Document:

Exhibit 10.1

 

EXECUTION COPY

 

SEPARATION AND RELEASE OF CLAIMS AGREEMENT

 

This Separation and Release of Claims Agreement (the “Agreement”) is made as of August 31, 2017 between Nabriva Therapeutics US, Inc. (the “Company”) and Elyse Seltzer, M.D. (“Executive”) (together, the “Parties”).

 

WHEREAS, the Company and Executive are parties to the Amended and Restated Employment Agreement dated as of May 26, 2016 (the “Employment Agreement”), under which Executive currently serves as Chief Medical Officer of the Company and Chief Medical Officer of its group of companies;

 

WHEREAS, the Parties have decided to end their employment relationship and wish to establish mutually agreeable terms for Executive’s orderly transition and separation from the Company as an employee effective on the Separation Date (as defined below) as well as establish a consulting relationship for a finite time period as set forth in the Consulting Agreement attached as Attachment “A”; and

 

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

 

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

 

1.                                      Separation Date; Post-Employment Consulting Arrangement —

 

(a) Executive’s effective date of separation from employment with the Company and, as may be applicable, any and all of its parents, affiliates and subsidiaries, including, without limitation, Nabriva Therapeutics AG (together, the “Affiliates”), will be September 30, 2017 (the “Separation Date”).  Executive hereby resigns, as of the Separation Date, from her employment with the Company and, as may be applicable, its Affiliates and as an officer of the Company and, as may be applicable, its Affiliates.  Executive agrees to execute and deliver any documents reasonably necessary to effectuate such resignations, provided that nothing in any such document is inconsistent with any terms set forth in this Agreement.  As of the Separation Date, all salary payments from the Company will cease, and any benefits Executive had as of the Separation Date under Company-provided benefit plans, programs, or practices will terminate, except as required by federal or state law or as otherwise specifically set forth in this Agreement.

 

(b) Upon the Separation Date, the Company and Executive shall enter into a consulting agreement in the form attached to this Agreement as Attachment A (the “Consulting Agreement”).

 

2.                                      Severance Benefits — In return for Executive’s timely signing this Agreement as set forth in Section 13 below, timely signing and not revoking the Additional Release of Claims attached hereto as Attachment B (the “Additional Release”) as set forth in Section 13

 

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below, and subject to Executive’s compliance with all terms hereof, the Company will provide Executive with the following severance benefits (the “Severance Benefits”):

 

(a) Severance Pay —  The Company shall provide a total amount of Three Hundred Ninety-Four Thousand and Four Hundred Seventy-Two Dollars ($394,472), which represents twelve (12) months of Executive’s base salary, as severance pay payable as follows:  On the first regular payroll date after the Additional Release Effective Date (as defined below), the Company will provide Executive with severance pay in the form of a lump sum payment of One Hundred Ninety-Seven Thousand and Two Hundred Thirty-Six Dollars ($197,236) less all applicable taxes and withholdings and, at the direction of the Executive, the Company shall allocate a portion thereof to certain professional fees.  On the last regular payroll date in March, 2018, the Company will provide Executive with severance pay in the form of a lump sum payment of One Hundred Ninety-Seven Thousand and Two Hundred Thirty-Six Dollars ($197,236), less all applicable taxes and withholdings.

 

(b) Group Health Insurance — Provided the Executive is eligible for and timely elects to continue receiving group medical insurance pursuant to the “COBRA” law, the Company will pay on Executive’s behalf, until the earlier of (x) one year from the Separation Date, and (y) the date that Executive becomes eligible to receive group medical insurance through another employer, the share of the premium for such coverage that is paid by the Company for active and similarly-situated employees who receive the same type of coverage, unless the Company’s provision of such COBRA premium payments will violate the nondiscrimination requirements of applicable law, in which case the Company will not be required to make further payments under this Section 2(b). Executive shall immediately inform the Company in writing if she becomes eligible for group medical insurance through another employer prior to one year from the Separation Date.

 

(c) 2017 Bonus Payment — On the date in the first quarter of 2018 when the Company pays annual bonuses for 2017, and no later than March 15, 2018, the Company shall provide Executive with a bonus payment of One Hundred Thirty-Eight Thousand and Sixty-Five Dollars ($138,065) which represents 35% of her 2017 base salary, less all applicable taxes and withholdings.

 

(d) Extended Equity Exercise — As of the Additional Release Effective Date, the Company will extend, until such date that is two (2) years following the Separation Date, the exercise period for all outstanding options to purchase shares of the Company’s common stock in which Executive has vested (but in no event shall such exercise period be extended to later than the original maximum term specified in the applicable option award agreement).  Executive understands that any option subject to this extended exercise period shall cease to be treated for tax purposes as an incentive stock option.

 

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

 

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3.                                      Release of Claims — In exchange for the consideration set forth in this Agreement, which Executive acknowledges she would not otherwise be entitled to receive, Executive hereby fully, forever, irrevocably and unconditionally releases, remises and discharges the Company, its affiliates, subsidiaries, parent companies, predecessors, and successors, and all of its and their respective past and present officers, directors, stockholders, investors, partners, members, managers, employees, agents, representatives, plan administrators, attorneys, insurers and fiduciaries (each in their individual and corporate capacities) (collectively, the “Released Parties”) from any and all claims, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature that Executive ever had or now has against any or all of the Released Parties, whether known or unknown, including, but not limited to, any and all claims arising out of or relating to Executive’s employment with and/or separation from the Company, including, but not limited to, all claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the Genetic Information Nondiscrimination Act of 2008, 42 U.S.C. § 2000ff et seq., the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq., the Worker Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. § 2101 et seq., the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., Executive Order 11246, Executive Order 11141, the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., all as amended; all claims arising out of the Pennsylvania Human Relations Act, 43 Pa. Stat. § 951 et seq., the Pennsylvania Equal Pay Law, 43 Pa. Stat. § 336.1 et seq., and the Pennsylvania Whistleblower Law, 43 Pa. Stat. § 1421 et seq., all as amended; all common law claims including, but not limited to, actions in defamation, intentional infliction of emotional distress, misrepresentation, fraud, wrongful discharge, and breach of contract (including, without limitation, all claims arising out of or related to the Employment Agreement); all claims to any non-vested ownership interest in the Company, contractual or otherwise; all state and federal whistleblower claims to the maximum extent permitted by law; and any claim or damage arising out of Executive’s employment with and/or separation from the Company (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above; provided, however, that nothing in this release of claims prevents Executive from filing a charge with, cooperating with, or participating in any investigation or proceeding before, the Equal Employment Opportunity Commission or a state fair employment practices agency (except that Executive acknowledges that she may not recover any monetary benefits in connection with any such charge, investigation, or proceeding, and Executive further waives any rights or claims to any payment, benefit, attorneys’ fees or other remedial relief in connection with any such charge, investigation or proceeding).  Further, nothing herein shall prevent Executive from bringing claims to enforce this Agreement, or release (i) any rights Executive may have under the Company’s certificate of incorporation, by-laws, insurance and/or any indemnification agreement between her and the Company (and/or otherwise under law) for indemnification and/or defense as an employee, officer or director of the Company for her service to the Company (recognizing that such indemnification and/or defense is not

 

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guaranteed by this Agreement and shall be governed by the instrument or law, if any, providing for such indemnification and/or defense), (ii) any rights Executive may have to vested pension or 401(K) benefits or interests under any ERISA-Covered benefit plan (excluding severance) provided by the Company, or (iii) any rights or claims that cannot be waived by law, including claims for unemployment benefits.

 

4.                                      Continuing Obligations — Executive acknowledges and reaffirms her obligation, to the extent permitted by law and except as otherwise permitted by Section 8 below, to keep confidential and not to use or disclose any and all non-public information concerning the Company and/or its Affiliates that Executive acquired during the course of her employment with the Company and/or its Affiliates, including, but not limited to, any non-public information concerning the Company’s and/or its Affiliates’ business affairs, business prospects, and financial condition.  Executive further acknowledges and reaffirms her obligations set forth in the Proprietary Rights, Non-Disclosure, Developments, Non-Competition and Non-Solicitation Agreement that she previously executed for the benefit of the Company and Nabriva Therapeutics AG (the “NDA”), which remain in full force and effect and which survive her separation from employment with the Company and, as may be applicable, its Affiliates.  Further, in consideration of this Agreement and the Consulting Agreement, Executive acknowledges and agrees that all the provisions of the NDA including but not limited to Proprietary Information, Developments, Non-Competition and Non-Solicitation are amended hereby to apply to her Services for the Company during and after the Consultation Period, and all references in the NDA to “Employee” are amended hereby to refer as well to “Consultant” and all references to “employment” or being “employed” therein are amended hereby to refer as well to “Consulting Services” and Consultant’s provision thereof (as set forth in the Consulting Agreement).

 

5.                                      Non-Disparagement — Executive understands and agrees that, to the extent permitted by law and except as otherwise permitted by Section 8 below, she will not, in public or private, make any false, disparaging, derogatory or defamatory statements to any person or entity, including, but not limited to, any media outlet, industry group, financial institution or current or former employee, board member, consultant, client or customer of the Company, regarding the Company or any of the other Released Parties, or regarding the Company’s business affairs, business prospects, or financial condition; provided, however, that nothing herein shall be construed as preventing Executive from making truthful disclosures in any litigation or arbitration.  The Company agrees that, to the extent permitted by law, that certain individuals to be agreed upon, will not, in public or private, make any false, disparaging, derogatory or defamatory statements to any person or entity, including, but not limited to, any media outlet, industry group, financial institution or current or former employee, board member, consultant, client or customer of the Company, regarding the Executive; provided however that nothing herein shall be construed as preventing the individuals to be agreed upon from making truthful disclosures in any litigation or arbitration.  For the avoidance of doubt, the aforementioned shall not apply to truthful, accurate, internal statements to management and/or the Board of Directors for the purpose of conducting business.

 

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

 

7.                                      Confidentiality — Executive understands and agrees that, to the extent permitted by law and except as otherwise permitted by Section 8 below, the contents of the negotiations and discussions resulting in this Agreement shall be maintained as confidential by Executive and her agents and representatives and shall not be disclosed except as otherwise agreed to in writing by the Company; provided, however, that nothing herein shall be construed as preventing Executive from making truthful disclosures in any litigation or arbitration.

 

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

 

9.                                      Cooperation — Executive agrees that, to the extent permitted by law, she shall cooperate fully with the Company in the investigation, defense or prosecution of any claims or actions which already have been brought, are currently pending, or which may be brought in the future against the Company by a third party or by or on behalf of the Company against any third party, whether before a state or federal court, any state or federal government agency, or a mediator or arbitrator.  Executive’s full cooperation in connection with such claims or actions shall include, but not be limited to, being

 

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available to meet with the Company’s counsel, at reasonable times and locations designated by the Company, to investigate or prepare the Company’s claims or defenses, to prepare for trial or discovery or an administrative hearing, mediation, arbitration or other proceeding and to act as a witness when requested by the Company.  Executive further agrees that, to the extent permitted by law, she will notify the Company promptly in the event that she is served with a subpoena (other than a subpoena issued by a government agency), or in the event that she is asked to provide a third party (other than a government agency) with information concerning any actual or potential complaint or claim against the Company.

 

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

 

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

 

12.                               Nature of Agreement — Both Parties understand and agree that this Agreement is a separation agreement and that nothing herein constitutes an admission of liability or wrongdoing on the part of the Company or Executive.

 

13.                               Time for Consideration and Revocation Executive understands that this Agreement shall be of no force or effect, and that she shall not be eligible for the consideration described herein, unless she: (i) signs and returns this Agreement no later than August 31, 2017 (the date of such signing and return, the “Agreement Effective Date”), and (ii) signs and returns the Additional Release on September 30, 2017, and does not revoke her acceptance in the subsequent seven (7) day period (the day immediately following expiration of such revocation period, the “Additional Release Effective Date”).

 

14.                               Acknowledgments — Executive acknowledges that she has been given a reasonable period of time to consider this Agreement, and that she has been given at least twenty-one (21) days to consider the Additional Release, and that the Company is hereby advising her to consult with an attorney of her own choosing prior to signing this Agreement or the Additional Release.  Executive further acknowledges and agrees that any changes made to this Agreement or the Additional Release following her initial receipt of this Agreement, whether material or immaterial, shall not re-start or affect in any manner the review period for this Agreement or the twenty-one (21) day consideration period for the Additional Release. Executive understands that she may revoke the Additional Release for a period of seven (7) days after she signs it by notifying the Company in writing, and

 

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the Additional Release shall not be effective or enforceable until the expiration of this seven (7) day revocation period.  Executive understands and agrees that by entering into the Additional Release she will be waiving any and all rights or claims she might have under the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, and that she has received consideration beyond that to which she was previously entitled.

 

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

 

16.                               Applicable Law — This Agreement shall be interpreted and construed by the laws of the Commonwealth of Pennsylvania, without regard to conflict of laws provisions.  Executive hereby irrevocably submits to and acknowledges and recognizes the jurisdiction of the courts of the Commonwealth of Pennsylvania, or if appropriate, a federal court located in the Commonwealth of Pennsylvania (which courts, for purposes of this Agreement, are the only courts of competent jurisdiction), over any suit, action or other proceeding arising out of, under or in connection with this Agreement or the subject matter hereof.  The Company and Executive each hereby irrevocably waives any right to a trial by jury in any action, suit or other legal proceeding arising under or relating to this Agreement or Executive’s employment with or separation from the Company.

 

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

 

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

 

19.                               Section 409A - This Agreement, and all payments hereunder, are intended to be exempt from, or if not so exempt, to comply with the requirements of, Section 409A of the Internal Revenue Code of 1986, as amended, and the guidance issued thereunder (“Section 409A”), and this Agreement shall be interpreted and administered accordingly.  Notwithstanding anything to the contrary in this Agreement, if at the time of Executive’s termination of employment, she is a “specified employee” as defined under Section 409A, any and all amounts payable hereunder on account of such termination of

 

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employment that would (but for this provision) be payable within six (6) months following the Separation Date, shall instead be paid on the next business day following the expiration of such six (6) month period or, if earlier, upon Executive’s death; except to the extent of amounts that do not constitute a deferral of compensation within the meaning of Treasury regulation Section 1.409A — 1(b) or other amounts or benefits that are exempt from or otherwise not subject to the requirements of Section 409A. For purposes of this Agreement, whether or not a termination of employment has occurred shall be determined consistently with Section 409A.  In addition, each payment made pursuant to the Agreement shall be treated as a separate payment and the right to a series of installment payments hereunder is to be treated as a right to a series of separate payments.

 

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

 

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

 

	
Nabriva   Therapeutics US, Inc.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Colin Broom
    	
 
    	
Date:
    	
8/31/17
    	
 

	
By:   Colin Broom, M.D.
    	
 
    	
 
    
	
       Chief   Executive Officer
    	
 
    	
 
    

 

I hereby agree to the terms and conditions set forth above.  I understand that the Severance Benefits are conditioned upon my timely execution, return and non-revocation of the Additional Release.

 

	
Elyse   Seltzer, M.D.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Elyse Seltzer
    	
 
    	
Date:
    	
8/31/17
    	
 

 

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ATTACHMENT A

 

CONSULTING AGREEMENT

 

This Consulting Agreement (this “Agreement”) is entered into as of September 30, 2017 (the “Effective Date”) by and between Nabriva Therapeutics US, Inc. (the “Company”), and Elyse Seltzer, M.D. (the “Consultant”).

 

WHEREAS, the Consultant has certain knowledge and expertise regarding the Company as a result of having served as its Chief Medical Officer; and

 

WHEREAS, the Company desires to have the benefit of the Consultant’s knowledge and experience, and the Consultant desires to provide consulting services to the Company, all as hereinafter provided in this Agreement.

 

NOW, THEREFORE, in consideration of the promises and mutual agreements hereinafter set forth, the sufficiency of which are hereby acknowledged, the Company and the Consultant hereby agree as follows:

 

Section 1.  Services.

 

(a)           Services; Performance.  The Consultant shall render to the Company the following consulting services: The Consultant shall use her knowledge and expertise regarding the Company to provide, upon request by the Company’s Chief Executive Officer, consulting and advisory services in the areas of clinical development, regulatory affairs and drug safety, and any additional consulting services as mutually agreed to by the Consultant and the Company from time to time in writing (collectively, the “Services”).  The Consultant shall perform such Services in a professional manner and consistent with the highest industry standards at such reasonable times as the Company may from time to time request.  For the period October 1, 2017 through March 31, 2018 (the “Initial Period”), at the request of the Company’s Chief Executive Officer, Consultant shall provide up to thirty-two (32) hours per month of Consulting Services. For the period April 1, 2018 through December 31, 2018 (the “Subsequent Period”), at the request of the Company’s Chief Executive Officer, the Consultant shall provide up to ten (10) hours per month of Consulting Services.  In the event the amount of time the Consultant is obligated to perform services for the Company would prevent her from a specific job offer, the Consultant may contact the Chief Executive Officer of the Company who will engage in a discussion in good faith with her to explore a possible solution.  The Consultant will perform the Consulting Services remotely unless requested by the Chief Executive Officer.  The Consultant shall comply with all rules, procedures and standards promulgated from time to time by the Company with respect to the Consultant’s access to and use of the Company’s property, information, equipment and facilities in the course of the Consultant’s provision of Services hereunder.

 

(b)           Non-Exclusive.  The parties agree that, at all times during the term of this Agreement, (i) the Company shall be free to obtain consulting and advisory services from any third party, and (ii) the Consultant shall be free to provide consulting and advisory services to any third party, so long as the provision of such services by the Consultant does not conflict with the Consultant’s (x) provision of Services to the Company as described in Section 1(a), or (y) continuing obligations to the Company as detailed in the Separation and Release of Claims

 

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Agreement entered into by the parties concurrently with this Agreement and to which this Consulting Agreement is attached as Attachment A (the “Separation Agreement”), including the Consultant’s ongoing obligations under the NDA referenced therein and amended thereby.

 

Section 2.  Compensation and Continued Vesting.

 

(a)           Compensation.  As consideration for the performance of Services during the Initial Period by the Consultant hereunder, the Company shall pay to Consultant a retainer of $32,879.33 per month.  For the Subsequent Period, if the Chief Executive Officer requests Consultant to provide Consulting Services, the Company shall pay to the Consultant $500 per hour for such services after receipt of the itemized statement below.  Additionally, Consultant is entitled to continued vesting of her unvested options under her July 6, 2015, February 5, 2016 and February 7, 2017 option grants pursuant to the Nabriva Therapeutics AG Amended and Restated Stock Option Plan 2015, through December 31, 2018.

 

(b)           Expense Reimbursement.  The Company shall reimburse the Consultant for all reasonable out-of-pocket expenses incurred by the Consultant in connection with the performance of the Services under this Agreement, so long as they are approved in writing in advance by the Company.

 

(c)           Itemized Statements.  At the end of any month that the Consultant performs Services or incurs expenses, the Consultant shall submit to the Company an itemized statement of the Services performed, including the number of hours worked and the project to which the Services relate, and the expenses incurred, including appropriate and reasonable documentation.  The Company shall pay the Consultant the amount set forth on such itemized statement within thirty (30) days after receipt, provided that if there is any disagreement with respect to the itemized statement, the Company and the Consultant shall work together in good faith to resolve such disagreement.

 

(d)           No Employee Benefits.  The Consultant’s relationship with the Company will be that of an independent contractor, and the Consultant shall not, in connection with this relationship, be entitled to any benefits, coverages or privileges, including without limitation social security, unemployment, medical or pension payments, made available to employees of the Company.

 

Section 3.  Term and Termination.

 

(a)           Consultation Period.  Subject to the terms and conditions hereinafter set forth, the term of this Agreement shall expire upon termination or expiration of the term of the Consultant’s consulting arrangement with the Company hereunder (the “Consultation Period”), which Consultation Period shall commence on October 1, 2017 and shall continue until December 31, 2018, unless earlier terminated as set forth below.  This Agreement may be terminated in the following manner: (i) by the Company at any time immediately upon written notice if the Consultant has materially breached this Agreement or the Separation Agreement; (ii) by the Consultant at any time immediately upon written notice if the Company has materially breached this Agreement or the Separation Agreement; (iii) at any time upon the mutual written consent of the parties hereto; or (iv) automatically upon the death, physical incapacitation or

 

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mental incompetence of the Consultant.  In the event the Consultant dies during the term of this Agreement, the compensation and continued vesting set forth in Section 2(a) will inure to the benefit of the Consultant’s estate.

 

(b)           Effects of Termination.  In the event of any termination under this Section 3, the Consultant shall be entitled only to payment for Services performed and expenses incurred in accordance with Section 2(a) and 2(b) prior to the effective date of such termination.

 

Section 4.  Independent Contractor.  The Consultant is not as of the Effective Date, nor shall the Consultant be deemed to be at any time during the term of this Agreement, an employee of the Company.  The Consultant’s status and relationship with the Company shall be that of an independent contractor and consultant.  The Consultant is not authorized to assume or create any obligation or responsibility, express or implied, on behalf of, or in the name of, the Company or to bind the Company in any manner.  Nothing herein shall create, expressly or by implication, a partnership, joint venture or other association between the parties.  The Consultant shall be solely responsible for payment of all charges and taxes arising from the payments to be made to the Consultant under this Agreement and the Consultant agrees that the Company shall have no obligation or liability with respect to such charges and/or taxes.

 

Section 5.  Notice.  Any notice required or desired to be given shall be governed solely by this paragraph.  Notice shall be deemed given only upon (a) mailing of any letter or instrument by overnight delivery with a reputable carrier or by registered mail, return receipt requested, postage prepaid by the sender, or (b) personal delivery.

 

	
If   to the Consultant: 

Elyse   Seltzer, M.D. 

[At   address last on file with the Company]
    	
If   to the Company: 

Nabriva   Therapeutics US, Inc. 

1000   Continental Drive, Suite 600 

King of   Prussia, PA 19406 USA 

Attention:   Chief Executive Officer
    

 

From time to time, either party may, by written notice to the other in accordance with this Section 5, designate another address that shall thereupon become the effective address of such party for the purpose of this Section 5.

 

Section 6.  Miscellaneous.  This Agreement, together with Exhibit A hereto, constitutes the entire understanding of the parties hereto with respect to the matters contained herein and supersedes all proposals and agreements, written or oral, and all other communications between the parties relating to the subject matter of this Agreement.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania without regard to its conflict of laws rules.  The headings contained in this Agreement are for the convenience of the parties and are not to be construed as a substantive provision hereof.  This Agreement may not be modified or amended except in writing signed or executed by the Consultant and the Company.  In the event any provision of this Agreement is held to be unenforceable or invalid, such unenforceability or invalidity shall not affect any other provisions of this Agreement and such other provisions shall remain in full force and effect.  If any provision of this Agreement is held to be excessively broad, it shall be reformed and construed by limiting and reducing it so as to be enforceable to the maximum extent permitted by law.  This Agreement shall be binding upon, and inure to the benefit of, both parties hereto and their

 

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respective successors and assigns, including any corporation with or into which the Company may be merged or which may succeed to its assets or business; provided, however, that the responsibility for actual performance of the Services is personal to the Consultant and may not be assigned or delegated by the Consultant to any other person or entity.  This Agreement may be executed in counterparts and by facsimile, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

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

 

	
CONSULTANT   
    	
COMPANY   
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature   
    	
Signature   
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Printed   Name
    	
Printed   Name 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Title
    

 

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ATTACHMENT B

 

ADDITIONAL RELEASE OF CLAIMS

 

1.                                      Release.  In exchange for the Severance Benefits described in the Separation and Release of Claims Agreement (the “Agreement”) to which this Additional Release of Claims (the “Additional Release”) is attached as Attachment B, which Elyse Seltzer, M.D. (“Executive”) acknowledges she would not otherwise be entitled to receive, Executive hereby fully, forever, irrevocably and unconditionally releases, remises and discharges Nabriva Therapeutics U.S. Inc. (the “Company”), its affiliates, subsidiaries, parent companies, predecessors, and successors, and all of its and their respective past and present officers, directors, stockholders, investors, partners, members, managers, employees, agents, representatives, plan administrators, attorneys, insurers and fiduciaries (each in their individual and corporate capacities) (collectively, the “Released Parties”) from any and all claims, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature that Executive ever had or now has against any or all of the Released Parties, whether known or unknown, including, but not limited to, any and all claims arising out of or relating to Executive’s employment with and/or separation from the Company, including, but not limited to, all claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Genetic Information Nondiscrimination Act of 2008, 42 U.S.C. § 2000ff et seq., the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq., the Worker Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. § 2101 et seq., the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., Executive Order 11246, Executive Order 11141, the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., all as amended; all claims arising out of the Pennsylvania Human Relations Act, 43 Pa. Stat. § 951 et seq., the Pennsylvania Equal Pay Law, 43 Pa. Stat. § 336.1 et seq., and the Pennsylvania Whistleblower Law, 43 Pa. Stat. § 1421 et seq., all as amended; all common law claims including, but not limited to, actions in defamation, intentional infliction of emotional distress, misrepresentation, fraud, wrongful discharge, and breach of contract (including, without limitation, all claims arising out of or related to the Employment Agreement); all claims to any non-vested ownership interest in the Company, contractual or otherwise; all state and federal whistleblower claims to the maximum extent permitted by law; and any claim or damage arising out of Executive’s employment with and/or separation from the Company (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above; provided, however, that nothing in this release of claims prevents Executive from filing a charge with, cooperating with, or participating in any investigation or proceeding before, the Equal Employment Opportunity Commission or a state fair employment practices agency (except that Executive acknowledges that she may not recover any monetary benefits in connection with any such charge, investigation, or proceeding, and Executive further

 

14

 

waives any rights or claims to any payment, benefit, attorneys’ fees or other remedial relief in connection with any such charge, investigation or proceeding).  Further, nothing herein shall prevent Executive from bringing claims to enforce this Agreement, or release (i) any rights Executive may have under the Company’s certificate of incorporation, by-laws, insurance and/or any indemnification agreement between her and the Company (and/or otherwise under law) for indemnification and/or defense as an employee, officer or director of the Company for her service to the Company (recognizing that such indemnification and/or defense is not guaranteed by this Agreement and shall be governed by the instrument or law, if any, providing for such indemnification and/or defense), (ii) any rights Executive may have to vested pension or 401(K) benefits or interests under any ERISA-Covered benefit plan (excluding severance) provided by the Company, or (iii) any rights or claims that cannot be waived by law, including claims for unemployment benefits.

 

2.                                      Final Compensation.  Executive acknowledges that she has been reimbursed by the Company for all business expenses incurred in conjunction with the performance of her employment and that no other reimbursements are owed to her.  Executive acknowledges that she has received all compensation due to her from the Company, including, but not limited to, all wages, bonuses and accrued, unused vacation time, and that she is not eligible or entitled to receive any additional payments or consideration from the Company beyond that provided for in Section 2 of the Agreement.

 

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

 

4.                                      Acknowledgments.  Executive acknowledges that she has been given at least twenty-one (21) days to consider this Additional Release, and that the Company has advised her in writing to consult with an attorney of her own choosing prior to signing this Additional Release.  Employee understands that she may revoke this Additional Release for a period of seven (7) days after she signs it by notifying the Company in writing, and the Additional Release shall not be effective or enforceable until the expiration of this seven (7) day revocation period. Executive understands and agrees that by entering into this Additional Release, she is waiving any and all rights or claims she might have under the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, and that she has received consideration beyond that to which she was previously entitled.

 

5.                                      Voluntary Assent.  Executive affirms that no other promises or agreements of any kind have been made to or with her by any person or entity whatsoever to cause her to sign

 

15

 

this Additional Release, and that she fully understands the meaning and intent of this Additional Release.  Executive states and represents that she has had an opportunity to fully discuss and review the terms of this Additional Release with an attorney.  Executive further states and represents that she has carefully read this Additional Release, understands the contents herein, freely and voluntarily assents to all of the terms and conditions hereof, and signs her name of her own free act.

 

  I hereby provide this Additional Release as of the date below and acknowledge that the execution of this Additional Release is in further consideration of the Severance Benefits, to which I acknowledge I would not be entitled if I did not enter into this Additional Release.  I intend that this Additional Release become a binding agreement between the Company and me if I do not revoke my acceptance in seven (7) days.

 

	
                              
    	
 
    	
 
    
	
Elyse   Seltzer, M.D.
    	
Date
    

 

16EX-10.1

 Exhibit 10.1 

EXECUTION COPY 

CONFIDENTIAL 
 CERTAIN CONFIDENTIAL PORTIONS OF
THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[...***...].” A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE U.S. SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING
CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934. 
 FIRST AMENDMENT TO 

ASSET PURCHASE AGREEMENT 
 This First
Amendment to Asset Purchase Agreement (this “Amendment”) is made and entered into as of this 3rd day of August, 2017 (the “Amendment Effective Date”), by and
among Celyad S.A., a corporation organized under the laws of Belgium (as successor-in-interest to Cardio3 Biosciences S.A.) (“Celyad”), Celdara Medical, LLC, a Delaware limited liability company (“Seller”) and
OnCyte, LLC, a Delaware limited liability company (“OnCyte” or the “Company”). 
 WHEREAS, the parties to this
Amendment entered into that certain Asset Purchase Agreement dated January 21, 2015 (the “Agreement”; capitalized terms used but not defined in this Amendment shall have the meaning provided in the Agreement); and 

WHEREAS, the parties now desire to amend the Agreement as set forth in this Amendment. 

NOW, THEREFORE, for and in consideration of the mutual agreement of the parties set forth herein, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties, intending to be legally bound, and upon the terms set forth herein, agree as follows: 
  

	 	1.	Amendment of Agreement. 

  

	 	(a)	Definitions. 

  

	 	(i)	All references in the Agreement to “C3BS” are hereby deleted and replaced with “Celyad.” 

  

	 	(ii)	The definition of the term “Net Sales” is hereby amended by deleting the phrase “or sublicensees” everywhere such phrase appears in such definition. 

 

	 	(iii)	The definition of the term “Preclinical OnCyte Product” is hereby deleted and replaced by the following text: 

“Preclinical OnCyte Product” means any pharmaceutical product covered by a Valid Claim of any Patent included in the
Preclinical OnCyte Assets, including, in each case, all formulations, line extensions and modes of administration thereof, but excluding any Platform Product. 
  

	 	(iv)	The definition of the term “Clinical OnCyte Product” is hereby deleted and replaced by the following text: 

 CONFIDENTIAL 
  

 “Clinical OnCyte Product” means any pharmaceutical product covered by a
Valid Claim of any Patent included in the Clinical OnCyte Assets, including, in each case, all formulations, line extensions and modes of administration thereof. 
  

	 	(v)	The following additional defined terms are hereby added to the Agreement: 

 “B7H6
Products” means any pharmaceutical product containing or comprising a construct covered by a Valid Claim of a Patent directly or indirectly claiming priority of [...***...], whether or not such construct is the sole active ingredient in
such product, including in each case, all formulations, line extensions and modes of administration thereof. If the Company acquires rights with respect to [...***...], the Parties will amend this Agreement so that B7H6 Products shall also include
any pharmaceutical product containing or comprising a construct covered by a Valid Claim of a Patent directly or indirectly claiming priority of [...***...], whether or not such construct is the sole active ingredient in such product, including in
each case, all formulations, line extensions and modes of administration thereof. 
 “NKG2D Products” means any
pharmaceutical product containing or comprising a construct covered by a Valid Claim of a Patent directly or indirectly claiming priority of [...***...], whether or not such construct is the sole active ingredient in such product, including in each
case, all formulations, line extensions and modes of administration thereof. 
 “NKP30 Products” means any pharmaceutical
product containing or comprising a construct covered by a Valid Claim of a Patent directly or indirectly claiming priority of [...***...], whether or not such construct is the sole active ingredient in such product, including in each case, all
formulations, line extensions and modes of administration thereof. 
 “Platform Patents” means any Patent directly or
indirectly claiming priority from [...***...] or [...***...], including but not limited to, [...***...]. 
 “Platform
Products” means any pharmaceutical product covered by a Platform Patent but excluding any pharmaceutical product that belongs to a Product Group. 

“Platform Sublicense” means an agreement pursuant to which the Company grants a license or similar rights under intellectual
property rights in the Platform Patents (but no such rights are granted under any other Preclinical OnCyte Assets or under any Clinical OnCyte Assets) to a Third Party to commercialize a Platform Product. 

 

	*	Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the U.S. Securities and Exchange Commission. 

  
 2 

 CONFIDENTIAL 
  

 “Product Groups” means each of the four following groups of products:
(i) NKG2D Products, (ii) B7H6 Products, (iii) NKP30 Products and (iv) TIM Products. 
 “Product
Sublicense” means an agreement pursuant to which the Company grants a license or similar rights under intellectual property rights in the Preclinical OnCyte Assets or the Clinical OnCyte Assets to a Third Party to commercialize a Product.
For clarity, all Product Sublicenses will include rights pertaining to a Product but may be combined with a license or similar rights under the Platform Patents and such combined sublicenses shall be treated as a Product Sublicense (and not a
Platform Sublicense) for all purposes under this Agreement. 
 “R&D Funding” means payments received by Company or its
Affiliates from a Third Party sublicensee, to fund research and development activities to be performed by Company or an Affiliate with respect to a Product that is, at such time, subject to a sublicense, whether such payment obligation is contained
in the sublicense or a separate agreement. 
 “Sublicensee Sales-based Income” means net sales a Third Party sublicensee
earns in respect of sales of Products by such Third Party sublicensee or its Affiliates or sublicensees. 
 “Sublicense
Income” means any consideration received by the Company or its Affiliates from a Third Party sublicensee and reasonably allocable to the grant of a sublicense of any intellectual property rights in the Clinical OnCyte Assets or the
Preclinical OnCyte Assets pursuant to a Product Sublicense or a Platform Sublicense, including any license signing fee, license maintenance fee, milestone payment and royalty payment. Sublicense Income shall exclude: (i) payments received as
reimbursement of out of pocket expenses for patent preparation, prosecution, and maintenance, enforcement or defense of patents covering the Products, (ii) future R&D Funding, (iii) consideration received for an equity investment in
the Company or its Affiliates, provided such consideration is not in excess of fair market value of the equity on the date of such investment, and (iv) loan proceeds paid to the Company or its Affiliates by a sublicensee in an arms’
length, full recourse debt financing. For purposes of hereof, unless otherwise mutually agreed, “fair market value” shall mean the closing price of the Company’s ordinary shares on the Euronext Brussels stock exchange on the first
full trading day following the first public announcement of the applicable sublicense agreement. 
 “TIM-Constructs” means
any DNA or protein product with a DNA or protein sequence as defined by [...***...], or with a homology of at least [...***...]% to any of these sequences. 
  

	*	Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the U.S. Securities and Exchange Commission. 

  
 3 

 CONFIDENTIAL 
  

“TIM Products” are any pharmaceutical product containing or comprising a TIM Construct covered by a Valid Claim of a Platform
Patent, whether or not such construct is the sole active ingredient in such product, including in each case, all formulations, line extensions and modes of administration thereof. 

(vi) Amendment of Section 4(b). The first paragraph of Section 4(b) is hereby amended and replaced by the
following text: 
 “Development and Non-Sales Based Milestone Payments. 

 

	 	a)	Within thirty (30) days after the achievement of each of the following milestones by the Company, one of its Affiliates or a sublicensee, for the first Product within each Product Group, the Company will notify the
Seller of such achievement; provided that, in the case of such an achievement by a sublicensee, such thirty (30) day period shall not commence until the Company is notified of such achievement. 

 

	 	b)	Subject to paragraphs c) and d) below, the Seller will issue an invoice to the Company, and within thirty (30) days after receipt of such invoice, the Company will pay to the Seller the non-refundable,
non-creditable milestone payments set forth in the tables below. Further, each milestone payment set forth in the tables below will be payable a maximum of one time per Product Group. 

 

	 	c)	For each clinical study of a Product for which the Company is the sponsor, the Company shall provide Seller the protocol for each clinical study of each Product within thirty (30) days after such clinical study is
initiated, as well as any amendments to such protocol that are then in effect or that come into effect, and shall also provide Seller the Company’s opinion as to whether such clinical study is a Phase 1 Study, Phase 2 Study or a Phase 3 Study.
For each clinical study of a Product for which the Company is not the sponsor, the Company shall provide Seller a summary of the protocol for each such clinical study of each Product within thirty (30) days after such clinical study is
initiated, as well as a summary of any material amendments to such protocol that are then in effect or that come into effect, and shall also provide Seller the Company’s opinion as to whether such clinical study is a Phase 1 Study, Phase 2
Study or a Phase 3 Study. 

  

	 	d)	 If Seller disagrees with the Company’s opinion as to the proper designation of such clinical study, Seller
shall, within thirty (30) days after receipt of the relevant protocol, so notify the Company and the Parties shall negotiate in good faith for a period of up to thirty (30) days towards a resolution of such dispute. If the dispute is not
resolved within such thirty (30) day period, each Party shall appoint an expert, and those two (2) experts will, within the next thirty (30) day period, appoint a third independent expert who: (i) has not been engaged by

  
 4 

 CONFIDENTIAL 
  

	 	either Party as an employee, consultant or otherwise during the prior ten (10) years, (ii) does not own equity in either Party and (iii) has substantial experience as an employee of the US Food and Drug
Administration or European Medicines Agency and as a private sector employee charged with overseeing the planning and execution of clinical development of bio-pharmaceutical products intended to treat cancer in humans (such three
(3) individuals are each an “Expert”). The three (3) Experts shall have a period of thirty (30) days to determine, by majority vote, the correct designation of the relevant clinical study as a Phase 1 Study, Phase 2
Study or a Phase 3 Study. The Experts shall notify the Parties of the results of such determination no later than three (3) days after the expiration of such thirty (30) day period. The Experts’ determination shall be final and
binding on the parties. 

  

	 	e)	For avoidance of doubt: (i) each of the milestone payments set forth in the tables below in this Section 4(b) will be payable only in connection with the first Product from any Product Group to achieve the
relevant milestone event, (ii) while the parties anticipate that the Development Milestones will be achieved in sequential order, if they are not, the achievement of any Development Milestone for the first Product in any Product Group shall
trigger the payment of any amounts payable for events appearing before such milestone event in the following table in this Section 4(b) for the same Product Group that have not, as of such time, been paid (i.e., if the first Product in a
Product Group achieves regulatory approval without the necessity of conducting a Phase 3 Study, the milestone payments for Approval of the First BLA and Success of the first Phase 3 Study shall both then become due and payable) and (iii) if a
Product meets the requirements for inclusion in two separate Product Groups, such Product shall trigger milestone payments for either or both such Product Groups, based on the achievement of a single milestone event, if it is the first Product to
achieve such milestone event within either or both of such Product Groups.” 

 (vii) Amendment of
Section 4(c). The first sentence of the first paragraph of Section 4(c) is hereby amended by replacing “ten (10)” with “thirty (30)” and replacing “for each Product” with “for the first Product in
each Product Group.” The last sentence of the first paragraph of Section 4(c) is hereby amended by replacing “payable only one time per Product” with “only one time per Product Group.” 

(viii) Amendment of Section 4(c). The table in Section 4(c) is hereby deleted and replaced with the following
text: 
 “ 
  

			
	 Sales Based Milestones
	  	 Milestones
Payment (US$)

	 First calendar year for which cumulative worldwide Net Sales and Sublicensee Sales-based Income of
all Products within a Product Group are equal to or exceed US$250,000,000
	  	$15,000,000, provided that with respect to the first Product Group to achieve this milestone the payment shall be $11,000,000

  
 5 

 CONFIDENTIAL 
  

			
	 First calendar year for which cumulative worldwide Net Sales and Sublicensee Sales-based Income of
all Products within a Product Group are equal to or exceed US$500,000,000
	  	$25,000,000
	 First calendar year for which cumulative worldwide Net Sales and Sublicensee Sales-based Income of
all Products within a Product Group are equal to or exceed US$1,000,000,000
	  	$40,000,000

 For avoidance of doubt, each of the above milestone payments may become due and payable up to a
maximum of four (4) times, once each for each Product Group. For purposes of determining whether a sales-based milestone described in the above table has been achieved, the cumulative worldwide Net Sales and Sublicensee Sales-based Income of a
Product that is included in more than one Product Group shall be allocated as follows: (i) first, to a Product Group that has not yet earned all available milestone payments under this Section 4(c) and (ii) if more than one Product
Group that has not yet earned all available milestone payments under this Section 4(c), then such Net Sales and Sublicensee Sales-based Income shall be attributed to the one Product Group that has not yet earned all available milestone payments
under this Section 4(c) but which has the highest Net Sales and Sublicensee Sales-based Income for the relevant calendar year.” 

(ix) Amendment of Section 4(d). Section 4(d) is hereby deleted and replaced with the following text: 

“(d) Royalties. The Company or its Affiliate (whichever is the selling party) will make its respective annual
royalty payments to Seller on Net Sales of all Products within each Product Group by the Company or its Affiliates at the rates indicated below, as determined on a Product Group-by-Product Group basis: 

(i) 5% of that portion of the cumulative annual Net Sales of the Products in each Product Group for which the aggregate Net
Sales and Sublicensee Sales-based Income are greater than US$0 and less than US$250,000,000; 
 (ii) 6% of that portion of
the cumulative annual Net Sales of the Products in each Product Group for which the aggregate Net Sales and Sublicensee Sales-based Income are greater than US$250,000,000 and less than US$500,000,000; 

(iii) 7% of that portion of the cumulative annual Net Sales of the Products in each Product Group for which the aggregate Net
Sales and Sublicensee Sales-based Income are greater than US$500,000,000 and less than US$1,000,000,000; and 

  
 6 

 CONFIDENTIAL 
  

 (iv) 8% of that portion of the cumulative annual Net Sales of the Products
in each Product Group for which the aggregate Net Sales and Sublicensee Sales-based Income are greater than US$1,000,000,000; 

provided, however, that such royalty payments shall be reduced by 50% in any country in the event the manufacture, use or sale of such
Product in such country would not infringe any Valid Claim of a Patent included in the Transferred Assets if performed by an unlicensed Third Party. For avoidance of doubt, only one royalty, payable at the applicable rate set forth above, shall be
payable on the Net Sales of any Product, regardless of how many Valid Claims cover such Product and regardless of whether such Product is included in more than one Product Group. For purposes of determining the royalty rate applicable to Net Sales
of a Product that is included in more than one Product Group, such Net Sales shall be allocated to the one Product Group that has the highest Net Sales and Sublicensee Sales-based Income for that calendar year.” 

(x) Amendment of Section 4(f). Section 4(f) is hereby deleted and replaced by the following paragraph: 

“(f) Royalty Term. Royalties under Section 4(d) will be payable on a Product-by-Product and
country-by-country basis until the later of (a) the expiration of the last-to-expire Valid Claim of a Patent included in the Transferred Assets covering the manufacture, use or sale of such Product in such country or (b) the 10th anniversary of the First Commercial Sale of the first Product within the relevant Product Group in such country.” 
  

	 	(ii)	Amendment of Section 4. Section 4 is hereby amended by adding the following text as a new Section 4(g): 

“(g) Sublicense Income Payments. Within sixty (60) days after the end of each calendar quarter, the Company
will pay Seller the percentage of Sublicense Income received by the Company during such calendar quarter indicated below: 
 Sublicense
Income from Product Sublicenses 
 As is more fully described below, Company will pay to Seller a percentage of its Sublicense Income
in respect of each Product Sublicense. The percentages below shall be applied, on a Product-by-Product basis, to each payment included within Sublicense Income that is attributable to the grant of rights in, or the achievement of a milestone
with respect to a specific Product that is subject to the Product Sublicense. The specific percentage that will be so applied to Sublicense Income that is so attributable to a specific Product will be determined by the stage of development of
the Product at the time the Product Sublicense is entered into. [...***...]. 
  

	*	Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the U.S. Securities and Exchange Commission. 

  
 7 

 CONFIDENTIAL 
  

 The percentages to be payable to Seller are as follows: (i) [...***...]% if the
Sublicense is signed prior to [...***...] for such Product; (ii) [...***...]% if the Sublicense is signed prior to the [...***...] for such Product; (iii) [...***...]% if the Sublicense is signed after the [...***...] for such Product
and prior to the [...***...] for such Product; (iv) [...***...]% if the Sublicense is signed after the [...***...] for such Product and prior to the [...***...] for such Product; (v) [...***...]% if the Sublicense is signed after the
[...***...] for such Product; and (vi) [...***...]% if the Sublicense is signed after [...***...] for such and prior to the [...***...] of such Product. For the avoidance of doubt, a Product may not be considered to be in a [...***...]
specified in clauses (iii)-(vi) of this Section 4(g) if a milestone payment under Section 4(b) of this Agreement that is due and payable because such Product completed the [...***...] has not yet been paid to Seller. If a Product
Sublicense covers a Product that is included in more than one Product Group, then the applicable Sublicense Income rate for such Product shall equal the simple average of the Sublicense Income rates for the Product in each of the Product Groups that
such Product is included within. If a Product Sublicense covers one or more Products and also includes Platform Patents, then the applicable Sublicense Income rate for such Product Sublicense shall be determined as provided in this clause and
not as provided below for a Platform Sublicense. 
 Sublicense Income from Platform Sublicenses: 

[...***...]% 
  

	 	(iii)	Amendment of Section 4. Section 4 is hereby amended by adding the following text as a new Section 4(k): 

“(k) R&D Funding payments. Within sixty (60) days after the end of each calendar quarter, the Company
will pay Seller [...***...] percent ([...***...]%) of R&D Funding received by the Company or its Affiliates during such calendar quarter. R&D Funding will be allocated to the Product Group to which such funded activities relate for purposes
of determining the R&D Funding payments hereunder. R&D Funding payments will be determined and made on a Product Group by Product Group basis, provided that the cumulative total of R&D Funding payments that the Company will make to
Seller for each Product Group shall not exceed USD$7,500,000.” 
  

	*	Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the U.S. Securities and Exchange Commission. 

  
 8 

 CONFIDENTIAL 
  

 

	 	(iv)	Amendment of Section 5(a). Section 5(a) is hereby amended by deleting the phrase “and sublicensees” where such phrase appears in such section. 

 

	 	(v)	Amendment of Section 5. Section 5 is amended to add the following text as a new Section 5(a2) to follow Section 5(a) and to read in full as follows: 

“Sublicense Income and R&D Funding Reports. The Company shall, along with delivering payment as set forth in
Section 4.(g) and 4(k), report to Seller within thirty (30) days of receipt the amount of all Sublicense Income and R&D Funding received by the Company and its Affiliates, and the Company’s calculation of the amount due and paid
to Seller from such Sublicense Income and R&D Funding, including an itemized listing of the source of Sublicense Income and R&D Funding, and the name and address of each entity making such payments.” 

 

	 	(vi)	Amendment of Section 5(d). Section 5(d) is hereby amended by deleting the first sentence of such section and replacing it with the following text: 

“For a period of three years following each calendar year of sales of each Product, the Company will keep (and will cause its Affiliates
and sublicensees to keep, as applicable) complete and accurate records pertaining to the sale or other disposition of such Product in sufficient detail to permit Seller to confirm the accuracy of all Sublicense Income and R&D Funding payments,
royalty payments and sales-based milestone payments due hereunder.” 
  

	 	(vii)	Amendment of Section 15(a). Section 15(a) is hereby amended by adding the following text to the end of such section: 

“The terms and conditions of this Agreement are hereby deemed to be the Confidential Information of both the Company and the
Seller.” 
  

	 	2.	Payments. In consideration of this Amendment, OnCyte shall make the following payments to Celdara: 

  

	 	a.	An amount of USD$23,000,000 consisting of (i) newly issued shares of Celyad in an amount equal to USD$12,500,000, such shares to be issued in consideration of a receivable of a nominal value of USD$12,500,000 that
will be contributed in kind to the share capital of Celyad by Celdara, as set forth in that certain Subscription Agreement between Celdara and Celyad of even date herewith (the “Subscription Agreement”); and (ii) an amount in cash
equal to USD$10,500,000, such amount to be paid no later than fifteen (15) days after the Amendment Effective Date; 

  

	 	b.	 The Parties disagree on whether or not the “Success of first Phase 1 Study” milestone has been
achieved. However, Company or its Affiliates shall pay Seller USD$6,000,000 as a nonrefundable payment, with such amount being in full 

  
 9 

 CONFIDENTIAL 
  

	 	
satisfaction of the “Success of first Phase 1 Study” milestone under the Agreement, whenever such milestone was or is achieved. Such amount shall be paid no later than fifteen
(15) days after the Amendment Effective Date. 

  

	 	c.	An amount in cash equal to USD$600,000, which amount represents [...***...] ([...***...]%) of the upfront payment (the “Novartis Upfront Payment”) received in connection with that certain License
Agreement, dated May 1, 2017, by and between Novartis International Pharmaceutical Ltd. and Celyad (the “Novartis License Agreement”), in full satisfaction of any payments owed to OnCyte under the APA, as amended by the APA
Amendment, or otherwise, in connection with the Novartis Upfront Payment. Such amount shall be paid no later than fifteen (15) days after the Amendment Effective Date. 

 

	 	d.	USD$865,698, which amount represents [...***...] percent ([...***...]%) of the upfront payment, net of taxes withheld (the “Ono Upfront Payment”). The Ono Upfront Payment was received in connection with
that certain License Agreement, dated July 11, 2016, by and between Ono Pharmaceutical Co., Ltd. and Celyad (the “Ono License Agreement”), and such amount shall be paid in full satisfaction of any payments owed to OnCyte under
the APA, as amended by the APA Amendment, or otherwise, in connection with the Ono Upfront Payment, such amount to be paid no later than fifteen (15) days after the Amendment Effective Date. For the avoidance of doubt, it is understood and
agreed that the [...***...]% payment being made pursuant to this clause is an exception to the amount which would have been payable pursuant to Section 4(g). 

 

	 	e.	Celdara will pay any and all taxes levied on account of any payments made to it under this Termination and Release Agreement. If any taxes are required to be withheld by Celyad or OnCyte, Celyad or OnCyte will
(i) deduct such taxes from such payment made to Celdara, (ii) timely pay the taxes to the proper taxing authority and (iii) send proof of payment to Celdara and certify its receipt by the taxing authority within 10 days following such
payment. 

  

	 	3.	Confirmation of Terms. Except to the extent expressly amended by this First Amendment, all of the terms, provisions and conditions of the Agreement are hereby ratified and confirmed and shall remain in full force
and effect. The term “Agreement”, as used in the Agreement, shall henceforth be deemed to be a reference to the Agreement as amended by this Amendment. 

  

	 	4.	General. This Amendment may be executed via facsimile or electronically in portable data format in one or more counterparts, any one of which need not contain the signatures of more than one party, but all such
counterparts taken together shall constitute one and the same instrument. 

 [Signature Page Follows] 

 

	*	Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the U.S. Securities and Exchange Commission. 

  
 10 

 CONFIDENTIAL 
  

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the Amendment Effective Date. 

 

			
	CELDARA MEDICAL, LLC
		
	By:	 	/s/ Jake Reder
	Name: Jake Reder
	Its: Chief Executive Officer

  

			
	CELYAD, S.A.
		
	By:	 	/s/ Christian Homsy
	Name: Christian Homsy
	Its: Chief Executive Officer

  

			
	 OnCyte, LLC

		
	 By:
	 	Celyad S.A.,
		 	Its Sole Member
		
	By:	 	/s/ Christian Homsy
		 	Name: Christian Homsy
		 	Its: Chief Executive Officer

  
 11

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