Document:

exv10w17

 

EXHIBIT 10.17

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY APPLICABLE STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT UNDER SAID ACT OR LAWS OR PURSUANT TO AN EXEMPTION THEREFROM.

AXCESS INTERNATIONAL, INC.

Convertible Note

			
	$150,000
	 	December 17, 2007                    

Subject to the terms and conditions of this Note, for good and valuable
consideration received, Axcess International, Inc. (“Axcess”) hereby promises to
pay to the order of the Amphion Innovations plc (“Amphion”) the principal
amount of One Hundred and Fifty Thousand Dollars ($150,000.00), plus simple
interest, accrued on unpaid principal from December 17, 2007, until paid, at the
rate of Five percent (5.00%) per annum (365-day year basis) payable on
December 31, 2007 (the “Maturity Date”). If Axcess completes an offering of any
of its securities and the aggregate proceeds to Axcess are at least $1,000,000
(“Transaction”) prior to December 31, 2007, then Amphion will have the option to
convert this note on the same terms as the completed offering.

Upon the occurrence of the Transaction described above, the principal amount and
all unpaid interest, of this Note shall convert on similar terms to the
Transaction. This Note, including the principal amount and all accrued and
unpaid interest hereunder, may otherwise be prepaid in whole or in part at any
time at the option of Axcess, without premium or penalty.

Payment of the principal amount of this Note and any accrued and unpaid interest
hereunder shall be made in such coin or currency of the United States of America
as at the time of payment shall be legal tender for the payment of public and
private debts. Any such payment shall be paid by wire transfer of federal funds
in accordance with the written instructions of Amphion or, in the absence of
current written instructions, by check mailed to Amphion at the address last
given to Axcess by Amphion in writing for such purpose.

Except as otherwise expressly provided herein, Axcess hereby waives presentment
for payment, demand for payment, notice of nonpayment, protest and notice of
protest.

This Note is not assignable except by operation of law; provided,
however, that Amphion may assign all or part of the Note to its
stockholders in connection with the partial or complete liquidation of Amphion.

If the Company fails to pay the principal amount of this Note when due, , the
entire unpaid principal of this Note shall forthwith become absolutely due and
payable without any further notice, demand, protest or presentment whatsoever,
all of which are hereby expressly waived. All expenses incurred by Amphion for
the collection of the note will be paid for by Axcess.

If the loan is not repaid or converted prior to or on December 31, 2007 then
Axcess shall issue to Amphion a warrant to purchase Axcess Common Shares at the
closing price on December 31, 2007, equivalent to ten percent (10%) of the
outstanding amount (i.e. amount outstanding divided by closing stock price on
the 31st times 10%). If the amount is not repaid or converted prior
to January 31, 2008 then Axcess will issue another warrant equal to an
additional 10% and that will continue every thirty (30) days until Axcess has
issued five warrants.

This Note shall be governed by and construed in accordance with the laws of the
State of New York, without reference to its or any other jurisdiction’s rules as
to conflicts of law. Any judicial proceeding brought against Axcess to enforce,
or otherwise in connection with, this Note shall be brought in any court of
competent jurisdiction in New York, and, by acceptance of this Note, Amphion
(a) accepts, generally and unconditionally, the exclusive jurisdiction of such
courts and any related appellate court

 

 

 and irrevocably agrees to be bound by any final judgment rendered thereby in
connection with this Note and (b) irrevocably waives any objection it may now or
hereafter have as to the venue of any such proceeding brought in such a court or
that such a court is an inconvenient forum. The prevailing party shall be
entitled to collect from the nonprevailing party all reasonable attorneys fees
incurred in connection with any action to enforce the terms of this Note.

Any provision of this Note may be amended or waived if, but only if, such
amendment or waiver is in writing, signed by Axcess and Amphion.

IN WITNESS WHEREOF, Axcess has caused this Note to be signed by its duly
authorized officer and has caused its corporate seal to be affixed and attested
by its Secretary, as of the date first set forth above.

	 	 	 
	[Corporate Seal]

	 	AXCESS INTERNATIONAL, INC.
	          Attested:

	 	 
	 
	 	 
	By: /s/ Allan Frank

	 	By: /s/ Allan Frank
	 
	 	 
	Name: Allan Frank

	 	Name: Allan Frank
	Title: Vice President & CFO

	 	Title: Vice President & CFOexv10w1

 

Exhibit 10.1

April 11, 2008

Lawrence Blatt, Ph.D.

10 Shoreview Drive

San Francisco, CA 94121

PERSONAL AND CONFIDENTIAL

     Re: Separation from Employment

Dear Larry:

     This letter, upon Your signature, will constitute the agreement between Lawrence Blatt (“You”
or “Your”) and InterMune, Inc. (“InterMune” and/or the “Company”) regarding the terms of Your
separation from employment with InterMune.

     1. Your employment with InterMune will end on May 16, 2008 (the “Separation Date”). You will
receive all salary and accrued vacation pay due You through the Separation Date.

     2. You affirm that as of the Separation Date, You will return to InterMune any and all
property in Your possession or control belonging to InterMune, as well as any proprietary
information You have about InterMune’s practices; procedures; customers; products; trade secrets;
information technology; and technical, clinical and other data in accordance with the terms of the
Proprietary Information and Inventions Agreement You signed with InterMune on May 1, 2002 (the
“PIIA”). Excluded from this obligation are: (a) the Type 1 alpha interferon technology
transferred to You by InterMune with the express consent of InterMune’s Board of Directors,
pursuant to the Assignment, Settlement and Mutual Release Agreement, executed by the parties as of
January 20, 2006; (b) the advancement of glycosylated Type 1 interferon and/or activators of innate
immunity (e.g., RNase L and protein Kinase R); and (c) all of the inventions or improvements listed
in Exhibit B of the PIIA. You understand and agree that following Your separation from employment
with the Company You continue to be bound by the terms of the PIIA. For Your reference, a copy of
that agreement is attached.

     3. For a period of two (2) years from the Separation Date, InterMune agrees to make available
to You one sample of each and every non-proprietary, public domain cell line that You brought with
You to InterMune or that was sent to You by a professional colleague during the course of Your
employment with InterMune.

     4. Upon the Effective Date of this Separation Agreement (as that term is defined in Paragraph
19 below), InterMune will pay You separation pay equal to twelve (12) months’ salary at Your final
rate of pay, for total gross separation pay of Three Hundred Twenty Eight

 

 

Lawrence Blatt, Ph.D.

April 11, 2008

Page 2

Thousand One Hundred One Dollars and Forty Five Cents ($328,101.45), less all required
deductions (the “Separation Payment”). The Separation Payment will be made by check in two (2)
gross payments of One Hundred Sixty Four Thousand Fifty Dollars and Seventy Two Cents ($164,050.72)
each. These payments will be made on the following dates: (a) the Effective Date of this
Separation Agreement, and (b) January 2, 2009. The Separation Payment is contingent upon Your
compliance with the terms of this Separation Agreement, and will not be affected by any change in
control of InterMune that occurs on or before January 2, 2009.

     5. Under separate cover, You will receive notice of Your right to continue Your health
insurance under COBRA. To the extent that You have such rights, nothing in this Separation
Agreement is intended to impair those rights. As part of the consideration for this Agreement,
InterMune agrees to pay Your monthly COBRA premiums through May 31, 2009, or until You become
eligible for employer-provided health insurance similar to that offered by InterMune, whichever
occurs first (the “COBRA Payments”). You agree to inform InterMune immediately upon becoming
eligible for such employer-provided health insurance.

     6. Your exercise period for vested options granted to You during Your employment pursuant to
InterMune’s Stock Option Plans will be extended from a period of Ninety (90) days after the
Separation Date until December 31, 2008 (the “Option Exercise Extension”). On or before the
Separation Date, You will notify InterMune which of your vested but unexercised options will be
subject to the Option Exercise Extension.

     7. In consideration of the Separation Payment, the COBRA Payments, the Option Exercise
Extension, and other good and valuable consideration, receipt of which You hereby acknowledge, You
waive and release and promise never to assert any and all claims that You have or might have
against InterMune, and its current and former officers, directors, shareholders, agents, attorneys,
employees, successors, assigns, parents, affiliates and subsidiaries, arising from or related to
Your employment with InterMune and/or Your separation from Your employment with InterMune, that
exist or may exist as of the Separation Date.

          Similarly, InterMune, and its current and former officers, directors, shareholders, agents,
attorneys, employees, successors, assigns, parents, affiliates and subsidiaries, waives and
releases and promises never to assert any and all claims that it has or might have against You, and
Your current and former agents or attorneys, arising from or related to Your employment with
InterMune and/or Your separation from Your employment with InterMune, that exist or may exist as of
the Separation Date.

          The claims released by the parties include, but are not limited to, claims arising under
federal, state and local statutory or common law, such as Title VII of the Civil Rights Act

 

 

Lawrence Blatt, Ph.D.

April 11, 2008

Page 3

of 1964, the Americans with Disabilities Act, the Family and Medical Leave Act, the California Fair
Employment and Housing Act, the California Family Rights Act, the Age Discrimination in Employment
Act, and the law of contract and tort.

     8. The parties waive and release and promise never to assert any such claims, even if the
parties do not believe that such claims exist. The parties therefore waive their respective rights
under section 1542 of the California Civil Code, if applicable, which states:

A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if
known to him or her must have materially affected his or her settlement with the
debtor.

     9. The parties agree to sign a reaffirmation of this Separation Agreement, in the form
attached to this Agreement as Appendix A, upon your Separation Date.

     10. You and InterMune agree to discuss in good faith the terms and conditions of an ongoing
consulting relationship and to sign, simultaneously with this Separation Agreement, a separate and
legally binding letter of intent setting forth the minimum terms that the parties agree must be
included in a Consulting Agreement. The parties agree to finalize a Consulting Agreement on or
before the Separation Date. You and the Company acknowledge and further agree that the scope and
the nature of projects upon which You will continue to consult pursuant to the Consulting Agreement
will be mutually agreed in good faith on or before the Separation Date, and that InterMune will
provide You with the use of tools reasonably required to perform Your responsibilities under the
Consulting Agreement, e.g., a laptop computer.

     11. InterMune agrees, consistent with accepted conventions regarding authorship for scientific
publications, to include You as a co-author on any publications arising from research in which You
were directly involved while an InterMune employee, specifically including but not limited to,
publications arising out of preclinical or clinical data generated by the ITMN-191 project.

     12. Unless required or otherwise permitted by law, You will not disclose to others any
information regarding any proprietary information regarding InterMune’s practices, procedures,
clients, trade secrets, and technical and other data subject to the PIIA. Excluded from this
obligation is any information related to: (a) the Type 1 alpha interferon technology transferred
to You by InterMune with the express consent of InterMune’s Board of Directors, pursuant to the
Assignment, Settlement and Mutual Release Agreement, executed by the parties as of January 20,
2006; (b) the advancement of glycosylated Type 1 interferon and/or activators of innate

 

 

Lawrence Blatt, Ph.D.

April 11, 2008

Page 4

immunity (e.g., RNase L and protein Kinase R); and (c) all of the inventions or improvements
listed in Exhibit B of the PIIA.

     13. As of the date You sign this Separation Agreement, You agree to refrain from making any
statement, whether oral or written, that is disparaging of InterMune, its employees, executives,
officers and directors, and its products and services. Similarly, InterMune, through its officers,
executives, directors, and members of its Operating Committee, agrees to refrain making any
statement, whether oral or written, that is disparaging of You or Your services.

     14. You also agree that for a period of one (1) year following Your Separation Date, You will
not solicit any InterMune employee to leave his or her employment with InterMune in order to begin
employment or a consulting or independent contractor relationship with You or with an entity of
which you are a majority shareholder or a full-time employee. In addition, InterMune agrees that
for a period of one (1) year, it will not solicit any employee who works for You or for an entity
of which you are a majority shareholder to leave his or her employment to begin employment or a
consulting or independent contractor relationship with InterMune. For purposes of this Paragraph,
the term “solicit” shall not include responses either InterMune or You receive from anyone in
response to job advertisements nor shall the term “solicit” include any inquiries regarding job
openings received by InterMune or You from anyone with whom there was no previous contact.

     15. In the event that You breach any of Your obligations under this Separation Agreement or as
otherwise imposed by law, InterMune will be entitled to cease making any payments due on or after
the date of the breach, and to seek any and all other legal or equitable remedies, including
injunctive relief. In the event of any breach of InterMune’s obligations under this Separation
Agreement or as otherwise imposed by law, You will be immediately released, effective from the date
of the breach, from any and all continuing obligations under this Separation Agreement and will be
entitled to revoke Your release of claims as outlined in paragraphs 7 and 8 above. In addition,
You will be entitled to an acceleration of payments under the Consulting Agreement as described in
the Consulting Agreement in the event of any breach of InterMune’s obligations under this
Separation Agreement or as otherwise imposed by law.

     16. After the Effective Date, as defined in Paragraph 19 below, this Separation Agreement
shall be fully enforceable and irrevocable.

     17. The parties agree that they will maintain the terms of this Separation Agreement in
confidence and shall not disclose the terms hereof except in confidence to their legal counsel, tax
accountant, or as required by law. You may also disclose the terms of this Separation Agreement to
Your immediate family members.

 

 

Lawrence Blatt, Ph.D.

April 11, 2008

Page 5

     18. Before dissemination to the public, InterMune shall provide to You the contents of any
oral or written message concerning Your employment with InterMune and/or the termination of Your
employment. The parties will meet and confer on any modifications to same. Any such message shall
not be disseminated without Your approval and consent.

     19. The following is required by the Older Workers Benefit Protection Act:

     (a) You have twenty-one days in which to accept the terms of this Separation Agreement,
although You may accept the agreement at any time within those twenty-one days.

     (b) After You accept this Separation Agreement, You will still have seven days in which
to revoke Your acceptance. To revoke, You must send a written letter of revocation to
InterMune, return receipt requested, within the seven-day revocation period. If You do not
revoke, the eighth day after Your acceptance of this Separation Agreement will be the
“Effective Date” of this Agreement.

     (c) You are advised to consult with an attorney of Your choice regarding this
Separation Agreement.

     Larry, I am pleased that we can part ways on amicable terms. InterMune and I thank you for
your service to the Company and wish you every success in your future endeavors.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	/s/ Daniel G. Welch

 	 
	 	Daniel G. Welch 	 
	 	President and Chief Executive Officer 	 
	 

By signing this letter, I acknowledge that I have had the opportunity to review this Separation
Agreement carefully, that I have read this agreement and understand the terms of the agreement, and
that I voluntarily agree to those terms.

	 	 	 	 	 
	 	 	 
	Dated: April 11, 2008 	/s/Lawrence Blatt
 	 
	 	Lawrence Blatt, Ph.D. 	 
	 	 	 
	 

 

 

Lawrence Blatt, Ph.D.

April 11, 2008

Page 6

Appendix A

Reaffirmation of Separation Agreement as of Separation Date

     The parties hereby reaffirm in all respects the terms of the Separation Agreement between
InterMune, Inc. and Lawrence Blatt, Ph.D. dated April 11, 2008 (including the terms of the mutual
and general release of claims contained therein), and agree to be fully bound by its terms.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Lawrence Blatt, Ph.D.
	 
	 	 	 	 	 	 
	Dated:	 	 	 	INTERMUNE, INC.
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Its:

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