Document:

Exhibit 10.11

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT is made as of this Tuesday, 12 October 2004,

 

BETWEEN:

 

VIVENTIA BIOTECH INC., a corporation continued under the laws of Ontario

 

(the “Corporation”)

 

- and -

 

Glen MacDonald of the City of Winnipeg, in the Province of Manitoba

 

(the “Executive”)

 

RECITALS:

 

A.                                    The Corporation and the Executive wish to enter into this Agreement to set forth the rights and obligations of each of them as regards the Executive’s employment with the Corporation.

 

NOW THEREFORE in consideration of the mutual covenants and agreements contained in this Agreement and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the Corporation and the Executive agree as follows:

 

1.                                      DEFINITIONS

 

1.1.                            In this Agreement,

 

1.1.1.  “Affiliate” has the meaning attributed to such term in the Business Corporations Act (Ontario) as the same may be amended from time to time and any successor legislation thereto;

 

1.1.2.  “Agreement” means this agreement and all schedules attached to this agreement, in each case as they may be amended or supplemented from time to time, and the expressions “hereof”, “herein”, “hereto”, “hereunder”, “hereby” and similar expressions refer to this agreement and unless otherwise indicated, references to sections are to sections in this agreement;

 

1.1.3.  “Basic Salary” has the meaning attributed to such term in section 5.1;

 

1.1.4.  “Benefits” has the meaning attributed to such term in section 5.3;

 

 

1.1.5.  “Bio-Pharmaceutical Business” has the meaning attributed to that term in section 2;

 

1.1.6.  “Bonus” has the meaning attributed to such term in section 5.2;

 

1.1.7.  “Board” means the board of directors of the Corporation;

 

1.1.8.  “Business Day” means any day, other than Saturday, Sunday or any statutory holiday in the Province of Ontario;

 

1.1.9.  “Confidential Information” means all confidential or proprietary information, intellectual property and confidential facts relating to and used or proposed to be used in the business of the Corporation and its Affiliates and includes all information which is confidential based upon its nature or the circumstances surrounding its disclosure, including such information acquired by the Executive during any period in which the Executive was affiliated with the Corporation in any capacity, including as an employee, director or shareholder, and includes, without limiting the generality of the foregoing, information:

 

(a)                                 relating to the Corporation’s or an Affiliate’s biotechnology or bio- pharmaceutical products and services, products and services related to bio technology or the Bio-Pharmaceutical Business, or to the Corporation’s or an Affiliate’s research and development projects or plans;

 

(b)                                 relating to the Corporation’s or an Affiliate’s trade secrets, technology, patentable and unpatentable inventions, discoveries, texts, cell lines, nucleic acid, protein and peptide sequences, synthetic procedures, processes, test procedures and results, records, specifications, data, formulations, know-how, samples, specimens, manufacturing processes, toxicology, regulatory and clinical information;

 

(c)                                  relating to the Corporation’s or an Affiliates business policies, strategies, operations, finances, plans or opportunities including the identity of, or particulars about, the Corporation’s clients or suppliers or other Person with whom the Corporation has a business relationship; and

 

(d)                                 marked or otherwise identified as confidential, restricted, secret or proprietary including, without limiting the generality of the foregoing, information acquired by inspection or oral disclosure;

 

provided that Confidential Information does not extend to the skill, expertise, know-how and experience of the Executive gained in the performance of his employment.

 

1.1.10.  “Disability” means the mental or physical state of the Executive such that the Executive has been unable as a result of illness, disease, mental or physical disability or similar cause to fulfil his obligations under this Agreement either for any consecutive six month period or for any period of aggregating twelve (12) months (whether or not consecutive) in any consecutive twenty-four (24) month period;

 

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1.1.11.  “Employment Period” has the meaning attributed to such term in section 4;

 

1.1.12.  “ESA” means the Employment Standards Act, 2000 (Ontario) as the same may be amended from time to time and any successor legislation thereto;

 

1.1.13.  “Just Cause” includes the willful failure of the Executive to properly carry out his duties after notice by the Corporation of the failure to do so and an opportunity for the Executive to correct the same within a reasonable time from the date of receipt of such notice, or theft, fraud, dishonesty or misconduct by the Executive involving the property, business or affairs of the Corporation or the carrying out of the Executive’s duties or any other conduct or omission which is to be treated as just cause by the courts of Ontario from time to time;

 

1.1.14.  “Person” means any individual, partnership, limited partnership, joint venture, syndicate, sole proprietorship, company or corporation with or without share capital, unincorporated association, trust, trustee, executor, administrator or other legal personal representative, regulatory body or agency, government or governmental agency, authority or entity however designated or constituted;

 

1.1.15.  “Retirement” means resignation of the Executive on or after the Executive attains the age of sixty-five (65);

 

1.1.16.  “Severance Amount” has the meaning attributed to such term in section 9;

 

1.1.17.  “Subsidiaries” has the meaning attributed to such term by the Business Corporations Act (Ontario) as the same may be amended from time to time and any successor legislation thereto;

 

1.1.18.  “Termination Without Cause” means termination for any reason other than for Just Cause or for Disability or by reason of resignation or Retirement by the Executive;

 

1.1.19.  “Year of Employment” means any twelve (12) month period commencing on January 1, 2004 or on any anniversary of such date.

 

2.                                      EMPLOYMENT OF THE EXECUTIVE

 

The Corporation shall employ the Executive and the Executive shall serve the Corporation in the position of Vice President, Research.  The Executive shall report to the President and CEO.  In the capacity as Vice President, Research, the Executive will play an important strategic role in the conduct of the business and will be privy to, and acquire detailed knowledge of, Confidential Information and other business sensitive information about the Corporation and its Affiliates and will assist in the business of

 

2.1.1.1.  research, development, clinical trials, regulatory compliance, marketing, sales, manufacturing, distribution, licensing or other exploitation of:

 

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2.1.1.2.  monoclonal antibody products, including without limitation human monoclonal antibodies;

 

2.1.1.3.  the use of the human immune system to identify therapeutically or diagnostically relevant antibodies and their cognate antigens for cancer;

 

2.1.1.4.  and any exploitation thereof, related research, products and services to any of the above and products derived from any of the above

 

(the “Bio-Pharmaceutical Business”).

 

Without limiting the generality of the foregoing, the Executive’s duties shall include:

 

2.2.                            management of activities that relate to the Bio-Pharmaceutical Business, including supervision, co-ordination and planning of research strategies programs and platform technologies;

 

3.                                      PERFORMANCE OF DUTIES

 

The Executive represents and warrants that neither his execution of the Employment Agreement nor his performance of the duties and obligations set out in the Employment Agreement does or will violate or breach any obligation he may have to any third party or imposed by statute, contract or order of any judicial or quasi-judicial authority.  During the Employment Period, the Executive shall faithfully, honestly and diligently serve the Corporation.  The Executive shall (except in the case of illness or accident) devote all of his working time and attention to his employment and shall use his best efforts to promote the interests of the Corporation.

 

4.                                      EMPLOYMENT PERIOD

 

The term of employment of the Executive under this Agreement will commence January 1, 2004 and will continue until terminated in accordance with section 8 of this Agreement (the “Employment Period”).

 

5.                                      REMUNERATION

 

5.1.                            Basic Remuneration.  The Corporation shall pay the Executive a gross annual salary of $130,000 (the “Basic Salary”) payable in periodic equal instalments in accordance with the practices of the Corporation applicable to its other senior executives.

 

5.2.                            Bonus Remuneration.  The Board may award the Executive, an annual bonus of cash, stock options, other share based compensation or any combination thereof.  Such bonus shall be awarded in the sole discretion of the Board (the “Bonus”) at the recommendation of the Chief Executive Officer.  Each year, at the time that the Board approves the

 

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Corporation’s annual business plan and annual budget, the Executive and the Board (or a committee thereof) shall mutually agree on the objectives upon which any Bonus shall be based.  Such objectives may include subjective and objective criteria.

 

5.3.                            Benefits.  The Corporation shall provide to the Executive, in addition to Basic Salary and Bonus, if any, the benefits (the “Benefits”) generally available to the executives of the Corporation, such benefits to be provided in accordance with, to the extent permitted by and subject to the terms and conditions of the applicable fund, plan or arrangement relating thereto in effect from time to time.  The Corporation acknowledges that the Executive shall be subject to the provisions of the Corporation’s liability insurance for directors and officers as same may be in effect from time to time.

 

5.4.                            Pro-Rata Entitlement in First Year of Employment.  Notwithstanding sections 5.1 and 5.2 hereof (i) the Basic Salary shall be prorated in respect of the First Year of Employment such that the Executive shall be entitled to receive and the Corporation shall be required to pay in respect of such year only that proportion of the Basic Salary that the number of days in the First Year of Employment is to 365; and (ii) any bonus payable in respect of the First Year of Employment shall be awarded in the sole discretion of the Board.

 

5.5.                            Pro-Rata Entitlement in the Event of Termination, If the Executive’s employment is terminated pursuant to section 8.1.1, 8.1.2, or 8.1.3, bonus, if any, will be payable at the board’s discretion.

 

If the Executive dies or retires during the Employment Period, the Executive shall be entitled to receive in respect of his entitlement to bonus remuneration and the Corporation shall be required to pay in respect thereof, only that proportion of the bonus remuneration in respect of the year of employment at which the effective date of the termination of employment or the date of death occurs that the number of days elapsed from the commencement of such year of employment to the effective date of termination or the date of death is to 365, provided that said bonus shall be equal to or greater than 66% of the bonus remuneration the Executive earned in the year proceeding termination.

 

6.                                      EXPENSES & CAR ALLOWANCE

 

The Corporation shall pay or reimburse the Executive for all travel and out-of-pocket expenses reasonably incurred or paid by the Executive in the performance of his duties and responsibilities upon presentation of expense statements or receipts or such other supporting documentation as the Corporation may reasonably require.  All travel and other expenses incurred by the Executive shall be in accordance with the Corporation’s travel and expense policies.

 

In accordance with the Corporation’s current policy governing the provision of automobiles to executive personnel, the Corporation shall provide the Executive with a monthly car allowance payable in periodic equal instalments in accordance with the practices of the Corporation applicable to its other senior executives.

 

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7.                                      VACATION

 

The Executive shall be entitled while employed by the Corporation to four weeks vacation with pay per year.  Vacation shall be taken by the Executive at such time as may be acceptable to the Corporation having regard to its operations and no more than two (2) weeks of vacation shall be taken consecutively.  If the Executive has not taken the full vacation to which the Executive is entitled in any calendar year, the Executive will be paid at the end of such calendar year Basic Salary in respect of the accrued unused vacation.  Except as required under the ESA, the Executive shall not be entitled to carry over any unused portion of vacation to the following calendar year and will lose the entitlement to such unused portion.  Notwithstanding the foregoing, in the event that the Executive’s employment is terminated pursuant to section 8, the Executive shall not be entitled to receive any payment in lieu of any accrued unused vacation except to the extent, if any, required by the ESA.

 

8.                                      TERMINATION

 

8.1.                            Notice.  The Executive’s employment shall terminate or be terminable:

 

8.1.1.  by the Executive on three (3) months prior written notice to the Corporation;

 

8.1.2.  by the Corporation at any time without prior notice and, subject to the provisions of the ESA and the Human Rights Code (Ontario), without further obligation to the Executive for reasons of Just Cause or because of the occurrence of Disability;

 

8.1.3.  by the Corporation, for any reason other than for Just Cause or Disability, at any time without prior notice and without further obligation to the Executive other than those obligations of the Corporation set out in section 9 of this Agreement;

 

8.1.4.  upon the death of the Executive; and

 

8.1.5.  upon the Retirement of the Executive.

 

8.2.                            Effective Date.  The effective date on which the Executive’s employment shall be terminated shall be:

 

8.2.1.  in the case of termination pursuant to section 8.1.1, the last day of the three (3) month period set out in the notice;

 

8.2.2.  in the case of termination pursuant to sections 8.1.2 and 8.1.3, the day the Executive is deemed, under section 12 to have received notice from the Corporation of such termination;

 

8.2.3.  in the event of the death of the Executive, on the date of his death; and

 

8.2.4.  in the event of the Retirement of the Executive, on the date of his Retirement.

 

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9.                                      PAYMENTS ON TERMINATION OF EMPLOYMENT

 

(a)                                 If the Executive’s employment is terminated as a result of Termination Without Cause, the Corporation shall (subject to the Executive’s obligations contained herein):

 

(i)                                     for a period of 12 months from the effective date of Termination Without Cause make the following payments (collectively referred to herein as the “Severance Amount”) to the Executive.  In addition, the period of termination payments and benefits shall be extended by one month for each additional year of employment completed by the Executive commencing January 1, 2004:

 

(I)                                   payments to the Executive in the same amount and on the same basis as the Basic Salary being paid to the Executive immediately prior to the effective date of termination; and

 

(II)                              continue to provide the Executive with Benefits, in accordance with, and to the extent permitted by and subject to the terms and conditions of the applicable fund, plan or arrangement relating thereto;

 

(III)                         payment to the Executive up to a maximum of $10,000.00 to cover all costs associated with career relocation and outplacement services obtained by the Executive, upon presentation of receipts.

 

(ii)                                  all payments made to the Executive shall be subject to applicable deductions and withholdings and shall be in full satisfaction of any and all entitlement that the Executive may have to notice of termination or payment in lieu thereof, severance pay and any other payments to which the Executive may otherwise be entitled to pursuant to ESA and any other applicable law.  The Corporation shall cooperate with the Executive with respect to the payment of all payments due on termination such that the Executive shall be entitled to obtain the benefit of any tax shelters or strategies that may be available or may become available;

 

(iii)                               notwithstanding any other provisions in this Agreement, the exercise of the Executive’s options will be in accordance with the terms of the Viventia Biotech Inc.  Share Option Plan;

 

(iv)                              if, following Termination Without Cause, the Executive breaches any of the provisions of the Confidential Information, Intellectual Property, Non-Competition and Non-Solicitation Agreement (attached as Appendix A), the Executive shall not be eligible, as of the date of such breaches for any Severance Amount and all obligations of the Corporation to pay the Executive the Severance Amount shall (subject to applicable minimum amounts payable pursuant to the ESA) cease.

 

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10.                               REMEDIES

 

The Executive acknowledges that a breach or threatened breach by the Executive of the provisions of the Confidential Information, Intellectual Property, Non-Competition and Non-Solicitation Agreement will result in the Corporation and its shareholders suffering irreparable harm which is not capable of being calculated and which cannot be fully or adequately compensated by the recovery of damages alone.  Accordingly, the Executive agrees that the Corporation shall be entitled to interim and permanent injunctive relief, specific performance and other equitable remedies, in addition to any other relief to which the Corporation may become entitled.

 

11.                               CO-OPERATION BY EXECUTIVE

 

The Executive shall co-operate in all respects with the Corporation if the question arises as to whether a Disability has occurred.  Without limiting the generality of the foregoing, the Executive shall authorize the Executive’s medical doctor or other health care specialist to discuss the condition of the Executive with the Corporation and shall submit to examination by a medical doctor or other health care specialist selected by the Corporation.

 

12.                               NOTICES

 

Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be given by prepaid first-class mail, by facsimile or other means of electronic communication or by hand-delivery as hereinafter provided.  Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lockout or otherwise, shall be deemed to have been received on the fourth Business Day after the post-marked date thereof, or if mailed by registered mail, shall be deemed to have been received on the day such mail is delivered by the post office, or if sent by facsimile or other means of electronic communication, shall be deemed to have been received on the Business Day following the sending, or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address noted below either to the individual designated below or to an individual at such address having apparent authority to accept deliveries on behalf of the addressee.  Notice of change of address shall also be governed by this section.  In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by facsimile or other means of electronic communication and shall be deemed to have been received in accordance with this section.  Notices and other communications shall be addressed as follows:

 

if to the Executive:

 

Dr. Glen MacDonald

	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

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if to the Corporation:

 

Viventia Biotech Inc.
 10 Four Seasons Place
 Suite 501
 Toronto, Ontario
 M9B 6H7

 

	
Attention:
    	
President and Chief Executive Officer
    
	
Telecopier   number:
    	
(416)335-9306
    

 

13.                               HEADINGS

 

The inclusion of headings in this Agreement is for convenience of reference only and shall not affect the construction or interpretation hereof.

 

14.                               INVALIDITY OF PROVISIONS

 

Each of the provisions contained in this Agreement is distinct and severable and a declaration of invalidity or unenforceability of any such provision by a court of competent jurisdiction shall not affect the validity or enforceability of any other provision hereof.

 

15.                               ENTIRE AGREEMENT

 

This Agreement constitutes the entire agreement between the parties pertaining to the subject matter of this Agreement.  This Agreement supersedes and replaces all prior agreements, if any, written or oral, with respect to the Executive’s employment by the Corporation and any rights which the Executive may have by reason of any such prior agreement or by reason of the Executive’s prior employment, if any, by the Corporation.  There are no warranties, representations or agreements between the parties in connection with the subject matter of this Agreement except as specifically set forth or referred to in this Agreement.  No reliance is placed on any representation, opinion, advice or assertion of fact made by the Corporation or its directors, officers and agents to the Executive, except to the extent that the same has been reduced to writing and included as a term of this Agreement.  Accordingly, there shall be no liability, either in tort or in contract, assessed in relation to any such representation, opinion, advice or assertion of fact, except to the extent aforesaid.

 

16.                               WAIVER, AMENDMENT

 

Except as expressly provided in this Agreement, no amendment or waiver of this Agreement shall be binding unless executed in writing by the party to be bound thereby.  No waiver of any provision of this Agreement shall constitute a waiver of any other provision nor shall any waiver of any provision of this Agreement constitute a continuing waiver unless otherwise expressly provided.

 

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17.                               GOVERNING LAW

 

This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein.

 

18.                               COUNTERPARTS

 

This Agreement may be signed in counterparts and each of such counterparts shall constitute an original document and such counterparts, taken together, shall constitute one and the same instrument.

 

19.                               ACKNOWLEDGEMENT

 

The Executive acknowledges that:

 

19.1.                     the Executive has had sufficient time to review and consider this Agreement thoroughly;

 

19.2.                     the Executive has read and understands the terms of this Agreement and the Executive’s obligations hereunder;

 

19.3.                     the Executive has been given an opportunity to obtain independent legal advice, or such other advice as the Executive may desire, concerning the interpretation and effect of this Agreement; and

 

19.4.                     this Agreement is entered into voluntarily and without any pressure.

 

IN WITNESS WHEREOF the parties have executed this Agreement,

 

	
 
    	
VIVENTIA BIOTECH INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Nick Glover
    
	
 
    	
 
    	
Name:
    	
Nick Glover
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
President and Chief Executive Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
I/We have the authority to bind the   corporation
    

 

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SIGNED,   SEALED AND DELIVERED

                    in the presence of
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
           /s/   S.J. Riley
    	
 
    	
           /s/   Glen MacDonald
    
	
Witness
    	
 
    	
Glen MacDonald
    

 

11Exhibit 10.12

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT (the “Agreement”) dated as of March 19, 2015, between Viventia Bio USA Inc., a corporation incorporated under the laws of Winnipeg, Canada (the “Company”), and Erick Lucera, currently a resident of North Andover, Massachusetts (the “Employee”).

 

WITNESSETH

 

WHEREAS the Company is a wholly owned subsidiary of Viventia Bio Inc. (“Viventia”);

 

WHEREAS, the Company desires to employ the Employee as the Chief Financial Officer (the “CFO”) of the Company; and

 

WHEREAS, the Company and the Employee desire to enter into the Agreement as to the terms of the Employee’s employment with the Company.

 

NOW, THEREFORE, in consideration of the foregoing, of the mutual promises contained herein and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                      POSITION AND DUTIES.  During the Employment Term (as defined in Section 2 hereof), the Employee shall serve as the CFO of the Company.  In this capacity, the Employee shall have the duties, authorities and responsibilities commensurate with the duties, authorities and responsibilities of persons in similar capacities in similarly sized companies in similar industries.  The Employee shall report directly to the Chief Executive Officer of the Company and/or the Board of Directors of the Company (the “Board”).

 

2.                                      EMPLOYMENT TERM.  The Company agrees to employ the Employee pursuant to the terms of this Agreement, and the Employee agrees to be so employed, commencing on the date the Employee commences employment (the “Effective Date”) and until the first anniversary of the Effective Date (the “Term”).  On the expiration of the Term, the Employee may continue as an employee of the Company on an at-will basis, subject to Section 8; however, the Employee’s covenants under Section 8(e) will continue to be applicable after any termination of employment or any termination of the Term.  The period of time between the Effective Date and the termination of the Employee’s employment hereunder and/or the termination of the Term hereunder shall be referred to herein as the “Employment Term.”

 

3.                                      BASE SALARY.  During the Employment Term, the Company agrees to pay the Employee a base salary (the “Base Salary”) at an annual rate of $225,000 USD, payable in accordance with the regular payroll practices of the Company, but not less frequently than bi monthly.  The Employee’s base salary shall be subject to annual review by the Board, or a committee thereof, and in addition may be increased from time to time in the Board’s discretion. Additionally, upon the date that the Company or one of its affiliates has completed an initial public offering, the Employee’s Base Salary shall be automatically increased effective upon the closing of such offering to an annual rate of $275,000 USD.

 

 

4.                                      ANNUAL BONUS.  During the Employment Term, the Employee shall be eligible to earn an annual incentive payment (the “Annual Bonus”) with a target of 30% of the Base Salary (the “Target Bonus”) upon the attainment of one or more pre-established performance goals, which shall be set after consultation with the Employee; provided, that, for the year ended December 31, 2015 only, such Annual Bonus shall be pro-rated based on the number of days in the calendar year which the Employee is employed by the Company.  The Employee shall not be entitled to receive any bonus under this Section unless the Employee is still employed by the Company on the date such bonus is paid.  The Annual Bonus, if any, will be paid as soon as practicable after the delivery of the Company’s annual financial statements for the relevant year, but in no event shall the Annual Bonus be paid later than 2 1/2 months after the end of the Company’s fiscal year.  The Executive’s target Annual Bonus shall be reviewed by the Board (or a committee thereof) on an annual basis commencing in the first quarter of 2016 and may be subject to upward adjustment, as determined by the Board (or a committee thereof).

 

5.                                      EQUITY GRANT.  As soon as administratively feasible following the date hereof, the Employee shall receive a grant of stock options (the “Stock Options”) to purchase 50,000 shares of the common stock of Viventia Bio Inc. (“Viventia”) at an exercise price per share equal to the fair market value of a share of Viventia’s common stock as of the date of such grant.  The equity award shall be made to the Employee under the Viventia Bio Inc. Equity Incentive Plan and shall be subject to the terms and conditions of the form option award agreement under such plan.

 

6.                                      EMPLOYEE BENEFITS.

 

(a)                                 BENEFIT PLANS.  The Employee shall be eligible to participate in and be covered on the same basis as other senior management of the Company under all employee benefit plans and programs as the Company may, in its sole discretion from time to time, including without limitation retirement, health and life insurance.

 

(b)                                 VACATIONS. During the Employment Term, the Employee shall be entitled to four (4) weeks of paid vacation per calendar year (as prorated for partial years), with no carryover of unused vacation to the following year.

 

(c)                                  BUSINESS EXPENSES.  Upon presentation of reasonable substantiation and documentation as the Company may specify from time to time, the Employee shall be reimbursed in accordance with the Company’s expense reimbursement policy, for all reasonable out-of-pocket business expenses incurred and paid by the Employee during the Employment Term and in connection with the performance of the Employee’s duties hereunder.

 

7.                                      TERMINATION.  The Employee’s employment and the Employment Term shall terminate on the first of the following to occur:

 

(a)                                 DISABILITY.  Upon ten (10) days’ prior written notice by the Company to the Employee of termination due to Disability.  For purposes of this Agreement, “Disability” shall be defined as the inability of the Employee to have performed the Employee’s material duties hereunder due to a physical or mental injury, infirmity or incapacity for one

 

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hundred eighty (180) days (including weekends and holidays) in any 365-day period as determined by the Board in its reasonable discretion.

 

(b)                                 DEATH.  Automatically upon the date of death of the Employee.

 

(c)                                  CAUSE.  Immediately upon written notice by the Company to the Employee of a termination for Cause, provided that the Employee shall not be terminated for Cause unless the Board has approved such termination, and prior to such approval the Employee has been given an opportunity to appear before the Board and dispute such termination. “Cause” shall mean the Employee’s:

 

(i)                                     Conviction or a plea of nolo contendere of a criminal offence in the category of felony or comparable;

 

(ii)                                  Violation of any material provision of this Agreement or other written policy of the Company or any of its affiliates reasonably available to the Employee, and such violation is not remedied within fifteen (15) days after written notice thereof from the Company to the Employee specifically identifying the nature of such violation (to the extent such violation is curable);

 

(iii)                               Misappropriation of material assets of the Company or of any affiliate of the Company;

 

(iv)                              Willful failure to perform the Employee’s material job duties (other than due to mental or physical disability), which failure is not cured in all material respects within thirty (30) days after written notice from the Company which specifically identifies the manner in which the Company believes that the Employee has failed to perform; or

 

(v)                                 Commission of any act, which in the reasonable opinion of the Board, is likely to have brought or brought the Company or Viventia into disrepute.

 

(d)                                 BY COMPANY WITHOUT CAUSE.  Immediately upon written notice by the Company to the Employee of a termination without Cause.

 

(e)                                  BY RESIGNATION OF EMPLOYEE.  Upon thirty (30) days’ advance written notice to the Company of the Employee’s intent to terminate employment for any reason provided that upon such notice, the Company may terminate the Employee’s employment immediately and pay the Employee pay in lieu of notice.

 

8.                                      CONSEQUENCES OF TERMINATION.

 

(a)                                 DEATH, DISABILITY OR CERTAIN TERMINATIONS WITHOUT CAUSE.  In the event that the Employee’s employment and the Employment Term ends on account of the Employee’s death or disability, or termination without cause that occurs within 12 months after the Effective Date, the Employee (or his estate, as applicable) shall be entitled to the following amounts, to be paid within sixty (60) days following termination of employment:

 

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(i)                                     Any unpaid Base Salary through the date of termination or death;

 

(ii)                                  Reimbursement for any unreimbursed business expenses incurred through the date of termination or death;

 

(iii)                               Any unused vacation time accrued to the date of termination or death, in accordance with Company policy;

 

(iv)                              All other payments, benefits or fringe benefits to which the Employee may be entitled under the terms of any applicable compensation arrangement or benefit, equity, or fringe benefit plan or program or grant or this Agreement (collectively, Sections 8(a)(i), (ii), (iii), and (iv) hereof shall be hereafter referred to as the “Accrued Benefits”); and

 

(v)                                 Any earned but unpaid Annual Bonus for the year in which such termination or death occurs or any preceding year, to be paid at the same time that the Annual Bonus for the applicable bonus year is paid to other senior executives of the Company.

 

(b)                                 TERMINATION WITHOUT CAUSE MORE THAN 12 MONTHS AFTER THE EFFECTIVE DATE.  If, more than 12 months after the Effective Date the Employee’s employment is terminated by the Company other than for Cause (and, for the sake of clarity, other than as a result of the Employee’s death or Disability), (the “Termination Date”), the Company shall pay or provide the Employee with the following: the Accrued Benefits; and, subject to the Employee’s continued compliance in all material respects with this Agreement, an amount equal to six (6) months of the Employee’s Base Salary in effect on the Termination Date (such amount, the “Severance Amount”).  The Severance Amount is subject to the Employee’s execution of a general release in a form reasonably satisfactory to the Company, which becomes effective within 60 days following the Termination Date.  The Severance Amount shall be paid as salary continuation in accordance with the Company’s standard payroll practices beginning on the Termination Date; provided, that any such payment scheduled to occur during the first sixty (60) days following the Termination Date shall not be paid until, and shall instead be paid on, the sixtieth (60th) day following the Termination Date and shall include payment of any amount that would otherwise have been scheduled to be paid prior thereto but for this provision.

 

Payments and benefits provided in this Section 7(b) shall be in lieu of any termination or severance payments or benefits for which the Employee may be eligible under any of the plans, policies or programs of the Company, any affiliate of the Company or under any applicable law.

 

(c)                                  TERMINATION FOR CAUSE OR RESIGNATION.  In the event the Employee’s employment is terminated for Cause, or if he resigns his employment, the Company shall pay to the Employee the Accrued Benefits; provided for greater certainty that the Employee shall not be entitled to any earned but unpaid Annual Bonus.

 

(d)                                 SECTION 409A.  Notwithstanding any provision of this Agreement, if, as of the date of the Employee’s “separation from service” from the Company, the Employee is a “specified employee” (within the meaning of Section 409A of the Internal

 

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Revenue Code of 1986, as amended, and the guidance issued thereunder (“Section 409A”)), then, to the extent compliance with the requirements of Treas.  Reg. § 1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application of an additional tax under Section 409A to payments due to Employee upon or following his “separation from service,” then notwithstanding any other provision of this Agreement (or any otherwise applicable plan, policy, agreement or arrangement), any such payments that are otherwise due within six months following Employee’s “separation from service” will be deferred without interest and paid to Employee in a lump sum immediately following that six month period or immediately to his beneficiary(ies) in the event of his death during such period.  Additionally, all reimbursements and in-kind benefits provided under this Agreement that are subject to Section 409A shall be made or provided in accordance with the requirements of Section 409A, including, where applicable, the requirements that (i) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (ii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred, and (iii) the right to reimbursement is not subject to set off or liquidation or exchange for any other benefit.

 

(e)                                  NON-COMPETITION COVENANT.  In the event that the Employee terminates his employment or is terminated for Cause, the Employee covenants and agrees that he shall not accept employment with, or enter into a contractual relationship to provide his personal services to, any direct competitor of Viventia for a period of one year after the termination of his employment.  For these purposes, a direct competitor of Viventia means any person in the payload - ADC business, or who is developing products which are substantially similar to the products under development by Viventia at the time of such termination, regardless of where such competitor is based.

 

9.                                      NO ASSIGNMENTS.  This Agreement is personal to each of the parties hereto.  Except as provided in this Section 9 hereof, no party may assign or delegate any rights or obligations hereunder without first obtaining the written consent of the other party hereto.  The Company may assign this Agreement to any successor to all or substantially all of the business and/or assets of the Company, provided that the Company shall require such successor to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company and any successor to its business and/or assets, which assumes and agrees to perform the duties and obligations of the Company under this Agreement by operation of law or otherwise.

 

10.                               NOTICE.  For purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of delivery, if delivered by hand, (b) on the date of transmission, if delivered by confirmed facsimile or electronic mail, (c) on the first business day following the date of deposit, if delivered by guaranteed overnight delivery service, or (d) on the fourth business day following the date delivered or mailed by United States or Canadian registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

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If to the Employee:

 

Erick Lucera

	
 
    	
 
    
	
 
    	
 
    

If to the Company:

 

Viventia Bio USA Inc.
 305 Milner Avenue
 Suite 914
 Toronto, ON
 M1B 3V4
 Attention: Chairman of the Board

 

or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

11.                               SECTION HEADINGS; INCONSISTENCY.  The section headings used in this Agreement are included solely for convenience and shall not affect, or be used in connection with, the interpretation of this Agreement.  In the event of any inconsistency between the terms of this Agreement and any form, award, plan or policy of the Company, the terms of this Agreement shall govern and control.

 

12.                               SEVERABILITY.  The provisions of this Agreement shall be deemed severable.  The invalidity or unenforceability of any provision of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of any provision of this Agreement in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by applicable law.

 

13.                               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 instrument.

 

14.                               INDEMNIFICATION.  The Company hereby agrees to indemnify the Employee and hold the Employee harmless to the extent provided under applicable law or the governing documents of the Company against and in respect of any and all actions, suits, proceedings, claims, demands, judgments, costs, expenses (including reasonable attorney’s fees), losses, and damages resulting from the Employee’s good faith performance of the Employee’s duties and obligations with the Company.  This obligation shall survive the termination of the Employee’s employment with the Company.

 

15.                               LIABILITY INSURANCE.  The Company shall cover the Employee under directors’ and officers’ liability insurance both during and, while potential liability exists, after the term of this Agreement in the same amount and to the same extent as the Company covers its other officers and directors.

 

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16.                               GOVERNING LAW.  This Agreement, the rights and obligations of the parties hereto, and any claims or disputes relating thereto, shall be governed by and construed in accordance with the laws of the State of New Jersey (without regard to its choice of law provisions).

 

17.                               MISCELLANEOUS.  No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Employee and such officer or director as may be designated by the Board.  No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  This Agreement together with all exhibits hereto sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and supersedes any and all prior agreements or understandings between the Employee and the Company with respect to the subject matter hereof, including without limitation the Offer Letter from the Company to you, dated March 5, 2015.  No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.

 

18.                               SURVIVORSHIP.  The respective rights and obligations of the parties hereunder shall survive any termination of the Employee’s employment and/or any termination of the Employment Term of this Agreement hereunder for any reason to the extent necessary to the intended provision of such rights and the intended performance of such obligations.

 

19.                               DISPUTES.  In the event the Employee substantially prevails on any material dispute arising under this Agreement, the Company agrees to pay (within thirty (30) days following receipt of an invoice from the Employee), to the full extent permitted by law, all legal fees and expenses that the Employee may reasonably incur as a result of such dispute.

 

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

 

	
 
    	
VIVENTIA BIO USA INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen Hurly
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Stephen Hurly
    
	
 
    	
Title:
    	
Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
EMPLOYEE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Erick Lucera
    
	
 
    	
Name:
    	
Erick Lucera
    

 

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