Document:

Jun-23-01 9:28AM;

Exhibit

10.23

 

PORTIONS

OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIALITY

UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.  A COPY OF THIS AGREEMENT WITH ALL SECTIONS

INTACT HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

 

Second Amendment to

Exclusive License Agreement

 

 

for

 

 

Selected Applications of Coated

Nanocrystalline Particles

between

 

 

The Regents of the University of

California

 

 

and

 

 

BioSante Pharmaceuticals, Inc.

 

 

 

 

 

UC Case No 1989-204

 

 

 

 

 

 

 

SECOND AMENDMENT TO THE EXCLUSIVE LICENSE AGREEMENT

FOR SELECTED APPLICATIONS OF COATED NANOCRYSTALLINE PARTICLES

This second amendment (“Second Amendment”) is

effective this 7th day of May, 2001, by and between The Regents of the University

of California (“The Regents”), a California corporation, having its statewide

administrative offices at 1111 Franklin Street, 12th Floor, Oakland, California

94607-5200, and BioSante Pharmaceuticals, Inc. (“Licensee”), a Wyoming

corporation, having a principal place of business at 175 Olde Half Day Road,

Suite 247, Lincolnshire, Illinois 60069.

 

RECITALS

Whereas, Licensee (formerly known as Ben-Abraham Technologies, Inc.) and

The Regents entered into a license agreement entitled “Exclusive License

Agreement for Selected Applications of Coated Nanocrystalline Particles,”

effective on June 18, 1997, having UC Agreement Control Number 1997-04-0671

(“License Agreement”), covering licensure to Licensee by The Regents of rights

in certain inventions developed by Dr. Nir Kossovsky et al. at the University

of California, Los Angeles, and covered by Patent Rights (as defined in the

License Agreement);

Whereas, Licensee and The Regents amended the License Agreement effective

October 26, 1999, (“First Amendment”), having UC Agreement Control No.

1997-04-0671A, to include additional terms into the License Agreement and to

revise the minimum annual royalties schedule to a more financial and time

feasible schedule;

Whereas, Licensee and The Regents amended the License Agreement by notice

effective May 25, 2000, having UC Agreement Control No. 1997-04-067lB, to

change the name of the company’s name from Ben-Abraham Technologies to its

current name;

2

 

Whereas, Licensee has requested The Regents to amend certain provisions

in the License Agreement that pertains only to the field of Vaccine Adjuvant

and a particular sublicensing arrangement, defined below as “Adjuvant

Sublicense Agreement,” between Licensee and a third party called Corixa

Corporation;

Whereas, The Regents is willing to amend the License Agreement to reflect

such request.

Now, Therefore, in consideration of the foregoing and the mutual promises

and covenants contained herein, the parties hereto agree as follows:

1.           Paragraph 1.2 (Definitions) of the

License Agreement is deleted in its entirety and replaced with the following:

“1.2         “Patent Products” means:

i                                             a Vaccine Adjuvant,

Virus Vaccine Construct, or Drug Delivery System comprising a composition of

matter, material, product, or Derived Product;

 

ii                                          a Vaccine Adjuvant,

Virus Vaccine Construct, or Drug Delivery System comprising a composition of

matter, material, product, or Derived Product to be used in a manner requiring

the performance of the Patent Method; or

 

iii                                       a Vaccine Adjuvant,

Virus Vaccine Construct, a Drug Delivery System comprising a composition of

matter, material, product, or Derived Product produced by the Patent Method;

 

to

the extent that the manufacture, use, or sale of such composition of matter,

material, product, or Derived Product in a particular country, would be covered

by or infringed, but for the license granted to Licensee pursuant to this

Agreement, an unexpired claim of a patent or pending claim of a patent

application were said claim issued in a patent under Patent Rights in that

country.  This definition of Patent

Products also includes a service either used by Licensee or provided by

Licensee to its customers when such service requires the practice of the Patent

Method.  For the avoidance of doubt, any

product or service is deemed to be a Patent Product if such product or service

contains a component that is a composition of matter, material, product, or

Derived Product covered under Subparagraphs 1.2 i through 1.2 iii.”

2.           Paragraph

1.10 (Definitions) of the License Agreement is deleted in its entirety and

replaced with the following:

 

                “1.10       “Net Sales” means the gross invoice

prices from the Final Sale of Patent Products by the Licensee or its

sublicensee to one or more independent third parties for

 

3

cash or other forms of consideration in accordance with generally

accepted accounting principles, less only the following deductions (if not

already deducted from the gross invoice price and at rates customary within the

industry):

 

1.10a                     allowances (actually paid and

Limited to rejections, returns, and prompt payment and volume discounts granted

to customers of Patent Products, whether in cash or Patent Products in lieu of

cash);

 

1.10b                    freight, transport packing,

insurance charges associated with transportation; and

 

1.10c                     taxes, tariff, or import/export

duties based on sales when included in gross sales, but not value-added taxes

or taxes assessed on income derived from such sales.

 

If the Licensee or its sublicensee distributes Patent Products for

commercial end use to itself or to the other party (i.e., Licensee distributes

Patent Products to its sublicensee or sublicensee distributes Patent Products

to Licensee), then such distribution will be considered a Final Sale of Patent

Products based on the price normally charged to independent third parties, and

The Regents will be entitled to collect a royalty on such Final Sale at the

rates and bases set forth in Article 4 (Royalties).  Moreover, if Licensee or its sublicensee distributes a component

that is claimed under Patent Rights to itself or to the other party (i.e.,

Licensee distributes a component to its sublicensee or sublicensee distributes

a component to Licensee), and the receiving party includes such component in a

Patent Product as defined in Paragraph 1.2, then the distribution of the entire

Patent Product by the receiving party to its customers constitutes a Final

Sale, and The Regents will be entitled to collect a royalty on such Final Sale

at the rates and bases set forth in Article 4 (Royalties).”

 

3.           Paragraph

1.14 (Definitions) is added to the License Agreement as follows:

 

“1.14       “Derived

Product” means any product that is made by using a composition of matter claimed

under Patent Rights or by practicing the Patent Method to make a final product

regardless of the number of steps in the process or the number and types of

compositions of matter (e.g., intermediate compounds) that are involved in

making the final product.  A “Derived

Product” also means any product that is made by using a composition of matter

claimed under Patent Rights whether or not that composition of matter is

directly incorporated or a part of the final product.”

 

4.           Paragraph

1.15 (Definitions) is added to the License Agreement as follows:

 

“1.l5        “Third

Party” means Corixa Corporation, having a principle place of business at 1124

Columbia Street Suite 200, Seattle, Washington 98104-2040.  Any reference to sublicensee under the terms

of this Agreement is meant to include the Third Party, except when the terms of

this Agreement conflict with those of the Second Amendment.  In which case, the terms of the Second

Amendment will control.”

 

4

5.           Paragraph

1.16 (Definitions) is added to the License Agreement as follows:

 

“1.16       “Adjuvant

Sublicense Agreement” means a definitive agreement by and between the Licensee

and Third Party involving the grant by Licensee to Third Party of one or more

of the following rights:  to make, use,

sell, offer for sale, or import Patent Products in the Field, or to practice

the Patent Method in the Field.  Any

reference to a sublicense or sublicense agreement under the terms of this

Agreement is meant to include the Adjuvant Sublicense Agreement, except when

the terms of this Agreement conflict with those of the Second Amendment.  In which case, the terms of the Second

Amendment will control.”

 

6.           Paragraph

1.17 (Definitions) is added to the License Agreement as follows:

 

“1.17       “Final Sale” means the point of sale or use of Patent

Products, which sale or use is the last infringing act (but for the licenses

granted herein) that is within the control of the Licensee or its sublicensee,

whether or not the Licensee or sublicensee had control over prior infringing

act(s).  For the avoidance of doubt,

this definition of Final Sale includes the sale of the entire Patent Product in

which a component or intermediate claimed under Patent Rights is used to make

such Patent Product or is a part thereof.”

 

7.           Last sentence of Paragraph 2.4

(Grant) of the License Agreement is deleted in its entirety and replaced with

the following:

 

“Licensee may sublicense third

party(s) any part, but not all of its rights that are granted to Licensee under

Paragraph 2.1.  To the extent certain

rights are granted to a third party under a sublicense, such sublicense will

include all of the corresponding rights and obligations due to The Regents that

are contained in this Agreement including, but not limited to the following:

 

2.4a                           payment of

royalties in sufficient amounts and at the appropriate times to permit Licensee

to satisfy its royalty obligations owed The Regents at the rates, bases, and

times set forth in Article 4 (Royalties);

 

2.4b                          disposition of

Patent Products set forth in Article 11 (Disposition of Patent Products on Hand

Upon Termination);

 

2.4c                           restrictions for

use of names and trademarks set forth in Article 12 (Use of Names and

Trademarks);

 

2.4d                          patent marking set

forth in Article 15 (Patent Marking); and

 

2.4e                           indemnification set

forth in Article 17 (Indemnification).”

 

5

8.             Paragraph

3.2 (License Issue Fee) of the License Agreement is deleted in its entirety and

replaced with the following:

 

“3.2         As further consideration for all rights

granted by Licensee to the Third Party under the Adjuvant Sublicense Agreement,

Licensee will pay to The Regents XXXXXXXXXX (XXX) of all consideration due or

owing under the Adjuvant Sublicense Agreement (Sublicense Fee), including but

not limited to, milestone payments and a Premium as defined in Paragraph 3.3

below.  Licensee will pay The Regents

any portion of the Sublicense Fee that had been received by the Licensee in the

prior calendar quarter on or before the dates set forth in Paragraph 4.3.”  [Portions

of this section have been omitted pursuant to a request for confidentiality

under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  A copy of this Agreement with this section

intact has been filed separately with the Securities and Exchange Commission.]

 

9.             Paragraph

3.3 (License Issue Fee) is added to the License Agreement as follows;

 

“3.3         If Licensee accepts an investment in

equity or debt financing as consideration for the granting of rights to Third

Party under the Adjuvant Sublicense Agreement, then Licensee and Third Party

will determine by an arms length transaction, the portion of the equity or debt

financing that should be attributed to the Adjuvant Sublicense Agreement

(hereinafter referred to as “Premium”), and the fair market value of that

equity or debt financing so that a dollar value can be assigned to such

Premium.  In accordance with Paragraph

3.2, Licensee will pay to The Regents XXXX of the Premium’s determined value.” [Portions of this section have been omitted pursuant to a

request for confidentiality under Rule 24b-2 of the Securities Exchange Act of

1934, as amended.  A copy of this

Agreement with this section intact has been filed separately with the

Securities and Exchange Commission.]

 

10.          Paragraph

3.4 (License Issue Fee) is added to the License Agreement as follows:

 

“3.4         The

fees set forth in Paragraph 3.1 and 3.2 above will not be refunded, credited,

or considered an advance against royalties, fee, Sublicense Fee or reimbursements

for Patent Costs (as defined in Paragraph 14.5) due or owing The Regents under

this Agreement.”

 

11.          Paragraph

4.1 (Royalties) of the License Agreement is deleted in its entirety and

replaced with the following;

 

“4.1         As further consideration for all the rights and licenses

granted to Licensee, Licensee and its sublicensees will pay to The Regents an

earned royalty at the rate of four percent (4%) based on the Net Sales of

Patent Products.  If, however, Licensee

has granted the right to manufacture and sell a Vaccine Adjuvant to any third

party who manufactures and sells a pharmaceutical product, which pharmaceutical

product is combined with the Vaccine Adjuvant, then Licensee may exchange the

royalty rate paid to The Regents specified above for a royalty rate of two

percent (2%) based on the Net Sales of the Patent Product comprising the

pharmaceutical product and Vaccine Adjuvant. 

Notwithstanding the above, and with respect to only the Adjuvant

Sublicense Agreement, Licensee may exchange the royalty rate paid to The

Regents specified above

 

6

for a royalty rate of one percent (1%) based on the Net Sales of the

Patent Product comprising the combination of a pharmaceutical product and

Vaccine Adjuvant, which Patent Product can only be sold as a vaccine.”

 

12.         Paragraphs

4.2 (Royalties) of the License Agreement is deleted in its entirety and

replaced with the following:

 

“4.2         Licensee will pay to The Regents royalties on Patent

Products and Patent Methods covered by both pending applications and issued

patents.  Earned royalties will accrue

in each country for the duration of The Regents’ Patent Rights in that country

and will be payable to The Regents when Patent Products are invoiced, or if not

invoiced, when distributed by Licensee or sublicensee to itself, to the other

party (i.e., Licensee distributes Patent Products to its sublicensee or

sublicensee distributes Patent Products to Licensee), or to a third party for

end use that constitutes a Final Sale. 

In such event, royalties will accrue to The Regents on the Net Sales in

accordance with the terms of Paragraph 4.1 above.”

 

13.         Paragraphs

4.3 (Royalties) of the License Agreement is deleted in its entirety and

replaced with the following:

 

“4.3         Royalties and Sublicense Fees accruing to The Regents will

be paid to The Regents quarterly on or before the following dates of each

calendar year:

 

February 28 for the calendar quarter ending December 31

May31 for the calendar quarter ending March 31

August 31 for the calendar quarter ending June 30

November 30 for the calendar quarter ending September 30”

 

14.         Paragraph 14.5 (Patent Prosecution and

Maintenance) of the License Agreement is deleted in its entirety amid replaced

with the following;

 

“14.5       Licensee will reimburse The Regents for 1/n (where “n” means

the total number of licensees and optionees of The Regents, excluding the

United States Government) of all costs of preparing, filing, prosecuting, and

maintaining all United States and foreign patent applications and patents

covered by Patent Rights in Paragraph 1.1, including costs for interferences

and opposition proceedings (‘Patent Costs”). 

Licensee will reimburse The Regents for all Patent Costs within 30 days

following Licensee’s receipt of an itemized invoice from The Regents stating

such costs.”

 

15.         Paragraph 14.6 (Patent Prosecution and

Maintenance) of the License Agreement is deleted in its entirety and replaced

with the following:

 

“14.6      Licensee’s obligation to underwrite and pay for Patent Costs

incurred by The Regents will continue until three months after expiration or

termination of this Agreement.  The

Licensee will reimburse The Regents for all Patent Costs incurred during the

term of the Agreement and for three months thereafter whether or not invoices

for such costs are received during the three-month period after expiration or

termination 

 

7

of this Agreement.  The Licensee

may terminate its obligations with respect to any particular patent application

or patent in any or all designated countries three months after giving written

notice to The Regents.  The Regents may

continue prosecution and/or maintenance of such application(s) or patent(s) at

its sole discretion and expense, provided, however, that the Licensee will have

no further right or licenses thereunder.”

 

16.         Paragraph

18.1 (Notices) of the License Agreement is deleted in its entirety and replaced

with the following:

 

“18.1       Any notice or payment required to be given to either party

will be deemed to have been properly given and to be effective:

 

18.la                        on the date of

delivery if delivered in person;

 

18.lb                       on the date of

mailing if mailed by first-class certified mail, postage paid; or

 

18.1c                     on the date of mailing if mailed

by any global express carrier service that requires the recipient to sign the

documents demonstrating the delivery of such notice of payment;

 

to

the respective addresses given below, or to another address as designated in

writing by the party changing its prior address.

 

	

  In

  the case of Licensee:

  	

  BioSante

  Pharmaceuticals, Inc.

  
	

   

  	

  175

  Olde Half Day Road, Suite 247

  
	

   

  	

  Lincolnshire,

  Illinois 60069

  
	

   

  	

  Telephone:

  	

  (847)

  793-2434

  
	

   

  	

  Facsimile:

  	

  (847)

  793-2435

  
	

   

  	

  Attention:

  	

  Stephen

  M. Simes

  
	

   

  	

   

  	

  President

  & CEO

  
	

   

  	

   

  	

   

  
	

  In

  the case of The Regents:

  	

  The

  Regents of the University of California

  
	

   

  	

  Office

  of the President

  
	

   

  	

  Office

  of Technology Transfer

  
	

   

  	

  111

  Franklin Street, 5th Floor

  
	

   

  	

  Oakland,

  California 94607-5200

  
	

   

  	

  Telephone:

  	

  (510)

  587-6000

  
	

   

  	

  Facsimile:

  	

  (510)

  587-6090

  
	

   

  	

  Attention:

  	

  Executive

  Director,

  
	

   

  	

   

  	

  Office

  of Technology Transfer

  
	

   

  	

   

  	

  Referring

  to: UC Case No, 89-204”

  

 

 

8

                In witness whereof, both The

Regents and the Licensee have executed this Second Amendment, in duplicate

originals, by their respective officers hereunto duly authorized, on the day

and year hereafter written.

 

 

	

  BIOSANTE PHARMACEUTICALS, INC.

  	

   

  	

  THE REGENTS

  OF THE

  UNIVERSITY OF CALIFORNIA

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  By

  	

  /s/ Stephen M. Simes

  	

   

  	

  By

  	

  /s/ Alan B. Bennett

  	

   

  
	

  (Signature)

  	

   

  	

  (Signature)

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Name

  	

  Stephen M. Simes

  	

   

  	

  Name

  	

  Alan B. Bennett

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Title

  	

  President & CEO

  	

   

  	

  Title

  	

  Executive Director,

  	

   

  
	

   

  	

   

  	

   

  	

  Research Administration

  	

   

  
	

   

  	

   

  	

   

  	

  and Technology Transfer

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Date

  	

  4/18/01

  	

   

  	

  Date

  	

  May 7, 2001

  	

   

  
										

 

 

 

 

 

 

 

 

 

	

  Approved

  as to legal form:

  	

       /s/ P. Martin Simpson, Jr.

  	

  3/22/01

  	

   

  
	

   

  	

  P.

  Martin Simpson, Jr.

  	

  Date

  
	

   

  	

  University

  Counsel

  	

   

  
	

   

  	

  Office

  of General Counsel

  	

   

  
					

 

 

9SETTLEMENT AGREEMENT AND GENERAL RELEASE

 

  Exhibit 10.24

SEPARATION

AGREEMENT AND MUTUAL RELEASES 

 

THIS SEPARATION AGREEMENT (“Agreement”) is entered into effective this 1st day

of February, 2002, by and between John E. Lee (“Employee”) and BioSante

Pharmaceuticals, Inc. (“Employer”) (collectively referred to as the “Parties”),

to resolve all issues related to or arising out of Employee’s former full-time

employment with Employer and Employee’s September 28, 2001 separation.  In consideration of the mutual covenants

contained herein, the sufficiency of which the Parties acknowledge, the Parties

agree as follows:

 

1.  Separation Date.  Employee’s last day of full-time employment

with Employer was September 28, 2001.

 

2.  Payments at Separation.  On September 28, 2001, Employer tendered to

Employee: (a) a check in the amount of $7,083.33, less normal tax withholding,

that was for Employee’s regular salary through September 28, 2001; and (b) a

check in the amount of $4,740.93, less normal tax withholding, that was the

equivalent of Employee’s accrued but unused vacation through September 28,

2001.  On October 7, 2001, Employer

tendered to Employee: (a) a check in the amount of $14,166.66 less, normal tax

withholding, pursuant to Section V(C) of Employee’s Employment Agreement dated

August 1, 2000 (the “Employment Agreement”); (b) a check in the amount of

$170,000.00 less normal tax withholding, pursuant to Section V(C)2)(i) of the

Employment Agreement; and (c) a check in the amount of $402.83 as reimbursement

for Employee’s out-of-pocket expenses through September 28, 2001.

 

3.  Settlement Amount.  In consideration for the agreements and

releases by the Employee set forth below, including Employee’s agreement to

provide marketing liason services to Employer as more fully described below,

Employer agrees that within five business days after the revocation period

described in Paragraph 18, below, with no revocation of this Agreement by

Employee, Employer will provide Employee with the following (which Employee

acknowledges is more than Employee would receive if Employee did not sign this

Agreement):  (a)  $12,000

per month, subject to normal tax withholding, for a period of eight months

commencing February 1, 2002 (or as soon thereafter as possible based upon

Employee’s acceptance of this Agreement and the expiration of the revocation

period described in Paragraph 19, below) through and including September 1,

2002.  Said payments shall be made by

payroll check on the 15th and last day of each month and mailed to

Employee on or before those dates; (b) a check in the amount of $3,937.50 which

is equivalent to the net amount of Employer’s 2001 matching 401(k) contribution

for Employee; and (c) a check in the amount of $1,731.84  to “gross up”  Employee’s moving expenses.  

Employer shall make its payments to Employee under paragraphs 3(b) and

(c) no later than ten (10) days after Employee signs and delivers this

Agreement to Employer’s counsel.  If Lee

dies or becomes disabled prior to September 30, 2002, any remaining salary

payments due under this Agreement shall be paid (in a lump sum, less applicable

tax withholding) to any person or persons designated by Lee in writing, or if

he fails to make such designation, to Lee’s estate.

 

4.  Continuation

of Benefits.  Employee, pursuant to

Sections V(C )(2)(ii) and (iii) of the Employment Agreement, shall be allowed

to participate, at the Company’s expense, in Employer’s health, dental

disability insurance and term life insurance programs until the earlier of

September 28, 2002 or Employee becoming eligible to participate in another

employer’s corresponding health and disability plans.  In the event Employer’s insurance company refuses to allow

Employee’s continued participation in said plans, Employer agrees, in

consultation with 

 

 

Employee, to provide Employee with the most comparable coverage

available in the marketplace, at Employer’s sole expense.  Employee acknowledges that Employee’s

participation in and entitlement to any and all other compensation, fringe

benefits, employee benefit plans and stock option plans of Employer ceased as

of Employee’s separation date except that Employee’s ability to exercise his

500,000 vested options of Employee’s common stock shall be extended until

November 30, 2003.

 

5.  Employee’s

Obligation to Provide Services. 

Employee agrees that from the date of execution of this Agreement

through and including September 30, 2002, Employee will make himself available

to perform marketing liaison services for Employer.  These services may include, but are not limited to, follow-up at

Employer’s request with any third party with which Employee had contact, on

Employer’s behalf, prior to September 28, 2001, (subject to his availability

and reasonable notice of need from Employer), but in any event shall not exceed

a maximum of 20 hours per month, unless mutually agreed upon in writing by

Employer and Employee.  Employer shall

also reimburse Employee for all expenses reasonably incurred in the performance

of his Employer-designated activities during the period he performs these

services.  The scheduling and scope of

such services, and the time required to perform such services, must be

reasonable, and cannot unreasonably interfere with Employee’s other employment

or business activities.  Employer agrees

and acknowledges that Employee may accept full or part-time time employment

with another employer and/or engage in any other business activities at any

time, and there shall be no restrictions on such activities.  Except as otherwise specifically provided

herein, such employment shall not affect, reduce or terminate Employer’s

obligations under this Agreement or Employee’s rights under this Agreement,

including without limitation, Employer’s obligations to timely make the

payments as provided in Paragraph 3, above.

 

6.     Releases.

 

A.            Except for Employee’s

breach of this Agreement, to the maximum extent permitted by applicable law,

Employer and Employer’s Releasees RELEASE AND FOREVER DISCHARGE Employee and

Employee’s agents, immediate family members, attorneys, including, but not

limited to, Bankhead Nesthus & Scalone LLP, employees, representatives,

trustees, administrators, fiduciaries, heirs, successors and assigns (Employee

and all of the foregoing being hereinafter collectively referred to as the

“Employee’s Releasees”), of and from, and does hereby WAIVE any and all rights,

contracts, torts, claims, damages, actions, causes of action, and suits,

whether or not now known, suspected, or claimed, which it ever had, now has or

claims, or might hereafter have or claim against Employee’s Releasees, and each

of them, based upon, arising out of, or relating to, directly or indirectly,

any matter or thing occurring, in whole or in part, from the beginning of the

world through the date hereof, including, without limitation, any and all

rights, claims, or causes of action which Employer has, had, or may have

against Employee’s Releasees, and each of them, relating directly or indirectly

to Employee’s employment with Employer and the cessation of this employment as

of the date of this Agreement.  Further,

Employer agrees to fully defend and indemnify Employee as a former officer of

BioSante, as required by Illinois law, including, but not limited to, in the

event that Employee is named in any claim arising from or relating to

Employer’s alleged wrongful taking or use of proprietary material of any third

party or arising out of the alleged illegal or tortious conduct of any of

Employer’s employees or agents, provided that Employer’s obligations to

indemnify and defend as described in this Section 6A do not apply to any

illegal or intentionally tortious conduct by Employee that is found not to have

arisen within the scope of Employee’s duties or from Employee’s obedience to

Employer’s direction.  Consistent with

the 

 

 

foregoing, if Employee is found to have engaged in any illegal or

intentionally tortious conduct that is found not to have arisen within the

scope of Employee’s duties or from obedience to Employer’s direction, Employee

shall reimburse Employer for any and all sums expended by Employer to indemnify

or defend Employee.

 

                                Employer

REPRESENTS

AND WARRANTS that that Employer and/or Employer’s Releasees are the

sole owner of all of the claims against Employee released under this Section

6A, and that it has not heretofore assigned or transferred to any person or

entity any of the matters released under this Section 6A.  Except for purposes of enforcement of this

Agreement, Employer covenants not to sue or file any claims against Employee’s

Releasees, or any of them, for any of the matters released under this Section

6A.

 

B.            Except

for Employer’s breach of this Agreement and Employer’s obligations to defend

and indemnify Employee and as provided in Section 6A, to the maximum extent

permitted by applicable law, Employee and Employee’s Releasees RELEASE AND

FOREVER DISCHARGE Employer and any of its affiliated businesses,

partners, and joint ventures, and its/their predecessors, successors, heirs and

assigns, and its/their past, present and future directors, shareholders,

officers, including, but not limited to, Stephen Simes, Phillip Donenberg, Leah

Lehman and Victor Morgenstern, agents, attorneys, including, but not limited

to, Ungaretti & Harris, employees, representatives, trustees,

administrators, and fiduciaries, jointly and severally, in their individual,

fiduciary and corporate capacity (Employer and all of the foregoing being

hereinafter referred to as the “Employer’s Releasees”) of and from, and does

hereby WAIVE,

any and all rights, contracts, torts, claims, damages, actions, causes of

action, and suits, whether or not now known, suspected or claimed, which

Employee ever had, now has or claims, or might hereafter have or claim against

Employer’s Releasees, and each of them, based upon, arising out of, or relating

to, directly or indirectly, any matter or thing occurring, in whole or in part,

from the beginning of the world through the date hereof, including, without

limitation, any and all rights, claims, or causes of action which Employee has,

had or may have against Employer’s Releasees, and each of them, relating

directly or indirectly to Employee’s employment with Employer and the cessation

of this employment as of the date of this Agreement.

 

Without limiting the foregoing terms, this Agreement

specifically includes and extinguishes all claims for age discrimination, sex

discrimination or discrimination on any other basis; any and all wage claims;

breach of contract; wrongful discharge; detrimental reliance; retaliatory

discharge; infliction of emotional distress; any other tort; and any and all

claims Employee or Employee’s Releasees have arising from any alleged violation

by or on behalf of the Released Parties, of any federal, state or local

constitution, statute, regulation, ordinance, order, public policy or common

law, including, but not limited to, the Age Discrimination in Employment Act of

1967, as amended, Title VII of the Civil Rights Act of 1964, as amended, the

Civil Right Act of 1991, the Americans With Disabilities Act 42 U.S.C.§ 1981,

and any other similar Illinois law prohibiting employment discrimination.

 

Employee REPRESENTS AND WARRANTS that Employee is

the sole owner of all of the claims against Employer released under this

Section 6B and that Employee has not heretofore assigned, transferred or

reconveyed to any person or entity any of the matters released under this

Section 6B.  Except for purposes of

enforcement of this Agreement, Employee covenants not to sue or file any claims

against Employer’s Releasees, or any of them, for any of the matters released

under this Section 6B.

 

7.  Confidentiality

of Agreement.  Except as may be

specifically required by law, neither party shall disclose, publish, indicate,

or communicate any term or provision of this Agreement to any person or entity

other than such party’s spouse, attorney, or (solely to the extent necessary to

allow preparation of such party’s tax returns) accountant/financial

advisor.  Prior to any such disclosure,

the disclosing party will inform each such person to whom disclosure is to be

made that the terms of this Agreement are confidential and secure the agreement

of each such person to maintain the confidentiality of all terms of this

Agreement.  If Employee is specifically

required by law to disclose any of the terms or provisions of this Agreement,

Employee will if not prohibited by law, before making any such disclosure,

provide prompt written notice to BioSante Pharmaceuticals, Inc., 111 Barclay

Boulevard, Suite 280, Lincolnshire, Illinois 60069, Attention:  Phillip Donenberg, in which Employee shall

describe the reason for, and the scope, nature, and timing of, any such legally

required disclosure.  If Employer is

specifically required by law to disclose any of the terms or provisions of this

Agreement, Employer will if not prohibited by law, before making any such disclosure,

provide prompt written notice to John E. Lee, 1857 Cardinal Lane, Long Grove,

Illinois 60047, in which Employer shall describe the reason for, and the scope,

nature, and timing of, any such legally required disclosure.  By signing below, each party confirms that

he/it has honored the terms of this paragraph through the date on which each

party signed this Agreement.

 

8.  No Encouragement of Claims.  Neither party will encourage any person to

file a lawsuit, claim, or complaint against any of the Released Parties.  Neither party will assist any person who has

filed a lawsuit, claim, or complaint against any of the Released Parties unless

such party is required to render such assistance pursuant to a lawful subpoena

or other legal obligation.

 

9.  Return of Property.  Employee agrees that Employee has or will

return to Employer all of its property that is in Employee’s possession or

control, including, without limitation, any disc, including all copies,

containing information from any third-party obtained during Employee’s

employment with Employer, all keys, computer hardware, materials, papers,

books, files, documents, records, policies, customer information and lists,

sales and marketing information, data base information and lists, mailing

lists, notes, computer software and programs, data, and any other property or

information, that Employee may have relating to Employer, its customers,

employees, policies, or practices (whether those materials are in paper or

computer-stored form).  Employee represents

and warrants that regarding any disc, including all copies, containing

information from any third party, Employee will return to Employer said disc

and copies prior to Employee’s receipt of the first payment described in

Section 3, and that Employee shall not retain any copy or copies of any disc

containing information of any third party obtained during Employee’s employment

with Employer.  Employer agrees that it

promptly will return to Employee all of Employee’s personal property in

Employer’s possession or control, including without limitation, Employee’s

artwork, telephone, books and binders, and rolodex/Microsoft Outlook

information (whether those materials are in paper or computer-stored form)

containing information that Employee had in his possession prior to his

employment with Employer.  Employer

further agrees to promptly forward to Employee all personal calls, emails and

personal mail.

 

10. Confidential

Information.  Employee acknowledges

that during the term of Employee’s employment with Employer, Employee was

obligated to retain the confidentiality of certain confidential and proprietary

information disclosed to Employee and the security of Employer’s property

entrusted to Employee.  Nothing

contained in this Agreement is intended to relieve Employee of these

obligations, as set forth in Section VII of the Employment Agreement 

 

 

which is incorporated herein by reference.  Therefore, at all times during and subsequent to Employee’s

employment by Employer, Employee will regard and preserve all confidential

information and will not disclose such information to others and will refrain

from harming any Employer property.

 

11.  Non-disparagement.  Employee and Employer agree that neither

party will defame, disparage or denigrate, the other party or any of such

party’s Released Parties and/or related persons or any of its/their business

products or services.   In the event

that inquiries are made of Employer seeking confirmation of Employee’s

employment by, or an evaluation of Employee’s performance while in the employ

of, or concerning the circumstances surrounding Employee’s separation from

full-time employment with Employer, Employer shall provide only Employee’s

positions and dates of employment, provided, that if asked for the

reason for such a limited response, Employer shall be permitted to state that

it has a policy not to comment further. 

The parties agree that all inquiries regarding Employee’s employment are

to be directed to Phillip Donenberg.

 

                12.  Non-Admission.  This Agreement does not constitute an

admission by any of the Released Parties, and Employer specifically denies,

that any action that any of the Released Parties has taken or has failed to

take with respect to Employee was or is wrongful, unlawful, in violation of any

local, state or federal act, statute or constitution or susceptible of

inflicting any damages or injury upon Employee.

 

13.  Applicable

Law.  This Agreement shall be

governed by, construed and enforced in accordance with, and all questions

concerning the construction, validity, interpretation and performance of this

Agreement shall be governed by, the laws of the State of Illinois without

giving effect to that State’s principles regarding conflict of laws.  The parties agree that venue will lie solely

with the federal or state courts located in Cook County, Illinois and submit to

the jurisdiction of federal or state courts located in Cook County, Illinois.

 

14.  Severability.  In the event that any provision of this

Agreement is found by any court or tribunal of competent jurisdiction to be

invalid or unenforceable, the remaining provisions shall remain valid and

enforceable.

 

15.  Entry

to Employer’s Property.  Employee

agrees that Employee will not enter the premises of Employer without Employer’s

prior written consent which consent only may be given by Phillip Donenberg,

BioSante Pharmaceuticals, Inc., 111 Barclay Boulevard, Suite 280, Lincolnshire,

Illniois 60069.

 

16.  Entire Agreement.  This Agreement contains the entire agreement

and understanding between Employee and Employer concerning the matters

described herein and supercedes all prior agreements, discussions,

negotiations, understandings and proposals of the parties.  The terms of this Agreement cannot be

changed except in a subsequent document signed by Employee and Chief Executive

Officer of Employer.  This Agreement

binds and is for the benefit of Employee and Employer as well as his/her/its

respective heirs, personal representatives, successors and assigns.

 

17.  Revocation Period.  Employee has the right to revoke this

Agreement during a period of seven days after Employee signs it.  To revoke this Agreement, Employee must sign

and send a written notice of Employee’s decision to revoke the Agreement,

addressed to Phillip Donenberg, BioSante Pharmaceuticals, Inc., 111 Barclay

Boulevard, Suite 280, Lincolnshire, 

 

 

Illinois 60069, and that

written notice must be received at that address no later than seven days after

the Employee signed this Agreement.  If

Employee exercises Employee’s right to revoke this Agreement, Employee will not

be entitled to any of the money, benefits and other consideration from Employer

described in paragraph 3, and must immediately repay to Employer any

consideration that Employee already has received from Employer under that

paragraph.

 

18.  Knowing and Voluntary

Waiver.  Employee acknowledges that

Employee: (a) has completely read this Agreement and fully understands its

meaning; (b) has had the opportunity of twenty-one (21) days to review this

agreement before signing it; (c) has had the full opportunity to investigate

all matters pertaining to Employee’s claims and fully understands its terms and

contents, including the rights and obligations hereunder; (d) has been

informed of the right to consult an attorney before signing this document;

(e) is entering into this Agreement knowingly and voluntarily; and (f) the only

consideration Employee is receiving for signing this Agreement is described

herein, and no other promises or representations of any kind have been made by

any person or entity to cause Employee to sign this Agreement.

 

READ CAREFULLY.

THIS DOCUMENT CONTAINS A GENERAL

RELEASE OF ALL

KNOWN AND UNKNOWN CLAIMS

 

	

   

   

  	

   

  	

   

  
	

   

  	

   

  	

  BIOSANTE PHARMACEUTICALS, INC. 

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  /s/ John E. Lee

  	

   

  	

  By:

  	

   /s/ Stephen M. Simes

  	

   

  
	

  John E. Lee

  	

   

  	

  Its:

  	

  Chief Executive Officer

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Date Signed by

  Employee

  	

   

  	

  Date Signed by BioSante

  Pharmaceuticals, Inc.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]