Document:

Exhibit 10.2

 

FORBEARANCE AGREEMENT

 

THIS
FORBEARANCE AGREEMENT (this “Agreement”) is
entered into as of October 1, 2009, between Vitesse Semiconductor
Corporation, a Delaware corporation (the “Borrower”) and
Whitebox VSC, Ltd., as agent (the “Agent”) under
that certain Loan Agreement, dated as of August 23, 2007 (the “Loan Agreement”), between the Borrower, the
Agent, and the lenders from time to time parties thereto (the “Lenders”). 
Capitalized terms used herein and not otherwise defined shall have the meanings
ascribed to such terms in the Loan Agreement.

 

RECITALS

 

WHEREAS,
the Borrower and U.S. Bank National Association (the “Trustee”)
are parties to that certain Indenture, dated as of September 22, 2004 (the
“Indenture”), which governs the
Borrower’s 1.50% Convertible Subordinated Debentures due 2024 (the “Notes”).

 

WHEREAS,
pursuant to the Indenture, the Borrower has issued Notes in principal amount of
$96,700,000 and certain holders of Notes (the “Forbearing Holders”) have exercised, or have indicated that
they intend to exercise, their rights pursuant to Section 11.1 of the
Indenture to require the Borrower to repurchase their Notes (the “Forbearing Notes”) on October 1, 2009
(the “Put Repurchase Date”).

 

WHEREAS,
a default has occurred and is continuing under Section 4.1(d) of the
Indenture as a result of the Borrower’s failure to mail a Repurchase Event
Notice (as defined in the Indenture) pursuant to Section 11.3 of the
Indenture and a Repurchase Event Purchase Notice (as defined in the Indenture) pursuant
to Section 11.4 of the Indenture or to file a Schedule TO pursuant to Section 11.7
of the Indenture (the “Notes  Existing Defaults”).

 

WHEREAS,
the Forbearing Holders assert (and the Borrower disputes) that there will be an
event of default under Section 4.1(c) of the Indenture if the
Borrower fails to repurchase the Forbearing Notes from the Forbearing Holders
on the Put Repurchase Date at a purchase price equal to 113.76% of the
principal amount of the Forbearing Notes (the “Notes Put Repurchase Default” and together with the Notes
Existing Defaults, the “Notes Specified Defaults”).

 

WHEREAS,
the Borrower and the Forbearing Holders have entered into Forbearance
Agreements dated as of October 1, 2009 in substantially the form
previously provided by the Borrower to the Agent (each, an “Indenture Forbearance Agreement”) pursuant to which, the
Forbearing Holders have agreed to forbear from exercising their rights and
remedies with respect to the Notes Specified Defaults for a certain limited
period, under the terms and conditions specified therein.

 

WHEREAS,
if the Notes Put Repurchase Default occurs it will result in an Event of
Default under Section 7.1(i) of the Loan Agreement and may also
result in an Event of Default under Sections 7.1(d) and (e) of the
Loan Agreement (the “Loan Specified Defaults”).

 

1

 

WHEREAS,
the Borrower has requested that the Lenders agree to forbear, and the Lenders
have agreed to forbear, from exercising any rights and remedies that may arise
under the Loan Agreement in the event that the Loan Specified Defaults occur
and are continuing, for the period, and on the terms and conditions, specified
herein.

 

AGREEMENT

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

 

1                  Acknowledgement and
Reaffirmation.  The
Borrower hereby acknowledges and agrees, that:

 

(a)                                  (i) the
Borrower is indebted and liable to the Lenders in the aggregate principal
amount of $30,000,000 in respect of the Term Loans, plus interest, fees,
expenses (including but not limited to attorneys’ advisors’ and consultants’
fees that are reimbursable under the Loan Agreement), charges and all other
obligations incurred in connection therewith as provided in the Loan Agreement,
and (ii) such amounts outstanding under the Loan Agreement constitute
valid and subsisting obligations of the Borrower to the Agent and the Lenders
that are not subject to any credits, offsets, defenses, claims, counterclaims
or adjustments of any kind.  The Borrower
and the Guarantors (the “Loan Parties”)
hereby (i) acknowledge and affirm their obligations under the respective
Loan Documents to which they are party, (ii) acknowledge and affirm the liens
created and granted by the Loan Parties in the Loan Documents and (iii) agree
that this Agreement shall in no manner adversely affect or impair such
obligations and/or liens; and

 

(b)                                 the Loan
Specified Defaults have not previously been waived by the Lenders.

 

2                  Forbearance.  Subject to the terms and conditions set forth
herein, from the Effective Date through the earlier of (a) the date on
which the Loan Parties fail to comply with the covenants contained in Section 6
of this Agreement, (b) the date on which the “Forbearance Period” under
and as defined in the Indenture Forbearance Agreement applicable to them ends, (c) the
date of the commencement by any Loan Party of a voluntary bankruptcy,
insolvency, reorganization or other similar proceeding or the commencement of
any similar non-voluntary case or proceeding with respect to such Loan Party,
and (d) 12:00 noon (EST) on October 9, 2009 (the “Forbearance Period”), the Lenders hereby agree to forbear
from exercising any and all rights or remedies available under the Loan
Agreement or applicable law as a result of the Loan Specified Defaults, but
only to the extent that such rights and remedies arise solely as a result of
the occurrence and continuation of the Loan Specified Defaults; provided,
however, that in each case, the Lenders shall be free to exercise any or
all rights and remedies arising on account of any Loan Specified Default at the
end of the Forbearance Period; provided  further,
that except as expressly set forth herein, this Agreement shall not operate as
a waiver, amendment or modification of the Loan Agreement.

 

3                  No Waiver of
Rights or Remedies.  The Lenders
and the Loan Parties agree that, other than as expressly set forth herein,
nothing in this Agreement, or the performance by the Lenders of their
obligations hereunder, constitutes or shall be deemed to constitute a waiver of
any of the 

 

2

 

rights
or remedies available to the Lenders under the Loan Agreement, the Loan
Documents or any applicable law, all of which are hereby reserved.

 

4                  Representations
and Warranties of the Borrower.  The Loan Parties hereby represent and warrant
to the Lenders that:

 

(a)                                                  No Default or
Event of Default exists (or shall exist), to the knowledge of the Borrower, as
of the date hereof (other than the Loan Specified Defaults); and

 

(b)                                                 The execution,
delivery and performance by the Loan Parties of this Agreement has been duly
authorized by all necessary corporate or other organizational action, and do
not and will not: (i) contravene the terms of any of such person’s
organizational documents; (ii) conflict with or result in any breach or
contravention of, or result in or require the creation of any Lien under, or
require any payment to be made under (A) any contractual obligation to
which such person is a party or affecting such person or the properties of such
person or any of its subsidiaries or (B) any order, injunction, writ or
decree of any governmental authority or any arbitral award to which such person
or its property is subject; or (iii) violate any applicable law.  No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any
governmental authority or any other person is necessary or required in
connection with the execution, delivery or performance by, or enforcement
against the Loan Parties of this Agreement.

 

5                  Representation
and Warranty of the Agent and Lenders.  The Agent and the Lenders hereby represent
and warrant to the Borrower that no Default or Event of Default exists (or
shall exist), to the knowledge of the Agent or such Lender, as of the date
hereof (other than the Loan Specified Defaults); and

 

6                  Covenants.

 

(a) The
Borrower shall pay to the Agent on October 1, 2009, the quarterly interest
payment in an aggregate amount of $637,500 due on October 15, 2009 under
the Loan Agreement.

 

(b) The
Loan Parties shall not incur, create, issue, assume or suffer to exist any
indebtedness for borrowed money other than indebtedness existing on the
Effective Date.

 

(c) The
Loan Parties shall not incur, create, assume or suffer to exist any lien other
than (i) liens existing on the Effective Date and (ii) customary
liens incurred in the ordinary course of business and otherwise permitted under
the Loan Agreement.

 

7                  Conditions.  The agreement of the Agent, the Lenders and
the Loan Parties hereunder shall become effective as of the date when the
following conditions shall have been satisfied or waived by the Agent and the
Lenders in their sole discretion (the “Effective Date”):

 

(a) the
Agent shall have received counterparts of this Agreement duly executed by the
Loan Parties; and

 

3

 

(b) the
Agent shall have received fully executed copies of the Indenture Forbearance
Agreements (which copies may be redacted to omit confidential information
concerning the Forbearing Holders from their respective signature pages), in
form and substance satisfactory to the Agent in its reasonable discretion.

 

8                  Release.  In partial consideration of the Lenders’
willingness to enter into this Agreement, the Loan Parties hereby release the
Lenders and the Agent and their officers, affiliates, employees,
representatives, agents, financial advisors, counsel and directors from any and
all actions, causes of action, claims, demands, damages and liabilities of
whatever kind or nature, in law or in equity, now known or unknown, suspected
or unsuspected to the extent that any of the foregoing arises from any action
or failure to act in connection with the Loan Agreement or any other Loan
Document on or prior to the date hereof.

 

9                  Counterparts.  This Agreement may be executed in any number
of counterparts, each of which when so executed and delivered shall be an
original, but all of which shall constitute one and the same instrument

 

10            Effectiveness.  This Agreement shall become effective upon
the execution of a counterpart hereof by each of the parties hereto and receipt
by the Borrower and the Agent of written or telephonic notification of such
execution and authorization of delivery thereof.

 

11            APPLICABLE LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

12            Entirety.  This Agreement and the Loan Documents embody
the entire agreement between the parties and supersede all prior agreements and
understandings, if any, relating to the subject matter hereof.  This Agreement, together with the Loan
Documents represent the final agreement between the parties and may not be
contradicted by evidence of prior, contemporaneous or subsequent oral
agreements of the parties.  There are no
oral agreements between the parties.  In
the event there is a conflict between this Agreement and the Loan Documents,
this Agreement shall control.

 

13            Severability.  In case any provision in or obligation
hereunder shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

 

14            Successors and
Assigns; Transfers.  This
Agreement shall be binding upon and inure to the benefit of each of the parties
and their respective successors and assigns. 
The Lenders may transfer or assign all or any of Term Loans at any time
during the Forbearance Period provided that such transferee shall agree in
writing with the Borrower, as a condition to such transfer, to be bound by all
of the provisions of this Agreement as if they had been original signatories to
this Agreement.

 

[Signature Page Follows]

 

4

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written.

 

	
   

  	
  VITESSE
  SEMICONDUCTOR CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  VITESSE
  MANUFACTURING & DEVELOPMENT CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  VITESSE
  SEMICONDUCTOR SALES CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  VITESSE
  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

5

 

	
   

  	
  WHITEBOX
  VSC, LTD, as Lender and Agent under the Loan Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

6Exhibit 10.1

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This
Amended and Restated Employment Agreement (the “Agreement”) is made this
6th day of October, 2009, by and between Inovio Biomedical Corporation, a
Delaware corporation (the “Company”) and Avtar Dhillon, M.D. (the “Employee”),
currently residing at 5820 Sagebrush Road, La Jolla, CA, 92037.  The Company or Employee are sometimes
referred to herein as “party” or collectively the “parties”.

 

RECITALS

 

WHEREAS,
Employee and Company entered into that certain Employment Agreement dated December 5,
2008 (the “Prior Agreement”) pursuant to which the Employee has served as
President of the Company; and

 

WHEREAS,
the parties desire to amend and restate the Prior Agreement to, among other
things, provide that the Employee will serve as the Company’s Executive
Chairman and lengthen the term of Employee’s service to the Company.

 

NOW, THEREFORE, in consideration of the mutual promises and
covenants contained herein, and the continued employment of Employee by the
Company under this Agreement, the parties agree as follows:

 

ARTICLE
1

 

EMPLOYMENT

 

1.1                                 Employment: 
The Company hereby employs the Employee to serve as Executive Chairman,
or in such other capacity as may be mutually agreed to by the parties, and the
Employee accepts such employment, upon the terms and subject to the conditions
set forth in this Agreement.

 

1.2                                 Duties:  The Employee shall perform such
duties as are customarily associated with his then current title or titles,
consistent with the Bylaws of the Company and as required by the Board of
Directors of the Company.  Said duties
shall be performed at the Company’s place of business located at 11494 Sorrento
Valley Road, San Diego, California, or at such place or places as the Company
shall reasonably designate or as shall be reasonably appropriate and necessary
to the discharge of the Employee’s duties in connection with his employment,
but subject to the provisions of Section 4.3.6 of this Agreement.  The Company and the Employee agree that the
duties may be replaced, superseded or supplemented from time to time by the
Board of Directors, but subject to the provisions of Section 4.3.1.3 of
this Agreement.

 

1.3                                 Hours:  During the term of the Employee’s
employment with Company, the Employee will devote his best efforts and
substantially all of his business time and attention to the performance of his
duties hereunder and to the business and affairs of the Company, except for
vacation periods as set forth herein, or for such reasonable time periods to voluntarily
perform charitable or civic duties by Employee. 
The Employee will duly, punctually and faithfully observe the Company’s
general employment policies and practices, including, without 

 

1

 

limitation, any and all rules, regulations, policies
and/or procedures which the Company may now or hereafter establish governing
the conduct of its business.  In
addition, the Employee will carry out his duties honestly, in good faith and in
the best interest of the Company.

 

1.4                                 Previous Agreements: 
Subject to the following sentence, the parties hereby agree that all
previous employment, consulting or other similar agreements covering the same
subject matter of this Agreement, whether written, verbal or implied between
the Company and the Employee are hereby cancelled, superseded and replaced by
this Agreement, and shall be of no further force or effect provided, however, the Employee shall
remain bound by any confidentiality, invention assignment, non-solicit and
non-compete agreement(s) previously executed in favor of the Company, to
the extent such ancillary agreements exist. 
Notwithstanding the foregoing and the amendment and restatement of the
Prior Agreement, Section 2.6 of the Prior Agreement shall survive the
execution of this Agreement.

 

ARTICLE
2

COMPENSATION

 

2.1                                 Salary:  Subject to subsection 2.2,
for his services hereunder, the Employee shall receive a salary, payable in
such regular intervals as shall be determined by the Company, which shall be at
the rate of not less than U.S. $378,000 per year (the “Salary”).

 

2.2                                 Salary Increases: 
The rate of Salary provided for in Section 2.1 shall be reviewed by
the Board not less often than annually and shall be increased from time to time
and in such amount as the Board, in its sole discretion, may determine.

 

2.3                                 Discretionary Bonus: 
The Company will, within 120 days of the end of each fiscal year,
determine the annual bonus (the “Bonus”), if any, earned by the Employee for
that fiscal year, based on the Employee’s achievement of milestones agreed to
by the Compensation Committee of the Board of Directors and the Employee.  Within 60 days of the beginning of each
fiscal year, the Compensation Committee of the Board of Directors and the
Employee shall agree to the Employee’s milestones and the amount of bonus,
which will be awarded to the Employee if one or more milestones are
achieved.  In the Company’s sole
discretion it may pay the Bonus in cash, shares of the Company or stock options
of the Company, or any combination thereof, and it may pay the Bonus in a lump
sum or installments, equal or otherwise, over the course of the fiscal year
immediately following the year for which the bonus was earned.

 

2.4                                 Withholding: 
All payments of Salary, Bonuses and other compensation pursuant to this
Agreement shall be subject to withholding taxes and statutory deductions as
required by law.  The Company shall be
entitled to deduct from the Salary, Bonus and any other compensation due to the
Employee, and to remit to the required governmental authority, any amount that
it may be required by law or regulation to deduct, retain and remit, and may
deduct other amounts as authorized by the Employee.

 

2.5                                 Stock Options: 
In addition to the compensation provided for in Section 2.1 of this
Agreement, the Employee shall be entitled to such stock options as may be
approved by the Board of Directors of the Company in its sole discretion from
time to time, subject to regulatory 

 

2

 

approval and subject to the terms and conditions set
out in the Inovio Biomedical Corporation Amended and Restated 2007 Omnibus
Incentive Plan, or any other stock option plans subsequently adopted by the
Company applicable to the Employee’s position, including all terms and
conditions regarding vesting and exercise of options upon termination or other
events.

 

ARTICLE
3

FRINGE BENEFITS

 

3.1                                 Participation in Plans: 
The Employee shall be entitled to all additional fringe benefits,
including, but not limited to, life and health insurance programs that may be
generally available to other employees of the Company.  All matters of eligibility for coverage of
benefits under any plan or plans of health, hospitalization, life or other
insurance provided by the Company shall be determined in accordance with the
provisions of the insurance policies and/or applicable benefit plans.  The Company shall not be liable to the
Employee, or his beneficiaries or successors, for any amount payable or claimed
to be payable under any plan or policy of insurance, which is not paid to any
of the Company’s other employees.

 

3.2                                 Vacation: 
The Employee shall be entitled to five weeks paid vacation during each
calendar year in accordance with the vacation accrual schedules and applicable
vacation policies and procedures of the Company, including the maximum cap on
accrual, as applied to other employees of the Company and which may be changed
from time to time by the Company.

 

3.3                                 Business Expenses: 
The parties acknowledge that the Employee may incur, from time to time,
for the benefit of the Company and in furtherance of the Company’s business,
various business expenses.  The Company
agrees that it shall either pay such reasonable expenses directly, or reimburse
the Employee for such reasonable expenses incurred by the Employee.  The Employee agrees to submit to the Company
original receipts of all expenses paid by Employee and such other documentation
as may be reasonably necessary to substantiate that all expenses paid or
reimbursed hereunder were reasonably related to the performance of his or her
duties, pursuant to the provisions of any applicable expense reimbursement
policies and procedures that the Company may implement for time to time.

 

3.4                                 Travel Policy: 
The Employee shall be entitled to travel reimbursement consistent with
the travel policy of the Company.

 

ARTICLE
4

TERM AND TERMINATION OF EMPLOYMENT

 

4.1                                 RESERVED.

 

4.2                                 Term: 
The term of this Agreement shall be for a period of two (2) years
commencing on the date of this Agreement (the “Term”), unless terminated
earlier pursuant to the provisions of Section 4.3 of this Agreement.

 

3

 

4.3                                 Termination:

 

4.3.1                        The
Employee’s Right to Terminate: 
The Employee may terminate his obligations under this Agreement during
the Term:

 

4.3.1.1                                  at any time upon providing six weeks notice in writing
to the Company; or

 

4.3.1.2                                  upon a material breach or default of any term of this
Agreement by the Company, including any reduction in salary, if such material
breach or default has not been remedied within 15 days after written
notice of the material breach or default has been delivered by the Employee to
the Company, or

 

4.3.1.3                                  for “Good Reason” during the Term.  “Good Reason” shall mean any of the following,
without the Employee’s written consent: (a) Employee ceases to report
directly to the Board of Directors of the Company, or (b) any other
material reduction in the Employee’s duties, position, authority, title or
responsibilities with the Company relative to the duties, position, authority
or responsibilities in effect immediately prior to such reduction; provided
that Company has not cured or remedied such Good Reason within 15 days
after written notice of the Good Reason from the Employee, or

 

4.3.1.4                                  upon a Change of Control that closes following the
one-year anniversary of the date of this Agreement.  For the purposes of this Agreement, a “Change
of Control” shall be deemed to have occurred when: (a) a majority of the
directors elected at any annual or special general meeting of shareholders of
the Company are not individuals nominated by the Company’s then incumbent Board
of Directors (“Board”); (b) there is occurrence of an event whereby any
person or entity becomes the beneficial owner of shares representing 50% or
more of the combined voting power of the voting securities of the Company; or (c)
there is a merger or consolidation of the Company with one or more corporations
as a result of which, immediately following such merger or consolidation, the
shareholders of the Company as a group, as they were immediately prior to such
event, will hold less than a majority of the outstanding capital stock of the
surviving corporation.

 

4.3.2                        Company’s
Right to Terminate for “Cause”: 
The Company may immediately terminate the Employee’s employment for “Cause”
under this Agreement at any time during the Term upon the occurrence of any of
the following events:

 

4.3.2.1                                  the Employee acting unlawfully, dishonestly, in bad
faith or grossly negligent with respect to the business of the Company as
determined by the Board, upon completion of a reasonable investigation, and
provision of a detailed report of the results of such investigation to the
Employee; or

 

4.3.2.2                                  the Employee committing any crime or fraud against the
Company or its property or the conviction of Employee of any felony offense or
crime reasonably likely to bring discredit upon the Employee or the Company; or

 

4.3.2.3                                  a material breach or default of any term of this
Agreement by the Employee if such material breach or default has not been
remedied within 30 days after written notice of the material breach or
default has been delivered by the Company to the Employee.

 

4

 

4.3.3                        Company’s
Right to Terminate Without Cause: 
The Company may terminate the Employee’s employment under this Agreement
at any time during the Term at the discretion of the Company, without Cause,
after the Employee has received 30 days prior written notice from the Company.

 

4.3.4                        Other
Termination: 
The Employee’s employment under this Agreement shall also terminate upon
the occurrence of the following:

 

4.3.4.1                                  the Employee’s employment under this Agreement shall
automatically terminate upon the occurrence of the death of the Employee during
the Term of this Agreement; or

 

4.3.4.2                                  notice of termination from the Company after the
Employee has become permanently disabled, or disabled for a period exceeding
180 consecutive days or 180 days calculated on a cumulative basis over any
one year period during the Term of this Agreement, such that Employee is no
longer able to perform the essential functions of his job even with reasonable
accommodation pursuant to applicable law.

 

4.3.5                        Compensation
Due to the Employee on Termination: 
In the event of the termination of the Employee’s employment under this
Agreement for any reason, and upon receipt of an executed release of claims
from the Employee in favor of the Company, the Company shall pay to the
Employee on the date of termination (“Termination Date”) (i) the amount of
Base Salary pursuant to subsection 2.1 of this Agreement that is earned
but unpaid as of the date of termination, (ii) any accrued but unused
vacation pay as of such date, and (iii) any unreimbursed business expenses
incurred as of the termination date pursuant to subsection 3.3 of this
Agreement (collectively “Accrued Benefits”) and Employee shall not be entitled
to receive any other payments, compensation or benefits from the Company under
this Agreement, except as expressly set forth below:

 

4.3.5.1                                  if (i) terminated by the Employee pursuant to
subsection 4.3.1.2 due to a material breach or default by the Company, for
Good Reason pursuant to subsection 4.3.1.3, or pursuant to subsection
4.3.1.4, (ii) terminated by the Company without Cause pursuant to
subsection 4.3.3, or (iii) terminated pursuant to
subsection 4.3.4 due to death or disability, the Company shall pay to the
Employee or his estate, in addition to the Accrued Benefits earned as of the
date of termination and expense reimbursement as set forth above in
subsection 4.3.5, an amount equal to the annual Bonus, if any, most
recently paid to the Employee pursuant to subsection 2.3 of this
Agreement, multiplied by the fraction of which the number of days between the
fiscal year end of the Company related to the bonus and the date of termination
is the numerator, and 365 is the denominator.

 

4.3.5.2                                  if the Employee’s employment is terminated under any
of the provisions enumerated in Section 4.3.5.1, the Company shall also
pay to the Employee or his estate, in addition to the amounts sent forth in Section 4.3.5.1,
an amount equal to twelve (12) months of the Employee’s then annual Salary.

 

5

 

4.3.5.3                                  if the Employee’s employment is terminated under any
of the provisions enumerated in Section 4.3.5.1, the Company shall
continue the Employee’s group health care benefits for a period of twelve
(12) months from the Employee’s Termination Date pursuant to the Company
plans or, the Company shall pay 100% of the premiums required to continue
Employee’s group health care coverage for a period of twelve months from the
Employee’s Termination Date, under the applicable provisions of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), provided that
the Employee elects to continue and remains eligible for these benefits under
COBRA, and does not become eligible for health coverage through another
employer during this period.  No other
benefits shall be continued.

 

4.3.6                        Termination
Due to Relocation: 
Notwithstanding the termination provisions set forth above, if the
employment is terminated by Employee or Company at any time during the Term of
this Agreement due to Company relocating Employee’s place of employment more than
50 miles from its current location in San Diego, California, as set forth in
subsection 1.2 of this Agreement, and Employee does not consent to such
relocation, then the Employee shall be entitled to receive the Accrued Benefits
and the Severance Package that Employee would receive for a termination for “Good
Reason” as provided in subsections 4.3.5.1, 4.3.5.2 and 4.3.5.3 above.

 

ARTICLE
5

MISCELLANEOUS

 

5.1                                 Assignment Prohibited: 
This Agreement is personal to the Employee hereto and Employee may not
assign or delegate any of Employee’s rights or obligations hereunder.  The Company may not assign this Agreement
without the written consent of the Employee except in connection with a merger
or consolidation of the Company (in which case the merged or consolidated
entity shall remain fully liable for its obligations as the Company under this
Agreement as specified above).

 

5.2                                 Paragraph Headings: 
The paragraph headings used in this Agreement are included solely for
convenience and shall not affect of be used in connection with the
interpretation of this Agreement.

 

5.3                                 Legal Expenses of Enforcement: 
If either party commences a legal action or other proceeding for
enforcement of this Agreement, or because of an alleged dispute, breach,
default or misrepresentation in connection with any of the provisions of this
Agreement, the prevailing party shall be entitled to reasonable attorney’s fees
and other costs incurred in connection with the action or proceeding, in
addition to any other relief to which it may be entitled.

 

5.4                                 Independent Legal Advice:  Employee
acknowledges and understands that this Agreement was drafted and prepared for
the Company with the assistance of legal counsel and that such legal counsel
has not been engaged to protect the rights and interests of Employee to this
Agreement.  Employee further acknowledges
and agrees that the Company has given Employee an adequate opportunity to seek,
and Company has recommended that Employee seek and obtain, independent legal
advice with respect to the subject matter of this Agreement and for 

 

6

 

the purpose of ensuring that Employee’s rights and
interests are protected.  Employee
represents and warrants to the Company that Employee has sought independent
legal advice, or has consciously chosen not to do so with full knowledge of the
risks associated with not obtaining such independent legal advice.

 

5.5                                 Severability: 
If any provision of this Agreement is declared invalid by any court or
tribunal, then such provision shall be deemed automatically modified to conform
to the requirements for validity as declared at such time, and as so modified,
shall be deemed a provision of this Agreement as though originally included
herein.  In the event that the provision
invalidated is of such a nature that it cannot be so modified, the provision
shall be deemed deleted from this Agreement as though the provision had never
been included herein.  In either case,
the remaining provisions of this Agreement shall remain in effect.

 

5.6                                 Choice of Law: 
This Agreement shall be governed by and construed in accordance with the
laws of the State of California, as applied to agreements executed and
performed entirely in California by California residents without regard to
California’s choice of law rule.

 

5.7                                 Entire Agreement: 
This Agreement constitutes the entire, final and complete and exclusive
agreement between the parties regarding the subject matter hereof and
supersedes all previous agreements or representations, whether written, oral or
implied, with respect to employment by the Company provided, however, the Employee shall remain bound by any
confidentiality, invention assignment, non-solicit and non-compete agreement(s) previously
executed in favor of the Company, to the extent such ancillary agreements
exist.  There are no terms, promises,
representations, agreements, or understandings between the parties relating to
the subject matter of this Agreement, which are not fully expressed herein.

 

5.8                                 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 of 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.

 

5.9                                 Notices: 
All notices required or permitted hereunder shall be in writing and
shall be delivered to the other party in person or sent by overnight currier
with confirmation of delivery, or by regular mail, postage prepaid, at the
address first written above or at such other address as provided in writing or
currently on record at the Company at the time notice is sent.

 

5.10                           Binding Effect: 
This Agreement shall be binding upon, and inure to the benefit of, the
parties, their heirs, successors and permitted assigns.

 

7

 

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

 

 

INOVIO BIOMEDICAL
CORPORATION

 

 

	
  /s/ J. Joseph Kim

  	
   

  
	
  J. Joseph Kim, Ph.D.,
  Chief Executive Officer

  	
   

  

 

 

AVTAR DHILLON, M.D.

 

 

	
  /s/ Avtar Dhillon

  	
   

  
	
  Avtar Dhillon, M.D.

  	
   

  

 

[SIGNATURE PAGE TO EMPLOYMENT AGREEMENT]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]