Document:

Exhibit 10.12

 

SteadyMed Therapeutics, Inc.

 

EMPLOYMENT AGREEMENT

 

This Agreement is entered into this 1st day of March, 2015 (the “Execution Date”) by and between SteadyMed Therapeutics, Inc. (the “Company”) and Peter D. Noymer (“Executive”).

 

1.               Effectiveness of Agreement. This Agreement shall become effective at the time of the execution of the underwriting agreement among the Company and the underwriters providing for the sale of the Company’s Ordinary Shares to the underwriters (the “Effective Date”), subject to the prior approval of the terms of this Agreement by the Compensation Committee of the Board of Directors of the Company, the Board of Directors of the Company, and otherwise as required by the Israel Companies Law-1999 and regulations thereunder. This Agreement shall supersede any prior employment or consulting agreement between Company and Executive on the Effective Date. If the Effective Date does not occur prior to December 31, 2015, or if Executive’s employment with the Company is terminated by the Company or by Executive for any reason (including death or disability) prior to the Effective Date, this Agreement shall not become effective, and any prior agreement shall remain in full force and effect in accordance with its terms.

 

2.               Duties and Scope of Employment.

 

(a)          Positions and Duties. As of the Effective Date, Executive will serve as the Executive Vice President of Research and Development and Chief Technical Officer of the Company, reporting to the Company’s Chief Executive Officer of the Company. Executive will render such business and professional services in the performance of Executive’s duties, as assigned to Executive by the Company’s Board of Directors and Chief Executive Officer. The period of Executive’s employment under this Agreement is referred to herein as the “Employment Term”.

 

(b)          Obligations. During the Employment Term, Executive will perform Executive’s duties faithfully and to the best of Executive’s ability and will devote Executive’s full business efforts and time to the Company. For the duration of the Employment Term, Executive agrees not to actively engage in any other employment, occupation or consulting activity without the prior written approval of the Board.

 

3.                At-Will Employment. The parties agree that Executive’s employment with the Company will be “at-will” employment and may be terminated at any time with or without cause or advance notice. Executive understands and agrees that neither Executive’s job performance nor promotions, commendations, bonuses or the like from the Company shall give rise to or in any way serve as the basis for modification, amendment, or extension, by implication or otherwise, of Executive’s employment with the Company. However, as described in this Agreement, Executive may be entitled to severance benefits depending on the circumstances of Executive’s termination of employment with the Company.

 

4.                Compensation.

 

(a)             Base Salary. At the commencement of the Employment Term, the Company will pay Executive an annual salary of US$282,500 as compensation for Executive’s services (the “Base Salary”). The Base Salary will be paid periodically in accordance with the Company’s normal payroll

 

 

practices and be subject to the usual, required withholdings and deductions. Executive’s salary will be subject to review and adjustments based upon the Company’s normal performance review practices, as in effect from time to time.

 

(b)          Bonus. Executive will be eligible to earn an annual bonus under the Company’s bonus plan (“Bonus Plan”), with a target bonus of 35% of Executive’s Base Salary, contingent upon the achievement of certain corporate and/or individual performance goals to be established by the Company, and subject to the maximum award as may be established under the Bonus Plan from time to time. Executive understands and agrees that the determination of the performance goals (both the criteria and Executive’s performance of such criteria) and the amount, if any, of Executive’s bonus shall be within the sole and absolute discretion of the Company. Except as provided in Sections 7 and 8 below, or as otherwise provided in the Bonus Plan, no bonus will be earned or payable in the event Executive’s employment terminates before the end of the applicable performance period.

 

(c)           Long-Term Incentive Awards. Subject to approval by the Board, Executive shall be granted equity compensation from time to time on an annual basis at levels comparable to those awarded to similarly-situated executives as determined in the discretion of the Board or its delegate.

 

5.              Employee Benefits. During the Employment Term, Executive will be entitled to participate in the employee benefit plans maintained by the Company of general applicability to other senior executives of the Company, subject to the terms and conditions of such plans as in effect from time to time. The Company reserves the right to cancel or change the benefit plans and programs it offers to its employees at any time.

 

6.              Vacation. Executive will be entitled to paid vacation in accordance with the Company’s vacation policy, with the timing and duration of specific vacations mutually and reasonably agreed to by the parties hereto. Upon Executive’s termination of employment, Executive will be entitled to receive Executive’s accrued but unpaid vacation through the date of Executive’s termination.

 

7.              Expenses. The Company will reimburse Executive for reasonable travel, entertainment or other expenses incurred by Executive in the furtherance of or in connection with the performance of Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policy to be established and as in effect from time to time.

 

8.              Change of Control Stock Award Acceleration Benefits. In the event of a Change of Control (as defined herein), the Company will accelerate the vesting of all of the Executive’s unvested equity, to the extent then outstanding, such that 50% of the then-unvested shares underlying such awards shall become fully vested and exercisable, effective immediately prior to the consummation of such Change of Control.

 

9.              Change of Control Severance Benefits. If, on or within 12 months following the effective date of a Change of Control, Executive’s employment with the Company is terminated (other than on account of death or disability) without Cause (as defined herein) or Executive resigns for Good Reason (as defined herein), and in either case the termination constitutes a “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h)), then, subject to Executive signing and not revoking a separation agreement and release of claims with the Company in a form acceptable to the Company (the “Release”) that is effective no later than 60 days following the termination of his employment, Executive will receive the following severance benefits from the Company:

 

(a)                      Cash Severance Payment. Executive will receive a cash amount equal to the sum of one times (l.0x) Executive’s Base Salary.

 

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(b)                       Accelerated Vesting of Equity. The Company will accelerate the vesting of all the Executive’s unvested equity, to the extent then outstanding, such that 100% of the shares underlying such awards shall become fully vested and exercisable.

 

(c)                        Reimbursement of COBRA Premiums. If Executive timely elects continued coverage under COBRA for himself/herself and any covered dependents under the Company’s group health plans, then the Company will reimburse Executive an amount sufficient for Executive to purchase (on an after-tax basis) such COBRA coverage until the earliest to occur of (i) the close of the twelfth month following the termination of employment; (b) the expiration of his/her eligibility for the continuation coverage under COBRA; and (c) the date Executive becomes eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment.

 

Upon the Release becoming effective on or before the 60th day following termination of employment, the Company will pay or otherwise provide the severance benefits described above as follows: (x) the cash lump sum will be paid on the first payroll date that next follows the 60th day after Executive’s termination; (y) the equity acceleration shall be made effective on the 60th day after Executive’s termination, and (z) the COBRA reimbursements shall be made on the first payroll date that next follows the 60th day after the close of each month for which the COBRA premiums were paid by the Executive.

 

10.       Severance Benefits Not Following A Change of Control. If Executive’s employment with the Company is terminated (other than on account of death or disability) without Cause (as defined herein) or Executive resigns for Good Reason (as defined herein), and in either case the termination does not occur on or within 12 months following the effective date of a Change of Control (as defined herein), and such termination constitutes a “separation from service” (as defined under Treasury Regulation Section 1.409A-l(h)), then, subject to Executive signing and not revoking a separation agreement and release of claims with the Company in a form acceptable to the Company (the “Release”) that is effective no later than 60 days following the termination of his employment, Executive will receive the following severance benefits from the Company:

 

(a)                        Cash Severance. Executive will receive cash payments equal to the sum of 75% of Executive’s Base Salary. The Company will pay this amount in substantially equal installments over the six-month period immediately following Executive’s termination on the Company’s regular payroll schedule; provided, however, that no severance amounts or benefits will be paid or provided until the Release becomes effective or prior to the 60th day after Executive’s termination. Any installment payments that would otherwise become payable (but for the delay in the foregoing sentence) between the date of Executive’s termination and the 60th day shall be paid in the first payroll next following the 60th day after termination, with the balance of the severance paid on the original schedule set forth above.

 

(b)                        COBRA. If Executive timely elects continued coverage under COBRA for himself/herself and any covered dependents under the Company’s group health plans, then the Company will reimburse Executive an amount (on an after-tax basis) sufficient for Executive to purchase such COBRA coverage until the earliest to occur of (i) the close of the ninth month following the termination of employment; (b) the expiration of his/her eligibility for the continuation coverage under COBRA; and (c) the date Executive becomes eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment. The COBRA reimbursements described herein shall be made on the first payroll date that next follows the 60th day after the close of each month for which the COBRA premiums were paid by the Executive

 

11.        Section 409A.

 

(a)                          Notwithstanding anything to the contrary in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A of the Code and any guidance promulgated thereunder (“Section 409A”) of the controlled group of which the Company is a part at the time of

 

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Executive’s termination (other than due to death), then to the extent that the payments upon a termination of employment are determined to be “nonqualified deferred compensation” under Section 409A, such severance amounts, together with any other severance payments or separation benefits that are considered deferred compensation under Section 409A (together, the “Deferred Compensation Separation Benefits”) that would otherwise be payable within the first six months following Executive’s termination of employment, will instead become payable in a lump sum on the first payroll date that occurs on or after the date six months and one day following (x) the date of Executive’s termination of employment or (y) the date of Executive’s death, if earlier. All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Each payment and benefit payable under this Agreement is intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.

 

(b)                          Any amount paid under the Agreement that satisfies the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations shall not constitute Deferred Compensation Separation Benefits for purposes of clause (a) above.

 

(c)                           Any amount paid under this Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-l(b)(9)(iii) of the Treasury Regulations that does not exceed the Section 409A Limit (as defined below) will not constitute Deferred Compensation Separation Benefits for purposes of clause (a) above.

 

(d)                          The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. Executive and the Company agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A. However, the Company is under no obligation to reimburse or otherwise make Executive whole for any amounts that may be subject to the additional tax or early income recognition under Section 409A.

 

12.       Definitions.

 

(a)                                 Cause. For purposes of this Agreement, “Cause” is defined as (i) Executive’s conviction of or plea of nolo contendere to any felony or any crime involving moral turpitude or dishonesty; (ii) Executive’s gross misconduct in the performance of Executive’s duties which is injurious to the Company; (iii) failure by Executive to substantially perform Executive’s material duties other than a failure resulting from the Executive’s complete or partial incapacity due to physical or mental illness or impairment; (iv) a material breach of any material agreement between Executive and the Company concerning the terms and conditions of Executive’s employment with the Company; (v) Executive’s willful violation of a material Company employment policy (including, without limitation, any insider trading policy); or (vi) Executive’s willful commission of an act of fraud, breach of trust, or dishonesty including, without limitation, embezzlement, that results in material damage or harm to the business, financial condition, reputation or assets of the Company or any of its subsidiaries. Grounds for Cause pursuant to clause (iii) of this Section 10(a) shall not be deemed to have occurred until Company has first provided Executive with written notice of the acts or omissions constituting the grounds for “Cause” under clause (iii) of this Section 10(a) and a cure period of 30 days following the date of such notice.

 

(b)                                 Change of Control. For purposes of this Agreement, “Change of Control” means the occurrence of any of the following events:

 

(i)                            Change in Ownership of the Company. A change in the ownership of the Company or its parent corporation, SteadyMed Ltd. (the “Parent”), which occurs on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the

 

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Company or the Parent that, together with the stock held by such Person, constitutes more than 50% of the total voting power of the stock of the Company or the Parent, as the case may be, except that any change in the ownership of the stock of the Company or the Parent as a result of a private financing of the Company or the Parent that is approved by the Board will not be considered a Change of Control; or

 

(ii)                          Change in Ownership of a Substantial Portion of the Company’s Assets. A change in the ownership of a substantial portion of the Company’s or the Parent’s assets which occurs on the date that any Person acquires (or has acquired during the 12 month period ending on the date of the most recent acquisition by such person or persons) assets from the Company or the Parent that have a total gross fair market value equal to or more than 50% of the total gross fair market value of all of the assets of the Company and the Parent, on a consolidated basis, immediately prior to such acquisition or acquisitions. For purposes of this clause, gross fair market value means the value of the assets of the Company and the Parent on a consolidated basis, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

 

For these purposes, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.

 

Notwithstanding the foregoing, a transaction shall not constitute a Change of Control if: (i) its sole purpose is to change the state of the Company’s incorporation; (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction; or (iii) it does not constitute a change of control event under Treasury Regulation 1.409A-3(i)(5)(v) or (vii).

 

(c)                                  Good Reason. For purposes of this Agreement, “Good Reason” means Executive’s resignation within 30 days following the expiration of any Company cure period (discussed below) following the occurrence of one or more of the following, without Executive’s consent: (i) the assignment to Executive of any duties, or the reduction of Executive’s duties, either of which results in a material diminution of Executive’s authority, duties, or responsibilities with the Company in effect immediately prior to such assignment or reduction, or the removal of Executive from such position and responsibilities; (ii) a material reduction of Executive’s Base Salary except in connection with a general reduction in salary applicable to all of the Company’s executive officers other than in connection with or following a Change in Control; (iii) the relocation of the Company’s facility to a location that results in an increase in Executive’s one-way commute by more than 30 miles; and (iv) any material breach by the Company of any material provision of this Agreement. Executive will not resign for Good Reason without first providing the Company with written notice of the acts or omissions constituting the grounds for “Good Reason” within 90 days of the initial existence of the grounds for “Good Reason” and a cure period of 30 days following the date of such notice.

 

(d)                                 Section 409A Limit. For purposes of this Agreement, “Section 409A Limit” means the lesser of two times: (i) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during the Company’s taxable year preceding the Company’s taxable year of Executive’s termination of employment as determined under Treasury Regulation 1.409A-l(b)(9)(iii)(A)(l) and any Internal Revenue Service guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Executive’s employment is terminated.

 

13.       Successors.

 

(a)                                 The Company’s Successors. Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets will assume the obligations under this Agreement and agree

 

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expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” will include any successor to the Company’s business and/or assets which executes and delivers the assumption agreement described in this Section 11(a) or which becomes bound by the terms of this Agreement by operation of law. The failure of the Company to obtain the assumption of this Agreement by any successor will constitute a material breach of a material part of this Agreement.

 

(b)                            Executive’s Successors. The terms of this Agreement and all rights of Executive hereunder will inure to the benefit of, and be enforceable by, Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

 

14.        Confidential Information. Executive agrees to enter into the Company’s standard Confidential Information and Invention Assignment Agreement (the “Confidential Information Agreement”) upon commencing employment hereunder.

 

15.        Notices. All notices, requests, demands and other communications called for hereunder will be in writing and will be deemed given (i) on the date of delivery if delivered personally, (ii) one day after being sent by a well established commercial overnight service, or (iii) four days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors at the following addresses, or at such other addresses as the parties may later designate in writing:

 

If to the Company:

 

SteadyMed Therapeutics, Inc.

2410 Camino Ramon

San Ramon, California 94583

Attn: Corporate Secretary

 

If to Executive:

 

at the last residential address known by the Company.

 

16.      Arbitration.

 

(a)  Arbitration. In consideration of Executive’s employment with the Company, its promise to arbitrate all employment-related disputes, and Executive’s receipt of the compensation, pay raises and other benefits paid to Executive by the Company, at present and in the future, Executive agrees that any and all controversies, claims, or disputes with anyone (including the Company and any employee, officer, director, shareholder or benefit plan of the Company in their capacity as such or otherwise) arising out of, relating to, or resulting from Executive’s employment with the Company or termination thereof, including any breach of this Agreement, will be subject to binding arbitration under the Arbitration Rules set forth in California Code of Civil Procedure Section 1280 through 1294.2, including Section 1281.8 (the “Act”), and pursuant to California law. The Federal Arbitration Act shall also continue to apply with full force and effect, notwithstanding the application of procedural rules set forth under the Act.

 

(b)  Dispute Resolution. Disputes that Executive agrees to arbitrate, and thereby agrees to waive any right to a trial by jury, include any statutory claims under local, state, or federal law, including, but not limited to, claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the Sarbanes Oxley Act, the Worker Adjustment and Retraining Notification Act, the

 

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California Fair Employment and Housing Act, the Family and Medical Leave Act, the California Family Rights Act, the California Labor Code, Claims of harassment, discrimination, and wrongful termination, and any statutory or common law claims. Executive further understands that this Agreement to arbitrate also applies to any disputes that the Company may have with Executive. The Arbitrator shall be required to provide a written opinion stating the legal and factual bases for his or her decision.

 

(c)   Procedure. Executive agrees that any arbitration will be administered by the Judicial Arbitration & Mediation Services, Inc. (“JAMS”), pursuant to its Employment Arbitration Rules & Procedures (the “JAMS Rules”). The arbitrator shall have the power to decide any motions brought by any party to the arbitration, including motions for summary judgment and/or adjudication, motions to dismiss and demurrers, and motions for class certification, prior to any arbitration hearing. The arbitrator shall have the power to award any remedies available under applicable law, and the arbitrator shall award attorneys’ fees and costs to the prevailing party, except as prohibited by law. The Company will pay for any administrative or hearing fees charged by the administrator or JAMS, except that Executive shall pay any filing fees associated with any arbitration that Executive initiates, but only so much of the filing fee as Executive would have instead paid had Executive filed a complaint in a court of law. Executive agrees that the arbitrator shall administer and conduct any arbitration in accordance with California law, including the California Code of Civil Procedure, and that the arbitrator shall apply substantive and procedural California law to any dispute or claim, without reference to the rules of conflict of law. To the extent that the JAMS Rules conflict with California law, California law shall take precedence. The decision of the arbitrator shall be in writing. Any arbitration under this Agreement shall be conducted in Santa Clara County, California.

 

(d)    Remedy. Except as provided by the Act, arbitration shall be the sole, exclusive, and final remedy for any dispute between Executive and the Company. Accordingly, except as provided by the Act and this Agreement, neither Executive nor the Company will be permitted to pursue court action regarding claims that are subject to arbitration. Notwithstanding, the arbitrator will not have the authority to disregard or refuse to enforce any lawful Company policy, and the arbitrator will not order or require the Company to adopt a policy not otherwise required by law which the Company has not adopted.

 

(e)     Administrative Relief. Executive is not prohibited from pursuing an administrative claim with a local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, including, but not limited to, the Department of Fair Employment and Housing, the Equal Employment Opportunity Commission, the National Labor Relations Board, or the Workers’ Compensation Board. However, Executive may not pursue court action regarding any such claim, except as permitted by law.

 

(f)      Voluntary Nature of Agreement. Executive acknowledges and agrees that Executive is executing this Agreement voluntarily and without any duress or undue influence by the Company or anyone else. Executive further acknowledges and agrees that Executive has carefully read this Agreement and that Executive has asked any questions needed for Executive to understand the terms, consequences and binding effect of this Agreement and fully understands it, including that EXECUTIVE IS WAIVING EXECUTIVE’S RIGHT TO A JURY TRIAL. Finally, Executive agrees that Executive has been provided an opportunity to seek the advice of an attorney of Executive’s choice before signing this Agreement.

 

17.         Miscellaneous Provisions.

 

(a)    No Duty to Mitigate. Executive will not be required to mitigate the amount of any payment contemplated by this Agreement, nor will any such payment be reduced by any earnings that Executive may receive from any other source.

 

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(b)    Amendment. No provision of this Agreement will be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by Executive and by an authorized officer of the Company (other than Executive) that is expressly designated as an amendment to this Agreement.

 

(c)     Integration. This Agreement, together with the Confidential Information Agreement represents the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral. This Agreement may be modified only by agreement of the parties by a written instrument executed by the parties that is designated as an amendment to this Agreement.

 

(d)    Waiver of Breach. The waiver of a breach of any term or provision of this Agreement, which must be in writing, will not operate as or be construed to be a waiver of any other previous or subsequent breach of this Agreement.

 

(e)     Headings. All captions and section headings used in this Agreement are for convenient reference only and do not form a part of this Agreement.

 

(f)      Tax Withholding. All payments made pursuant to this Agreement will be subject to all applicable withholdings, including all applicable income and employment taxes, as determined in the Company’s reasonable judgment.

 

(g)     Governing Law. This Agreement will be governed by the laws of the State of California (with the exception of its conflict of laws provisions).

 

(h)    Severability. The invalidity or unenforceability of any provision or provisions of this Agreement will not affect the validity or enforceability of any other provision hereof, which will remain in full force and effect.

 

18.       Acknowledgment. Executive acknowledges that Executive has had the opportunity to discuss this matter with and obtain advice from Executive’s private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement.

 

19.       Counterparts. This Agreement may be executed in counterparts, and each counterpart will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned.

 

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IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year first above written.

 

COMPANY:

 

	
STEADYMED THERAPEUTICS, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Peter Noymer
    	
 
    
	
Title: 
    	
Peter Noymer
    	
 
    
	
 
    	
EVP of R&D and CTO
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
EXECUTIVE:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Approved: 
    	
/s/ J.M.N. Rigby
    	
 
    
	
 
    	
J.M.N. Rigby
    	
 
    
	
 
    	
President & CEO
    	
 
    
				

 

9Exhibit 10.13

 

Indemnification Agreement

 

This Indemnification Agreement (this “Agreement”) is made on the        th of           , and is effective as of [        ] by and between SteadyMed Ltd. (the “Company”) and [        ] (“Indemnitee”).

 

WHEREAS, the Company and Indemnitee recognize the substantial increase in corporate litigation in general, subjecting directors, officers, employees, agents and fiduciaries to expensive litigation risks at the same time as the availability and coverage of liability insurance have been limited; and

 

WHEREAS, the Company desires to attract and retain qualified directors and officers (collectively shall be referred as “Officer”) and to provide them with protection against liability and expenses incurred while acting in that capacity. Indemnitee is or is about to become an Officer of the Company. In order to induce Indemnitee to serve as an Officer of the Company the Company agrees to indemnify Indemnitee upon certain occurrences and exempt Indemnitee from liability, all under the terms of this Agreement.

 

Now, Therefore, the parties agree as follows:

 

1.                    Indemnity. The Company hereby undertakes, subject to the limitations set forth in this Agreement:

 

To indemnify Indemnitee to the greatest extent possible under applicable law against any liability or expense in respect of the following acts or omissions of Indemnitee in his or her capacity as an Officer of the Company: (i) any financial obligation imposed on Indemnitee in favor of another person by, or expended by Indemnitee as a result of, a court judgment, including a compromise judgment or an arbitrator’s award approved by a court in respect of any act or omission (“Action”) taken or made by Indemnitee in his or her capacity as an Officer; (ii) all reasonable litigation expenses, including attorneys’ fees, expended by Indemnitee as a result of an investigation or proceeding instituted against him or her by a competent authority, which investigation or proceeding has not ended in a criminal charge or in a financial liability in lieu of a criminal proceeding, or has ended in a financial obligation in lieu of a criminal proceeding for an offence that does not require proof of criminal intent (the phrases “proceeding that has not ended in a criminal charge” and “financial obligation in lieu of a criminal proceeding” shall have the meaning as defined in Section 260(a1) of the Israeli Companies Law 5759-1999) or “in connection with financial sanction”; (iii) all reasonable litigation expenses, including attorneys’ fees, expended by Indemnitee or charged to him or her by a court, in a proceeding instituted against him or her by the Company or on its behalf or by another person, or in any criminal proceeding from which he or she was acquitted or in any criminal proceeding of a crime which does not require proof of criminal intent in which the Indemnitee is convicted; (iv) a financial obligation imposed on Indemnitee in favor of a violation subject as aforesaid in Section 52(54)(a)(1)(a) to the Israeli Securities Law 5728-1968 (“Securities Law”) or in connection with expenses expended by Indemnitee as a result of a procedure conducted in his matter under Chapters H’3, H’4, or I’1 of the Securities Law, including reasonable litigation expenses, attorneys’ fees, including in a way of indemnification in advance; (collectively referred to hereinafter as a “Claim”). The above indemnification will also apply to any action taken by the Indemnitee in his or her capacity as an Officer of any other company controlled, directly or indirectly, by the Company (a “Subsidiary”) or in his or her capacity as an Officer of a company not controlled by the Company but where his or her appointment as an Officer results from the Company’s holdings in such company (“Affiliate”). For purposes of Section 1 of this Agreement, the term “person” shall include, without limitation, a natural person, firm, partnership, joint venture, trust, company, corporation, limited liability entity, unincorporated

 

 

organization, estate, government, municipality, or any political, governmental, regulatory or similar agency or body.

 

2.                    Limitations on Indemnity.

 

2.1.                  Subject to Section 2.2 below, the Company undertakes to indemnify Indemnitee in accordance with the terms of this Agreement in the greater of: (a) twenty-five percent (25%) of the Company’s total shareholders’ equity according to the Company’s most recent financial statements as of the time of the actual payment of indemnification and (b) $25,000,000 (the “Maximum Amount”). With respect to any claim in connection with or arising out of a public offering of the Company’s securities, the Maximum Amount (as appearing throughout this Agreement and exhibits, if any) shall be increased to the aggregate amount of proceeds from the sale by the Company and/or any shareholder of Company’s securities in such offering.. Such Maximum Amount has been determined by the Board of Directors of the Company to be reasonable under the circumstances.

 

2.2.                  Indemnitee shall not be entitled to indemnification under Section 1, for any amount imposed on him or her consequent to any of the following: (i) a breach of the duty of loyalty by Indemnitee except to the extent permitted by law, for a breach of a duty of loyalty while acting in good faith and having reasonable cause to assume that such act would not prejudice the interests of the Company, the Subsidiary or the Affiliate, as applicable; or (ii) a violation of the Indemnitee’s duty of care towards the Company, which was committed intentionally or recklessly, but not if only committed negligently; or (iii) an act committed with the intention to realize a personal unlawful profit; or (iv) a fine or monetary penalty imposed on Indemnitee; or (v) any claim arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar applicable law of any jurisdiction.

 

3.                    Limitation of Categories of Claims. The indemnity pursuant to Section 1(i) above, shall only apply to liabilities or expenses arising in connection with acts or omissions of Indemnitee in respect of the events and circumstances set forth in Exhibit A to this Agreement, which are deemed by the Board of Directors of the Company to be foreseeable at the date hereof in view of the Company’s current activities.

 

4.                    Expenses; Indemnification Procedure. The Company shall advance Indemnitee all expenses incurred by Indemnitee in connection with a Claim on the date on which such amounts are first payable (“Time of Indebtedness”), and with respect to items mentioned in Section 1(ii) or 1(iii) above, even prior to a court decision, but has no duty to advance payments in less than seven (7) days following delivery of a written request therefor by Indemnitee to the Company, subject to Indemnitee undertaking to repay such advances if it is determined, in accordance with the terms of this Agreement or the provisions of any applicable law, that Indemnitee is not entitled to such indemnification. Advances given to cover litigation expenses in accordance with Section 1(ii) above will be repaid by Indemnitee to the Company if such investigation or proceeding has ended in a criminal charge or if a financial liability was imposed in lieu of a criminal proceeding for a crime which requires a finding of criminal intent, within thirty (30) days as of the court’s decision. Advances given to cover litigation expenses in accordance with Section 1(iii) above will be repaid in full by Indemnitee to the Company, if Indemnitee is found guilty of a crime that requires proof of criminal intent, within thirty (30) days as of the court’s decision. Other advances will be repaid by Indemnitee to the Company if it is determined that Indemnitee is not entitled to such indemnification. As part of the aforementioned undertaking, the Company will make available to Indemnitee any security or guarantee that Indemnitee may be required to post in accordance with an interim decision given by a court or an arbitrator, including for the purpose of substituting liens imposed on Indemnitee’s assets.

 

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5.                    Notification and Defense of Claim. If any Claim is brought against Indemnitee in respect of which indemnity is sought under this Agreement:

 

5.1.                  Indemnitee will notify the Company in writing of the commencement thereof without delay following Indemnitee first becoming aware thereof (similarly, Indemnitee must notify the Company in writing on an ongoing and current basis concerning all events that Indemnitee suspects may possibly give rise to the initiation of legal proceedings against Indemnitee), and Indemnitee will deliver to the Company, or to such person as it shall advise Indemnitee, without delay all documents Indemnitee receives or possesses in connection with the Claim, and the Company will be entitled to participate therein at its own expense or to assume the defense thereof and to employ counsel reasonably satisfactory to Indemnitee. Indemnitee shall have the right to employ his or her own counsel in connection with any such Claim and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of Indemnitee unless: (i) the Company shall have authorized the employment of counsel by Indemnitee; (ii) the Company shall have not assumed the defense of the Claim within a reasonable time; or (iii) the named parties to any such action (including any impleaded parties) include both Indemnitee and the Company, and Indemnitee and the Company shall have reasonably concluded that joint representation is inappropriate under applicable standards of professional conduct due to a conflict of interest between Indemnitee and the Company, in any of which events reasonable fees and expenses of such counsel to Indemnitee shall be borne by the Company. The Company and/or its attorney shall be entitled to conclude such proceedings, all as it see fit, including by way of settlement. At the request of the Company, Indemnitee shall execute all documents required to enable the Company and/or its attorney as aforesaid to conduct Indemnitee’s defense and to represent him or her in all matters connected therewith. For the avoidance of doubt, in the case of criminal proceedings the Company and/or the attorneys as aforesaid will not have the right to plead guilty in Indemnitee’s name or to agree to a plea-bargain in his or her name without Indemnitee’s prior written consent. Furthermore, in a civil proceeding (whether before a court or as a part of a compromise arrangement), the Company and/or its attorneys will not have the right to admit to any occurrences that are not indemnifiable pursuant to this Agreement and/or pursuant to law, without Indemnitee’s prior written consent. However, the aforesaid will not prevent the Company and/or its attorneys as aforesaid, with the approval of the Company, to come to a financial arrangement with a plaintiff in a civil proceeding without Indemnitee’s consent so long as such arrangement will not be an admittance of an occurrence not fully indemnifiable pursuant to this Agreement and/or pursuant to law.

 

5.2.                  The Company shall not be liable to indemnify Indemnitee for any amounts paid in settlement of any Claim affected without the Company’s written consent.

 

5.3.                  Indemnitee shall give the Company such information and cooperation as may be required.

 

6.                    Other Indemnification. The Company will not indemnify Indemnitee for any liability or expenses with respect to which Indemnitee has received payment by virtue of an insurance policy or other indemnification agreement, other than for amounts, which are in excess of the amount paid to Indemnitee pursuant to such policy or agreement and other than a deductible payable by the Indemnitee under an insurance policy or indemnification agreement.

 

7.                    Collection from a Third Party. The Company will be entitled to any amount collected from a third party in connection with a Claim or Claims actually indemnified hereunder by the Company, to be paid by the Indemnitee to the Company within fifteen (15) days as of the receipt of the said amount.

 

8.                    Post Factum Indemnification. It is hereby clarified that nothing in here shall limit the

 

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Company’s right to indemnify the Indemnitee, post factum, subject to the provisions of applicable law.

 

9.                    Severability. Each of the provisions of this Agreement is a separate and distinct agreement and independent of the others, so that if any provision hereof shall be held to be invalid or unenforceable for any reason, such invalidity or unenforceability shall not affect the validity or enforceability of the other provisions hereof. Further, if, and solely to the extent that, any provision of this Agreement shall for any reason be held to be excessively broad, the provision shall be construed in such manner as to enable it to be enforced to the extent compatible with applicable law.

 

10.             Termination of services. For the avoidance of doubt, the Company will indemnify Indemnitee even if at the relevant Time of Indebtness Indemnitee is no longer an Officer of the Company or of a Subsidiary or an Affiliate, as applicable, provided, that the obligations are in respect of actions taken by the Indemnitee while serving as an Officer, as aforesaid, and in such capacity.

 

11.             Further Assurances. The parties will do, execute and deliver, or will cause to be done, executed and delivered, all such further acts, documents and things as may be reasonably required for the purpose of giving effect to this Agreement and the transactions contemplated hereby. Notwithstanding anything to the contrary, if for the validation of any of the undertakings in this Agreement any act, resolution, approval or other procedure is required, the Company undertakes to cause them to be done or adopted in a manner which will enable the Company to fulfill all its undertakings as aforesaid.

 

12.             Entire Agreement; Amendments. This Agreement constitutes the entire agreement between the parties with respect to its subject matter, and supersedes and cancels all prior agreements, proposals, representations and communications between the parties regarding the subject matter hereof. No amendment, modification, termination or cancellation of this Agreement shall be effective unless it is in writing and signed by the parties hereto.

 

13.             Binding Effect; No Assignment. This Agreement shall be binding upon Indemnitee and the Company, their successors and assigns, and shall inure to the benefit of Indemnitee, his heirs, personal representatives and assigns and to the benefit of the Company, its successors and assigns. Indemnitee shall not assign or otherwise transfer his rights or obligations under this Agreement and any attempt to assign or transfer such rights or obligations shall be deemed null and void.

 

14.             Governing Law; Jurisdiction. This Agreement shall be interpreted and enforced in accordance with the laws of the State of Israel, without regard to their rules of conflict of laws, and any dispute arising from or in connection with this Agreement is hereby submitted to the sole and exclusive jurisdiction of the competent courts in Tel Aviv, Israel.

 

This Agreement is being executed pursuant to the resolutions adopted by the Board of Directors of the Company on February 20, 2015, and by the shareholders of the Company on March 1, 2015. At the time of approval, the Board of Directors of the Company has determined, based on the current activity of the Company, that the amount stated in Section 2.1 herein is reasonable and that the events listed in Exhibit A herein are reasonably anticipated.

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

 

 

	
 
    	
 
    	
 
    
	
SteadyMed Ltd.
    	
 
    	
[                ]
    

 

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EXHIBIT A

 

1.                           The offering of securities by the Company and/or by a shareholder to the public and/or to private investors or the offer by the Company to purchase securities from the public and/or from private investors or other holders pursuant to a prospectus, agreements, notices, reports, tenders and/or other proceedings;

 

2.                           Occurrences resulting from the Company’s status as a public company, and/or from the fact that the Company’s securities were offered to the public and/or are traded on a stock exchange, whether in Israel or in any other jurisdiction;

 

3.                           Occurrences in connection with the management and/or operation of the Company and/or its Subsidiaries and/or its Affiliates.

 

4.                           Occurrences in connection with investments the Company and/or Subsidiaries and/or Affiliates make in other corporations whether before and/or after the investment is made, entering into the transaction, the execution, development and monitoring thereof, including actions taken by the Officer in the name of the Company and/or a Subsidiary and/or an Affiliate as an Officer of the corporation the subject of the transaction and the like;

 

5.                           Occurrences in connection with the relationship of the Company and/or its Subsidiaries and/or its Affiliates among themselves, or with others, including clients, suppliers, contractors etc.

 

6.                           Occurrences in connection with labor relations and/or employment matters in the Company, Subsidiaries and/or Affiliates and trade relations of the Company, Subsidiaries and/or Affiliates, including pension plans or compensation funds, or providence funds, or insurance or options for the benefit of employees, including in any matter with respect to work safety and hygiene.

 

7.                           Occurrences in connection with the intellectual property of the Company, Subsidiaries and/or Affiliates, and its protection, including the registration or assertion of rights to intellectual property and the defense of claims related to intellectual property.

 

8.                           Occurrences in connection with the Company, Subsidiaries and/or Affiliates’ environment, including inter alia, accepted practices, regulations, environmental pollution, health protection, production procedures, distribution, hauling, storage, tending or use of hazardous materials.

 

9.                           Occurrences in connection with anti-trust matters with respect to the Company its Subsidiaries and/or Affiliates.

 

10.                    Occurrences in connection with the operation of the Company’s Subsidiaries and/or Affiliates.

 

11.                    Occurrences in connection with the Company’s Subsidiaries and/or Affiliates’, dividend distribution or the purchasing of the Company’s shares and/or any of its subsidiaries.

 

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12.                    Occurrences in connection with the legal opinion in the matter of acquisition proposal of the Company, its Subsidiaries and/or Affiliates after the Company has made an Initial Public Offering (“IPO”),

 

13.                    Actions in connection with the merger of the Company, a Subsidiary and/or an Affiliate with or into another entity;

 

14.                    Occurrences in connection with the approval of a transaction with an officer of the Company, its Subsidiaries and/or Affiliates, or an officer and/or a shareholder of the Company, its Subsidiaries and/or Affiliates after the Company has made an IPO

 

15.                    Occurrences in connection with the tax authorities and/or the governmental and/or other authorized authorities in any matter with respect to transaction and/or other actions involving the Company and/or its Subsidiaries and/or Affiliates.

 

16.                    An act or a derivative thereof that is contrary to the Company’s Articles of Association

 

17.                    Representations and warranties made in good faith in connection with the business of the Company or its subsidiaries.

 

18.                    Negotiations, execution, delivery and performance of agreements of any kind or nature, anti-competitive acts, acts of commercial wrongdoing, approval of corporate actions including the approval of the acts of the Company’s management, their guidance and their supervision, actions concerning the approval of transactions with office holders or shareholders, including controlling persons and claims of failure to exercise business judgment and a reasonable level of proficiency, expertise and care with respect to the Company’s business.

 

19.                    Violations of securities laws of any jurisdiction, including, without limitation, fraudulent disclosure claims, failure to comply with any securities authority or any stock exchange disclosure or other rules and any other claims relating to relationships with investors, debt holders, shareholders and the investment community; claims relating to or arising out of financing arrangements, any breach of financial covenants or other obligations towards lenders or debt holders of the Company, class actions, violations of laws requiring the Company to obtain regulatory and governmental licenses, permits and authorizations in any jurisdiction; actions taken in connection with the issuance of any type of securities of Company, including, without limitation, the grant of options to purchase any of the same.

 

20.                    Liabilities arising in connection with any products or services developed, distributed, sold, provided, licensed or marketed by the Company, and any actions in connection with the distribution, sale, license or use of such products.

 

21.                    Any claim or demand made in connection with any transaction not in the ordinary course of business of the Company, including the sale, lease or purchase of any assets or business, receiving and granting credit and the giving or receiving of collateral security, including contracting under finance agreements with banks and/or other financial entities

 

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for purposes of financing transactions or contractual arrangements, including a transaction with an interested party.

 

22.                    Any claim or demand made by any third party suffering any personal injury and/or bodily injury or damage to business or personal property or any other type of damage through any act or omission attributed to the Company, or its employees, agents or other persons acting or allegedly acting on its behalf.

 

23.                    Any administrative, regulatory or judicial actions, orders, decrees, suits, demands, demand letters, directives, claims, liens, investigations, proceedings or notices of noncompliance or violation by any governmental entity or other person alleging the failure to comply with any statute, law, ordinance, rule, regulation, order or decree of any governmental entity applicable to the Company or any of its businesses, assets or operations, or the terms and conditions of any operating certificate or licensing agreement.

 

24.                    Actions taken pursuant to or in accordance with policies and procedures of the Company (including tax policies and procedures), whether such policies and procedures are published or not.

 

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