Document:

Exhibit 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Executive Employment Agreement (the “Agreement”) is entered into as of October 31, 2017 (the “Effective Date”) by and between Edge Therapeutics, Inc., a Delaware corporation (the “Company”), and Andrew Saik (“Executive”).

 

W I T N E S S E T H :

 

WHEREAS, the Company desires to employ Executive and Executive desires to be employed by the Company, in each case, subject to the terms and provisions of this Agreement.

 

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are mutually acknowledged, the Company and Executive hereby agree as follows:

 

Section 1.                    Definitions.

 

(a)          “Accrued Obligations” shall mean (i) all accrued but unpaid Base Salary through the Date of Termination, (ii) any unpaid or unreimbursed business expenses incurred in accordance with Section 6 hereof, (iii) any accrued but unused vacation time through the Date of Termination, (iv) any earned but unpaid annual bonus with respect to the year immediately preceding the year in which the Date of Termination occurs and (v) all vested benefits (including, if applicable, equity awards) in accordance with the terms of the governing documents.

 

(b)          “Base Salary” shall mean the salary provided for in Section 4(a) hereof, as adjusted from time to time.

 

(c)          “Board” shall mean the Board of Directors of the Company.

 

(d)          “Confidentiality and Invention Assignment Agreement” shall mean the Employee Confidentiality and Invention Assignment Agreement, executed by the Company and Executive and attached hereto as Exhibit A.

 

(e)          “Cause” shall mean (i) Executive’s failure, neglect, or refusal to perform in any material respect Executive’s duties and responsibilities under this Agreement (in each case, except where due to a Disability, sickness or illness); (ii) any act of Executive that has, or could reasonably be expected to have, the effect of injuring the business of the Company or its subsidiaries in any material respect; (iii) Executive’s conviction of, or plea of guilty or no contest to: (x) a felony or (y) any other criminal charge that has, or could be reasonably expected to have, an adverse impact on the performance of Executive’s duties to the Company or otherwise result in material injury to the reputation or business of the Company or any of its subsidiaries; (iv) Executive’s commission of an act of fraud or embezzlement against the Company or any of its subsidiaries; (v) any material violation by Executive of the policies of the Company, including but not limited to those relating to sexual harassment or business conduct, and those otherwise set forth in the manuals or statements of policy of the Company, as may be amended from time to time; (vi) Executive’s material violation of federal or state securities laws; or (vii) Executive’s material breach of this Agreement or material breach of the Confidentiality and Invention Assignment Agreement.

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(f)          “Code” shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

 

(g)          “Date of Termination” shall mean the date on which Executive’s employment terminates.

 

(h)          “Disability” shall mean any physical or mental disability or infirmity of Executive that prevents Executive from performing Executive’s duties with or without a reasonable accommodation for a period of (i) ninety (90) consecutive days or (ii) one hundred twenty (120) non-consecutive days during any twelve (12) month period.  Any question as to the existence, extent, or potentiality of Executive’s Disability upon which Executive and the Company cannot agree shall be determined by a qualified, independent physician selected by the Company and approved by Executive (which approval shall not be unreasonably withheld).  The determination of any such physician shall be final and conclusive for all purposes of this Agreement.  Executive understands that Executive is a “key employee” in connection with any leave qualifying for coverage under the Family and Medical Leave Act (“FMLA”).

 

(i)          “Good Reason” shall mean, without Executive’s written consent, (i) a material diminution in Executive’s title, duties, or responsibilities as set forth in Section 3 hereof; (ii) a material reduction in Base Salary as set forth in Section 4(a) hereof (other than pursuant to a reduction applicable to all similarly situated executives); (iii) any material breach of this Agreement by the Company (other than a provision that is covered by clause (i) or (ii)) or (iv) the Company’s requiring Executive to be primarily based at any office or location outside of a twenty-five (25) mile radius of 300 Connell Drive, Berkeley Heights, NJ 07922 (provided that such relocation materially increases Executive’s commute), except for travel reasonably required in the performance of Executive’s responsibilities.  Notwithstanding the foregoing, in the event that the Company reasonably believes that Executive may have engaged in conduct that could constitute Cause hereunder, the Company may, in its sole and absolute discretion, suspend Executive’s duties or employment, and in no event shall any such suspension constitute an event pursuant to which Executive may terminate employment with Good Reason or otherwise constitute a breach of this Agreement by the Company; provided, that no such suspension shall alter the Company’s obligations under this Agreement during such period of suspension.

 

(j)          “Release of Claims” shall mean a separation agreement in a form acceptable to the Company under which Executive releases the Company and certain other persons and entities from any and all claims and causes of action and the execution of which is a condition precedent to Executive’s eligibility for the payments and benefits described in Sections 7(d) and 7(e).

 

(k)          “Severance Benefits” shall mean continued payment of Base Salary during the Severance Term, in accordance with the Company’s regular payroll practices.

 

(l)          “Severance Term” shall mean the twelve (12) month period, which commences on the first pay day that is at least thirty-five (35) days after the Date of Termination following termination of Executive’s employment by the Company without Cause or by Executive for Good Reason.

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Section 2.                    Acceptance and Term.

 

The Company agrees to employ Executive on an at-will basis, and Executive agrees to accept such employment and serve the Company, in accordance with the terms and conditions set forth herein.  The term of employment (referred to herein as the “Term”) shall commence on the Effective Date and shall continue until terminated by either party at any time, subject to the provisions herein.

 

Section 3.                    Position, Duties, and Responsibilities; Place of Performance.

 

(a)          Position, Duties and Responsibilities. During the Term, Executive shall be engaged to serve as the Chief Financial Officer of the Company (together with such other position or positions consistent with Executive’s title or as the Company shall specify from time to time) and shall have such duties and responsibilities as are commensurate therewith and such other duties as may be assigned and/or prescribed from time to time by Executive’s supervisor and/or the Board.  Executive shall report to the President and Chief Executive Officer of the Company.

 

(b)          Performance. Executive shall devote Executive’s full business time, attention, skill, and best efforts to the performance of Executive’s duties under this Agreement and shall not engage in any other business or occupation during the Term, including, without limitation, any activity that (x) conflicts with the interests of the Company, (y) interferes with the proper and efficient performance of Executive’s duties for the Company, or (z) interferes with Executive’s exercise of judgment in the Company’s best interests.  Notwithstanding the foregoing, nothing herein shall preclude Executive from (i) serving, with the prior written consent of the Board, as a member of the boards of directors or advisory boards (or their equivalents in the case of a non-corporate entity) of non-competing businesses and charitable organizations, (ii) engaging in charitable activities and community affairs, and (iii) managing Executive’s personal investments and affairs; provided, however, that the activities set out in clauses (i), (ii), and (iii) shall be limited by Executive so as not to interfere, individually or in the aggregate, with the performance of Executive’s duties and responsibilities hereunder.  Executive represents that, attached hereto as Exhibit B, is a comprehensive list of all outside professional activities with which Executive is currently involved or reasonably expects to become involved.  Company hereby acknowledges that Executive’s participation in the foregoing activities at the participation levels as of the Effective Date is permitted under this paragraph, provided that the same do not interfere, individually or in the aggregate, with the performance of Executive’s duties and responsibilities hereunder.  In the event that, during Executive’s employment by the Company, Executive desires to engage in other non-competitive outside professional activities, not included on such list, Executive will first seek written approval from the President and Chief Executive Officer and such approval shall not be unreasonably withheld.

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Section 4.                    Compensation.

 

(a)          Base Salary. During the Term, in exchange for Executive’s satisfactory performance of Executive’s duties and responsibilities Executive will initially be paid a Base Salary at the rate of $370,000 per annum, payable in accordance with the Company’s regular salary payment schedule and subject to applicable taxes and withholdings.  The Base Salary of the Executive for subsequent years of this Agreement may be increased, decreased, or may stay the same, depending on the Executive’s performance and the performance of the Company.

 

(b)          Annual Bonus. In addition to Executive’s Base Salary, during the Term, Executive will be eligible to earn an annual discretionary performance-based bonus, with a target bonus opportunity equal to 45% of the Base Salary.  Performance metrics with respect to said bonus will be determined by the Board or the compensation committee of the Board.  Executive shall be eligible for said bonus only if Executive is employed on the last day of the performance period.  Any earned annual bonus will be paid by March 15th of the year following the year in which the applicable performance period ends.  Executive shall not be entitled to a bonus for calendar year 2017.

 

(c)          Equity Awards. During the Term, Executive shall be eligible to be granted equity awards by the Company, as determined by the Board or the compensation committee of the Board, in its sole discretion.

 

Section 5.                    Executive Benefits.

 

During the Term, Executive shall be offered participation in health insurance and other benefits provided generally to similarly situated executives of the Company, subject to the terms, conditions and eligibility requirements of the applicable benefit plans (which shall govern).  Executive shall be eligible for the same number of holidays and vacation days as well as any other benefits, except those excluded herein, in each case, as are generally allowed to similarly situated executives of the Company in accordance with the Company policy as in effect from time to time.  Nothing contained herein shall be construed to limit the Company’s ability to amend, suspend, or terminate any benefit plan or policy at any time without providing Executive notice, and the right to do so is expressly reserved.

 

Section 6.                    Reimbursement of Business Expenses.

 

During the Term, the Company shall reimburse Executive for documented, out-of-pocket business expenses reasonably incurred by Executive in the course of performing Executive’s duties and responsibilities hereunder, which are consistent with the Company’s policies in effect from time to time with respect to business expenses, and subject to the Company’s requirements with respect to reporting of such expenses.

 

Section 7.                    Termination of Employment.

 

(a)          General. Executive’s employment with the Company, and the Term, shall terminate upon the earliest to occur of: (i) Executive’s death, (ii) a termination by reason of a Disability, (iii) a termination by the Company with or without Cause, or (iv) a termination by Executive with or without Good Reason.  Notwithstanding anything herein to the contrary, the payment (or commencement of a series of payments) hereunder of any nonqualified deferred compensation (within the meaning of Section 409A of the Code) upon a termination of employment shall be delayed until such time as Executive has also undergone a “separation from service” as defined in Treas. Reg. 1.409A-1(h), at which time such nonqualified deferred compensation (calculated as of the date of Executive’s termination of employment hereunder) shall be paid (or commence to be paid) to Executive on the schedule set forth in this provision as if Executive had undergone such termination of employment (under the same circumstances) on the date of Executive’s ultimate “separation from service.”

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(b)          Termination Due to Death or Disability. Executive’s employment under this Agreement shall terminate automatically upon Executive’s death.  Executive’s employment may be terminated by the Company, in its sole discretion, upon the occurrence of a Disability, with such termination to be effective upon Executive’s receipt of written notice of such termination.  In the event of Executive’s termination as a result of Executive’s death or Disability, Executive or Executive’s estate or beneficiaries, as the case may be, shall be entitled only to the Accrued Obligations, and Executive shall have no further rights to or interest in any compensation or any other benefits under this Agreement.

 

(c)          Termination by the Company with Cause.

 

		(i)	
The Company may terminate Executive’s employment at any time with Cause, effective upon Executive’s receipt of written notice of such termination; provided, however, that with respect to any Cause termination relying on clause (i), (ii), (v) or (vii) of the definition of Cause set forth in Section 1(e) hereof, to the extent that such act or acts or failure or failures to act are curable, Executive shall be given ten (10) days’ written notice by the Company of its intention to terminate him with Cause, such notice to state the act or acts or failure or failures to act that constitute the grounds on which the proposed termination with Cause is based, and such termination shall be effective at the expiration of such ten (10) day notice period unless Executive has fully cured such act or acts or failure or failures to act, to the Company’s complete satisfaction.

 

		(ii)	
In the event that the Company terminates Executive’s employment with Cause, Executive shall be entitled only to the Accrued Obligations (disregarding, for this purpose, clauses (iii) and (iv) of Section 1(a)).  Following such termination of Executive’s employment with Cause, except as set forth in this Section 7(c)(ii), Executive shall have no further rights to or interest in any compensation or any other benefits under this Agreement or otherwise.  For the avoidance of doubt, Executive’s sole and exclusive remedy upon a termination of employment by the Company with Cause shall be receipt of the Accrued Obligations (disregarding, for this purpose, clauses (iii) and (iv) of Section 1(a)).

 

		(iii)	
If Executive is terminated for Cause, Executive shall not be entitled to compensation for any accrued, but unused vacation days.

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(d)          Termination by the Company without Cause. The Company may terminate Executive’s employment at any time without Cause, given 60 days’ notice (or pay in lieu thereof).  In the event that, during the Term, Executive’s employment is terminated by the Company without Cause (other than due to death or Disability), Executive shall be eligible for the Accrued Obligations and, provided that Executive fully executes (and does not revoke) the Release of Claims as described in Section 7(g), Executive shall also be eligible for (i) the Severance Benefits and (ii) reimbursement for Executive’s (and Executive’s eligible dependents’) health care continuation (COBRA) premiums for 12 months following such termination (provided that (A) such COBRA benefits shall not be provided beyond the date on which Executive obtains comparable coverage from a subsequent employer and (B) such benefits shall not be provided to the extent that the Company determines that it would result in any fine, penalty or violation of law for being a discriminatory benefit or otherwise) (the “COBRA Benefits”).  Notwithstanding the foregoing, the Severance Benefits and the COBRA Benefits shall immediately terminate, and the Company shall have no further obligations to Executive with respect thereto, and any Severance Benefits and COBRA Benefits that were provided will be reimbursed or repaid promptly by Executive to the Company, in the event that Executive breaches any provision of the Confidentiality and Invention Assignment Agreement or the Release of Claims.  Any such termination, reimbursement or repayment of Severance Benefits or COBRA Benefits shall have no effect on the Release of Claims or any of Executive’s post-employment obligations to the Company.  Following termination of Executive’s employment by the Company without Cause, except as set forth in this Section 7(d), Executive shall have no further rights to any compensation or any other benefits under this Agreement. For the avoidance of doubt, Executive’s sole and exclusive remedy upon a termination of employment by the Company without Cause shall be receipt of the Severance Benefits and the COBRA Benefits, subject to Executive’s execution and non-revocation of the Release of Claims, and the Accrued Obligations.

 

(e)          Termination by Executive with Good Reason. Executive may terminate Executive’s employment with Good Reason by providing the Company ninety (90) days’ written notice setting forth in reasonable specificity the event that constitutes Good Reason, which written notice, to be effective, must be provided to the Company within thirty (30) days after the occurrence of such event.  During such ninety (90) day notice period, the Company shall have a cure right (if curable), and if not cured within such period, Executive’s termination will be effective upon the expiration of such cure period, and in the event of such termination during the Term, Executive shall be entitled to the same payments and benefits as provided in Section 7(d) hereof for a termination by the Company without Cause, subject to the same conditions on payment and benefits (and forfeiture and repayment) as described in Section 7(d) hereof.  Following such termination of Executive’s employment by Executive with Good Reason, except as set forth in this Section 7(e), Executive shall have no further rights to any compensation or any other benefits under this Agreement.  For the avoidance of doubt, Executive’s sole and exclusive remedy upon a termination of employment with Good Reason shall be receipt of the Severance Benefits and the COBRA Benefits, subject to Executive’s execution and non-revocation of the Release of Claims, and the Accrued Obligations.

 

(f)          Termination by Executive without Good Reason. Executive may terminate Executive’s employment without Good Reason by providing the Company ninety (90) days’ written notice of such termination.  In the event of a termination of employment by Executive under this Section 7(f), Executive shall be entitled only to the Accrued Obligations (disregarding, for this purpose, clauses (iii) and (iv) of Section 1(a)).  In the event of a termination of Executive’s employment under this Section 7(f), the Company may, in its sole and absolute discretion, by written notice, accelerate the Date of Termination without changing the characterization of such termination as a termination by Executive without Good Reason (and no severance pay, notice pay or pay in lieu of notice or similar pay shall be owed to Executive).  Following such termination of Executive’s employment by Executive without Good Reason, Executive shall have no further rights to or interest in any compensation or any other benefits under this Agreement.  If Executive terminates Executive’s employment without Good Reason, Executive shall not be entitled to compensation for any accrued, but unused vacation days.  For the avoidance of doubt, Executive’s sole and exclusive remedy upon a termination of employment by Executive without Good Reason shall be receipt of the Accrued Obligations (disregarding, for this purpose, clauses (iii) and (iv) of Section 1(a)).

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(g)          Release of Claims. Notwithstanding any provision herein to the contrary, the provision of severance benefits pursuant to subsection (d) or (e) of this Section 7 (other than the Accrued Obligations) shall be conditioned upon Executive’s execution, delivery to the Company, and non-revocation of the Release of Claims (and the expiration of any revocation period contained in such Release of Claims), such that the Release of Claims becomes effective, with all revocation periods having expired unexercised, within sixty (60) days after the Date of Termination.  If Executive fails to execute the Release of Claims in such a timely manner, or timely revokes Executive’s execution of the Release of Claims following its execution, Executive shall not be entitled to any of the severance benefits under Sections 7(d) or 7(e) (other than the Accrued Obligations).  Notwithstanding the foregoing, if such sixty (60) day period ends in a calendar year after the calendar year in which Executive’s employment terminates, then, to the extent required by Section 409A of the Code, any payment of any amount or provision of any benefit under Sections 7(d) or 7(e) or otherwise that would have been made during the calendar year in which Executive’s employment terminates shall instead be withheld and paid on the first payroll date in the calendar year after the calendar year in which Executive’s employment terminates, after which any remaining severance benefits shall thereafter be provided to Executive according to the applicable schedule set forth herein as if no such delay had occurred.

 

Section 8.                    Confidentiality and Invention Assignment Agreement; Cooperation.

 

(a)          Confidentiality and Invention Assignment Agreement. As a condition to Executive’s employment with the Company, Executive has entered into the Confidentiality and Invention Assignment Agreement.  The terms and conditions of the Confidentiality and Invention Assignment Agreement are incorporated herein by reference and the obligations and responsibilities set forth therein shall survive the termination of Executive’s employment regardless of the reason for the termination.

 

(b)          Litigation and Regulatory Cooperation. During and after Executive’s employment, Executive shall cooperate fully with the Company in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company or any of its subsidiaries which relate to events or occurrences that transpired while the Company employed Executive, provided that the Executive will not have an obligation under this paragraph with respect to any claim in which the Executive has filed directly against the Company or related persons or entities or the Company has filed directly against Executive.  The Executive’s full cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company or any of its subsidiaries at mutually convenient times.  During and after Executive’s employment, Executive also shall cooperate fully with the Company and its subsidiaries in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while Executive was employed by the Company, provided that Executive will not have any obligation under this paragraph with respect to any claim in which Executive has filed directly against the Company or related persons or entities or the Company has filed directly against Executive.  The Company shall reimburse Executive for any reasonable out-of-pocket expenses incurred by Executive in connection with Executive’s performance of Executive’s obligations pursuant to this Section 8(b).

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Section 9.                    Section 409A. This Agreement is intended to comply with, or be exempt from, Code Section 409A (to the extent applicable) and the parties hereto agree to interpret this Agreement in the least restrictive manner consistent therewith.  Without limiting the generality of the foregoing, severance pay pursuant to Sections 7(d) or 7(e) constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations and thus, to the extent of payments made from the date of termination of Executive’s employment through March 15 of the calendar year following such termination, such payments are intended to constitute “short-term deferral” under Section 1.409A-1(b)(4) of the Treasury Regulations.  To the extent that severance payments or benefits are made following said March 15, they are intended to be payable upon an “involuntary separation from service” pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the maximum extent permitted by said provision.  Notwithstanding any other provisions of this Agreement to the contrary, if Executive is a “specified employee” within the meaning of Code Section 409A and the regulations issued thereunder, and a payment or benefit provided for in this Agreement or otherwise would be subject to additional tax under Code Section 409A if such payment or benefit is paid within six (6) months after Executive’s “separation from service” (within the meaning of Code Section 409A), then such payment or benefit shall not be paid (or commence) during the six-month period immediately following Executive’s separation from service except as provided in the immediately following sentence.  In such an event, any payments or benefits that would otherwise have been made or provided during such six-month period and which would have incurred such additional tax under Code Section 409A shall instead be paid to Executive in a lump-sum cash payment on the earlier of (i) the first regular payroll date of the seventh month following Executive’s separation from service or (ii) the 10th business day following Executive’s death (but not earlier than such payments otherwise would have been made).  In addition, no reimbursement or in-kind benefit shall be subject to liquidation or exchange for another benefit and the amount available for reimbursement, or in-kind benefits provided, during any calendar year shall not affect the amount available for reimbursement, or in-kind benefits to be provided, in a subsequent calendar year.  Any reimbursement to which Executive is entitled hereunder shall be made no later than the last day of the calendar year following the calendar year in which such expenses were incurred.  Notwithstanding anything herein to the contrary, neither the Company nor any of its affiliates shall have any liability to Executive or to any other person or entity if the payments and benefits provided in this Agreement that are intended to be exempt from or compliant with Code Section 409A are not so exempt or compliant.

 

Section 10.                  Parachute Payment.  In the event that (i) Executive becomes entitled to any payments or benefits hereunder or otherwise from the Company or any of its affiliates which constitute a “parachute payment” as defined in Code Section 280G (the “Total Payments”) and (ii) Executive is subject to an excise tax imposed under Code Section 4999 (the “Excise Tax”), then, if it would be economically advantageous for Executive, the Total Payments shall be reduced by an amount (including zero) that results in the receipt by Executive on an after tax basis (including the applicable federal, state and local income taxes, and the Excise Tax) of the greatest Total Payments, notwithstanding that some or all of the portion of the Total Payments may be subject to the Excise Tax.  All calculations hereunder shall be performed by a nationally recognized independent accounting firm selected by the Company, with the full cost of such firm being borne by the Company.  Any determinations made by such firm shall be final and binding on Executive and the Company.

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Section 11.                  Clawback.  Notwithstanding anything herein to the contrary, any equity-based or incentive compensation provided to Executive, including any bonuses or equity awards provided pursuant to Sections 4(b) or 4(c) of this Agreement, shall be subject to any “clawback” required by law or by any national securities exchange on which the Company’s securities are listed, or to any clawback or recoupment policy otherwise adopted by the Company from time to time.  For the avoidance of doubt, notwithstanding anything herein to the contrary, in no event shall any reduction in the amount of compensation ultimately provided to or retained by Executive on account of this Section 11 constitute an event pursuant to which Executive may terminate employment for Good Reason or otherwise constitute a breach of this Agreement by the Company.

 

Section 12.                  No Conflict with Existing Obligations. Executive represents that Executive’s performance of all the terms of this Agreement and Executive’s duties as an executive of the Company do not and will not breach any agreement or obligation of any kind made prior to Executive’s employment by the Company, including agreements or obligations Executive may have with prior employers or entities for which Executive has provided services.  Executive has not entered into, and Executive agrees that Executive will not enter into, any agreement or obligation, either written or oral, in conflict herewith.

 

Section 13.                  Assignment. This Agreement for personal services shall not be assigned by Executive.  This Agreement will be binding upon and inure to the benefit of any successor of the Company.  Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes.  For this purpose, “successor” means any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.

 

Section 14.                  Arbitration; WAIVER OF JURY TRIAL. In consideration of Executive’s employment with the Company, the Company and Executive agree that any and all controversies, claims, or disputes with anyone (including the Company, Executive and any executive, 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 the termination of Executive’s employment with the Company, including any relating to this Agreement, will be subject to binding arbitration.  Disputes which Executive and Company hereby agree to arbitrate, AND THEREBY AGREE TO WAIVE ANY RIGHT TO A TRIAL BY JURY, include, but are not limited to, any statutory claims under 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 Worker Adjustment and Retraining Notification Act, the Family and Medical Leave Act, the New Jersey Law Against Discrimination, the New Jersey Conscientious Executive Protection Act, the New Jersey Family Leave Act, and any other federal, state or local discrimination, retaliation or wrongful termination claims or other 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.  Executive and Company agree that any arbitration will be administered by the American Arbitration Association (“AAA”) and that a single neutral arbitrator will be selected in a manner consistent with its National Rules for the Resolution of Employment Disputes (the “Rules”).  All arbitration fees and costs shall be shared equally by the parties, but the parties shall be responsible for payment of their own attorneys’ and professional fees.  Executive and Company agree that the arbitrator will administer and conduct any arbitration in a manner consistent with the Rules.  Notwithstanding the foregoing, nothing herein shall limit or alter the Company’s right to seek injunctive or other equitable relief in any court of competent jurisdiction under (and as described in) the Confidentiality and Invention Assignment Agreement.

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Section 15.                  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.

 

Section 16.                  Other.

 

(a)          Waiver of Breach. The waiver by the Company of a breach by Executive of any provision of this Agreement or the Confidentiality and Invention Assignment Agreement shall not operate or be construed as a waiver of the Company’s rights with respect to any subsequent breach by the Executive.  Any waiver of any provision of this Agreement must be in writing and signed by the waiving party.

 

(b)          Governing Law. This Agreement shall be construed and administered in accordance with the laws of the State of New Jersey, exclusive of its conflict of laws rules, and the parties hereto agree and stipulate that this Agreement shall be deemed to have been entered into in the State of New Jersey, regardless of where it was negotiated, implemented and/or executed.

 

(c)          Severability. In the event that any one or more of the provisions of this Agreement shall for any reason be held to be invalid, illegal, or unenforceable, the remaining provisions of this Agreement shall be unimpaired, and shall continue in full force and effect.

 

(d)          Construction. This Agreement shall be interpreted in accordance with its plain meaning, and the rule that ambiguities shall be construed against the drafter of the document shall not apply in connection with the construction or interpretation hereof.

 

(e)          Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

(f)           Entire Agreement. This Agreement and the Confidentiality and Invention Assignment Agreement contain the entire agreement and understanding of the parties with respect to the subject matter hereof, and supersede all prior or contemporaneous promises, understandings, or agreements, whether written or oral, relating to the subject matter hereof.  This Agreement may not be changed orally, but only by an agreement in writing, signed by both parties.

 

(g)          Survivorship.  The provisions of Sections 1, 7(d), 7(e) and 7(g) and Sections 8 through 16 shall survive the termination of Executive’s employment with the Company and this Agreement.

 

 

[Remainder of Page Intentionally Left Blank]

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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.

	 	 	 	
EDGE THERAPEUTICS, INC.

	 	 	 	 	 
	 	 	 	 	 
	
Date:

	October 31, 2017	 	/s/ Brian Leuthner 
	 	 	 	
By:

	
Brian Leuthner

	 	 	 	
Title:

	
President and Chief Executive Officer

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	
EXECUTIVE

	 	 	 	 	 
	 	 	 	 	 
	
Date:

	October 31, 2017	 	/s/ Andrew Saik
	 	 	 	
Andrew Saik 

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EXHIBIT A

 

CONFIDENTIALITY AND INVENTION ASSIGNMENT AGREEMENT

 

 

 

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EXHIBIT B

Outside Activities

NONE

 

 

 

13Wdesk | Exhibit

Exhibit 10.4

DEED OF INDEMNIFICATION 
This DEED OF INDEMNIFICATION (this “Deed”) is dated August 21, 2017 between (i) Weatherford International Ltd., a Bermuda exempted company with its registered office located at 2 Church Street, Clarendon House, Hamilton HM11, Bermuda (the “Company”) and (ii) Karl Blanchard (“Indemnitee”).
WHEREAS, Weatherford International plc (“Weatherford Ireland”) is the Company’s ultimate parent company;
WHEREAS, highly skilled and competent persons are becoming more reluctant to serve public companies as directors, officers and or employees unless they are provided with adequate protection through insurance and indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of such companies and uncertainties relating to indemnification increase the difficulty of attracting and retaining such persons;
WHEREAS, the Company and Indemnitee are aware of provisions under Irish law that may limit the level of indemnification available to directors, officers and/or employees of Weatherford Ireland;
WHEREAS, the Board has determined that an inability to attract and retain such persons is detrimental to the best interests of the Company and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;
WHEREAS, the Company desires to ensure that Weatherford Ireland benefits from the services of highly skilled and competent persons such as Indemnitee;
WHEREAS, it is reasonable, prudent and necessary for the Company to contractually obligate itself to indemnify Indemnitee to the fullest extent permitted by Bermuda law so that Indemnitee will serve or continue to serve Weatherford Ireland free from undue concern that Indemnitee will not be so indemnified;
WHEREAS, the Company has requested that, at or following the date of this Deed, Weatherford Ireland guarantee certain debt and take other actions for the benefit of the Company.  In partial consideration therefor, the Company has agreed to provide, from time to time after the date of this Deed, indemnity and other rights to the directors, officers and/or employees of Weatherford Ireland; and
WHEREAS, Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of Weatherford Ireland and, as partial consideration for agreeing to do so, the Company has agreed to enter into this Deed with Indemnitee.
NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:
ARTICLE 1
INTERPRETATION

1.1    In this Deed unless the context otherwise requires, the following words and expressions shall have the following meanings:

“Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Exchange Act;

“Assets” mean the assets (of any kind) owned by Weatherford Ireland, including, without limitation, the securities of Weatherford Ireland’s Subsidiaries and any of the assets owned by Weatherford Ireland’s Subsidiaries.
“Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act;
“Board” means the board of directors of the Company;
“Board Designee” means any officer or director of the Company as may be designated by the Board from time to time to exercise the rights of the Board Designee set forth in ARTICLE 5 in lieu of the Board unless otherwise determined by the Board (it being acknowledged that the Board has authorized and approved that any of the Chief Executive Officer or General Counsel of the Company may act as a Board Designee under this Deed until such time as otherwise determined by the Board); provided that no action taken by a Board Designee shall be valid unless notice thereof is promptly delivered to the Board and any such action shall not be in respect of any Proceedings to which such Board Designee was, is or is reasonably expected to be a party and provided further that the Board may revoke the powers of any Board Designee at any time by written notice to the Board Designee; any such revocation shall not affect any prior act of a Board Designee unless such act is determined by the Board to have been taken by the Board Designee in bad faith;
“Business Day” means any day on which banks in Bermuda are open for business;
“Change in Control” means the occurrence of any event set forth in any one of the following paragraphs:
any Person is or becomes the Beneficial Owner, directly or indirectly, of twenty percent (20%) or more of either (A) the then outstanding registered shares of Weatherford Ireland (the “Outstanding Company Registered Shares”) or (B) the combined voting power of the then outstanding voting securities of Weatherford Ireland entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”), excluding any Person who becomes such a Beneficial Owner in connection with a transaction that complies with clauses (A), (B) and (C) of paragraph (iii) below; 
individuals, who, as of the date of this Deed, constitute the board of directors of Weatherford Ireland (the “Incumbent Board”) cease for any reason to constitute at least two-thirds (2/3) of the such board; provided that any individual becoming a director subsequent to the date of this Deed whose election, or nomination for election by Weatherford Ireland’s shareholders, was approved by a vote of at least two-thirds (2/3) of the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or any other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the board of directors of Weatherford Ireland; 
the consummation of an acquisition, reorganization, reincorporation, redomestication, merger, amalgamation, consolidation, plan or scheme of arrangement, exchange offer, business combination or similar transaction of Weatherford Ireland or any of its Subsidiaries or the sale, transfer or other disposition of all or substantially all of Weatherford Ireland’s Assets (any of which a “Corporate Transaction”), unless, following such Corporate Transaction or series of related Corporate Transactions, as the case may be, (A) all of the individuals and Entities who were the Beneficial Owners, respectively, of the Outstanding Company Registered Shares and Outstanding Company Voting Securities immediately prior to such Corporate Transaction own or beneficially own, directly or indirectly, more than sixty-six and two-thirds percent (66-2/3%) of, respectively, the Outstanding Company Registered Shares and the combined voting power of the Outstanding Company Voting Securities entitled to vote generally in the election of directors (or other governing body), as the case 

may be, of the Entity resulting from such Corporate Transaction (including, without limitation, an Entity (including any new parent Entity) which as a result of such transaction owns Weatherford Ireland or all or substantially all of Weatherford Ireland‘s Assets either directly or through one (1) or more Subsidiaries or Entities) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Registered Shares and the Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any Entity resulting from such Corporate Transaction or any employee benefit plan (or related trust) of Weatherford Ireland or such Entity resulting from such Corporate Transaction) beneficially owns, directly or indirectly, twenty percent (20%) or more of, respectively, the then outstanding shares of common stock of the Entity resulting from such Corporate Transaction or the combined voting power of the then outstanding voting securities of such Entity except to the extent that such ownership existed prior to the Corporate Transaction and (C) at least two-thirds (2/3) of the members of the board of directors (or other governing body) of the Entity resulting from such Corporate Transaction were members of the Incumbent Board at the time of the approval of such Corporate Transaction; or 
approval or adoption by the board of directors of Weatherford Ireland or the shareholders of Weatherford Ireland of a plan or proposal which could result directly or indirectly in the liquidation, transfer, sale or other disposal of all or substantially all of Weatherford Ireland’s Assets or the dissolution of Weatherford Ireland, excluding any transaction that complies with clauses (A), (B) and (C) of paragraph (iii) above;
“Companies Act” means the Companies Act 1981 of Bermuda;
“Corporate Status” means the status of a person who is or was a director, officer, employee, agent, or fiduciary of Weatherford Ireland or any other Group Company, or is or was serving at the request of Weatherford Ireland and/or the Company as a director, officer, employee, agent or fiduciary of any other company, corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other Entity or enterprise;
“Court” means the Supreme Court of Bermuda;
“Deed” means this Deed of Indemnification;
“Disinterested Director” means a director of the Company who is not or was not a party to a Proceeding in respect of which indemnification is sought by Indemnitee;
“Entity” means any corporation, partnership, association, joint-stock company, limited liability company, trust, unincorporated organization or other business entity.
“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time;
“Expenses” shall mean all costs, expenses, and obligations paid or incurred in connection with investigating, litigating, being a witness in, defending or participating in, or preparing to litigate, defend, be a witness in or participate in any matter that is the subject of a Proceeding, including attorneys’, experts’ and accountants’ fees and court costs;
“Group Companies” means Weatherford Ireland and each Subsidiary of Weatherford Ireland (wherever incorporated or organized);
“Independent Counsel” means a law firm or a member of a law firm that neither is presently nor in the past five years has been retained to represent: (i) the Company, Weatherford Ireland or Indemnitee in any matter material to any such party, or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict 

of interest in representing any of the Company, Weatherford Ireland or Indemnitee in an action to determine Indemnitee’s right to indemnification under this Deed;
“Parties” means the parties to this Deed collectively, and “Party” means any one of them; 
“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) Weatherford Ireland or any of its Subsidiaries, (ii) a trustee or other fiduciary holding securities under terms of an employee benefit and compensation plans, agreements, arrangements, programs, policies, practices, contracts or agreement of Weatherford Ireland and its Affiliated companies (collectively, “Benefit Plans”), (iii) an underwriter temporarily holding securities pursuant to an offering by Weatherford Ireland of such securities, or (iv) a corporation or other Entity owned, directly or indirectly, by the shareholders of Weatherford Ireland in the same proportions as their ownership of registered shares of Weatherford Ireland;
“Proceeding” means any actual, threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other actual, threatened, pending or completed proceeding, inquiry, hearing or investigation, whether civil, criminal, administrative or investigative and whether formal or informal (including, but not limited to, the investigation, defense, settlement or appeal of any of the forgoing); and
“Subsidiary” means any majority-owned subsidiary of Weatherford Ireland or any majority-owned subsidiary thereof, or any other Entity in which Weatherford Ireland owns, directly or indirectly, a significant financial interest; provided that the Chief Executive Officer of Weatherford Ireland designates such Entity to be a Subsidiary for the purposes of this Agreement.

1.2    In this Deed unless the context otherwise requires:

(A)references to statutory provisions shall be construed as references to those provisions as amended or re-enacted or as their application is modified by other provisions from time to time and shall include references to any provisions of which they are re-enactments (whether with or without modification);

(B)references to articles, sections and schedules are references to articles and sections hereof and schedules hereto; references to sub-sections or paragraphs are, unless otherwise stated, references to sub-sections of the section or paragraphs of the schedule in which the reference appears;

(C)references to the singular shall include the plural and vice versa and references to the masculine shall include the feminine and/or neuter and vice versa; and

(D)references to persons shall include companies, partnerships, associations and bodies of persons, whether incorporated or unincorporated.

ARTICLE 2
AGREEMENT TO SERVE

Indemnitee agrees to serve as a director, officer and/or employee of Weatherford Ireland.  This Deed does not create or otherwise establish any right on the part of Indemnitee to be and continue to be elected or appointed a director, officer and/or employee of Weatherford Ireland or any other Group Company and does not create an employment contract between Weatherford Ireland and Indemnitee or between the Company and Indemnitee.

ARTICLE 3
INDEMNITY OF DIRECTOR/OFFICER/EMPLOYEE

3.1    Subject to ARTICLE 10, the Company shall indemnify, defend and hold harmless Indemnitee against all Expenses, damages, losses, liabilities, judgments, penalties, fines and amounts paid in settlement if Indemnitee was or is a party to or participant in, or is threatened to be made a party to or participant in, any Proceeding, including a Proceeding brought by or in the right of Weatherford Ireland and/or the Company, by reason of the fact or assertion that Indemnitee is or was a director, officer, employee, agent, or fiduciary of Weatherford Ireland and/or the Company or is or was serving at the request of Weatherford Ireland and/or the Company as a director, officer, employee, agent, or fiduciary of any other Group Company or any other company, corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other Entity or enterprise or by reason of anything done or not done by Indemnitee in any such capacity. 
 
3.2    Subject to ARTICLE 10, if Indemnitee is entitled under any provision of this Agreement to indemnification for some or a portion of Expenses, damages, losses, liabilities, judgments, penalties, fines and amounts paid in settlement, but not the total amount thereof, the Company shall indemnify, defend and hold harmless Indemnitee for such portion of the Expenses, damages, losses, liabilities, judgments, penalties, fines, amounts paid in settlement and any other amounts that Indemnitee becomes legally obligated to pay in connection with any Proceeding to which Indemnitee is entitled.

3.3    Subject to ARTICLE 10, the Company shall indemnify, defend and hold harmless Indemnitee against all Expenses, damages, losses, liabilities, judgments, penalties, fines and amounts paid in settlement if Indemnitee was or is a party to or participant in, or is threatened to be made a party to or participant in, any Proceeding specifically related to Indemnitee’s Employment Agreement with his prior employer dated September 23, 2016 or Indemnitee’s Separation Agreement with his prior employer dated June 30, 2017 (the “Separation Agreement”).  Further, the Company agrees that in the event that Indemnitee’s prior employer takes the position that Indemnitee has forfeited any amounts due under the Separation Agreement by becoming employed by Weatherford Ireland or a Subsidiary, the Company will pay or cause to be paid to Indemnitee such amounts due under the Separation Agreement pursuant to its terms.  Indemnitee agrees to cooperate in good faith with the Company to seek any available recourse on behalf of Indemnitee, Weatherford Ireland or the Company for such amounts and any related damages under the Separation Agreement.

ARTICLE 4
INDEMNIFICATION FOR EXPENSES OF A WITNESS

Subject to ARTICLE 10, to the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a witness in any Proceeding, Indemnitee shall be indemnified by the Company against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.
ARTICLE 5
DETERMINATION OF ENTITLEMENT TO INDEMNIFICATION

5.1    Indemnitee shall request indemnification pursuant to this Deed by notice in writing to the General Counsel of the Company.  The General Counsel shall, promptly upon receipt of Indemnitee’s request for indemnification, advise in writing the Board and the Board Designee or such other person or persons empowered to make the determination as provided in Section 5.2 that Indemnitee has made such request for indemnification. Upon making such request for indemnification, Indemnitee shall be presumed to be entitled to indemnification hereunder and the Company shall have the burden of proof in the making of any determination contrary to such presumption.  

5.2    Upon written request by Indemnitee for indemnification hereunder, the entitlement of Indemnitee to indemnification pursuant to the terms of this Deed shall be determined in the following circumstances and by the following person or persons who, in each instance, shall be empowered to make such determination:

(a)if a Change in Control shall not have occurred, 

		
	(i)
	by the Board, by a majority vote of the Disinterested Directors, or by the Board Designee; or

		
	(ii)
	if such Board vote or the Board Designee determination under (a)(i) is not obtainable or, even if obtainable, if such Disinterested Directors (by majority vote) or the Board Designee so directs, by (y) Independent Counsel in a written opinion to the Board and the Board Designee, a copy of which shall be delivered to Indemnitee; or (z) a majority vote of the shareholders of the Company; and

(b)if a Change in Control shall have occurred,

		
	(i)
	by Independent Counsel in a written opinion to the Board and the Board Designee, a copy of which shall be delivered to Indemnitee; or

		
	(ii)
	at Indemnitee’s sole option, Indemnitee shall have the right to direct that such determination be made in the manner provided in Section 5.2(a); and

(c)if indemnification is requested under Section 3.3, entitlement to such indemnification shall be automatic upon presenting satisfactory evidence of Indemnitee’s claim to the General Counsel of the Company.

5.3    For purposes of Section 5.2(a)(ii), Independent Counsel shall be selected by the Board or the Board Designee and approved by Indemnitee and for purposes of Section 5.2(b), Independent Counsel shall be selected by Indemnitee.  Upon failure of the Board or the Board Designee to so select such Independent Counsel or upon failure of Indemnitee to so approve, such Independent Counsel shall be selected by a single arbitrator pursuant to the rules of the American Arbitration Association. Such determination of entitlement to indemnification shall be made not later than 60 days after receipt by the Company of a written request for indemnification.  Such request shall include documentation or information which is reasonably necessary for such determination and which is reasonably available to Indemnitee.  Subject to ARTICLE 10, any Expenses incurred by Indemnitee in connection with Indemnitee’s request for indemnification hereunder shall be borne by the Company irrespective of the outcome of the determination of Indemnitee’s entitlement to indemnification.  If the person or persons making such determination shall determine that Indemnitee is entitled to indemnification as to part (but not all) of the application for indemnification, such persons may, subject to ARTICLE 10, reasonably prorate such partial indemnification among such claims, issues or matters in respect of which indemnification is requested.

ARTICLE 6
ADVANCEMENT OF EXPENSES

All reasonable Expenses incurred by, and advances of disbursements required of, Indemnitee in connection with any Proceeding and in connection with Indemnitee seeking an adjudication or award in arbitration pursuant to this Deed shall, at the request of Indemnitee, be paid by the Company in advance of the final disposition of any such Proceeding, adjudication or arbitration as promptly as possible, and in any 

event within twenty days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time.  Such statement or statements shall reasonably evidence the Expenses incurred by, or disbursements required of, Indemnitee in connection therewith.  Notwithstanding any determination as to entitlement to indemnification made pursuant to ARTICLE 5 or 7, Indemnitee agrees that it will forthwith (and, in any event, not later than twenty days from the date the Company provides a written demand therefor and irrespective of any appeal rights which the Indemnitee may have or exercise) repay any advance of funds made by the Company pursuant to this ARTICLE 6 in the event of any allegation of fraud or dishonesty in the relevant Proceeding is proved against the Indemnitee.  The Company shall have the burden of proof in any determination under this ARTICLE 6.  No amounts advanced hereunder shall be deemed an extension of credit by the Company to Indemnitee.
ARTICLE 7
REMEDIES OF INDEMNITEE IN CASES OF DETERMINATION NOT TO INDEMNIFY OR TO ADVANCE EXPENSES OR FAILURE TO TIMELY PAY

7.1    In the event that: (a) a determination is made that Indemnitee is not entitled to indemnification hereunder; (b) payment has not been timely made following a determination of entitlement to indemnification pursuant to ARTICLE 5; or (c) Expenses or disbursements required of the Indemnitee are not advanced pursuant to ARTICLE 6, Indemnitee shall be entitled to apply to the Court or any other court of competent jurisdiction for a determination of Indemnitee’s entitlement to such indemnification, indemnification payment or advance.

7.2    Alternatively to Section 7.1, Indemnitee, at Indemnitee’s sole option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the rules of the American Arbitration Association, such award to be made within sixty days following Indemnitee’s filing of the request for arbitration.  The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration or any other claim.

7.3    A judicial proceeding or arbitration pursuant to this ARTICLE 7 shall be made de novo and Indemnitee shall not be prejudiced by reason of a determination otherwise made hereunder (if so made) that Indemnitee is not entitled to indemnification.  If the court or arbitrator shall determine that Indemnitee is entitled to any indemnification or advance hereunder, the Company shall pay all reasonable Expenses actually incurred by Indemnitee in connection with such adjudication or award in arbitration (including, but not limited to, any appellate proceedings) (the “Article 7 Expenses”); provided that the Indemnitee agrees that it will forthwith (and, in any event, not later than twenty days from the date the Company provides a written demand therefor and irrespective of any appeal rights which the Indemnitee may have or exercise) repay such Article 7 Expenses in the event that any allegation of fraud or dishonesty is proved against the Indemnitee in the Proceeding in respect of which the Indemnitee was seeking indemnification or an advance of monies hereunder.  

ARTICLE 8
OTHER RIGHTS TO INDEMNIFICATION

8.1    The indemnification and advancement of Expenses provided by this Deed shall not be deemed exclusive of any other right to which Indemnitee previously, now or in the future may be entitled under any provision of the Company’s memorandum of association, bye-laws, any other agreement (including any agreement between Indemnitee and any other Group Company), vote of shareholders of the Company, the Board or Disinterested Directors, provision of law, or otherwise; provided that the Company shall not be obligated under this Deed to make any payment pursuant to this Deed for which payment has been actually made to or on behalf of Indemnitee by or on behalf of any of the Group Companies under any insurance policy or other indemnity provision, except in respect of any excess beyond the amount paid under any such insurance policy or other indemnity provisions.

8.2    In the event of any payment under this Deed, the Group Companies shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute at the request of the Company all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company and/or Weatherford Ireland to bring suit to enforce such rights.

ARTICLE 9
ATTORNEYS’ FEES AND OTHER EXPENSES TO ENFORCE DEED

In the event that Indemnitee is subject to or intervenes in any Proceeding in which the validity or enforceability of this Deed is at issue or seeks an adjudication or award in arbitration to enforce Indemnitee’s rights under, or to recover damages for breach of, this Deed, Indemnitee, if Indemnitee prevails in whole or in part in such action, shall, subject to ARTICLE 10, be entitled to recover from the Company and shall be indemnified by the Company against, any Expenses reasonably incurred by Indemnitee; provided that in bringing any action for adjudication or award in arbitration to enforce Indemnitee’s rights, Indemnitee acted in good faith.
ARTICLE 10
LIMITATION OF INDEMNIFICATION

Notwithstanding any other terms of this Deed, nothing herein shall indemnify Indemnitee against, or exempt Indemnitee from, any liability arising from or in connection with or in respect of Indemnitee’s fraud or dishonesty proved against the Indemnitee; provided that, to the extent Bermuda applicable law changes after the date of this Deed so that the Company may, under such law, at the applicable time, indemnify Indemnitee to an extent greater than provided in this Deed (as a result of the restrictions contained herein or current law), the Company shall indemnify Indemnitee to the fullest extent permitted under applicable law at such time, as so changed.
ARTICLE 11
LIABILITY INSURANCE

To the extent the Company maintains an insurance policy or policies providing directors’, officers’ and employees’ liability insurance, Indemnitee shall be covered by such policy or policies, in accordance with its or their terms, to the maximum extent of the coverage available for any Company director, officer or employee.
ARTICLE 12
DURATION OF DEED

This Deed shall apply with respect to Indemnitee’s occupation of any of the position(s) described in Section 3.1 of this Deed prior to the date of this Deed and with respect to all periods of such service after the date of this Deed, even though Indemnitee may have ceased to occupy such positions(s).

ARTICLE 13
NOTICE OF PROCEEDINGS BY INDEMNITEE

13.1    Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding which may be subject to indemnification hereunder; provided that the failure to so notify the Company will not relieve the Company from any liability it may have to Indemnitee except to the extent that such failure materially 

prejudices the Company’s ability to defend such claim.  With respect to any such Proceeding as to which Indemnitee notifies the Company of the commencement thereof:

(a)    the Company will be entitled to participate therein at its own expense; and

(b)    except as otherwise provided below, to the extent that it may wish, the Company jointly with any other indemnifying party similarly notified will be entitled to assume the defense thereof, with counsel reasonably satisfactory to Indemnitee.  After notice from the Company to Indemnitee of its election so to assume the defense thereof, the Company will not be liable to Indemnitee under this Deed for any Expenses subsequently incurred by Indemnitee in connection with the defense thereof other than, subject to ARTICLE 10, reasonable costs of investigation or as otherwise provided below.  Indemnitee shall have the right to employ Indemnitee’s own counsel in such Proceeding, but the fees and Expenses of such counsel incurred after notice from the Company of its assumption of the defense thereof shall be at the expense of Indemnitee and not subject to indemnification hereunder unless (a) the employment of counsel by Indemnitee has been authorized by the Company; (b) in the reasonable opinion of counsel to Indemnitee there is or may be a conflict of interest between the Company and Indemnitee in the conduct of the defense of such Proceeding; or (c) the Company shall not in fact have employed counsel to assume the defense of such action, in each of which cases, subject to ARTICLE 10, the reasonable Expenses  of counsel shall be at the expense of the Company.

13.2    Neither the Company nor Indemnitee shall settle any claim without the prior written consent of the other (which shall not be unreasonably withheld, conditioned or delayed).

ARTICLE 14
NOTICES

Any notice required to be given hereunder shall be in writing in the English language and shall be served by sending the same by prepaid recorded post, facsimile, email or by delivering the same by hand to the address of the Party or Parties in question as set out below (or such other address as such Party or Parties shall notify the other Parties of in accordance with this ARTICLE 14).  Any notice sent by post as provided in this ARTICLE 14 shall be deemed to have been served five Business Days after dispatch and any notice sent by facsimile or email as provided in this ARTICLE 14 shall be deemed to have been served at the time of dispatch and in proving the service of the same it will be sufficient to prove in the case of a letter that such letter was properly stamped, addressed and placed in the post; and in the case of a facsimile or email that such facsimile or email was duly dispatched to a current facsimile number or email address of the addressee.
	
	
	Company -

	Weatherford International Ltd.

	c/o Weatherford International, LLC

	2000 St. James Place

	Houston, TX  77056

	Attn: General Counsel

	Email:    LegalWeatherford@weatherford.com

	
		
	Indemnitee -

	Name:
	Karl Blanchard

	Address:
	9172 Roundtree Drive

	 
	Highlands Ranch, CO 80126

ARTICLE 15
MISCELLANEOUS

15.1    Notwithstanding the expiration or termination of this Deed howsoever arising, such expiration or termination shall not operate to affect such of the provisions hereof as are expressed or intended to remain in full force and effect.

15.2    If any of the sections, conditions, covenants or restrictions of this Deed or any deed or document emanating from it shall be found to be void but would be valid if some part thereof were deleted or modified, then such section, condition, covenant or restriction shall apply with such deletion or modification as may be necessary to make it valid and effective so as to give effect as nearly as possible to the intent manifested by such section, condition, covenant or restriction.

15.3    This Deed shall be binding upon the Company and its successors and assigns (including any transferee of all or substantially all of its assets and any successor or resulting company by any Corporate Transaction or otherwise) and shall inure to the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, estate, devises, executors, administrators or other legal representatives.

15.4    This Deed constitutes the entire agreement between the Parties relating to the matters covered hereby; provided that this Deed shall not supersede any other indemnification agreement between Indemnitee and Weatherford Ireland or any Group Company (other than the Company) or any indemnification obligation of Weatherford Ireland or any Group Company to Indemnitee.

15.5    No provision in this Deed may be amended unless such amendment is agreed to in writing and signed by Indemnitee and by a duly authorized officer of the Company.  No waiver by either Party of any breach by the other Party of any condition or provision of this Deed to be performed by such other Party shall be deemed a waiver of any other condition or provision hereof (whether similar or dissimilar) nor shall such waiver constitute a continuing waiver.  Any waiver must be in writing and signed by Indemnitee or a duly authorized officer of the Company, as the case may be.

15.6    The headings in this Deed are inserted for convenience only and shall not affect the construction of this Deed.

15.7    This Deed may be executed in counterparts each of which when executed and delivered shall constitute an original but all such counterparts together shall constitute one and the same instrument.

15.8    The terms and conditions of this Deed and the rights of the parties hereunder shall be governed by and construed in all respects in accordance with the laws of the Islands of Bermuda.  The Parties to this Deed hereby irrevocably agree that the courts of Bermuda shall have non-exclusive jurisdiction in respect of any dispute, suit, action, arbitration or proceedings (“Deed Proceedings”) which may arise out of or in connection with this Deed and waive any objection to Deed Proceedings in the courts of Bermuda on the grounds of venue 

or on the basis that the Deed Proceedings have been brought in an inconvenient forum; provided that any matters that are referred to arbitration pursuant to Section 5.3 or 7.2 shall be exclusively determined by such arbitral proceedings which shall be conducted by a single arbitrator, in the English language and in Houston, Texas, USA.

15.9    All payments made by the Company to Indemnitee hereunder shall be deemed to have been made in the ordinary course of business of the Company, and shall not be deemed to be extraordinary payments.

15.10    The Company expressly confirms and agrees that it has entered into this Deed and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve, continue to serve and to take on additional service for or on behalf of Weatherford Ireland, and the Company acknowledges that Indemnitee is relying upon this Deed in serving, continuing to serve and taking on additional service for or on behalf of Weatherford Ireland.

(Remainder of page intentionally left blank)

IN WITNESS WHEREOF, the undersigned, intending to be bound hereby, have duly executed this Deed as deed and delivered it on the date first written above. 

	
						
	SIGNED as a DEED
	)
	 
	 
	 

	by Tan Kah Huan
	)
	 
	 
	 

	authorized signatory for
	)
	 
	 
	 /s/ Tan Kah Huan

	Weatherford International Ltd.
	)
	 
	 
	 

	 
	 
	 
	 
	 
	 

	in the presence of:
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	Witness:
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	Address:
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

 

	
						
	SIGNED as a DEED
	)
	 
	 
	 

	by Karl Blanchard
	)
	 
	 
	/s/ Karl Blanchard

	 
	 
	 
	 
	 
	 

	in the presence of:
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	Witness:
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	Address:
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

[Signature Page to Bermuda Indemnity Agreeement]

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