Document:

exv10w1

 

Exhibit 10.1

 SUBLEASE AGREEMENT

     This Sublease Agreement is entered into by and between Toucan Capital Corporation (“Toucan” or
“Sublessor”), a Delaware Corporation, and Northwest Biotherapeutics, Inc., a Delaware Corporation
(“Sublessee”), effective as of July 1, 2007.

Recitals

     WHEREAS, In October 2001, Sublessor commenced occupancy of the seventh floor (“Master
Premises”) of the building commonly known as Bethesda Place II located at 7600 Wisconsin Avenue,
Bethesda MD 20814 (“Building”) pursuant to a lease agreement entered into by and between Sublessor
and Bethesda Place II Limited Partnership, (“Lessor”) in 2000.

     WHEREAS, Sublessee has occupied portions of the Master Premises since 2005;

     WHEREAS, On November 1, 2006, Sublessor entered into entered into a new lease agreement with
Lessor (“Office Lease Agreement”) with respect to the Master Premises; and

NOW, THEREFORE:

     The parties hereby agree as follows:

     1. SUBLEASE OF PREMISES. Sublessor hereby subleases to Sublessee, on the terms and
conditions set forth in this Agreement, that portion (“Premises”) of the Master Premises as shown
in attached Exhibit A.

     2. TERM. The Term of this Sublease shall commence on July 1, 2007, (“Commencement Date”) and
end on October 31, 2016 (“Termination Date”), unless otherwise sooner terminated in accordance with
the provisions of this Sublease.

     3. RENT.

     3.1 Base Rent. Sublessee shall pay directly to Lessor as monthly base rent (“Monthly Bas
Rent”), without deduction, setoff, notice, or demand, the sums as set forth below each month during
the periods indicated:

	 	 	 	 
	Effective Date-Dec. 31, 2007
	 	$	32,949.10
	Jan. 1, 2008-Dec. 31, 2008
	 	$	34,000.00
	Jan. 1, 2009-Dec. 31, 2009
	 	$	35,000.00
	Jan. 1, 2010-Dec. 31, 2010
	 	$	36,000.00
	Jan. 1, 2011-Dec. 31, 2011
	 	$	37,000.00
	Jan. 1, 2012-Dec. 31, 2012
	 	$	38,000.00
	Jan. 1, 2013-Dec. 31, 2013
	 	$	39,000.00

1

 

	 	 	 	 
	Jan. 1, 2014-Dec. 31, 2014
	 	$	40,000.00
	Jan. 1, 2015-Dec. 31, 2015
	 	$	41,000.00
	Jan. 1, 2016-Oct. 31, 2016
	 	$	42,000.00

If the Term begins or ends on a day other than the first or last day of a month, the rent for the
partial months shall be prorated on a per diem basis.

     3.2 Additional Rent: The Master Lease requires Sublessor to pay to Lessor certain additional
expenses of owning and operating the Master Premises, of which the Premises are a part, as
Additional Rent, including without limitation taxes, utilities, insurance, repairs, parking area
maintenance, security services, building personnel, labor costs, the amortized cost of capital
improvements to the Building that are primarily for the purpose of reducing operating expenses or
are required to comply with any laws or regulation, common area expenses, management fees,
assessments and any other expense or charge of any nature whatsoever which, in accordance with
general industry practice with respect to the operation of a first-class office building, would be
construed as an operating expense. Sublessee shall be responsible for payment of fifty percent
(50%) of the Additional Rent imposed on Sublessor for the Premises pursuant to the terms of the
Master Lease for all periods from and after the Effective Date. If Sublessor should pay Additional
Rent on the basis of an estimate thereof, then as and when adjustments between estimated and actual
cost are made under the Master Lease, the obligations of Sublessor and Sublessee hereunder shall be
adjusted in a like manner; and if any such adjustment shall occur after the expiration or earlier
termination of the Term, then the obligations of Sublessor and Sublessee under this Subsection 3.2
shall survive such expiration or termination. Sublessor shall, upon request by Sublessee, furnish
Sublessee with copies of all statements submitted by Lessor of actual or estimated costs during the
Term. Amounts charged by Sublessor to Sublessee on account of Additional Rent are defined as
Sublessee’s Additional Rent.

     3.3 Payments: Sublessee shall pay the Monthly Base Rent and Sublessee’s Additional Rent
(collectively “Rent”) in advance on or before the first day of each month during the Term. All
Rent not paid when due and payable shall bear interest at the maximum rate allowed by law from the
due date until paid. In addition, if Sublessee fails to pay any amount of Rent when due and
payable hereunder, a service fee equal to five percent (5%) of such unpaid amount will be due and
payable immediately by Sublessee to Toucan.

     4. SECURITY DEPOSIT. Sublessee shall deposit with Sublessor a Security Deposit in the amount
of thirty two thousand five hundred dollars ($32,500.00) as security for the full performance by
Sublessee of all of Sublessee’s obligations, covenants, conditions and agreements under this
Agreement. If any portion of the Security Deposit is so used, then within ten (10) business days
after Sublessor gives written notice to Sublessee of such use, Sublessee shall deposit with
Sublessor cash in amount sufficient to restore the Security Deposit to its original value of
$32,500.00, and Sublessee’s failure to do so shall constitute a default under this Agreement.
Sublessor shall not be required to maintain the Security Deposit in a separate account. Except as

2

 

may be required by law, Sublessee shall not be entitled to interest on the Security Deposit.
Within thirty (30) days after the later of the expiration or earlier termination of the Term or
Sublessee’s vacating the premises, Sublessor shall return Security Deposit to Sublessee, less such
portion thereof as Sublessor shall have appropriated to satisfy any default by Sublessee under this
Agreement.

     5. CONDITION OF PREMISES. Sublessee hereby accepts the Premises in their “AS IS” condition on
the Effective Date, and Sublessor and Lessor shall have no obligation to pay for any improvements
to the Premises. On expiration or sooner termination of the term of this Sublease, Sublessee shall,
at Sublessee’s sole expense, fully remove all of its personal property, shall fully vacate the
Premises and shall restore the Premises to the condition existing as of the Effective Date.

     6. REPAIRS AND ALTERATIONS. Sublessee, at its sole cost and expense, shall perform all
maintenance and repairs to the Premises as are necessary to keep the same in good condition and
repair throughout the entire Term, reasonable wear and tear excepted. Sublessee shall not make any
alterations to the Premises without first obtaining the written consent of Sublessor, such consent
being in Sublessor’s sole and absolute discretion.

     7. USE OF PREMISES. The Premises shall be used and occupied only for general office purposes,
and for no other use or purpose. Sublessee shall comply with the rules and regulations set forth
in Exhibit B.

     8. ENTRY. Sublessor or Lessor shall have the right to enter the Premises for any purpose.
Except in the event of an emergency, Sublessor or Lessor shall provide reasonable advance notice of
any entry into the Premises, which notice may be given verbally. If reasonably necessary for the
protection and safety of Sublessee and its employees, Lessor shall have the right to perform
repairs, alterations or additions in the Premises, provided that Lessor shall use reasonable
efforts to minimize interference to Sublessee’s business operations. Entry by Lessor hereunder
shall not constitute a constructive eviction or entitle Sublessee to any abatement or reduction of
rent by reason thereof.

     9. ASSIGNMENT AND SUBLETTING. Sublessee shall not assign this Sublease or further sublet all
or any part of the Premises without first obtaining the written consent of Sublessor, such consent
being in Sublessor’s sole and absolute discretion..

     10. TERMINATION OF MASTER LEASE. If the Master Lease terminates, this Sublease shall
terminate and the parties shall be relieved of any further liability or obligation under this
Sublease, provided however, that if the Master Lease terminates as a result of a default or breach
by Sublessor, Sublessor shall use commercially reasonable efforts to obtain, or assist Sublessee in
obtaining, consent of the Lessor for continuation of Sublessee’s occupancy of the Premises pursuant
to the terms of a new lease or sublease agreement, or the terms of this Sublease Agreement; and
provided further that if

3

 

the Master Lease terminates as a result of a default or breach by Sublessee, then Sublessee shall
be liable to Sublessor for the damages suffered by Sublessor as a result of such termination,
provided, however, that such damages shall include only direct damages and no consequential damages
of any kind. Notwithstanding the foregoing, if the Master Lease gives Sublessor any right to
terminate the Master Lease in the event of the partial or total damage, destruction, or
condemnation of the Master Premises or the building or project of which the Master Premises are a
part, then the exercise of such right by Sublessor shall not constitute a default or breach
hereunder.

     11. SUBLESSOR’S OBLIGATIONS. Toucan agrees that Sublessee shall be entitled to receive all
services, utilities and repairs to be provided by Lessor to Sublessor under the Master Lease with
respect to the Premises. Sublessee shall look solely to Lessor for all such services and utilities
and shall not, under any circumstances, seek or require Sublessor to perform any of such services
or provide any utilities, nor shall Sublessee make any claim upon Sublessor for any damages which
may arise by reason of Lessor’s default under the Master Lease. Any condition resulting from a
default by Lessor under the Master Lease (other than a default caused by Sublessor) shall not
constitute as between Sublessor and Sublessee an eviction, actual or constructive, of Sublessee and
no such default shall excuse Sublessee from the performance or observance of any of its obligations
to be performed or observed under this Sublease, or entitle Sublessee to receive any reduction in
or abatement or offset of the Rent provided for in this Sublease, except to the extent Sublessor
receives an abatement in its Rent under the Master Lease with respect to the Premises.

     12. DEFAULT BY SUBLESSEE. In the event Sublessee shall be in default of any covenant of, or
shall fail to honor any obligation under, this Sublease, Sublessor, upon giving any required notice
and subject to the right, if any, of Sublessee to cure any such default within any applicable cure
period, shall have available to it against Sublessee all of the remedies available to Lessor under
the Master Lease in the event of a similar default on the part of Sublessor thereunder or at law.

     13. ATTORNEYS’ FEES. In the event that Sublessor undertakes one or more legal actions against
the Sublessee with respect to any breach or breaches by Sublessee of this Agreement including,
without limitation, with respect to any unpaid amounts arising out of or in connection with this
Sublease, Sublessor shall be entitled to recover all costs relating to such actions including,
without limitation, reasonable attorney’s fees.

     14. LIENS. Sublessee will not permit any mechanic’s liens or other liens to be placed upon
the Premises or Sublessee’s leasehold interest therein or the Master Premises. In the event that
any such lien does attach, Sublessee shall, within ten (10) days of notice of the filing of said
lien, discharge such lien.

     15. INDEMNITY AND WAIVER OF CLAIMS. Sublessee shall indemnify, defend and hold Sublessor,
its members, principals, beneficiaries, partners, officers, directors, employees and agents, and
the respective principals and members of any such agents (collectively the “Sublessor Related
Parties”) harmless from and against all

4

 

liabilities, obligations, damages, penalties, claims, costs, charges and expenses, including,
without limitation, attorney’s fees and other professional fees (if and to the extent permitted by
law) (collectively “Claims”), which may be imposed upon, incurred by, or asserted against Sublessor
or any of the Sublessor Related Parties and arising directly or indirectly out of or in connection
with the use, occupancy or maintenance of the Premises by, through or under Sublessee. In case any
action or proceeding is brought against Sublessor or any of the Sublessor Related Parties by reason
of any of the foregoing, Sublessee shall, at Sublessee’s sole cost and expense, resist and defend
such action or proceeding with counsel approved by Sublessor or, at Sublessor’s option, reimburse
Sublessor for the cost of any counsel retained directly by Sublessor to defend and resist such
action or proceeding.

     Sublessor and the Sublessor Related Parties shall not be liable for, and Sublessee hereby
waives, all claims for loss or damage to Sublessee’s business or damage to person or property
sustained by Sublessee or any person claiming by, through or under Sublessee (collectively
“Sublessee Related Parties”) resulting from any accident or occurrence in, on or about the Premises
or the Building, including, without limitation, claims for loss, theft or damage resulting from:
(1) the Premises, Building or any equipment or appurtenances becoming out of repair; (2) wind or
weather; (3) any defect in or failure to operate, for whatever reason, any sprinkler, heating or
air conditioning equipment, electric wiring, gas, water or steam pipes; (4) broken glass; (5) the
backing up of any sewer pipe or downspout; (6) the bursting, leaking or running of any tank, water
closet, drain or other pipe; (7) the escape of steam or water; (8) water, snow or ice being upon or
coming through the roof, skylight, stairs, doorways, windows, walks or any other place upon or near
the Building; (9) the falling of any fixture, plaster, tile or other material; (10) any act,
omission or negligence of other tenants, licensees or any other persons or occupants of the
Building; or, (11) any other cause of any nature. To the maximum extent permitted by law,
Sublessee agrees to use and occupy the Premises, and to use other portions of the Building as
Sublessee is herein given the right to use, at Sublessee’s own risk.

     16. SUBLESSEE’S INSURANCE. At all times commencing on and after the Effective Date,
Sublessee shall carry and maintain, at its sole cost and expense:

          1. Commercial general liability insurance applicable to the Premises and its appurtenances
providing, on an occurrence basis, a minimum combined single limit of at least three million
dollars ($3,000,000.00), with a contractual liability endorsement covering Sublessee’s indemnity
obligations under this Sublease.

          2. All risks of physical loss insurance written at replacement cost value and with a
replacement cost endorsement covering all of Sublessee’s property in the Premises.

          3. Worker’s compensation insurance as required by the state in which the Premises is located
and in amounts as may be required by applicable statute, and employer’s liability coverage of at
least one million dollars ($1,000,000.00) per occurrence.

5

 

          4. Whenever good business practice, in Sublessor’s reasonable judgment, indicates the need
for additional insurance coverage in connection with the Premises or Sublessee’s use and occupancy
thereof, Sublessee shall, upon request, obtain such insurance at Sublessee’s expense and provide
Sublessor with evidence thereof.

     17. CASUALTY DAMAGE. If the Premises or any part thereof shall be damaged by fire or other
casualty, Sublessee shall give prompt written notice thereof to Sublessor. Sublessor, in its sole
discretion, may at its option terminate this Sublease by notifying Sublessee of such termination
within ninety (90) days after the date of such casualty. Such termination shall be effective as of
the date of fire or casualty, with respect to any portion of the Premises that was rendered
untenantable, and the effective date of termination specified in Sublessor’s notice, with respect
to any portion of the Premises that remained tenantable.

     18. HAZARDOUS MATERIALS. Sublessee shall not transport, use, store maintain, generate,
manufacture, handle, dispose, release, discharge, spill or leak any hazardous materials, or permit
a Sublessee Related Party to engage in such activities, on or about the Building. However, the
foregoing provision shall not prohibit the transportation to and from, and use, storage,
maintenance and handling within, the Premises of substances customarily and lawfully used in normal
office use, but only to the extent that said substances are safely transported, stored, used, and
disposed.

     Sublessee shall immediately notify Sublessor of (i) any regulatory action taken or threatened
by any regulatory authority with respect to any hazardous material on or from the Premises or the
migration thereof from or to other property, (ii) any demands or claims made or threatened by any
entity relating to any loss or injury claimed to have resulted from any hazardous material on or
from the Premises, (iii) any release, discharge, spill, leak, disposal or transportation of any
hazardous material on or from the Premises in violation of this Article, and any damage, loss or
injury to persons, property or business resulting or claimed to have resulted therefrom, and (iv)
any matters where Sublessee is required by law to give a notice to any regulatory authority
respecting any hazardous materials on or from the Premises.

     Sublessee shall be solely responsible for all costs including, without limitation, damages and
remediation of any kind whatsoever related to any violation of the provisions of this Article,
including without limitation, any release, discharge, spill or leak of any hazardous material.

     19. REMEDIES. Upon any default by Sublessee of any provision, representation, obligation or
undertaking in this Sublease, Sublessor shall have the option to pursue any one or more of the
following remedies without any notice or demand whatsoever:

          1. Terminate this Sublease, in which event Sublessee shall immediately surrender the Premises
to Sublessor.

6

 

          2. Enter upon and take possession of the Premises and expel or remove Sublessee or any other
entity that may be occupying said Premises, or any part thereof, without having any civil or
criminal liability therefore and without terminating this Sublease. Sublessor shall not be
responsible or liable for any failure to re-let the Premises or any part thereof or for any failure
to collect any Rent due upon any such re-letting.

          3. Enter upon the Premises without having any civil or criminal liability therefore, and do
whatever Sublessee is obligated to do under the terms of this Sublease, and Sublessee agrees to
reimburse Sublessor on demand for all reasonable costs and expenses that Sublessor may incur in
thus effecting compliance with Sublessee’s obligations under this Sublease.

          4. Sublessor may, at the expense and liability of Sublessee, alter or change any or all locks
or other devices controlling access to the Premises without giving notice of any kind to Sublessee.
Sublessor shall have no obligation to grant Sublessee access to the Premises so long as Sublessee
is in default under the Sublease. Sublessee shall not be entitled to recover possession of the
Premises, terminate this Sublease, or recover any actual, incidental, consequential, punitive,
statutory or other damages or award of attorneys’ fees. Sublessor may without notice, remove and
store, at Sublessee’s expense, any property belonging to Sublessee that remains in the Premises
after Sublessor has regained possession thereof, and may, after thirty (30) days written notice to
Sublessee, dispose of same.

          5. Terminate this Sublease, in which event, Sublessee shall immediately surrender the
Premises to Sublessor and pay to Sublessor the sum of: (a) all Rent accrued hereunder through the
date of termination, and, upon Sublessor’s determination thereof, (b) an amount equal to the total
Rent that Sublessee would have been required to pay for the remainder of the Term discounted to
present value at the prime rate then in effect.

     Except as otherwise herein provided, no repossession or re-entering of the Premises or any
part thereof shall relieve Sublessee of its liabilities and obligations hereunder, all of which
shall survive such repossession or re-entering. Notwithstanding any such repossession or
re-entering by reason of Sublessee’s default, Sublessee will pay to Sublessor the Rent required to
be paid by Sublessee pursuant to this Sublease.

     No right or other remedy herein conferred upon or reserved to Sublessor is intended to be
exclusive of any other right or remedy, and each and every right and remedy shall be cumulative and
in addition to any other right or remedy given hereunder or now or hereafter existing by agreement,
applicable law or in equity. Forbearance by Sublessor to enforce one or more of the remedies
herein provided upon Sublessee’s default shall not be deemed or construed to constitute a waiver of
such default or of any other or subsequent default.

7

 

     20. AGENCY DISCLOSURE. Toucan and Sublessee each represent that they have dealt with no real
estate broker in connection with this transaction.

     21. LIMITATION OF LIABILITY. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS SUBLEASE, THE
LIABILITY OF SUBLESSOR TO SUBLESSEE SHALL BE LIMTED TO SUBLESSOR’S INTEREST IN THE MASTER PREMISES,
IT BEING INTENDED THAT NEITHER SUBLESSOR NOR ANY MEMBER, PARTNER, SHAREHOLDER, OFFICER, DIRECTOR OR
AGENT OF TOUCAN SHALL BE PERSONALLY LIABLE FOR ANY JUDGMENT OR DEFICIENCY. UNDER NO CIRCUMSTANCES
SHALL SUBLESSOR OR ANY MEMBER, PARTNER, SHAREHOLDER, OFFICER, DIRECTOR OR AGENT OF SUBLESSOR BE
LIABLE FOR CONSEQUENTIAL OR SPECIAL DAMAGES OF ANY KIND.

     22. ATTORNEYS’ FEES. In the event that Toucan retain counsel and/or institutes any action
against Sublessee for violation of or to enforce any of the covenants or conditions of this
Sublease, Sublessor shall be entitled to receive from Sublessee all of Sublessor’s costs and
expenses in connection therewith, including, without limitation, reasonable attorney’s fees.

     23. SURRENDER OF PREMISES. At the expiration or earlier termination of this Sublease or
Sublessee’s right of possession hereunder, Sublessee shall remove all Sublessee property from the
Premises and surrender the Premises to Sublessor, broom clean and in good order, condition and
repair, ordinary wear and tear excepted. If Sublessee fails to remove any of Sublessee’s property
within one (1) day after the termination of this Sublease or Sublessee’s right to possession
hereunder, Sublessor, at Sublessee’s sole cost and expense, shall be entitled to remove and/or
store such Sublessee’s property and Sublessor shall in no event be responsible for the value,
preservation or safekeeping thereof.

     24. COMMISSION. Sublessor and Sublessee each warrant that no entity is due a commission with
respect to this Agreement.

     25. NOTICES. Anything contained in any provision of this Sublease to the contrary
notwithstanding, Sublessee agrees, with respect to the Premises, to comply with and remedy any
default in this Sublease or the Master Lease which is Sublessee’s obligation to cure, within the
period allowed to Sublessor under the Master Lease, even if such time period is shorter than the
period otherwise allowed therein due to the fact that notice of default from Sublessor to Sublessee
is given after the corresponding notice of default from Lessor to Sublessor. Sublessor agrees to
forward to Sublessee, promptly upon receipt thereof by Sublessor, a copy of each notice, including
notices of default, received by Sublessor in its capacity as Tenant under the Master Lease.
Sublessee agrees to forward to Sublessor, promptly upon receipt thereof, copies of any notices
received by Sublessee from Lessor or from any governmental authorities.

8

 

     All notices and demands which may or are to be required or permitted to be given by either
party on the other hereunder shall be in writing, and shall be sent by Certified United States
Mail, return receipt required, or by nationally recognized overnight courier service to the
addresses herein below, or to such other place as a party may from time to time designate in a
notice to the other party, or by fax transmission with confirmation receipt. A notice shall be
effective on actual delivery.

To Toucan:

Toucan Capital Fund II, LP

7600 Wisconsin Avenue

Seventh Floor

Bethesda, MD 20814

Attn: Linda F. Powers

To Sublessee:

Northwest Biotherapeutics, Inc.

7600 Wisconsin Avenue

Suite 750

Bethesda, MD 20814

Attn: Alton Boynton, Ph.D.

     26. COMPLIANCE. The parties hereto agree to comply with all applicable federal, state and
local laws, regulations, codes, ordinances and administrative orders having jurisdiction over the
parties, property or the subject matter of this Agreement.

     27. NO WAIVER. Failure by Sublessor to enforce its rights with respect to any one default
shall not constitute a waiver of its rights with respect to that default or any other or subsequent
default.

     28. COMPLETE AGREEMENT. This Agreement sets forth the entire understanding between the
parties hereto relating to the subject matter hereof and cannot be changed, modified, amended or
terminated except by an instrument in writing executed by both Recipient and Discloser. The
headings and captions used herein are inserted for convenience of reference only and shall not
affect the construction or interpretation of this Agreement.

     29. GOVERNING LAW. The governing law applicable to this Sublease Agreement shall be the same
as applicable under the Office Lease Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized as of the Effective Date first written above.

9

 

	 	 	 	 	 	 	 	 	 	 	 
	Sublessor: Toucan Capital Corp.	 	Sublessee: Northwest Biotherapeutics, Inc.  
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Scott Sanzone	 	 	 	/s/ Anthony P. Deasey	 	 
	 	 	 	 	 	 	 
	By:

	 	Scott Sanzone
	 	 	 	By:
	 	Anthony P. Deasey	 	 
	Title:

	 	Principal
	 	 	 	Title:
	 	 Senior Vice President and
Chief Financial Officer	 	 
	 

	 	Toucan Capital Corporation
	 	 	 	 	 	Northwest Biotherapeutics, Inc	 	 

10

 

Exhibit A

Sublease Premises

11

 

Exhibit B

Rule and Regulations

12Exhibit 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (“Agreement”) is made as of January 1, 2008 by and between Cyclacel Pharmaceuticals, Inc., a Delaware corporation, (“Company”) and Spiro Rombotis (“the Executive”).

WHEREAS, Company desires to continue to retain the Executive’s services as its President and Chief Executive Officer; and

WHEREAS, Company and the Executive are desirous of agreeing the terms and conditions of the Executive’s employment with the Company as set forth herein.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and conditions herein contained, the parties hereby agree as follows:

1. Employment. Company hereby employs the Executive and the Executive accepts such employment according to the terms and conditions set forth in this Agreement.

2. Term. Except for earlier termination as hereinafter provided for, the term of the Executive’s employment hereunder shall be for a period commencing on January 1, 2008 (“Commencement Date”) and continuing through January 1, 2011; the third anniversary of the Commencement Date. Notwithstanding the foregoing, the Executive’s employment by the Company hereunder may be earlier terminated, subject to Section 9 hereof, upon the occurrence of any one of the following events: (i) the Company’s decision to terminate the Executive, (ii) the Executive’s decision to voluntarily resign or retire at any time or (iii) the parties’ mutual agreement in writing to terminate the Executive’s employment hereunder at any time. The period of time between the Commencement Date and termination of the Executive’s employment hereunder shall be referred to herein as the
“Employment Period”.

3. Position and Services. (i) The Executive will hold the position of President and Chief Executive Officer of the Company. The Executive will report directly to the Board of Directors of the Company (the “Board”) and shall have such duties, responsibilities and authority with respect to such positions as are set forth in the Bylaws of the Company, which duties and responsibilities shall in all events include, but not be limited to, overall management responsibility for the operations and administration of the Company.

(ii) The Executive will be expected to be in the full-time employment of the Company, to devote substantially all of his business time, attention and efforts to the performance of his duties hereunder. Notwithstanding the foregoing, the Executive may make and manage personal business investments of his choice and serve in any capacity with any civic, educational or charitable organization, or any trade association, without seeking or obtaining approval by the Board, provided such activities and service do not materially interfere or conflict with the performance of his duties hereunder or violate the non-competition provisions of Section 12 hereof.

 

 

(iii) The Executive expressly agrees that during the Employment Period he will not be interested, directly or indirectly, in any form, fashion or manner, as a partner, officer, director, advisor, employee, consultant, controlling stockholder or in any other form or capacity, in any other business or company, except that he would not be prohibited by Section 12 hereof to serve as (a) member of one other Board of Directors of a commercial organization, or (b) a member of one or more Boards of Directors or Trustees of a charitable organization, as may, upon advance notice from the Executive be approved by the Board in its discretion after consideration of possible conflicts, reputation(al) effects, time requirements and other interests of the Company. 

In addition effective upon the Commencement Date, the Executive will be nominated to the Board for a term ending at the 2011 annual meeting. The Board will use its best efforts to cause the nomination of the Executive thereafter for reelection to the Board for successive terms, at every time at which directors are nominated to the stockholders for election, as long as the Executive serves as President and Chief Executive Officer unless the Executive declines such nomination in writing to the Board. As with all members of the Board, the Executive’s continuation as a director requires election as a director by the stockholders whenever directors are to be elected by the stockholders.

4. Base Salary. Company shall pay to the Executive an initial base salary at an annual rate of $440,000, subject to applicable income and employment tax withholdings and all other required and authorized payroll deductions and withholdings. The Executive’s salary shall be payable at the same time and basis as the Company pays its payroll in general. Increases in the Executive’s annual base salary during the Employment Period may be effected from time to time based upon the review and approval of the Compensation Committee of the Board (the “Compensation Committee”). During the Employment Period, the Executive’s base salary rate shall not be reduced below the initial base salary rate provided hereunder, nor below any increased base salary rate that may be effected as provided hereunder, except if the Board, in response to exceptionally adverse business circumstances
makes a general temporary reduction in the compensation of the executives of the Company.

5. Annual Incentive Bonus. In addition to the Executive’s base salary as provided above, the Executive will be eligible for an annual cash incentive bonus for each calendar year of the Employment Period. The bonus for which the Executive is eligible for each such year will be based on a percentage of base salary and may be increased for above-plan performance as established by the Compensation Committee in its discretion and upon consultation with the Executive at the beginning of each year. The annual bonus hereunder will be payable based upon the satisfaction of performance criteria that will be established by the Compensation Committee in its discretion and upon consultation with the Executive at the beginning of each year, subject to the approval of the Board. Such performance criteria will include corporate performance goals consistent with the Company’s business plan for the
year, as well as individual objectives for the Executive’s performance that may be separate from, but are consistent with, the Company’s business plan. The final determinations as to the actual corporate and individual performance against the pre-established goals and objectives, and the amount of the bonus payout in relationship to such performance, will be made by the Compensation Committee in its sole discretion. To the extent the Company awards the

 

 

2

 

Executive a cash bonus, the bonus, if payable, shall be calculated and paid no later than two and a half months following the later of the close of the calendar or Company fiscal year to which such bonus relates. 

6. Executive Benefits. The Executive shall be entitled to receive employment benefits in accordance with the Company’s benefit policies in effect from time to time, including, without limitation, 401(k) plan, medical, dental and life insurance, accidental death, travel accident, short and long-term disability insurance, profit sharing, long-term incentive plans and 15 working days of paid vacation annually.

7. Expenses. The Company shall reimburse the Executive for all reasonable and necessary expenses incurred by him in connection with the performance of his services for the Company upon submission of expense reports and documentation in accordance with the Company’s policies. The Company may request additional documentation or a further explanation to substantiate any expense submitted for reimbursement, and retains the discretion to approve or deny a request for reimbursement. If an expense reimbursement is not exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), any reimbursement in one calendar year shall not affect the amount that may be reimbursed in any other calendar year and a reimbursement (or right thereto) may not be exchanged or liquidated for another benefit or payment. Any expense reimbursements subject to Section 409A of the Code
shall be made no later than the end of the calendar year following the calendar year in which such business expense is incurred by the Executive.

8. Indemnification. The Company shall indemnify the Executive in accordance with the Company’s By-laws. The Company agrees that it will make all commercially reasonable efforts to keep in full force and effect, for the duration of all applicable statute of limitations periods, directors and officers liability insurance policies on terms at least as favorable to the Executive as those in effect on the date hereof.

9. Termination. This Agreement does not grant the Executive any right or entitlement to be retained by the Company. In the event of termination by the Company of the Executive’s employment under the circumstances described below in this Section 9, the Executive shall be entitled to the severance pay and benefits so specified.

(a) Certain Definitions. For purposes of this Section 9, the following terms shall have the meanings given below:

 (i) Termination For Cause. The employment of the Executive hereunder shall be deemed to have been terminated “For Cause” if the Company shall have terminated the Executive as a result of any of the following:  (A) any act committed by the Executive which shall represent a breach in any material respect of any of the terms of this Agreement and which breach is not cured within 30 days of receipt by the Executive of written notice from the Company of such breach; (B) improper conduct, consisting of any willful act or omission with the intent of obtaining, to the material detriment of the Company, any benefit to which the Executive would not otherwise be entitled; (C) gross negligence, consisting of wanton and reckless acts or omissions in the performance of the Executive’s duties to the material

 

 

3

 

detriment of the Company; (D) addiction to drugs or chronic alcoholism or (E) any conviction of, or plea of nolo contendere to, a crime (other than a traffic violation) under the laws of the United States or any political subdivision thereof provided that the Executive receives a copy of a resolution duly adopted by a two thirds majority affirmative vote of the membership of the Board excluding the Executive, at a meeting of the Board called and held for such purpose after the Executive has been given reasonable notice of such meeting and has been given an opportunity, together with his counsel, to be heard by the Board, finding that in the good faith opinion of the Board the Executive was guilty of the conduct set forth and specifying the particulars thereof in detail.

(ii) Termination Without Cause. The employment of the Executive hereunder shall be deemed to have been terminated “Without Cause” upon (A) termination of employment by the Company for any reason other than the reasons specified in Section 9(a)(i) hereof as termination “For Cause” or (B) termination of employment by the Executive within 30 days following a “Constructive Termination” event. For purposes hereof, the following shall constitute Constructive Termination events: (1) any removal of the Executive from the position of President or Chief Executive Officer, (2) any substantive reduction of the Executive’s duties, responsibilities or authority, including any change in the Executive’s positions as President or Chief Executive Officer that results in such a reduction, (3) a reduction by the Company in the Executive’s base salary in
effect on the date hereof or as may be increased from time to time except if the Board in response to exceptional adverse business circumstances makes a general temporary reduction in the compensation of the executives of the Company, (4) a failure by the Company to continue any bonus plans in which the Executive is presently entitled to participate (the “Bonus Plans”) as the same may be modified from time to time but substantially in the form currently in effect, or a failure by the Company to continue the Executive as a participant in the Bonus Plans on at least the same basis as the Executive presently participates in accordance with the Bonus Plans (other than for customary yearly variations), (5) the Company’s requiring the Executive without the Executive’s express written consent to be based anywhere other than within 50 miles of the Executive’s present office location, except for required travel on the Company’s business to an extent substantially
consistent with the Executive’s present business travel obligations, (6) a failure by the Company to offer Executive all benefits offered to all Company employees and (7) any purported termination of the Executive’s employment which is not effected pursuant to the terms of this Agreement. No such purported termination shall be effective. 

The foregoing shall be treated as Constructive Termination events hereunder following the expiration of 30 days from the date the Executive has notified Company (within 90 days) of the occurrence of such event and the Executive’s intention to treat such event as a constructive termination and terminate the Executive’s employment on the basis thereof, provided that Company has not cured the constructive termination event before the expiration of such 30-day period.

(iii) Disability. The Executive shall be treated as having suffered a “Disability” if the Executive is prevented from performing his duties hereunder by reason of illness or injury for a period of either (A) six or more consecutive months from the First Date of Disability (as defined below) or (B) eight months in the aggregate during any 12-month period. The date as

 

 

4

 

of which the Executive is first absent from employment as a result of such illness or injury shall be referred to herein as the “First Date of Disability”. Notwithstanding the foregoing, if and only to the extent that Executive’s disability is a trigger for the payment of deferred compensation, as defined in Section 409A of the Code, “disability” shall have the meaning set forth in Section 409A(a)(2)(C) of the Code.

(iv) Change in Control. A “Change in Control” shall be deemed to have taken place if:

(A) there shall be consummated any consolidation or merger of the Company in which Company is not the continuing or surviving corporation or pursuant to any transaction in which shares of the Company’s capital stock are converted into cash, securities or other property, or any sale, lease, exchange or other transfer in one transaction or a series of transactions contemplated or arranged by any party as a single plan of all or substantially all of the assets of the Company, or the approval of a plan of complete liquidation or dissolution of the Company adopted by the stockholders of the Company; or

(B) any person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) shall after the date hereof become the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of securities of the Company representing 35% or more of the voting power of all then outstanding securities of the Company having the right under ordinary circumstances to vote in an election of the Board (including, without limitation, any securities of the Company that any such person has the right to acquire pursuant to any agreement, or upon exercise of conversion rights, warrants or options, or otherwise, shall be deemed beneficially owned by such person); or

(C) individuals who at the date hereof constitute the entire Board and any new directors whose election by the Board, or whose nomination for election by the Company’s stockholders, shall have been approved by a vote of at least a majority of the directors then in office who either were directors at the date hereof or whose election or nomination for election shall have been so approved (the “Continuing Directors”) shall cease for any reason to constitute a majority of the members of the Board.

(b) Termination Without Cause. In the event of termination of the Executive’s employment hereunder by Company “Without Cause” (other than for a Termination for a Change of Control hereinafter separately provided for) the Executive shall be entitled to the following severance pay and benefits:

(i) Severance Pay - severance payments in the form of continuation of the Executive’s base salary as in effect immediately prior to such termination for a period of 12 months following the effective date of such termination. 

(ii) Benefits Continuation - continued coverage under the Company’s medical care and life insurance benefit plans in which the Executive is participating at the time of termination, on the same terms as applicable to other executive employees of the Company

 

 

5

 

from time to time, over the same period with respect to which the Executive’s base salary is continued as provided in Section 9(b)(i) hereof; provided, however, that the Company’s obligation to provide such coverages shall be terminated if the Executive obtains substitute coverage from another employer of the Executive at any time during the continuation period; the Executive shall be obligated to notify Company of any such substitute coverage and the date of commencement thereof promptly upon obtaining any such coverage; the Executive shall be entitled, at the expiration of the period of benefits continuation under this Section 9(b)(ii), to elect continued medical coverage upon timely election of COBRA continuation coverage, in accordance with Section 4980B of the Internal Revenue Code of 1986, as amended (or any successor provision thereto) with the Company premiums paid at the same
percentage as prior to the Executive’s termination; provided that, if COBRA continuation coverage is otherwise earlier terminated under applicable law, then, in lieu of coverage, the Company will pay its share of the monthly Company premium in effect prior to the termination of COBRA continuation coverage directly to the Executive each month for the remainder of the relevant period; and 

(iii) Stock Options - all options to purchase shares of  the Company’s common stock held by the Executive and which are vested immediately prior to termination of employment shall become exercisable for a period of six months following the effective date of termination of employment.

(iv) 409A Compliance - notwithstanding any other provision with respect to the timing of payments under Section 9(b), if, at the time of the Executive’s termination, the Executive is deemed to be a “specified employee” of the Company within the meaning of Section 409A(a)(2)(B)(i) of the Code, then only to the extent necessary to comply with the requirements of Section 409A of the Code, any payments to which the Executive may become entitled under Section 9(b) which are subject to Section 409A of the Code (and not otherwise exempt from its application) will be withheld until the first business day of the seventh month following the date of termination, at which time the Executive shall be paid an aggregate amount equal to six months of payments otherwise due to the Executive under the terms of Section 9(b) as applicable. After the first business day of the seventh
month following the date of termination and continuing each month thereafter, the Executive shall be paid the regular payments otherwise due to the Executive in accordance with the terms of Section 9(b), as thereafter applicable. 

(c) Termination following Change in Control. In the event of termination of the Executive’s employment within six months following a Change of Control the Executive shall be entitled to the following severance pay and benefits:

 (i) Severance Pay -Severance payments in the form of continuation as the Executive’s base salary as in effect immediately prior to such termination for a period of 24 months following the effective date of termination.

 (ii) Benefits Continuation - continued coverage under the company’s medical care and life insurance benefit plans in which the Executive is participating at the time of termination, or the same terms as applicable to other executives of employees of the Company from time to

 

 

6

 

time over the same period with respect to which the Executive’s base salary is continued as provided in Section 9(c)(i) hereof provided, however that the Company’s obligation to provide such coverages shall be terminated if the Executive attains substitute coverage from another employer at any time during the continuation period; the Executive shall be obligated to notify Company of any such substitute coverage and the date of commencement thereof promptly upon attaining any such coverage; the Executive shall be entitled after the expiration of the period of benefit continuation under the Section 9(c)(ii).

 (iii) Stock Options - all options to purchase shares of the Company’s common stock held by the Executive shall be vested and be exercisable for a period of 18 months following the effective date of termination.

 (iv) Return to London - the Company will reimburse Executive for out of pocket expenses reasonably incurred by the Executive in connection with the relocation of Executive’s family and household goods from the New York-New Jersey metropolitan area to London.

 (v) 280G Excise Tax - it is the intention of Executive and the Company that no payments made or benefits provided by the Company to or for the benefit of Executive under this Agreement or any other agreement or plan pursuant to which Executive is entitled to receive payments or benefits shall be non-deductible to the Company by reason of the operation of Section 280G of the Code (the “280G Excise Tax”), relating to golden parachute payments. 

(A) The Company agrees that in the event any payments to Executive pursuant to this Agreement would result in a payment to Executive that would trigger any 280G Excise Tax, if appropriate and permissible, the Company shall first submit to its stockholders for approval the transaction that may result in the imposition of the 280G Excise Tax upon Executive in accordance with the regulations of the Internal Revenue Code governing shareholder approval of transactions giving rise to 280G Excise Tax liability.

(B) If the procedure set forth in Section 9(c)(v)(A) is not available, if any payment, award, benefit or distribution by the Company to or for the benefit of Executive would be subject to the 280G Excise Tax or any corresponding provisions of state or local tax laws as a result of payment to Executive, or any interest or penalties are incurred by Executive with respect to such 280G Excise Tax, then Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by Executive of all taxes (including any interest or penalties imposed with respect to such taxes) imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the 280G Excise Tax imposed upon the payments.

(d) Termination Upon Disability or Death. In the event of termination of the Executive’s employment hereunder on account of the Executive’s “Disability” or death, the Executive or the Executive’s heirs, estate or personal representatives under law, as applicable, shall be entitled to the following severance pay and benefits:

 

 

7

 

(i) Severance Pay - severance payments in the form of continuation of the Executive’s base salary as in effect immediately prior to such termination for a period of 12 months following the First Date of Disability, reduced by the amounts of any payments received from any short-term or long-term disability plan of the Company;

 (ii) Benefits Continuation - the same benefits as provided in Section 9(c)(ii) above, to be provided during the Employment Period while the Executive is suffering from Disability and for a period of 12 months following the effective date of termination of employment by reason of Disability; and

 (iii) Stock Options - all options to purchase shares of the Company’s common stock held by the Executive which are exercisable immediately prior to termination of employment shall remain exercisable for a period of 12 months following the effective date of termination of employment.

(e) Other Terminations. In the event of termination of the Executive’s employment hereunder for any reason other than those specified in subsections (b) through (d) of this Section 9, the Executive shall not be entitled to any severance pay, benefits continuation or stock option rights contemplated by the foregoing provisions of this Section 9, except as otherwise provided in the applicable benefit plans of the Company that cover the Executive.

(f) Accrued Rights. Notwithstanding the foregoing provisions of this Section 9, in the event of termination of the Executive’s employment hereunder for any reason, the Executive shall be entitled to payment of any unpaid portion of his base salary, computed on a pro-rata basis through the effective date of termination, and payment of any accrued but unpaid rights in accordance with the terms of any incentive bonus or employee benefit plan or program of the Company.

(g) Conditions to Severance Benefits. (i) As conditions of the Executive’s entitlement and continued entitlement to the severance payments and benefits provided by this Section 9, the Executive is required to (i) honor in accordance with their terms the provisions of Sections 10, 11 and 12 hereof and (ii) execute and honor the terms of a waiver and release of claims against the Company substantially in the form attached hereto as Exhibit A (and as may be modified consistent with the purposes of such waiver and release to reflect changes in law following the date hereof). The parties hereto agree that the Executive is under no affirmative obligation to seek to mitigate or offset the severance payments and benefits provided by this Section 9.

(ii) For purposes only of this Section, the Executive shall be treated as having failed to honor the provisions of Sections 10, 11 or 12 hereof only upon the passing of a resolution by a majority of the Board making such a determination following notice of the alleged failure by Company to the Executive, an opportunity for the Executive to cure the alleged failure for a period of 30 days from the date of such notice and the Executive’s opportunity to be heard on the issue by the Board.

 

 

8

 

(iii) Stock Options. Notwithstanding any other provisions of this Agreement to the contrary, in the event that the Executive continues to serve as a member of the Board following his termination of employment from Company, his rights with respect to the vesting and exercisability of the options shall continue in the same manner as other non-executive  members of the Board.

10. Confidentiality. The Executive agrees that he will not at any time during the term hereof or thereafter for any reason, in any fashion, form or manner, either directly or indirectly, divulge, disclose or communicate to any person, firm, corporation or other business entity, in any manner whatsoever, any confidential information or trade secrets concerning the business of the Company (including the business of any unit thereof), including, without limiting the generality of the foregoing, the names of any of its customers, the prices at which it obtains or has obtained any products or services, the techniques, methods or systems of its operation or management, any customer proposals or other business opportunities, any information regarding its financial matters, or any other material information concerning the business of the Company, its manner of operation, its plans or other material
data. The provisions of this paragraph shall not apply to (i) information disclosed in the performance of the Executive’s duties to the Company based on his good faith belief that such a disclosure is in the best interests of the Company; (ii) information that is public knowledge; (iii) information disseminated by the Company to others in the ordinary course of the Company’s business, in order to further such business, provided the recipient of such information agrees to be subject to a confidentiality obligation at least comparable to that herein; (iv) information or knowledge lawfully received by the Executive from a third party who, based upon due inquiry by the Executive, is not bound by a confidential relationship to the Company; or (v) information disclosed under a requirement of law or as directed by applicable legal authority having jurisdiction over the Executive. 

11. Inventions. (i) To the extent that any of the Company’s current or future products or services relate to, embody or incorporate concepts, technology or products of any kind relevant to the Company or its subsidiaries or affiliates that the Executive directly or indirectly conceived or developed prior to the date hereof during the period of his employment by Company (“Prior Technology”), the Executive assigns in perpetuity to Company any and all of his rights, title and interests, if any, to utilize, without any cost to the Company, such Prior Technology, and the Executive agrees to assist Company in taking all action that may be reasonably required, at the Company’s expense, to secure for the Company the benefits of the Executive’s ownership or rights, if any, to use all such Prior Technology.

(ii) The Executive is hereby retained in a capacity such that the Executive’s responsibilities include the making of technical, managerial and promotional contributions of value to the Company. The Executive hereby assigns to Company all rights, title and interest in such contributions and inventions made or conceived by the Executive alone or jointly with others which relate to the business of the Company. This assignment shall include (a) the right to file and prosecute patent applications on such inventions in any and all countries, (b) the patent applications filed and patents issuing thereon, and (c) the right to obtain copyright, trademark or trade name protection for any such work product. The Executive shall promptly and fully disclose all such contributions and inventions to the Company and assist the

 

 

9

 

Company in obtaining and protecting the rights therein (including patents thereon), in any and all countries; provided, however, that said contributions and inventions will be the property of the Company, whether or not patented or registered for copyright, trademark or trade name protection, as the case may be. Inventions conceived by the Executive which are not related to the business of the Company (as determined in good faith by the Board), will remain the property of the Executive.

12. Non-Competition. (i) the Executive agrees that he shall not during the Employment Period and for a period of one year after the termination or end thereof for any reason, without the approval of the Board which, after the end of the Employment Period, shall not unreasonably be withheld or delayed, directly or indirectly, alone or as partner, joint venturer, officer, director, employee, consultant, agent, independent contractor or controlling stockholder (other than as provided below) of any Company or business, engage in any “Competitive Business” within the United States. For purposes of the foregoing, the term “Competitive Business” shall mean any business involved in the research, development, or sale of anticancer targeted therapeutics that are nucleoside analogues, CDK inhibitors or Aurora/VEGFR2 inhibitors and/or medicines for the treatment of radiation dermatitis
or xerostomia or any other business in which the Company has been engaged up to and until the relevant time (as determined by the Board of Directors); provided that, this provision shall in no way prevent the Executive, after the end of the Employment Period, from being employed as a consultant.

(ii) Notwithstanding the provisions of clause (i) above or any other provision of this Agreement to the contrary, the Executive shall not be prohibited during the period applicable under clause (i) above from acting as a passive investor where (a) in the case of a Competitive Business being a public corporation, the Executive owns not more than five percent (5%) of the issued and outstanding capital stock or such higher percentage or amount as may be approved by the Board upon notice from the Executive prior to obtaining such interest; provided, however, that the Executive shall not be treated as having violated the provisions of this Section 12 if in good faith he is unaware that an entity in which he has an investment interest would be treated as a Competitive Business and, upon becoming aware of such involvement, the Executive makes reasonable efforts to divest himself of his
interest in such business; (b) in the case of any employer or entity other than a Competitive Business that is engaged in, or whose affiliates are engaged in, the development or marketing of products or technologies that are directly or indirectly competitive with any product or technology that is developed or marketed or proposed to be developed or marketed by Company during the Employment Period, the Executive owns not more than five percent (5%) of the issued and outstanding capital stock; or (c) receiving stock, options or warrants from any entity with which the Executive can have a relationship pursuant to clause (i) above as part of the Executive’s compensation for services rendered or to be rendered.

13. Breach of Restrictive Covenants. The parties agree that a breach or violation of Sections 10, 11 or 12 hereof will result in immediate and irreparable injury and harm to the innocent party, who shall have, in addition to any and all remedies of law and other consequences under this Agreement, the right to an injunction, specific performance or other equitable relief to prevent the violation of the obligations hereunder.

 

 

10

 

14. Notices. Any notice required to be given pursuant to the provisions of this Agreement shall be in writing and, if mailed, sent by registered mail, postage prepaid, to the party named at the address set forth below, or at such other address as each party may hereafter designate in writing to the other party:

Company: 200 Connell Drive #1500

Berkeley Heights, NJ 07922

Attention: Chairman of the Board

Executive: c/o Cyclacel Pharmaceuticals, Inc.

200 Connell Drive #1500

Berkeley Heights, NJ 07922

Any such notices shall be deemed to have been delivered when served personally in the manner specified above.

15. Dispute Resolution. The parties shall waive trial by jury in any dispute between them.

16. Entire Agreement.

(a) Change, Modification, Waiver. No change or modification of this Agreement shall be valid unless it is in writing and signed by each of the parties hereto. No waiver of any provision of this Agreement shall be valid unless it is in writing and signed by the party against whom the waiver is sought to be enforced. The failure of a party to insist upon strict performance of any provision of this Agreement in any one or more instances shall not be construed as a waiver or relinquishment of the right to insist upon strict compliance with such provision in the future.

(b) Integration of All Agreements. This Agreement constitutes the entire Agreement between the parties and is intended to be an integration of all agreements between the parties with respect to the Executive’s service with Company. Except as provided in Section 8 hereof concerning the Indemnification Agreement, any and all prior agreements between the Executive and the Company with respect to the Executive’s service with the Company are hereby revoked.

(c) Severability of Provisions. If for any reason any provision of this Agreement should be declared void or invalid, such declaration shall not affect the validity of the rest of this Agreement, which shall remain in force as if executed with the void or invalid provision eliminated.

17. Binding Effect. This Agreement shall be binding upon all parties hereto and their heirs, successors and assigns. This Agreement shall be assignable by Company to any entity acquiring all or substantially all of the assets of the Company.

 

 

11

 

18. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey. 

19. Miscellaneous.

(a) Form. As employed in this Agreement, the singular form shall include, if appropriate, the plural.

(b) Headings. The headings employed in this Agreement are solely for the convenience and reference of the parties and are not intended to be descriptive of the entire contents of any paragraph and shall not limit or otherwise affect any of terms, provisions, or construction thereof. 

 

 

12

 

IN WITNESS WHEREOF, this Agreement is executed as of the date first above written.

 

	
                        COMPANY:
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 
	
                         
 /s/ David C. U’Prichard
 	
                         
 	
                         
 	
                         
 
	
                        Name: 
 	
                        David C. U’Prichard
 	
                         
 	
                         
 	
                         
 
	
                        Title: 
 	
                        Chairman
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                        EXECUTIVE:
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                        /s/ Spiro Rombotis
 	
                         
 	
                         
 	
                         
 
	
                        Spiro Rombotis
 	
                         
 	
                         
 	
                         
 

 

 

13

 

EXHIBIT A

1. Your Release of Claims. You hereby agree and acknowledge that by signing this Agreement, and for other good and valuable consideration, you are waiving your right to assert any and all forms of legal claims against the Company1/ of any kind whatsoever, whether known or unknown, arising from the beginning of time through the date you execute this Agreement (the “Execution Date”). Except as set forth below, your waiver and release herein is intended to bar any form of legal claim, complaint or any other form of action (jointly referred to as “Claims”) against the Company seeking any form of relief including, without limitation, equitable relief (whether declaratory, injunctive or otherwise), the recovery of any damages, or any other form of monetary
recovery whatsoever (including, without limitation, back pay, front pay, compensatory damages, emotional distress damages, punitive damages, attorneys fees and any other costs) against the Company, for any alleged action, inaction or circumstance existing or arising through the Execution Date.

Without limiting the foregoing general waiver and release, you specifically waive and release the Company from any Claim arising from or related to your prior employment relationship with the Company or the termination thereof, including, without limitation:

	
                         
 	
                        **
 	
                        Claims under any state or federal discrimination, fair employment practices or other employment related statute, regulation or executive order (as they may have been amended through the Execution Date) prohibiting discrimination or harassment based upon any protected status including, without limitation, race, national origin, age, gender, marital status, disability, veteran status or sexual orientation. Without limitation, specifically included in this paragraph are any Claims arising under the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans With Disabilities Act and any similar Federal and state statute.
 

	
                         
 	
                        **
 	
                        Claims under any other state or federal employment related statute, regulation or executive order (as they may have been amended through the Execution Date) relating to wages, hours or any other terms and conditions of employment. 
 

	
                         
 	
                        **
 	
                        Claims under any state or federal common law theory including, without limitation, wrongful discharge, breach of express or implied contract, promissory estoppel, unjust enrichment, breach of a covenant of good faith and fair dealing, violation of public policy, defamation, interference with contractual relations, intentional or negligent infliction of emotional distress, invasion of privacy, misrepresentation, deceit, fraud or negligence.
 

______________
1/ For purposes of this Agreement, the Company includes the Company and any of its divisions, affiliates (which means all persons and entities directly or indirectly controlling, controlled by or under common control with the Company), subsidiaries and all other related entities, and its and their directors, officers, employees, trustees, agents, successors and assigns.

 

 

14

 

	
                         
 	
                        **
 	
                        Any other Claim arising under state or federal law.
 

Notwithstanding the foregoing, nothing contained in this Release constitutes a waiver of any Claims you may have against the Company arising from or related to the Indemnification Agreement and By-laws provisions referenced in Section 8 of the Employment Agreement, dated January 1, 2008, entered into between you and the Company. 

You acknowledge and agree that, but for providing this waiver and release, you would not be receiving the economic benefits being provided to you under the terms of this Agreement. 

It is the Company’s desire and intent to make certain that you fully understand the provisions and effects of this Agreement. To that end, you have been encouraged and given the opportunity to consult with legal counsel for the purpose of reviewing the terms of this Agreement. Also, because you are over the age of 40 and consistent with the provisions of the Age Discrimination in Employment Act (“ADEA”), which prohibits discrimination on the basis of age, the Company is providing you with twenty-one (21) days in which to consider and accept the terms of this Agreement by signing below and returning it to me at: [name], [address].

You may rescind your assent to this Agreement if, within seven (7) days after you sign this Agreement, you deliver by hand or send by mail (certified, return receipt and postmarked within such 7 day period) a notice of rescission to me at the Company. The eighth day following your signing of this Agreement is the Effective Date.

Also, consistent with the provisions of Federal and state discrimination laws, nothing in this release shall be deemed to prohibit you from challenging the validity of this release under such discrimination laws (the “ Discrimination Laws”) or from filing a charge or complaint of age or other employment related discrimination with the Equal Employment Opportunity Commission (“EEOC”) or state equivalent, or from participating in any investigation or proceeding conducted by the EEOC or state equivalent. Further, nothing in this release or Agreement shall be deemed to limit the Company’s right to seek immediate dismissal of such charge or complaint on the basis that your signing of this Agreement constitutes a full release of any individual rights under the Discrimination Laws, or to seek restitution to the extent permitted by law of the economic benefits
provided to you under this Agreement in the event that you successfully challenge the validity of this release and prevail in any claim under the Discrimination Laws.

 

	
                         
 	
                         
 	
                         
 
	
                          
 	
                         
 	
                        By: 
 	
                         
 /s/ Spiro Rombotis
 
	
                         
 	
                         
 	
                         
 	
                        Spiro Rombotis
 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Date signed: March 20, 2008
 

 

 

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]