Seller has not given written notice [*] of Seller’s intent to contest the occurrence of [*].

		
	(i)
	In the event of an [*] pursuant to Subsection 33(h), Seller [*].

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives.

	
		
	ATS AUTOMATION TOOLING SYSTEMS INC.

By: ____________________________________

Name: __________________________________

Title: ___________________________________

Date: ___________________________________
	INSULET CORPORATION

By: ________________________________

Name: ______________________________

Title: _______________________________

Date: _______________________________

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

SCHEDULE 1

Access to Confidential and Proprietary Information

Seller hereby grants Customer access to Seller’s confidential and proprietary information with respect to equipment manufactured and supplied by Seller in accordance with, and subject to the following: 

		
	1.
	In addition to the Standard Documentation Package, and upon request by Customer, Seller will [*] (“Additional Documentation”). 

		
	2.
	Additional Documentation shall not include: 

		
	a.
	[*]; and 

		
	b.
	any [*] that [*] provided that Customer consents in writing to have [*] and not having [*]. 

		
	3.
	Customer’s request for the Additional Documentation must be made directly to [*] to which access shall be provided within [*] ([*])[*] of request.  

		
	4.
	Customer’s access to the Additional Documentation will be provided only [*].  Access to the [*] will be restricted to [*]. Customer’s use of the Additional Documentation [*] shall be limited to [*]. 

		
	5.
	Customer shall not make or retain copies of the Additional Documentation (or any of its contents) in any form or media, including without limitation screen shots, without the prior express written approval of Seller.

		
	6.
	Any Confidential Information provided by Seller (including the Additional Documentation) will remain the Confidential Information of Seller, shall not be disclosed to any third party outside Customer without express written consent from Seller not to be unreasonably withheld, and shall at all times be subject to the confidentiality provisions of the Agreement and the NDA. 

		
	7.
	Following a Customer Modification, Customer shall be provided with [*] related to and necessary for [*], subject to the obligations of confidentiality under Section 6 of this Schedule 1 - Access to Confidential and Proprietary Information.  For example, the parties anticipate that Customer may [*], for which Seller’s consent will be sought and reasonably given where [*].

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

		
	8.
	

SCHEDULE 2

Spare Parts

		
	1.
	During the warranty period defined in Section 14 of the Agreement, Customer shall [*], and Seller shall [*], based on a [*] to be agreed upon by the parties prior to Final Acceptance.  

		
	2.
	Prior to Final Acceptance, Seller will provide Customer with [*] so that Customer, if it desires, may after the applicable warranty period [*].  If requested by Customer, Seller will use reasonable efforts to [*] and [*]. 

		
	3.
	Following the applicable warranty period, Seller shall [*] for the [*], based on a [*] to be reviewed and agreed upon by the parties on an annual basis.   

		
	4.
	In the event of an emergency during the warranty period where Seller is [*] is having or is reasonably anticipated to have [*], Customer may utilize the [*] which is necessary to [*].  During the warranty period, any such [*]; following such emergency, Customer shall notify Seller who shall have the right to [*] and if necessary, [*]. 

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

EXHIBIT 10.2

SCHEDULE 3

Standard Documentation Package 

The Standard Documentation Package consists of the following which shall be provided by Seller to Customer and which shall be [*] (excluding [*] contained therein):

[*]*
[*]
[*]
[*]*
[*]
[*]
[*]
[*]
[*]
[*]
[*]
[*]
[*]
[*]
[*]
[*]
[*]
[*]
[*]
[*]
[*]
[*]
[*]
[*] 
[*]
[*] 
[*]
[*]*
[*]*
[*]*
[*]*
[*]*
[*]*
[*]*
[*]*
[*]*
[*]*

*Requires [*]

 * Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.EXHIBIT 10.1

 

FIRST AMENDED AND RESTATED EMPLOYMENT AGREEMENT

THIS FIRST AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into effective as of October 31, 2016 (the “Effective Date”) by and between AntriaBio, Inc. a Delaware corporation, having an address of 1450 Infinite Drive, Louisville, CO 80027 (“AntriaBio” or the “Company”), and Dr. Hoyoung Huh (“Executive”).

In consideration of the mutual promises, terms, provisions and conditions set forth in this Agreement, the parties hereby agree as follows:

	
1.

	
Employment. Subject to the terms and conditions set forth in this Agreement, the Company hereby offers and Executive hereby accepts employment.

	
2.

	
Term. The Executive’s employment hereunder shall commence effective as of the Effective Date and shall continue until terminated on the terms and conditions set forth herein. The Term of this Agreement is hereafter referred to as “the term of this Agreement” or “the term hereof.”

	
3.

	
Capacity and Performance.

 

During the term hereof, Executive shall serve as Founder and Chairman of the Scientific Advisory Board (the “Position”). In addition, during the term of this Agreement the Company will recommend to its stockholders that Executive be elected to the Board of Directors of the Company (the “Board”) at each meeting of stockholders or in connection with each action by written consent pursuant to which Executive may be elected. Executive shall report directly to the Board. Executive shall have all powers and duties consistent with his position, subject to the direction and control of the Board and shall perform such other duties and responsibilities on behalf of the Company as may reasonably be designated from time to time by the Board.  Executive’s duties shall not include the day-to-day operations of the Company which shall remain under the control and direction of the Company’s Chief Executive Officer. Executive shall require the approval of the Board to pursue or enter into any transaction or group of related transactions that are not in the ordinary course of business and would be material to the Company. Executive shall devote sufficient time and his best efforts, business judgment, skill and knowledge to the advancement of the business and interests of the Company and to the discharge of his duties and responsibilities hereunder. Executive shall comply with all written policies of the Company in effect from time to time and shall observe and implement those resolutions and directives of the Board as made or issued from time to time. Executive agrees that under no circumstances shall he undertake any other form of employment or consulting that would conflict with the interests of the Company.

 

		4.	
Compensation and Benefits. As compensation for all services performed by Executive hereunder during the term hereof, and subject to performance of the Executive’s duties and obligations pursuant to this Agreement:

		(a)	
Base Salary and Initial Bonus. The Company shall pay Executive a base salary of Two Hundred and Sixteen Thousand Dollars ($216,000) per annum, beginning on the Effective Date (the “Base Salary”), payable in accordance with the payroll practices of the Company for its executives, but no less than once per each month.

		(b)	
Annual Bonus. During the term hereof, Executive shall have the opportunity to earn an annual performance bonus with a target equal to 200% of the Executive’s salary (“Target Bonus”) based upon performance criteria set by the Board in its sole discretion on an annual basis. By way of example, if Executive’s annualized Base Salary is $216,000, then Executive’s target bonus shall be equal to $432,000. It is understood and agreed that notwithstanding the Target Bonus, there shall be no minimum or maximum with respect to any potential annual bonus. The Board shall conduct a performance review of Executive at least once a year on or prior to February 1 of each year, commencing in 2016. The Company may, from time to time, pay such other bonus or bonuses to Executive as the Board or a compensation committee of the Board, in its sole discretion, deems appropriate. In order to receive the annual performance bonus, Executive must continue to be employed by the Company through the end of the period with respect to which the annual performance bonus has been earned. The annual performance bonus will be paid to Executive at such time as bonuses for the applicable period are regularly paid to senior executives of the Company; provided, however, in no event will the annual performance bonus be paid later than February 28 of the following calendar year.

		(d)	
Equity Incentives. Executive has been previously issued options to purchase shares of common stock of the Company at an exercise price and such options shall remain in full force and effect.  Executive shall be eligible to participate in the Company’s equity incentive plans, if any, and any options or restricted stock granted under such plan shall be deemed to be Stock Options for purpose of this Agreement.  In addition, Executive shall be eligible to participate in the Company’s Restricted Stock Unit Plan, if any.  Nothing contained herein shall be construed to limit the Company’s ability to amend, suspend, or terminate any equity incentive plan at any time without providing Executive notice, and the right to do so is expressly reserved.

		(e)	
Vacations. During the term hereof, Executive shall be entitled to four (4) weeks of vacation per annum, to be taken at such times and intervals as shall be determined by Executive and subject to the reasonable business 

 

			
needs of the Company. Vacation time shall not cumulate from year to year.

		(f)	
Employee Benefits. During the term hereof, Executive shall be entitled to participate in health, dental, life insurance, retirement, and other benefits (“Benefits”) provided generally to similarly situated employees of the Company. Such participation shall be subject to (i) the terms of the applicable plan documents, (ii) generally applicable Company policies and (iii) the discretion of the Board or any administrative or other committee provided for in or contemplated by such plan. Nothing contained herein shall be construed to limit the Company’s ability to amend, suspend, or terminate any employee benefit plan or policy at any time without providing Executive notice, and the right to do so is expressly reserved.

		(g)	
Business Expenses. The Company shall pay or reimburse Executive for all reasonable business expenses incurred or paid by Executive in the performance of his duties and responsibilities hereunder, subject to any maximum annual limit and other restrictions on such expenses set by the Board for senior executives of the Company, and to such reasonable substantiation and documentation as may be specified by the Company from time to time.

		5.	
Termination of Employment. Executive’s employment hereunder may terminate as set forth below.

		(a)	
Death. In the event of the Executive’s death during the term hereof, the Executive’s employment hereunder shall immediately terminate.  In that event, the Company shall pay to the Executive’s designated beneficiary or, if no beneficiary has been designated by the Executive, to his estate, any earned and unpaid Base Salary through the date of termination plus an amount equal to 50% of his annual Target Bonus. The Company shall have no further obligation or liability to Executive or his estate.

		(b)	
Disability. In the event that Executive becomes disabled during his employment hereunder through any illness, injury, accident or condition of either a physical or psychological nature and, as a result, is unable to perform the essential functions of his position hereunder, with or without reasonable accommodation, for at least eighty (80) days during any period of one-hundred eighty (180) consecutive calendar days, the Company may terminate the Executive’s employment with thirty (30) day written notice.  In that event, the Company shall pay to the Executive, any earned and unpaid Base Salary and his pro-rated annual Target Bonus through the date of termination. The Company shall have no further obligation or liability to the Executive.

		(c)	
By the Company for Cause.  Employment with the Company is not for a specific term and can be terminated by Executive or by the Company or its successors at any time for any reason, with or without Cause, subject to the following terms.  As used herein, “Cause” shall mean (i) any act that materially violates this agreement or the employment policies of the Company, (ii) any failure by the Executive to perform assigned job responsibilities that continues without remedy for a period of thirty (30) days after written notice to Executive by the Company (iii) any willful misconduct by Executive that may result in material harm to the Company or its employees, consultants or directors, (iv) misappropriation (or attempted misappropriation) by Executive of any assets or business opportunities of the Company, (v) embezzlement or fraud committed (or attempted) by Executive, or at his direction, (vi) Executive’s conviction of, indictment for, or pleading “guilty” or “ no contest” to, (x) a felony or (y) any other criminal charge that has a material adverse impact on the performance of Executive’s duties to the Company or otherwise result in material injury to the reputation or business of the Company. Upon the giving of notice of termination of the Executive’s employment hereunder for Cause, the Company shall not have any further obligation or liability to the Executive, other than for Base Salary earned and unpaid through the date of termination. Any unvested stock options shall be forfeited and vested stock options not exercised prior to termination shall expire and no longer be exercisable.

		(d)	
By the Company without Cause. The Company may terminate the Executive’s employment hereunder without Cause at any time upon fourteen (14) days advance written notice.

		(e)	
By the Executive. Executive may terminate his employment, without cause or with Good Reason, at any time upon at least thirty (30) days’ advance written notice to the Company.  The term “Good Reason” shall mean a material reduction in Executive’s duties or material reduction in compensation, except for a reduction in compensation that affects all members of management on the same percentage basis.

		(f)	
Change of Control.  If the Company terminates Executive within twelve (12) months following a Change of Control or if Executive terminates for Good Reason within twelve (12) months following a Change of Control, in addition to the Severance Benefits specified in Section 4(g)(i)(A) and (C) below, all Stock Options that are subject to vesting shall have the vesting accelerate and become fully vested, any shares of capital stock of the Company that are subject to a right of repurchase shall have such right of repurchase lapse and units then held by Executive pursuant to a restricted stock unit plan shall immediately vest and become exercisable.  “Change in Control” means an event or occurrence set forth in any one or more of subsections below (including an event or occurrence that constitutes a Change in Control under one of 

			
such subsections but is specifically exempted from another such subsection):

		(i)	
the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (an “Acquiring Person”) of beneficial ownership of any capital stock of the Company if, after such acquisition, such Acquiring Person beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) 50% or more of either (i) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the then-outstanding securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company or (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company; or

		(ii)	
the consummation of a merger, consolidation, reorganization, recapitalization or statutory share exchange involving the Company or a sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), unless, immediately following such Business Combination, all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors, respectively, of the resulting or acquiring corporation in such Business Combination in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, respectively.

 

		(g)	
Severance Benefits.

		(i)	
In the event that the Company terminates the Executive’s employment without Cause (as defined above subject to the terms and conditions of this Section 5(g)) or Executive terminates his employment for Good Reason and Executive has not received any bonus pursuant to Section 4(c) of this 

			
Agreement, (A) the Company will pay an amount equal to 300% of the Base Salary plus the annual Target Bonus as severance on a monthly basis to Executive and will provide the continuation of the benefits set forth in Section 4(e) for a period of twelve months (the “Severance Period”) following Executive’s termination, (B) any Stock Options that are subject to vesting shall have vesting accelerated with respect to the number of shares that would have vested during the Severance Period if Executive had remained employed by the Company during such period (and any shares of capital stock of the Company that are subject to a right of repurchase shall have such right of repurchase lapse with respect to the number of shares that would have lapsed during the Severance Period if Executive had remained employed by the Company during such period), and (C) accrued and unused vacation at the time of termination up to a maximum of four weeks shall be paid to Executive. In the event the Company terminates Executive’s employment without Cause (as defined above subject to the terms and conditions of this Section 5(g)) or Executive terminates his employment for Good Reason, and Executive has received at least one (1) bonus pursuant to Section 4(c) of this Agreement, the Company shall pay Executive 150% of the Base Salary plus the annual Target Bonus.

 

		(ii)	
The severance amount and benefits continuation set forth in Section 5(f)(i) are referred to herein as the “Severance Benefits.” The continuation of any group health plan benefits shall be to the extent authorized by and consistent with 29 U.S.C. § 1161 et seq. (commonly known as “COBRA”), with the cost of the regular employer portion of the premium for such benefits paid by the Company. The Executive’s right to receive Severance Benefits under Subsection 5(f)(i) is conditioned upon (x) the Executive’s prior execution and delivery to the Company of a reasonably satisfactory general release of any and all claims and causes of action of Executive against the Company and its officers and directors, excepting only the right to any compensation, benefits and/or reimbursable expenses due and unpaid under Sections 4 and/or 5(f)(i) of this Agreement, and (y) the Executive’s continued performance of those obligations hereunder that continue by their express terms after the termination of his employment, including without limitation those set forth in Sections 8. Any Severance Benefits to be paid hereunder shall be payable in accordance with the payroll practices of the Company for its executives generally as in effect from time to time, and subject to all required withholding of taxes.

		6.	
Effect of Termination. Upon termination of this Agreement, all obligations and provisions of this Agreement shall terminate except with respect to any accrued and unpaid monetary obligations and vesting acceleration provisions and except for the provisions of Section 7 through (and inclusive of) 20 hereof.

 

		7.	
Confidential Information; Assignment of Inventions.

 

		(a)	
Executive acknowledges that the Company and its Affiliates will continually develop Confidential Information and Proprietary Information (as defined below), that Executive may develop Confidential Information and Proprietary Information for the Company or its Affiliates, and that Executive may learn of Confidential Information and Proprietary Information during the course of his employment with the Company. Executive agrees that, except as required for the proper performance of his duties for the Company, he will not, directly or indirectly, use or disclose any Confidential Information or Proprietary Information. Executive understands and agrees that this restriction will continue to apply after his employment terminates, regardless of the reason for termination.

		(b)	
Executive agrees that all Confidential Information and Proprietary Information, including, without limitation all work products, inventions methods, processes, designs, software, apparatuses, compositions of matter, procedures, improvements, property, data documentation, information or materials that the Executive, jointly or separately prepared, conceived, discovered, reduced to practice, developed or created during, in connection with, for the purpose of, related to, or as a result of his employment with the Company, and/or to which he has access as a result of his employment with the Company (collectively, the “Inventions”) is and shall remain the sole and exclusive property of the Company.

		(c)	
Executive by his signature on this Agreement unconditionally and irrevocably transfers and assigns to the Company all rights, title and interest in the Inventions (as defined above, including all patent, copyright, trade secret and any other intellectual property rights therein) and will take any steps and execute any further documentation from time to time reasonably necessary to effect such assignment free of charge to the Company. Executive will further execute, upon request, whether during, or after the termination of, his employment with the Company, any and all applications for patents, assignments and other papers, which the Company may deem necessary or appropriate for securing such Inventions for the Company.

		(d)	
Except as required for the proper performance of his duties, Executive will not copy any and all papers, documents, drawings, systems, data bases, memoranda, notes, plans, records, reports files, data (including original data), disks, electronic media etc. containing Confidential Information or Proprietary Information (“Documents”) or remove any Documents, or copies, from Company premises. Executive will return to the Company immediately after his employment terminates, and at such other times as may be specified by the Company, all Documents and copies and all other property of the Company and its Affiliates then in his possession or control.

		8.	
Enforcement of Covenants. Executive acknowledges that he has carefully read and considered all the terms and conditions of this Agreement, including the restraints imposed upon him pursuant to Section 7 hereof. Executive acknowledges that the covenants contained in Section 7 are reasonably necessary to protect the goodwill of the Company that is its exclusive property. Executive further acknowledges and agrees that, were he to breach any of the covenants contained in Section 7 hereof, the damage would be irreparable. Executive therefore agrees that the Company, in addition to any other remedies available to it, shall be entitled to preliminary and permanent injunctive relief against any breach or threatened breach by Executive of any of said covenants, without having to post bond.

		9.	
Conflicting Agreements. Executive hereby represents and warrants that the execution of this Agreement and the performance of his obligations hereunder will not breach or be in conflict with any other agreement to which Executive is a party or is bound and that Executive is not subject to any covenants against competition or similar covenants that would affect the performance of his obligations hereunder. Executive will not disclose to or use any confidential or proprietary information of a third party without such party’s consent.

		10.	
Definitions. Words or phrases which are initially capitalized or are within quotation marks shall have the meanings provided in this Section 10 and as provided elsewhere herein. For purposes of this Agreement, the following definitions apply:

 

(a) “Affiliates” means all persons and entities directly or indirectly controlling, controlled by or under common control with the Company, where control may be by either management authority or equity interest.

(b) “Confidential Information” means any and all information, inventions, discoveries, ideas, writings, communications, research, engineering methods, developments in chemistry, manufacturing information, practices, processes, systems, technical and scientific information, formulae, designs, concepts, products, trade secrets, projects, improvements and developments that relate to the business of the Company or any Affiliate and are not generally known by others, including but not limited to (i) products and services, technical data,

methods and processes, (ii) marketing activities and strategic plans, (iii) financial information, costs and sources of supply, (iv) the identity and special needs of customers and prospective customers and vendors and prospective vendors, and (v) the people and organizations with whom the Company or any Affiliate has or plans to have business relationships and those relationships. Confidential Information also includes such information that the Company or any Affiliate may receive or has received belonging to customers or others who do business with the Company or any Affiliate and any publication or literary creation of the Executive, developed in whole or in part while Executive is employed by the Company, in whatever form published the content of which, in whole or in part, relates to the business of the Company or any Affiliate. Confidential Information shall not include any information or materials that Executive can prove by written evidence (i) is or becomes publicly known through lawful means and without breach of this Agreement by Executive; (ii) was rightfully in Executive’s possession or part of Executive’s general knowledge prior to the Effective Date; or (iii) is disclosed to Executive without confidential or proprietary restrictions by a third party who rightfully possesses the information or materials without confidential or proprietary restrictions.

(c) “Person” means an individual, a corporation, an association, a partnership, an estate, a trust and any other entity or organization.

(d) “Proprietary Information” means any and all intellectual property subject to protection under applicable copyright, trademark, trade secret or patent laws if such property is similar in any material respect with the products and services offered by the Company or any Affiliate.

		11.	
Withholding. All payments made under this Agreement shall be reduced by any tax or other amounts required to be withheld under applicable law.

		12.	
Assignment. Neither the Company nor Executive may make any assignment of this Agreement or any interest herein, by operation of law or otherwise, without the prior written consent of the other; provided, however, that the Company may assign its rights and shall assign its obligations under this Agreement without the consent of Executive in the event that the Company shall hereafter effect a reorganization, or consolidate with or merge into any other Person, or transfer all or substantially all of its properties or assets to any other Person. This Agreement shall inure to the benefit of and be binding upon the Company and the Executive, and their respective successors, executors, administrators, heirs and permitted assigns.

		13.	
Severability. If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or 

 

			
unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

		14.	
Waiver. No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of either party to require the performance of any term or obligation of this Agreement, or the waiver by either party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

		15.	
Notices. Any and all notices, requests, demands and other communications provided for by this Agreement shall be in writing and shall be effective when delivered in person or by overnight courier or delivery service, or three business days after being deposited in United States mail, postage prepaid, registered or certified, and addressed to Executive at his last known address on the books of the Company or, in the case of the Company, at the Company’s principal place of business, to the attention of the Chairman of the Board, or to such other address as either party may specify by notice to the other actually received.

		16.	
Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior communications, agreements and understandings, written or oral, with respect to the terms and conditions of the Executive’s employment.

		17.	
Amendment. This Agreement may be amended or modified only by a written instrument signed by Executive and an expressly authorized representative of the Company.

		18.	
Headings. The headings and captions in this Agreement are for convenience only and in no way define or describe the scope or content of any provision of this Agreement.

		19.	
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

		20.	
Governing Law. This Agreement shall be construed and enforced under and be governed in all respects by the laws of the State of Colorado, without regard to the conflict of laws principles thereof.

		21.	
Tax Matters.

		(a)	
In the event of an event constituting a change in the ownership or effective control of Company or ownership of a substantial portion of the assets of Company described in Code Section 280G(b)(2)(A)(i) (a 

			
“280G Transaction “), Company shall cause its independent auditors or another person or entity approved by the Company and Executive promptly to review all payments, accelerations, distributions and benefits that have been made to or provided to, and are to be made, or may be made, to or provided to, Executive under this Agreement, the 2012 Plan and any other arrangements providing for payments or benefits contingent on the occurrence of a 280G Transaction (irrespective of whether such payments or benefits are then payable to Executive at that time), and any other agreement or plan under which Executive may individually or collectively benefit (collectively the “Original Payments”), to determine the applicability of Code Section 4999 to Executive in connection with such event. Company’s independent auditors or such other approved party will perform this analysis in conformity with the foregoing provisions and will provide Executive with a copy of their analysis and determination. Notwithstanding anything contained in this Agreement to the contrary, to the extent that the Original Payments would be subject to the excise tax imposed under Code Section 4999 (the “Excise Tax”), the Original Payments shall be reduced (but not below zero) to the extent necessary so that no Original Payment shall be subject to the Excise Tax, but only if, by reason of such reduction, the net after-tax benefit received by Executive shall exceed the net after-tax benefit received by him if no such reduction was made. For purposes of this Agreement, “net after-tax benefit” shall mean (a) the Original Payments which Executive receives or is then entitled to receive from Company that would constitute “parachute payments” within the meaning of Code Section 280G, less (b) the amount of all federal, state and local income taxes payable with respect to the foregoing calculated at the maximum marginal income tax rate for each year in which the foregoing shall be paid to Executive (based on the rate in effect for such year as set forth in the Code as in effect at the time of the first payment of the foregoing), less (c) the amount of the Excise Tax imposed with respect to the payments and benefits described in (a) above. If a reduction is to occur pursuant to this Section 24(a), the payments and benefits shall be reduced in the following order: any cash severance to which Executive becomes entitled (starting with the last payment due), then other cash amounts that are parachute payments (starting with the last payment due), then any stock option awards that have exercise prices higher than the then-fair market value price of the stock (based on the latest vesting tranches), then restricted stock and restricted stock units based on the latest awards scheduled to be distributed, and then other stock options based on the latest vesting tranches. The fees and expenses of Company’s auditor or any other party for services in connection with the determinations and calculations contemplated by this provision will be borne by Company.

 

		(b)	
The intent of the parties is that payments and benefits under this Agreement comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (“ Code Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. If Executive notifies the Company (with specificity as to the reason therefor) that he believes that any provision of this Agreement (or of any award of any compensation or benefits) would cause him to incur any additional tax or interest under Code Section 409A and the Company concurs with such belief or the Company independently makes such determination, the Company shall, after consultation with the Executive, to the extent legally permitted and to the extent it is possible to timely reform the provision to avoid taxation under Code Section 409A, reform such provision to attempt to comply with Code Section 409A through good faith modifications to the minimum extent reasonably appropriate to conform with Code Section 409A. To the extent that any provision hereof is modified in order to comply with or be exempt from Code Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to both Executive and the Company of the applicable provision without violating the provisions of Code Section 409A.

 

(a) For purposes of the application of Treasury Regulation § 1.409A-1(b)(4) (or any successor provision), each payment in a series of payments will be deemed a separate payment.

(b) If the termination of employment giving rise to the severance benefits described in Sections 5 or 6 is not a “separation from service” within the meaning of Treasury Regulation § 1.409A- 1(h)(1), then to the extent necessary to avoid the imposition of any accelerated or additional tax under Code Section 409A, such benefits will be deferred without interest until Executive’ experiences a separation from service.

 

If at the time of Executive’s separation from service, (i) he is a specified employee (within the meaning of Code Section 409A and using the identification methodology selected by the Company from time to time), and (ii) the Company makes a good faith determination that an amount payable to Executive constitutes deferred compensation (within the meaning of Code Section 409A) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Code Section 409A in order to avoid taxes or penalties under Code Section 409A (the “ Delay Period “), then the Company will not pay such amount on the otherwise scheduled payment date but will instead pay it in a lump sum on the first business day after such six-month period. To the extent that any benefits to be provided during the Delay Period is considered deferred compensation under Code Section 409A provided on account of a “separation from service,” and such benefits are not otherwise exempt from Code Section 409A, Executive shall pay the cost of such benefits during the Delay Period, and the Company shall reimburse Executive, to the extent that such costs would otherwise have been paid by the Company or to the extent that such benefits would otherwise have been provided by the Company at no cost to Executive, the Company’s share of the cost of such benefits upon expiration of the Delay Period, and any remaining benefits shall be reimbursed or provided by the Company in accordance with the procedures specified herein.

(c) To the extent an expense or in-kind benefit provided pursuant to this Agreement constitutes a “deferral of compensation” within the meaning of Code Section 409A (1) the expenses will be reimbursed to Executive as promptly as practical and in any event not later than the last day of the calendar year after the calendar year in which the expenses are incurred, (2) the amount of expenses eligible for reimbursement or in-kind benefits provided during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided in any other calendar year, (3) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.

IN WITNESS WHEREOF, this Amended and Restated Agreement has been executed by Executive and the Company, as approved by the Board of Directors, by its duly authorized representative, as of the date first above written.

 

 

 

	
Executive:

 

 

/s/ Hoyoung Huh                                      

Hoyoung Huh

 

 

	
AntriaBio, Inc.

 

 

By: /s/ Nevan Elam                             

Nevan Elam

Chief Executive Officer

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