Document:

ex10_1.htm

Exhibit 10.1

 

SCIENTIFIC LEARNING CORPORATION

CHANGE OF CONTROL BENEFIT PLAN

	
Section 1.

	
INTRODUCTION.

The Scientific Learning Corporation Change of Control Benefit Plan (the “Plan”) was established effective May 20, 2010.  The purpose of the Plan is to provide for the payment of severance benefits to certain eligible executive management employees of Scientific Learning Corporation (the “Company”) in the event that such employees are subject to qualifying employment terminations related to a Change of Control (defined below).  The Plan shall supersede any severance benefit plan, policy or practice previously maintained by the Company, including an individually negotiated agreement relating to change in control benefits that is in effect on an employee’s termination date. No Eligible Employee shall be eligible to receive benefits under this Plan unless such employee has agreed to terminate any change in control benefits in effect under an individually negotiated agreement in effect on the date this Plan is adopted.

	
Section 2.

	
DEFINITIONS.

For purposes of the Plan, the following terms are defined as follows:

(a)           “Base Salary” means the Eligible Employee’s annual base pay (excluding incentive pay, premium pay, commissions, overtime, bonuses and other forms of variable compensation).

(b)           “Board” means the Compensation Committee of the Board of Directors of the Company or the full Board.

(c)           “Cause” means any of the following has occurred, as reasonably determined by the Company in good faith:

	
  

	
(i)

	
the Eligible Employee is indicted for or convicted of any felony or crime involving moral turpitude or dishonesty;

	
  

	
(ii)

	
the Eligible Employee participates in any financial accounting improprieties or in any fraud against the Company;

	
  

	
(iii)

	
the Eligible Employee fails to cooperate with any government investigation involving the Company;

	
  

	
(iv)

	
the Eligible Employee materially breaches any material provision of a written agreement with the Company (including, without limitation, the Proprietary Information and Inventions Agreement) or a written policy of the Company (including without limitation a Company ethics or insider trading policy), provided that, if such breach is reasonably susceptible of cure, the Eligible Employee fails to cure such breach within a reasonable period of time (to be determined by the Company in its sole discretion) after receiving notice of such breach from the Company;

  

1

  

	
  

	
(v)

	
the Eligible Employee engages in conduct that demonstrates unfitness to serve; or

	
  

	
(vi)

	
the Eligible Employee breaches his or her duties to the Company, including, without limitation, persistent unsatisfactory performance of job duties.

An Eligible Employee’s disability or death shall not constitute Cause for purposes of the Plan.

(d)           “Change of Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

	
  

	
(i)

	
any person (as defined in the Securities Exchange Act of 1934, as amended) becomes the owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction;

	
  

	
(ii)

	
there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company if, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not own, directly or indirectly, either (A) outstanding voting securities representing more than 50% of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than 50% of the combined outstanding voting power of the parent of the surviving Entity in such merger, consolidation or similar transaction; or

	
  

	
(iii)

	
there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of the Company and its subsidiaries, other than a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of the Company and its subsidiaries to an entity, more than 50% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportion as their ownership of the Company immediately prior to such sale, lease, license or other disposition.

The term Change of Control shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company.

(e)           “Code” means the Internal Revenue Code of 1986, as amended.

  

2

  

(f)            “Company” means Scientific Learning Corporation or, following a Change of Control, the surviving entity resulting from such event.

(g)           “Covered Termination” means, within three months prior to or 18 months after the effective date of Change of Control, (i) a termination by the Company without Cause or (ii) a Good Reason Resignation by the Eligible Employee.

(h)           “Eligible Employee” means an executive management employee of the Company who is designated in writing by the Board as an Eligible Employee entitled to benefits under this Plan upon a Covered Termination.

(i)            “Good Reason Resignation” means a voluntary termination of employment by an Eligible Employee within sixty (60) days after the occurrence of one of the following events without the Eligible Employee’s consent:

	
  

	
(i)

	
a material diminution in the Eligible Employee’s base compensation;

	
  

	
(ii)

	
a material diminution in the Eligible Employee’s authority, duties or responsibilities;

	
  

	
(iii)

	
a material diminution in the authority, duties or responsibilities of the supervisor to whom the Eligible Employee is required to report, including a requirement that the Eligible Employee report to a corporate officer or employee instead of reporting directly to the Board;

	
  

	
(iv)

	
a material diminution in the budget over which the Eligible Employee retains authority;

	
  

	
(v)

	
a material change in the geographic location at which the Eligible Employee must perform services; or

	
  

	
(vi)

	
any other action or inaction that constitutes a material breach by the Company of the Eligible Employee’s employment agreement (if any).

The Eligible Employee must provide notice to the Company of the existence of a condition described in paragraphs (a) through (f) within a period of 90 days of the initial existence of the condition and that condition referenced in the notice will constitute “Good Reason” only if such condition continues after a 30-day period during which the Company may remedy the condition.

	
Section 3.

	
ELIGIBILITY FOR BENEFITS.

(a)           General Rules.  Subject to Section 3(b), the Company will provide the change of control benefits described in Section 4 to Eligible Employees whose employment has terminated pursuant to a Covered Termination.

  

3

  

(b)           Exceptions to Benefit Entitlement.  An employee, whether or not otherwise an Eligible Employee, will not receive benefits under the Plan (or will receive reduced benefits under the Plan, as applicable) in the following circumstances, as determined by the Company in its sole discretion:

	
  

	
(i)

	
The employee’s employment is terminated by the Company for Cause.

	
  

	
(ii)

	
The employee voluntarily terminates employment with the Company and such termination does not constitute a Good Reason Resignation. Voluntary terminations include, but are not limited to, resignation, retirement or failure to return from a leave of absence on the scheduled return date.

	
  

	
(iii)

	
The employee voluntarily terminates employment with the Company in order to accept employment with another entity that is wholly or partly owned (directly or indirectly) by the Company or an affiliate of the Company.

	
  

	
(iv)

	
The employee is offered immediate reemployment by a successor to the Company or by a purchaser of any of its assets, as the case may be, following a change in ownership of the Company or one or more of its subsidiaries, or sale of all or substantially all the assets of the Company or one or more of the subsidiaries, or any division or business unit of the Company.  For purposes of the foregoing, “immediate reemployment” means that the employee’s employment with such successor or purchaser, as the case may be, results in uninterrupted employment such that the employee does not suffer a lapse in pay as a result of the change in ownership or sale of assets.  Notwithstanding the foregoing, even if such employee does not suffer a lapse in pay, if such employee is otherwise an Eligible Employee and terminates employment pursuant to a Good Reason Resignation, the Eligible Employee shall be entitled to receive benefits under the Plan in accordance with Section 4.

	
Section 4.

	
AMOUNT OF BENEFIT.

(a)           Severance Payment.  In the event of an Eligible Employee’s Covered Termination, the Eligible Employee shall be entitled to receive cash severance benefits equal to the number of months of Base Salary set forth in the second column of the table in Section 4(c) (the “Severance”).  The Severance is intended to provide the Eligible Employee with compensation for the period following a Covered Termination. Any bonus or other incentive compensation payable to the Eligible Employee for services rendered at any time prior to the date of the Covered Termination shall be determined in accordance with the terms of the applicable bonus or incentive plan or program. For purposes of this Section 4, the Eligible Employee’s Base Salary shall be determined at the rate in effect during the last regularly scheduled payroll period immediately preceding the date of the Eligible Employee’s Covered Termination.

  

4

  

(b)           Continued Insurance Benefits.  Provided that an Eligible Employee elects continued coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), the Company shall pay the full amount of premiums for the Eligible Employee’s group medical, dental and vision coverage, including coverage for the Eligible Employee’s eligible dependents, through the earlier of (i) the applicable number of months set forth in Section 4(c) following the Covered Termination (the “Severance Period”) or (ii) the date that the Eligible Employee becomes eligible for group health coverage through a subsequent employer.  Each Eligible Employee shall be required to notify the Company immediately if the Eligible Employee becomes eligible to be covered by a group medical, dental or vision insurance plan of a subsequent employer.  No provision of this Plan will affect the continuation coverage rules under COBRA, except that the Company’s payment of any applicable insurance premiums will be credited as payment by the Eligible Employee for purposes of the Eligible Employee’s payment required under COBRA.  Therefore, the period during which an Eligible Employee may elect whether or not to continue the Company’s group medical, dental or vision coverage under COBRA, the length of time during which COBRA continuation coverage will be made available to the Eligible Employee, and all other rights and obligations of the Eligible Employee under COBRA will be applied in the same manner that such rules would apply in the absence of this Plan.  Upon the expiration of the period during which the Company will pay the premiums for the Eligible Employee’s coverage, the Eligible Employee will be responsible for the entire payment of premiums required under COBRA for the duration of the COBRA continuation period.  For purposes of this Section 4(b), (i) references to COBRA shall be deemed to refer also to analogous provisions of state law and (ii) any applicable insurance premiums that are paid by the Company shall not include any amounts payable by the Eligible Employee under an Internal Revenue Code Section 125 health care reimbursement plan, which amounts, if any, are the sole responsibility of the Eligible Employee.

(c)           Amount of Severance.

	
Position

	
Number of Months of Severance

	  	  
	
Chief Executive Officer

	
18 months

	  	  
	
All other Eligible Employees

	
12 months

	
Section 5.

	
TIME AND FORM OF SEVERANCE PAYMENT.

(a)           General Rules.  Any cash severance benefits provided under this Plan shall be paid, consistent with the terms set forth in Section 4(c), in a lump sum, with such payment to be made within 62 days following the effective date of the Eligible Employee’s Covered Termination.  Severance payments shall be paid subject to applicable withholding for federal, state and local taxes.  In the event of an Eligible Employee’s death, any cash severance benefits payable to such employee shall be made to his/her estate on the same payment schedule as would have occurred absent the Eligible Employee’s death.  In no event shall payment of any Plan benefit be made prior to the effective date of the Eligible Employee’s Covered Termination or prior to the effective date of the release described in Section 6(a).

  

5

  

(b)           Application of Section 409A.  Severance payments pursuant to Section 4(a), to the extent of payments made from the date of the Covered Termination through March 15 of the calendar year following the Covered Termination, are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations and thus payable pursuant to the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations. To the extent such payments are made following said March 15, they are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations made upon an involuntary termination from service and payable pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the maximum extent permitted by such provision, with any excess amount being regarded as subject to the distribution requirements of Section 409A(a)(2)(A) of the Code, including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of the Code that payment be delayed until six (6) months after separation from service if the Eligible Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such separation from service.

	
Section 6.

	
LIMITATIONS ON BENEFITS.

(a)           Release.  In order to be eligible to receive benefits under the Plan, an Eligible Employee must execute a general waiver and release in a form approved by the Company, and such release must become effective in accordance with its terms. The Company, in its discretion, may incorporate the release into a termination agreement or other agreement with the Eligible Employee.

(b)           Non-disparagement,  Non-solicitation and Proprietary Information .  In order to be eligible to receive benefits under the Plan, an Eligible Employee must execute a non-disparagement, non-solicitation and proprietary information agreement in a form approved by the Company.  The Company, in its discretion, may incorporate such agreement into a termination agreement or other agreement with the Eligible Employee.  The non-disparagement, and non-solicitation provisions shall impose on the Eligible Employee a restrictive covenant for the applicable period set forth in Section 4(c). The proprietary information agreement will be no less comprehensive than the Proprietary Information and Inventions Agreement executed by the Eligible Employee when he or she was hired.

(c)           Certain Reductions and Offsets.  The Board, in its sole discretion, shall have the authority to reduce an Eligible Employee’s severance benefits under the Plan, in whole or in part, by any other severance benefits, pay in lieu of notice, or other similar benefits payable to the Eligible Employee by the Company that become payable in connection with the Eligible Employee’s termination of employment pursuant to (i) any applicable legal requirement, including, without limitation, the Worker Adjustment and Retraining Notification Act (the “WARN Act”), or (ii) any Company policy or practice providing for the Eligible Employee to remain on the payroll for a limited period of time after being given notice of the termination of the Eligible Employee’s employment. The benefits provided under this Plan are intended to satisfy, in whole or in part, any and all statutory obligations that may arise out of an Eligible Employee’s termination of employment, and the Board shall so construe and implement the terms of the Plan. The Board’s decision to apply such reductions to the severance benefits of one Eligible Employee and the amount of such reductions shall in no way obligate the Company to apply the same reductions in the same amounts to the severance benefits of any other Eligible Employee, even if similarly situated.  In the Company’s sole discretion, such reductions may be applied on a retroactive basis, with severance benefits previously paid being re-characterized as payments pursuant to the Company’s statutory obligation.

  

6

  

(d)           Mitigation.  Except as otherwise specifically provided herein, an Eligible Employee shall not be required to mitigate damages or the amount of any payment provided under this Plan by seeking other employment or otherwise, nor shall the amount of any payment provided for under this Plan be reduced by any compensation earned by an Eligible Employee as a result of employment by another employer or any retirement benefits received by such Eligible Employee after the date of the Covered Termination.

(e)           Termination of Benefits.  Benefits under this Plan shall terminate immediately if the Eligible Employee, at any time, violates any non-solicitation, non-disparagement or proprietary information or confidentiality obligation to the Company.

(f)           Non-Duplication of Benefits.  No Eligible Employee is eligible to receive benefits under this Plan more than one time.

(g)           Indebtedness of Eligible Employees.  If a terminating employee is indebted to the Company or an affiliate of the Company at his or her termination date, the Company reserves the right to offset any severance payments under the Plan by the amount of such indebtedness.

(h)           Parachute Payments.  If any payment or benefit an Eligible Employee would receive in connection with a Change of Control or otherwise (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in the Eligible Employee’s receipt, on an after-tax basis, of the greater amount of the Payment, notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order, unless the Eligible Employee elects in writing a different order; provided, however, that such election shall be subject to Company approval if made on or after the effective date of the event that triggers the Payment: reduction of cash payments; cancellation of accelerated vesting of equity awards; reduction of employee benefits. In the event that acceleration of vesting of equity awards  is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of such awards (i.e., earliest granted award cancelled last) unless the Eligible Employee elects in writing a different order for cancellation.

  

7

  

The accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the Change of Control shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group affecting the Change of Control, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder.

The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and the Eligible Employee within fifteen (15) calendar days after the date on which the Eligible Employee’s right to a Payment is triggered (if requested at that time by the Company or the Eligible Employee) or such other time as requested by the Company or the Eligible Employee. If the accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish the Company and the Eligible Employee with an opinion reasonably acceptable to the Eligible Employee that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and the Eligible Employee.

	
Section 7.

	
RIGHT TO INTERPRET PLAN; AMENDMENT AND TERMINATION.

(a)           Exclusive Discretion.  The Board shall have the exclusive discretion and authority to establish rules, forms, and procedures for the administration of the Plan and to construe and interpret the Plan and to decide any and all questions of fact, interpretation, definition, computation or administration arising in connection with the operation of the Plan, including, but not limited to, the eligibility to participate in the Plan and amount of benefits paid under the Plan. The rules, interpretations, computations and other actions of the Plan Administrator shall be binding and conclusive on all persons.

(b)           Amendment or Termination.  The Company reserves the right to amend or terminate this Plan or the benefits provided hereunder at any time; provided, however, that during the period beginning three months prior to and ending 18 months following a Change of Control, the Plan may not be amended or terminated in any way to adversely affect any Eligible Employee’s benefits hereunder without such Eligible Employee’s express written consent.  Any action amending or terminating the Plan shall be in writing and executed by the Board or any duly authorized committee thereof.  Notwithstanding any other provision of the Plan, including this Section 7(b), the Plan shall automatically terminate on the fourth anniversary of the effective date set forth in Section 1.

  

8

  

	
Section 8.

	
TERMINATION OF CERTAIN EMPLOYEE BENEFITS.

All non-health benefits (such as life insurance, disability and 401(k) plan coverage) terminate as of an Eligible Employee’s termination date (except to the extent that a conversion privilege may be available thereunder).

	
Section 9.

	
NO IMPLIED EMPLOYMENT CONTRACT.

The Plan shall not be deemed (i) to give any employee or other person any right to be retained in the employ of the Company or (ii) to interfere with the right of the Company to discharge any employee or other person at any time, with or without cause, which right is hereby reserved.

	
Section 10.

	
LEGAL CONSTRUCTION.

This Plan is intended to be governed by and shall be construed in accordance with the laws of the State of California.

	
Section 11.

	
BASIS OF PAYMENTS TO AND FROM PLAN.

The Plan shall be unfunded, and all cash payments under the Plan shall be paid only from the general assets of the Company.

	
Section 12.

	
SUCCESSOR AND ASSIGNS.

The Plan shall be binding on the Company and its successors or assigns.

	
Section 13.

	
EXECUTION.

To record the adoption of the Plan as set forth herein, effective as of May 20, 2010, Scientific Learning Corporation has caused its duly authorized officer to execute the same this ___ day of ______________ 2010.

	
SCIENTIFIC LEARNING CORPORATION

	  
	  	  	  
	  	  	  
	  	  	  
	
By:

	
Andrew Myers, Chief Executive Officer

	  
	
Date:

	  	  

 

 

9ex10_1.htm

Exhibit 10.1

 

TERMINATION AND RELEASE AGREEMENT

 

This TERMINATION AND RELEASE AGREEMENT (the “Termination and Release Agreement”), dated as of May 17, 2010 (the “Effective Date”), by and between Rexahn Pharmaceuticals, Inc., a Delaware corporation (the “Company”) and the party identified on the signature page hereto (the “Purchaser”). Capitalized terms used herein and not defined shall have the meaning ascribed to them in the Registration Rights Agreement dated December 24, 2007 (the “Registration Rights Agreement”).

 

W I T N E S S E T H:

 

WHEREAS, the Company and the Purchaser entered into a Securities Purchase Agreement dated December 17, 2007 that provided for the sale of shares (“Shares”)  of common stock, par value $0.0001 per share (“Common Stock”) and warrants (the “Warrant”) exercisable for  Common Stock (the “Warrant Shares,” and together with the Shares, the “Securities”), which Securities were offered and sold in a private offering by the Company to accredited investors  (collectively, the “Investors”)  that was completed on December 24, 2007 (the “Offering”);

 

WHEREAS, the Company’s registration obligations under the Registration Rights Agreement extinguish when all Registrable Securities (which include both the Shares and the Warrant Shares) are eligible to be transferred pursuant to Rule 144 under the Securities Act of 1933, as amended (the “1933 Act”);

 

WHEREAS, the  Shares are currently eligible for transfer pursuant to Rule 144 of the 1933 Act;

 

WHEREAS, it is understood and acknowledged by the Purchaser and the Company that the Warrant currently provides for both a cash exercise and a cashless exercise (during the period the Registration Statement has not been filed pursuant to the Registration Rights Agreement) for the Warrant Shares;

 

WHEREAS, for purposes of Rule 144 of the 1933 Act,  the Warrant Shares issued to the Purchaser upon exercise will either be: (i) freely transferable upon a cashless exercise of the Warrant, provided the  Purchaser is not an affiliate of the Company or (ii) restricted and subject to the holding period and other requirements of Rule 144 upon a cash exercise of the Warrant;

 

WHEREAS, in connection with the closing of the Offering, the Company, the Purchaser and the other Investors entered into the Registration Rights Agreement, which provides for, among other actions,: (i) the Company to have filed a Registration Statement to register the Registrable Securities and for such Registration Statement to be effective by the Required Effectiveness Date; and (ii) the payment of liquidated damages (“Liquidated Damages”) plus interest on any unpaid Liquidated Damages in the event that the Company did not meet the registration requirements in Section 2 of the Registration Rights Agreement;

 

  

1

  

 

WHEREAS, Section 2(d) of the Registration Rights Agreement presently restricts  the Company’s ability to prepare and file a registration statement with the U.S. Securities and Exchange Commission (“SEC”) relating to an offering of equity securities until the Registration Statement for the Securities is effective;

 

WHEREAS, the Purchaser desires for the restriction in Section 2(d) of the Registration Statement to be of no further force and effect so that the Company will have the ability to raise additional capital in registered offerings of equity securities for the benefit of the Company and all stockholders;

 

WHEREAS, the Purchaser desires:(i) the immediate termination of the Registration Rights Agreement and any and all rights and obligations of the Purchaser and the Company thereunder; and (ii) to waive and release the Company and its Affiliates from the payment of any and all Liquidated Damages and accrued interest thereon, all  in accordance with the terms and conditions set forth in this Termination and Release Agreement;

 

WHEREAS, the Company also desires to (i) terminate the Registration Rights Agreement and any and all rights and obligations of the Purchaser and the Company thereunder and (ii) to provide the Purchaser with a release , all in accordance with the terms and conditions set forth in this Termination and Release Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements contained in this Termination and Release Agreement and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Purchaser agree as follows:

 

Section 1.  Termination of the Registration Rights Agreement and Waiver of Liquidated Damages.

 

(a)           The Company and the Purchaser hereby agrees  that as of the Effective Date none of the Purchaser, its Affiliates or any transferee of the Securities will be deemed a “Holder” for purposes of the Registration Rights Agreement and  that the “Securities” will not longer be deemed to be “Registrable Securities” under the terms of the Registration Rights Agreement.  As of and after the Effective Date, the neither the Purchaser any and of its Affiliates nor the Company any of its Affiliates will have any further right or obligation to the other after the Effective Date under the terms and conditions of the Registration Rights Agreement.  As of and after the Effective Date, the rights and obligations of each of the Company and the Purchaser to the other party under the terms and conditions of the Registration Rights Agreement shall terminate and the Registration Rights Agreement shall no longer be in effect for the Purchaser (or any “Affiliate” (as such term is defined under Rule 405 of the 1933 Act) or any future transferee) or any of its Securities at any time as of or after the Effective Date. As of and after the Effective Date, the Company hereby agrees and acknowledges that the Purchaser shall continue to have the right to a cashless and cash exercise of the Warrant until such Warrant expires.

 

  

2

  

 

(b)           The Purchaser hereby expressly agrees to as of the Effective Date and for all time hereafter waive the payment of any and all Liquidated Damages and accrued interest thereon that may be due and payable by the Company to the Purchaser pursuant to the terms of the Registration Rights Agreement. Neither the Company nor any Affiliate thereof shall have any further obligation for any payment of Liquidated Damages, including accrued interest thereon, or any other payment to the Purchaser or any other person or entity.

Section 2.  Release of Claims.

 

(a)           As of and following the Effective Date, the Purchaser, including its Affiliates, hereby irrevocably releases and forever discharges the Company, the Company’s Affiliates and their respective officers, directors, employees, stockholders, agents and representatives (collectively, the “Rexahn Released Parties”) from any and all actions, suits, debts, liens, sums of money, accounts, judgments, claims and demands whatsoever, at law or in equity, either in contract or in tort, whether known or unknown, on account of, arising out of or relating to the Registration Rights Agreement and any act or omission of any kind or character whatsoever arising thereunder of any Rexahn Released Party or any predecessor or successor thereto.

 

(b)           The Company, including its respective Affiliates, hereby irrevocably releases and forever discharges the Purchaser and the Purchaser’s Affiliates and its officers, directors, employees, stockholders, agents and representatives, if applicable (collectively, the “Purchaser Released Parties”) from any and all actions, suits, debts, liens, sums of money, accounts, judgments, claims and demands whatsoever, at law or in equity, either in contract or in tort, whether known or unknown, on account of, arising out of or relating to the Registration Rights Agreement and any act or omission of any kind or character whatsoever arising thereunder of any Purchaser Released Party or any predecessor or successor thereto.

 

(c)           The  Purchaser and the Company each covenant and agree that it shall not, and shall not permit any of their respective Affiliates to, aid or assist any other person or entity in any action, suit, claim, proceeding or demand against a Rexahn Released Party or Purchaser Released Party arising out of or related to the Registration Rights Agreement.

 

Section 3.  Representation and Warranties of the Company.  The Company represents and warrants to the Purchaser as of the Effective Date as follows:

 

(a)           The Company has all requisite corporate power and authority to enter into this Termination and Release Agreement.  The execution, delivery and performance of this Termination and Release Agreement by the Company has been duly authorized by all necessary corporate action.  This Termination and Release Agreement has been duly executed and delivered by the Company and constitutes a valid and binding agreement of the Company, enforceable against it in accordance with its terms subject to (i) the application of bankruptcy, receivership, conservatorship, reorganization, insolvency and similar laws affecting creditors’ rights generally and (ii) equitable principles being applied at the discretion of a court before which any proceeding may be brought (the “Bankruptcy and Equity Exception”).

 

  

3

  

 

Section 4.  Representation and Warranties of the Purchaser.  The Purchaser, severally, represents and warrants to the Company as of the Effective Date as follows:

 

(a)           The Purchaser has full power, authority and the requisite capacity necessary to enter into this Termination and Release Agreement and no consent or any other approval of any other person or entity is necessary for the Purchaser to enter into this Termination and Release Agreement.  This Termination and Release Agreement has been duly executed and delivered by the Purchaser and constitutes a valid and binding agreement of the Purchaser, enforceable against him or her in accordance with its terms subject to the Bankruptcy Exception.  The Purchaser has owned the Shares and the Warrants since the closing of the Offering and currently holds all the Warrant. The Purchaser is not an officer, director or Affiliate of the Company. The Purchaser is not relying upon, and has not relied upon, any advice, statement, representation or warranty made by the Company and has evaluated this Termination and Release Agreement with its own legal, tax, financial, investment,  accounting or other representatives.

 

Section 5.  General Provisions.

 

(a)           Counterparts.  This Termination and Release Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when two or more counterparts have been signed by each of the Company and the Purchaser and delivered to the other party, it being understood that the parties hereto need not sign the same counterpart.

 

(b)           Governing Law.  This Termination and Release Agreement shall be governed by and construed in accordance with the laws of the State of Delaware(without giving effect to choice of law principles thereof). Each party hereby irrevocably submits to the exclusive jurisdiction of the United States District Court for the District of Maryland, of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Termination and Release Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  EACH OF THE COMPANY AND THE PURCHASERHERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(c)           Amendment.  This Termination and Release Agreement may not be amended except by an instrument in writing signed by the Company and the Purchaser.

 

(d)           No Strict Construction.  The language used in this Agreement will be deemed to be the language chosen by the Company and the Purchaser to express their mutual intent, and no rules of strict construction will be applied against either party hereto.

 

  

4

  

 

(e)           Severability.  If any provision of this Termination and Release Agreement or the application thereof to any person or entity or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to such person or entity or circumstances other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto.  Upon any such determination, the Company and the Purchaser, severally, agrees to work together and negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the parties hereto.

 

(f)            Entire Agreement; Third Party Beneficiaries.  This Termination and Release Agreement constitutes the entire agreement and supersedes the Registration Rights Agreement and any and all prior agreements, understandings, representations and warranties, both written and oral, among the parties hereto with respect to the subject matter hereof.  Nothing in this Termination and Release Agreement, express or implied, is intended to or shall confer upon any other person or entity any right, benefit or remedy of any nature whatsoever under or by reason of this Termination and Release Agreement. Each of the Company and the Purchaser represent that the person executing this Termination and Release Agreement is authorized to execute this agreement in the name and on behalf of such party.

 

  

5

  

 

IN WITNESS WHEREOF, the Company and the Purchaser hereto have caused this Termination and Release Agreement to be duly executed, all as of the date first written above.

 

	  	
REXAHN PHARMACEUTICALS, INC.

	  	  	  
	  	  	  
	  	
By:  

	  
	  	
Name: 

	  	
Title:

	  	  	  
	  	  	  
	  	
PURCHASER

	  	  	  
	 	 	 
	  	  	  
	  	
Name:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]