Document:

Blueprint

 

Exhibit
10.1

 

EXCHANGE
AGREEMENT

 

THIS
EXCHANGE AGREEMENT (the “Agreement”), dated as of May [
], 2017 (the “Effective Date”), is made by and between MabVax
Therapeutics Holdings, Inc., a Delaware corporation
(“Company”), and the holder of the Company’s
Series H Preferred Stock signatory hereto
(“Holder”).

 

WHEREAS, pursuant
to that certain Subscription Agreement (the “Subscription
Agreement”), dated as of May 3, 2017, by and between the
Company and the investor signatory thereto (the
“Holder”), whereby, among other things, the Holder
purchased from the Company $[ ] of shares of Series H Convertible
Preferred Stock having a stated value of $1,000 per share (the
“Series H Preferred Stock” or the “Exchange
Securities”), the terms of which are set forth in the
certificate of designations, preferences and rights of Series H
Convertible Preferred Stock (the “H Certificate of
Designations”) in the form attached to the Subscription
Agreement as Exhibit
A;

 

WHEREAS, the shares
of Series H Preferred Stock are convertible into the Company's
common stock, par value $0.01 per share (the “Common
Stock”), in accordance with the terms of the H Certificate of
Designations and based upon a conversion calculation equal to the
Stated Value (as defined in the H Certificate of Designations) of
the Series H Preferred Stock, plus all accrued and unpaid
dividends, if any, on such Series H Preferred Stock, as of such
date of determination, divided by the conversion price of $1.75,
subject to adjustments as set forth in the H Certificate of
Designations;

 

WHEREAS, the Holder
holds such number of shares of Series H Preferred Stock and as set
forth on Schedule A
hereto;

 

WHEREAS, the
Company has authorized a new series of convertible preferred stock
of the Company designated as Series G Convertible Preferred Stock,
$0.01 par value, the terms of which are set forth in the
Certificate of Designation of Preferences, Rights and Limitations
of Series G Convertible Preferred Stock (the “G Certificate
of Designations”) in the form attached hereto as Exhibit B (together with any
convertible preferred shares issued in replacement thereof in
accordance with the terms thereof, the “Series G Preferred
Stock”), which Series G Preferred Stock shall be convertible
into the Company’s Common Stock, in accordance with the terms
of the G Certificate of Designations;

 

WHEREAS, the
Company has filed a Registration Statement on Form S-1, as amended
(Registration No. 333-216016) (the “Registration
Statement”) with the Securities and Exchange Commission (the
“SEC”), and such Registration Statement shall be
declared effective by the SEC, in connection with a public offering
of the Company’s Series G Preferred Stock and Common Stock
(the “Offering”); and

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant
to Section 3(a)(9) of the Securities Act of 1933, as amended (the
“Securities Act”), the Company desires to exchange with
the Holder, and the Holder desires to exchange with the Company,
the Exchange Securities for shares of the Company’s Series G
Preferred Stock in the Offering.

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in
this Agreement, and for other good and valuable consideration the
receipt and adequacy of which are hereby acknowledged, the Company
and Holder agree as follows:

 

1.   
Terms of the
Exchange. The Company and Holder agree that the Holder will
exchange the Exchange Securities and will relinquish any and all
other rights it may have under the Exchange Securities in exchange
for such number of Series G Preferred Stock as set forth on
Schedule A, annexed
hereto.

 

2.   
Closing. Upon
satisfaction of the conditions set forth herein, a closing shall
occur at the principal offices of the Company, or such other
location as the parties shall mutually agree (the
“Closing”) simultaneously with the closing of the
Offering and which Offering closing shall be a condition to the
Closing. At Closing, Holder shall surrender the Exchange Securities
and the Company shall deliver to Holder the Series G Preferred
Stock, in such amounts and to such persons as are set forth on
Schedule A. Upon
Closing, any and all obligations of the Company to Holder under the
Exchange Securities shall be fully satisfied (including any rights
related to the Exchange Securities
under the Subscription Agreement) and Holder will have no remaining
rights, powers, privileges, remedies or interests under the
Exchange Securities.

 

 

-1-

 

 

3.   
Further Assurances.
Each party shall do and perform, or cause to be done and performed,
all such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as
any other party may reasonably request in order to carry out the
intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.

 

4.   
Registered
Securities. The Holder and the Company understand and agree
that the Series G Preferred Stock will be issued and the shares of
Common Stock issuable upon conversion of the Series G Preferred
Stock (the “Conversion Shares” and, together with the
Series G Preferred Stock, the “Securities”) when
issued, shall be issued pursuant to the Registration Statement and
the Holder shall have all the rights and remedies pursuant to the
Securities Act relative to the purchase of shares offered and sold
pursuant to the Registration Statement. Due to the registration and
qualification under the Securities Act and applicable state
securities laws, the Series G Preferred Stock shall have no
restrictions or legends other than those required pursuant to the
Registration Statement and the Common Stock issuable upon
conversion of the Series G Preferred Stock shall be registered
securities for all purposes pursuant to and subject to the
limitations of only the Registration Statement and prospectus a
part thereof.

 

5.   
Additional
Acknowledgments.

 

a. The
Company shall within four (4) Trading Days immediately following
the date hereof (a) file a Current Report on Form 8-K, including
the Exchange Documents as exhibits thereto, with the Securities and
Exchange Commission (the “Commission”) within the time
required by the Exchange Act. The Company and the Holder shall
consult with each other in issuing any press releases with respect
to the transactions contemplated hereby, and neither the Company
nor the Holder shall issue any such press release nor otherwise
make any such public statement without the prior consent of the
Company, with respect to any press release of the Holder, or
without the prior consent of the Holder, with respect to any press
release of the Company, which consent shall not unreasonably be
withheld or delayed, except if such disclosure is required by law,
in which case the disclosing party shall promptly provide the other
party with prior notice of such public statement or communication.
Notwithstanding the foregoing, the Company shall not publicly
disclose the name of the Holder, or include the name of the Holder
in any filing with the Commission or any regulatory agency or
Trading Market, without the prior written consent of the Holder,
except (a) as required by federal securities law in connection with
the filing of final Exchange Documents (including signature pages
thereto) with the Commission and (b) to the extent such disclosure
is required by law or Trading Market regulations, in which case the
Company shall provide the Holder with prior notice of such
disclosure permitted under this Section 5(a).

 

b.
Except with respect to the material terms and conditions of the
transactions contemplated by the Exchange Documents, the Company
covenants and agrees that neither it, nor any other Person acting
on its behalf, will provide Holder or its agents or counsel with
any information that the Company believes constitutes material
non-public information, unless prior thereto Holder shall have
entered into a written agreement with the Company regarding the
confidentiality and use of such information. The Company
understands and confirms that Holder shall be relying on the
foregoing covenant in effecting transactions in securities of the
Company.

 

c. 
Conversion
Procedures. The form of Notice of Conversion included in the
G Certificate of Designations sets forth the totality of the
procedures required of the Holder in order to convert the Series G
Preferred Stock. No additional legal opinion, other information or
instructions shall be required of the Holder to convert its Series
G Preferred Stock. The Company shall honor conversions of the
Series G Preferred Stock and shall deliver the Conversion Shares in
accordance with the terms, conditions and time periods set forth in
the Exchange Documents.

 

d. 
Preservation of Corporate
Existence. The Company shall preserve and maintain its
corporate existence, rights, privileges and franchises in the
jurisdiction of its incorporation, and qualify and remain
qualified, as a foreign corporation in each jurisdiction in which
such qualification is necessary in view of its business or
operations and where the failure to qualify or remain qualified
might reasonably have a Material Adverse Effect upon the financial
condition, business or operations of the Company taken as a
whole.

 

 

-2-

 

 

 

6.   
Release by the Holder;
Termination of Subscription Agreement; Waiver of Registration
Rights.

 

a.  In
consideration of the foregoing, Holder releases and discharges the
Company, the Company’s officers, directors, principals,
control persons, past and present employees, insurers, successors,
and assigns (“Company Parties”) from all actions, cause
of action, suits, debts, dues, sums of money, accounts, reckonings,
bonds, bills, specialties, covenants, contracts, controversies,
agreements, promises, variances, trespasses, damages, judgments,
extents, executions, claims, and demands whatsoever, in law,
admiralty or equity, which against Company Parties ever had, now
have or hereafter can, shall or may, have for, upon, or by reason
of any matter, cause or thing whatsoever, whether or not known or
unknown, arising under the Exchange Securities Subscription
Agreement.  It being understood that this Section shall be
limited in all respects to only matters arising under or related to
the Exchange Securities and the Subscription Agreement and shall
under no circumstances constitute a release, waiver or discharge
with respect to the Securities or any Exchange Documents or limit
the Holder from taking action for matters with respect to the
Securities, any Exchange Document or events that may arise in the
future.

 

b.  As further
consideration of the foregoing, Holder and the Company hereby
acknowledge and agree that the Subscription Agreement, and all
rights, covenants, agreements and obligations contained therein, is
hereby terminated and of no further force or effect. The Holder and
the Company hereby agree and confirm that the Holder’s
agreement to terminate the Company’s obligations under the
Subscription Agreement shall constitute an agreement to terminate
pursuant to Section 9(e) of the Subscription Agreement and, upon
the Company independently obtaining similar agreements from such
Other Holders as would constitute the requisite “Required
Holders” (as defined in the Subscription Agreement), such
termination shall be considered a termination of the Purchas
Agreement with respect to all parties thereto.

 

c.  As further
consideration of the foregoing, Holder hereby waives, only on
behalf of itself its rights under that certain Registration Rights
Agreement, dated as of May 3, 2017, by and between the Company and
the Holder, as amended from time to time (the “Registration
Rights Agreement”), restricting the Company’s ability
to grant additional registration rights to Holder or any other
person or entity, providing the parties thereto with any notice
relating to the filing of any additional registration statements by
the Company and requiring that the Company include any Registrable
Securities (as defined therein) in any future registration
statement filed by the Company. The Holder and the Company hereby
agree and confirm that the Holder’s agreement to waive the
Company’s obligations under the Registration Rights Agreement
shall constitute a waiver pursuant to Section 6(f) of the
Registration Rights Agreement and, upon the Company independently
obtaining similar waivers from such Other Holders as would
constitute the requisite “Required Holders” (as defined
in the Registration Rights Agreement), such waiver shall be
considered a waiver of the Company’s obligations under the
Registration Rights Agreement with respect to all parties
thereto.

 

 7.   

Miscellaneous.

 

a. 
Successors and
Assigns. This Agreement shall be binding upon and inure to
the benefit of the parties and their respective successors and
assigns.

 

b.  Governing
Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be
governed by and construed under the laws of the State of New York
without regard to the choice of law principles thereof. Each party
hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts sitting in the State of New York located
in The City of New York, Borough of Manhattan for the adjudication
of any dispute hereunder or in connection herewith or therewith or
with any transaction contemplated hereby or thereby, and hereby
irrevocably waives any objection that such suit, action or
proceeding is brought in an inconvenient forum or that the venue of
such suit, action or proceeding is improper. Nothing contained
herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY.

 

c. 
Severability. If any provision of this Agreement shall be invalid
or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of
the remainder of this Agreement in that jurisdiction or the
validity or enforceability of any provision of this Agreement in
any other jurisdiction.

 

 

-3-

 

 

d. 
Counterparts/Execution.
This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been
signed by each party and delivered to the other party. In the event
that any signature is delivered by facsimile transmission or by an
e-mail which contains an electronic file of an executed signature
page, such signature page shall create a valid and binding
obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such
facsimile or electronic file signature page (as the case may be)
were an original thereof.

 

e. 
Notices. Any notice
or communication permitted or required hereunder shall be in
writing and shall be deemed sufficiently given if hand-delivered or
sent (i) postage prepaid by registered mail, return receipt
requested, or (ii) by facsimile, to the respective parties as set
forth below, or to such other address as either party may notify
the other in writing.

 

If to the Company,
to: 

MabVax Therapeutics
Holdings, Inc.

 

11535
Sorrento Valley Road, Ste. 400

 

San
Diego, CA 92121

 

Attention:
Chief Executive Officer

 

If to
Holder, to the address set forth on the signature page of the
Holder

 

f. 
Expenses. The
parties hereto shall pay their own costs and expenses in connection
herewith.

 

g.
Entire Agreement;
Amendments. This Agreement constitutes the entire agreement
between the parties with regard to the subject matter hereof and
thereof, superseding all prior agreements or understandings,
whether written or oral, between or among the parties. This
Agreement may be amended, modified, superseded, cancelled, renewed
or extended, and the terms and conditions hereof may be waived,
only by a written instrument signed by all parties, or, in the case
of a waiver, by the party waiving compliance. Except as expressly
stated herein, no delay on the part of any party in exercising any
right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any party of any
right, power or privilege hereunder preclude any other or future
exercise of any other right, power or privilege
hereunder.

 

h. 
Headings. The
headings used in this Agreement are used for convenience only and
are not to be considered in construing or interpreting this
Agreement.

 

 

-4-

 

 

i.  Independent Nature of
the Holder’s Obligations and Rights. The obligations of the Holder under the Exchange
Documents are several and not joint with the obligations of any
other holder of Series H Preferred Stock (each, an “Other
Holder”) under any other agreement to exchange Series H
Preferred Stock (each, an “Other Agreement”), and the
Holder shall not be responsible in any way for the performance of
the obligations of any Other Holders under any Other Agreement.
Nothing contained herein or in any Other Agreement, and no action
taken by the Holder pursuant hereto or any Other Holder pursuant to
any Other Agreement, shall be deemed to constitute the Holder or
any Other Holder as, and the Company acknowledges that the Holder
and the Other Holders do not so constitute, a partnership, an
association, a joint venture or any other kind of group or entity,
or create a presumption that the Holder and any Other Holder are in
any way acting in concert or as a group or entity with respect to
such obligations or the transactions contemplated by the Exchange
Documents, any other agreement or any matters, and the Company
acknowledges that the Holder and the Other Holders are not acting
in concert or as a group or entity, and the Company shall not
assert any such claim, with respect to such obligations or the
transactions contemplated by the Exchange Documents and any Other
Agreement. The decision of the Holder to acquire the Securities
pursuant to the Exchange Documents has been made by the Holder
independently of any Other Holder. The Holder acknowledges that no
Other Holder has acted as agent for the Holder in connection with
the Holder making its acquisition hereunder and that no Other
Holder will be acting as agent of the Holder in connection with
monitoring the Holder’s Securities or enforcing its rights
under the Exchange Documents. The Company and the Holder confirm
that the Holder has independently participated with the Company in
the negotiation of the transaction contemplated hereby with the
advice of its own counsel and advisors. The Holder shall be
entitled to independently protect and enforce its rights,
including, without limitation, the rights arising out of this
Agreement or out of any of the Other Agreements, and it shall not
be necessary for any Other Holder to be joined as an additional
party in any proceeding for such purpose. To the
extent that any of the Other Holders and the Company enter into the
same or similar documents, all such matters are solely in the
control of the Company, not the action or decision of the Holder,
and would be solely for the convenience of the Company and not because it was required or requested to do
so by the Holder or any Other
Holder. For clarification purposes only and without implication
that the contrary would otherwise be true, the transactions
contemplated by the Exchange Documents include only the transaction
between the Company and the Holder and do not include any other
transaction between the Company and any Other
Holder.

 

 

(Signature
Pages Follow)

 

 

 

 

 

 

-5-

 

 

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

 

MABVAX
THERAPEUTICS HOLDINGS, INC.

 

 

 

By:____________________________________

Name:

Title:

 

 

HOLDER:
[_________]

 

 

 

By:____________________________________

 

 

 

Address
for Notices:

__________________________________________

__________________________________________

__________________________________________

__________________________________________

 

Address
for delivery of Securities:

__________________________________________

__________________________________________

__________________________________________

__________________________________________

 

 

 

 

-6-

 

 

SCHEDULE
A

 

	

 

 

 

 

 

 

Name and Address 
of Holder

	

 

 

 

 

 

Number of Shares of Series H Preferred Stock to be
Exchanged

	

 

 

 

 

Number of Shares of Series G

Preferred Stock to be Issued

	
 

	
 

	
 

 

 

 

 

 

 

-7-

 

 

 

 EXHIBIT
A

 

[Attached
separately]

 

 

 

-8-

 

 

 

 

EXHIBIT
B

 

[Attached
separately]

 

 

 

 

 

 

-9-mack-ex102_320.htm

Exhibit 10.2

SEPARATION AND RELEASE OF CLAIMS AGREEMENT

This Separation and Release of Claims Agreement (the “Agreement”) is made as of the Effective Date (as defined below) between Merrimack Pharmaceuticals, Inc. (the “Company”) and Peter N. Laivins (“Executive”) (together, the “Parties”).

WHEREAS, the Company and Executive are parties to the Employment Agreement dated as of February 24, 2015 (the “Employment Agreement”), under which Executive currently serves as Head of Development;

WHEREAS, the Parties wish to establish terms for Executive’s orderly transition and separation from the Company effective on the Separation Date (as defined below); and

WHEREAS, the Parties agree that the payments, benefits and rights set forth in this Agreement shall be the exclusive payments, benefits and rights due Executive;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

	
1.
	
Separation Date – Executive’s effective date of separation from employment with the Company will be April 3, 2017 (the “Separation Date”).  Executive hereby resigns, as of the Separation Date, from his employment with the Company and as an officer of the Company.  Executive agrees to execute and deliver any documents reasonably necessary to effectuate such resignations, provided that nothing in any such document is inconsistent with any terms set forth in this Agreement.  As of the Separation Date, all salary payments from the Company will cease and any benefits Executive had as of the Separation Date under Company-provided benefit plans, programs, or practices will terminate, except as required by federal or state law or as otherwise specifically set forth in this Agreement.

	
2.
	
Severance Benefits – In return for Executive’s timely signing and not revoking this Agreement, and subject to Executive’s compliance with all terms hereof, the Company will provide Executive with the following severance benefits in full satisfaction of the Company’s obligations under the Employment Agreement (the “Severance Benefits”):

(a) Salary Continuation  – Commencing on the first regularly scheduled payroll date that follows the sixtieth (60th) day after the Separation Date (the “Payment Commencement Date”), the Company will, for a twelve (12) month period (the “Severance Period”), provide Executive with severance pay in the form of salary continuation payments at Executive’s current annual base salary rate of $333,704, less all applicable taxes and withholdings and in accordance with the Company’s regular payroll practices.

(b) Group Health Insurance – Should Executive be eligible for and timely elect to continue receiving group health and/or dental insurance coverage under the law known as COBRA, the Company shall, until earlier of (x) the last day of the Severance Period, and (y) the date that Executive is no longer eligible for COBRA continuation coverage (the 

1

 

“COBRA Contribution Period”), pay on Executive’s behalf the share of the premium for such coverage that it currently pays on behalf of active and similarly situated employees who receive the same type of coverage.  The remaining balance of any premium costs, and all premium costs after the COBRA Contribution Period, shall be paid by Executive on a monthly basis during the elected period of health insurance coverage under COBRA for as long as, and to the extent that, he remains eligible for COBRA continuation.

(c) 2016 Bonus – On the first regularly scheduled payroll date after the Separation Date, the Company shall provide Executive with a 2016 bonus payment of $116,796, less all applicable taxes and withholdings.

(d) 2017 Pro-Rata Bonus – On the Payment Commencement Date, the Company shall provide Executive with a 2017 pro-rata bonus payment of $27,395.17, less all applicable taxes and withholdings, which is equivalent to (i) the average of Executive’s annual bonus payments over each of the three (3) years prior to the Separation Date, multiplied by (ii) a fraction, the numerator of which is the number of days during calendar year 2017 during which Executive remained employed by the Company and the denominator of which is 365.

(e) Other Benefits Continuation – During the Severance Period, the Company shall, to the extent allowed by applicable law and the applicable plan documents, continue to provide Executive with such other benefits as are described in Section 4(f) of the Employment Agreement, subject to and on a basis consistent with the terms, conditions and overall administration of such plans.

Other than the Severance Benefits, Executive will not be eligible for, nor shall he have a right to receive, any payments or benefits from the Company following the Separation Date, other than reimbursement for any outstanding business expenses in accordance with Company policy.

	
3.
	
Release of Claims – In exchange for the consideration set forth in this Agreement, which Executive acknowledges he would not otherwise be entitled to receive, Executive hereby fully, forever, irrevocably and unconditionally releases, remises and discharges the Company, its affiliates, subsidiaries, parent companies, predecessors, and successors, and all of their respective past and present officers, directors, stockholders, partners, members, employees, agents, representatives, plan administrators, attorneys, insurers and fiduciaries (each in their individual and corporate capacities) (collectively, the “Released Parties”) from any and all claims, charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature that Executive ever had or now has against any or all of the Released Parties up to the date on which he signs this Agreement, whether known or unknown, including, but not limited to, any and all claims arising out of or relating to Executive’s employment with and/or separation from the Company, including, but not limited to, all claims under Title VII of the Civil Rights Act, the Americans With Disabilities Act, the Age Discrimination in Employment Act, the Genetic Information Nondiscrimination Act, the Family and 

2

 

		
Medical Leave Act, the Worker Adjustment and Retraining Notification Act, the Rehabilitation Act, Executive Order 11246, Executive Order 11141, the Fair Credit Reporting Act, and the Employee Retirement Income Security Act, all as amended; all claims arising out of the Massachusetts Fair Employment Practices Act, Mass. Gen. Laws ch. 151B, § 1 et seq., the Massachusetts Wage Act, Mass. Gen. Laws ch. 149, § 148 et seq. (Massachusetts law regarding payment of wages and overtime), the Massachusetts Civil Rights Act, Mass. Gen. Laws ch. 12, §§ 11H and 11I, the Massachusetts Equal Rights Act, Mass. Gen. Laws. ch. 93, § 102 and Mass. Gen. Laws ch. 214, § 1C, the Massachusetts Labor and Industries Act, Mass. Gen. Laws ch. 149, § 1 et seq., Mass. Gen. Laws ch. 214, § 1B (Massachusetts right of privacy law), the Massachusetts Maternity Leave Act, Mass. Gen. Laws ch. 149, § 105D, and the Massachusetts Small Necessities Leave Act, Mass. Gen. Laws ch. 149, § 52D, all as amended; all common law claims including, but not limited to, actions in defamation, intentional infliction of emotional distress, misrepresentation, fraud, wrongful discharge, and breach of contract (including, without limitation, all claims arising out of or related to the Employment Agreement); all state and federal whistleblower claims to the maximum extent permitted by law; and any claim or damage arising out of Executive’s employment with and/or separation from the Company (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above; provided, however, that nothing in this release of claims prevents Executive from filing a charge with, cooperating with, or participating in any investigation or proceeding before, the Equal Employment Opportunity Commission or a state fair employment practices agency (except that Executive acknowledges that he may not recover any monetary benefits in connection with any such charge, investigation, or proceeding, and Executive further waives any rights or claims to any payment, benefit, attorneys’ fees or other remedial relief in connection with any such charge, investigation or proceeding).  This release also does not prevent Executive from reporting possible violations of federal securities laws to government enforcement agencies without notice to the Company, or from receiving any applicable award for information provided to such government enforcement agencies.  Further, nothing herein shall prevent Executive from bringing claims to enforce this Agreement, or release (i) any rights Executive may have under the Company’s certificate of incorporation, by-laws, insurance and/or any indemnification agreement between him and the Company (and/or otherwise under law) for indemnification and/or defense as an employee, officer or director of the Company for his service to the Company (recognizing that such indemnification and/or defense is not guaranteed by this Agreement and shall be governed by the instrument or law, if any, providing for such indemnification and/or defense), (ii) any rights Executive may have to vested equity ownership in the Company under the applicable equity plans and agreements, (iii) any rights Executive may have to vested pension or 401(K) benefits or interests under any ERISA-Covered benefit plan (excluding severance) provided by the Company, (iv) any rights to COBRA or Workers’ Compensation Benefits, or (v) any rights or claims that cannot be waived by law, including claims for unemployment benefits, which the Company agrees that it will not contest, provided that the Company will not make any false statement to any government agency.

	
4.
	
Continuing Obligations – Executive acknowledges and reaffirms his obligation, to the extent permitted by law and except as otherwise permitted by Section 8 below, to keep 

3

 

		
confidential and not to use or disclose any and all non-public information concerning the Company that he acquired during the course of his employment with the Company, including, but not limited to, any non-public information concerning the Company’s business affairs, business prospects, and financial condition.  Executive further acknowledges his continuing obligations with respect to confidential information, non-competition, non-solicitation, non-disclosure and developments as set forth in Sections 6-8 of the Employment Agreement and in the Non-Disclosure, Developments Non-Competition and Non-Solicitation Agreement dated as of February 24, 2015 (the “Restrictive Covenant Agreement”) (except to the extent modified by Section 14 of the Employment Agreement), which survive his separation from employment with the Company, provided, however, the Company agrees to waive Section 4(f) of the Restrictive Covenant Agreement.

	
5.
	
Non-Disparagement – Executive understands and agrees that, to the extent permitted by law and except as otherwise permitted by Section 8 below, he will not, in public or private, make any false, disparaging, derogatory or defamatory statements, online (including, without limitation, on any social media, networking, or employer review site) or otherwise, to any person or entity, including, but not limited to, any media outlet, industry group, financial institution or current or former employee, board member, consultant, client or customer of the Company, regarding the Company or any of the other Released Parties, or regarding the Company’s business affairs, business prospects, or financial condition.  The Company will instruct its board members and executive officers, to the extent permitted by law and except as otherwise permitted by Section 8 below, not to make any false, disparaging, derogatory or defamatory statements to third parties about Executive.

	
6.
	
Return of Company Property – Executive confirms that he will return to the Company all keys, files, records (and copies thereof), equipment (including, but not limited to, computer hardware, software and printers, wireless handheld devices, cellular phones, tablets, etc.), Company identification and any other Company-owned property in his possession or control and that he will leave intact all electronic Company documents, including, but not limited to, those that he developed or helped to develop during his employment. Executive further agrees that he will cancel all accounts for his benefit, if any, in the Company’s name, including, but not limited to, credit cards, telephone charge cards, cellular phone and/or wireless data accounts and computer accounts.

	
7.
	
Confidentiality – Executive understands and agree that, to the extent permitted by law and except as otherwise permitted by Section 8 below, the terms and contents of this Agreement, and the contents of the negotiations and discussions resulting in this Agreement, shall be maintained as confidential by Executive and his agents and representatives and shall not be disclosed except as otherwise agreed to in writing by the Company, except as required by law, and except to his immediate family, legal, financial and tax advisors, on the condition that any individuals informed must hold the above information in strict confidence.  The Company agrees that, to the extent permitted by law and except as otherwise permitted by Section 8 below, it shall keep the contents of the negotiations and discussions resulting in this Agreement confidential except as it believes in good faith to be reasonably necessary for a legitimate business purpose.

4

 

	
8.
	
Scope of Disclosure Restrictions – Nothing in this Agreement prohibits Executive or any other person from communicating with government agencies about possible violations of federal, state or local laws or otherwise providing information to government agencies or participating in government agency investigations or proceedings.  Executive is not required to notify the Company of any such communications; provided, however, that nothing herein authorizes the disclosure of information Executive obtained through a communication that was subject to the attorney-client privilege.  Further, notwithstanding Executive’s confidentiality and nondisclosure obligations, Executive is hereby advised as follows pursuant to the Defend Trade Secrets Act: “An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.”

	
9.
	
Cooperation – Executive agrees that, to the extent permitted by law, he shall, for one (1) year following the Separation Date, reasonably cooperate with the Company in the investigation, defense or prosecution of any claims or actions which already have been brought, are currently pending, or which may be brought in the future against the Company by a third party or by or on behalf of the Company against any third party, whether before a state or federal court, any state or federal government agency, or a mediator or arbitrator. Executive’s reasonable cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with the Company’s counsel, at reasonable times and locations designated by the Company, to investigate or prepare the Company’s claims or defenses, to prepare for trial or discovery or an administrative hearing, mediation, arbitration or other proceeding and to act as a witness when requested by the Company. The Company will reimburse Executive for all reasonable and documented out of pocket costs that he incurs to comply with this paragraph. Executive further agrees that, to the extent permitted by law, he will notify the Company promptly in the event that he is served with a subpoena (other than a subpoena issued by a government agency), or in the event that he is asked to provide a third party (other than a government agency) with information concerning any actual or potential complaint or claim against the Company.

	
10.
	
Final Compensation – Executive acknowledges that he has received all compensation due to him from the Company, including, but not limited to, all wages, bonuses and accrued, unused vacation time, and that he is not eligible or entitled to receive any additional payments or consideration from the Company beyond that provided for in Section 2 of this Agreement.

	
11.
	
Amendment and Waiver – This Agreement shall be binding upon the Parties and may not be modified in any manner, except by an instrument in writing of concurrent or 

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subsequent date signed by duly authorized representatives of the Parties.  This Agreement is binding upon and shall inure to the benefit of the Parties and their respective agents, assigns, heirs, executors/administrators/personal representatives, and successors.  No delay or omission by the Company in exercising any right under this Agreement shall operate as a waiver of that or any other right.  A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar to or waiver of any right on any other occasion.

	
12.
	
Validity – Should any provision of this Agreement be declared or be determined by any court of competent jurisdiction to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed not to be a part of this Agreement.

	
13.
	
Nature of Agreement – Both Parties understand and agree that this Agreement is a separation agreement and does not constitute an admission of liability or wrongdoing on the part of the Company or Executive.

	
14.
	
Time for Consideration and Revocation – Executive acknowledges that he was initially presented with this Agreement on January 25, 2017.  Executive understands that this Agreement shall be of no force or effect, and that he shall not be eligible for the consideration described herein, unless he signs and returns this Agreement on the Separation Date, and does not revoke his acceptance in the subsequent seven (7) day period (the day immediately following expiration of such revocation period, the “Effective Date”).

	
15.
	
Acknowledgments – Executive acknowledges that he has been given at least forty-five (45) days to consider this Agreement, and that the Company is hereby advising him to consult with an attorney of his own choosing prior to signing this Agreement.  Executive further acknowledges and agrees that any changes made to this Agreement following his initial receipt of this Agreement, whether material or immaterial, did not re-start or affect in any manner the original forty-five (45) day consideration period.  Executive understands that he may revoke this Agreement for a period of seven (7) days after he signs it by notifying the Company in writing, and this Agreement shall not be effective or enforceable until the expiration of this seven (7) day revocation period.  Executive understands and agrees that by entering into this Agreement he will be waiving any and all rights or claims he might have under the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, and that he has received consideration beyond that to which he was previously entitled.  Executive further acknowledges that he has received Attachment A to this letter agreement, which provides him with certain information regarding the job titles and ages of individuals employed by the Company who were selected and not selected for the Winter 2017 Restructuring Program (the “Program”).  The decisional unit from which employees were considered for the Program included all employees of the Company.  All such persons in the decisional unit were eligible for the Program.  The selection criteria used in selecting individuals from the decisional unit included their business unit, job performance, skill sets and business need.

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16.
	
Voluntary Assent – Executive affirms that no other promises or agreements of any kind have been made to or with Executive by any person or entity whatsoever to cause him to sign this Agreement, and that he fully understands the meaning and intent of this Agreement.  Executive further states and represents that he has carefully read this Agreement, understands the contents herein, freely and voluntarily assents to all of the terms and conditions hereof, and signs his name of his own free act.

	
17.
	
Applicable Law – This Agreement shall be interpreted and construed by the laws of the Commonwealth of Massachusetts, without regard to conflict of laws provisions.  Executive hereby irrevocably submits to and acknowledges and recognizes the jurisdiction of the courts of the Commonwealth of Massachusetts, or if appropriate, a federal court located in the Commonwealth of Massachusetts (which courts, for purposes of this Agreement, are the only courts of competent jurisdiction), over any suit, action or other proceeding arising out of, under or in connection with this Agreement or the subject matter hereof.

	
18.
	
Entire Agreement – This Agreement contains and constitutes the entire understanding and agreement between the Parties hereto with respect to Executive’s separation from the Company, severance benefits and the settlement of claims against the Company, and cancels all previous oral and written negotiations, agreements, commitments and writings in connection therewith; provided, however, that nothing in this Section shall modify, cancel or supersede Executive’s obligations set forth in Section 4 above.

	
19.
	
Tax Acknowledgement – In connection with the Severance Benefits provided to Executive pursuant to this Agreement, the Company shall withhold and remit to the tax authorities the amounts required under applicable law, and Executive shall be responsible for all applicable taxes owed by him with respect to such Severance Benefits under applicable law.  Executive acknowledges that he is not relying upon the advice or representation of the Company with respect to the tax treatment of any of the Severance Benefits set forth in this Agreement.

	
20.
	
Section 409A - This Agreement, and all payments hereunder, are intended to be exempt from, or if not so exempt, to comply with the requirements of, Section 409A of the Internal Revenue Code of 1986, as amended, and the guidance issued thereunder (“Section 409A”), and this Agreement shall be interpreted and administered accordingly.  Notwithstanding anything to the contrary in this Agreement, if at the time of Executive’s termination of employment, he is a “specified employee” as defined under Section 409A, any and all amounts payable hereunder on account of such termination of employment that would (but for this provision) be payable within six (6) months following the date of termination, shall instead be paid on the next business day following the expiration of such six (6) month period or, if earlier, upon Executive’s death; except to the extent of amounts that do not constitute a deferral of compensation within the meaning of Treasury regulation Section 1.409A – 1(b) or other amounts or benefits that are exempt from or otherwise not subject to the requirements of Section 409A. For purposes of this Agreement, whether or not a termination of employment has occurred shall be determined consistently with Section 409A.  In addition, each payment made pursuant to 

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the Agreement shall be treated as a separate payment and the right to a series of installment payments hereunder is to be treated as a right to a series of separate payments.

	
21.
	
Counterparts – This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement.  Facsimile and PDF signatures shall be deemed to be of equal force and effect as originals.

 

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the Parties have set their hands and seals to this Agreement as of the date(s) written below.

 

	
 
	
Merrimack Pharmaceuticals, Inc.

	
 
	
 

	
 
	
/s/ Jeffrey A. Munsie
	
 
	
Date:
	
4/3/17

	
 
	
By: Jeffrey A. Munsie, General Counsel
	
 
	
 

 

I hereby agree to the terms and conditions set forth above.  I have been given at least forty-five (45) days to consider this Agreement and I have chosen to execute this on the date below.  I intend that this Agreement will become a binding agreement if I do not revoke my acceptance within seven (7) days.

 

	
 
	
Peter N. Laivins

	
 
	
 

	
 
	
/s/ Peter N. Laivins
	
 
	
Date:
	
April 3, 2017

 

 

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ATTACHMENT A

Older Workers Benefit Protection Act Table

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