Document:

EX-4.2

 Exhibit 4.2 

THIS SECURITY IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO, AS SUPPLEMENTED BY THE THIRD SUPPLEMENTAL
INDENTURE HEREINAFTER REFERRED TO, AND IS REGISTERED IN THE NAME OF CITIVIC NOMINEES LIMITED, AS NOMINEE OF CITIBANK EUROPE PLC, AS COMMON DEPOSITARY (THE “COMMON DEPOSITARY”) FOR CLEARSTREAM BANKING, SOCIÉTÉ ANONYME
(“CLEARSTREAM”) AND EUROCLEAR BANK S.A./N.V. (“EUROCLEAR”). 
 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR
REGISTERED NOTES IN DEFINITIVE REGISTERED FORM IN THE LIMITED CIRCUMSTANCES REFERRED TO IN THE INDENTURE, AS SUPPLEMENTED BY THIS THIRD SUPPLEMENTAL INDENTURE, THIS GLOBAL NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE COMMON DEPOSITARY OR
ANOTHER DEPOSITARY OR BY A NOMINEE OF THE COMMON DEPOSITARY TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 

AMÉRICA MÓVIL, S.A.B. DE C.V. 

0.750% Senior Notes due 2027 
 ISIN:
XS2006277508 / Common Code: 200627750 
  

			
	No.1	  	€1,000,000,000

 América Móvil, S.A.B. de C.V. (the “Company,” which term includes any successor
Person under the Indenture hereinafter referred to), a sociedad anónima bursátil de capital variable organized and existing under the laws of the United Mexican States (“Mexico”), for value received, hereby
promises to pay to Citivic Nominees Limited, or registered assigns, as the nominee of Citibank Europe plc, as common depositary for Clearstream and Euroclear, the principal sum of One Billion euros (or such other lawful currency of the member states
of the European Monetary Union that have adopted or that will adopt the single currency in accordance with the Treaty Establishing the European Community, as amended by the Treaty on European Union, as at the time of payment shall be legal tender
for the payment of public and private debts), as revised by the Schedule of Increases and Decreases in Global Note attached hereto, on June 26, 2027 (unless earlier redeemed, in which case, on the applicable Redemption Date) and to pay interest
thereon from June 26, 2019 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, as the case may be, annually in arrears on June 26 of each year, commencing on June 26, 2020 at the rate of
0.750% per annum, until the principal hereof is paid or made available for payment; provided that any principal of, and any premium and interest on, this Note which is overdue shall bear interest (to the extent that payment thereof shall be
legally enforceable) at the rate per annum then borne by this Note from the date such amount is due to but not including the day it is paid or made available for payment, and such overdue interest shall be paid as provided in Section 306 of the
Base Indenture. All capitalized terms used in this Note which are defined in the Indenture and not otherwise defined herein shall have the meanings assigned to them in the Indenture. 

Interest on the Notes shall be computed at a fixed rate on the basis of a 365-day year or 366-day year (in the event of a leap year), as applicable, and the actual number of days elapsed. 
 The
interest so payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in the Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Notes) is registered at the close of business
on the Regular Record Date for such Interest Payment Date, which shall be the last day on which Clearstream and Euroclear are open for business immediately preceding such Interest Payment Date. Any such interest not so punctually paid or

 
duly provided for on any Interest Payment Date shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or one
or more Predecessor Notes) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of this Note by the Trustee not less than 10
days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which this Note may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in the Indenture. 
 Payment of the principal of, and premium, if any, and interest on this Note shall be made at
the Corporate Trust Office of the Paying Agent or the agency of the Company in the Borough of Manhattan, The City of New York, New York maintained for such purpose and at any other office or agency maintained by the Company for such purpose, in euro
(or any other lawful currency of the member states of the European Monetary Union that have adopted or that will adopt the single currency in accordance with the Treaty Establishing the European Community, as amended by the Treaty on European Union,
as at the time of payment shall be legal tender for the payment of public and private debts) against surrender of this Note in the case of any payment due at the Maturity of the principal thereof (other than any payment of interest that first
becomes payable on a day other than an Interest Payment Date); provided, however, that at the option of the Company, payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in
the Register; and provided, further, that all payments of the principal of and interest on this Note, the Permitted Holders of which have given wire transfer instructions to the Trustee in writing, the Company, or its agent at least 10
Business Days prior to the applicable payment date, shall be required to be made by wire transfer of immediately available funds to the accounts specified by such Permitted Holders in such instructions. Notwithstanding the foregoing, payment of any
amount payable in respect of a Global Note shall be made in accordance with the Applicable Procedures. 
 Reference is hereby made to the
further provisions of this Note set forth on the reverse hereof, which further provisions shall, for all purposes, have the same effect as if set forth at this place. 

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this
Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 [Signature pages follow]

  
 2 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

Dated: 
  

			
	AMÉRICA MÓVIL, S.A.B. DE C.V.
		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:

  

 This is one of the Notes referred to in the within-mentioned Indenture. 

Dated: 
  

			
	CITIBANK, N.A.,
		 	  as Trustee
		
	By:	 	  

		 	Authorized Officer

  

 [REVERSE OF NOTE] 

This Note is one of a duly authorized issue of securities of the Company (the “Notes”), issued under the Indenture, dated as
of October 1, 2018 (the “Base Indenture”), among the Company, Citibank, N.A., as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), Registrar and Transfer Agent, and
Citibank, N.A., London Branch, as Paying Agent (the “Paying Agent”), as supplemented by the Third Supplemental Indenture, dated as of June 26, 2019 (the “Third Supplemental Indenture” and, together with the Base
Indenture, the “Indenture”) among the Company, the Trustee and the Paying Agent, and reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the
Company, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. The terms, conditions and provisions of this Note are those stated in the Indenture (including those made a part
of the Indenture by reference to the Trust Indenture Act) and those set forth in this Note. This Note is one of the series designated on the face hereof. 

Additional notes on terms and conditions identical to those of this Note (except for issue date, issue price and the date from which interest
shall accrue and, if applicable, the date on which interest will first be paid) may be issued by the Company without the consent of the Holders of the Notes. The amount evidenced by such additional Notes shall increase the aggregate principal amount
of, and shall be consolidated and form a single series with, the Notes, in which case the Schedule of Increases and Decreases in Global Note attached hereto will be correspondingly adjusted. 

In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any Note shall not be a Business Day, then (notwithstanding
any other provision of the Indenture or of the Notes) payment of principal and premium, if any, or interest need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the Interest
Payment Date, Redemption Date or at the Stated Maturity, as the case may be; provided that no interest shall accrue for the period from and after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be. 

In the event of redemption of this Note in part only, a new Note or Notes of this series and of like tenor for the unredeemed portion hereof
shall be issued in the name of the Holder hereof upon the cancellation hereof. 
 If an Event of Default with respect to the Notes shall
occur and be continuing, the principal of all of the Notes may be declared due and payable in the manner and with the effect provided in the Indenture. 

All payments of principal, premium, if any, and interest in respect of the Notes shall be made after withholding or deduction for any present
or future taxes, duties, assessments or governmental charges of whatever nature imposed, levied, collected, withheld or assessed by or on behalf of Mexico or any authority therein or thereof having power to tax (“Mexican Taxes”). To
the extent Mexican Taxes are required to be withheld or deducted from any such payment, the Company shall pay, as provided for in and subject to the exceptions set forth in the Indenture, such additional interest (“Additional
Interest”) as may be necessary to ensure that the net amount actually received by the Holder after such withholding or deduction (including any Mexican Taxes payable in respect of Additional Interest) is equal to the amount that the Holder
would have received had no such withholding or deduction been required. 
 The Company shall pay all stamp, issue, registration, documentary
or other similar duties, if any, which may be imposed by Mexico or any governmental entity or political subdivision therein or thereof, or any taxing authority of or in any of the foregoing, with respect to the Indenture or the issuance of the
Notes. 

  
 5 

 All references herein and in the Indenture to principal, premium, if any, interest or any
other amount payable in respect of any Note shall be deemed to include all Additional Interest, if any, payable in respect of such principal, premium, interest or other amount payable, unless the context otherwise requires, and express mention of
the payment of Additional Interest in any provision hereof or thereof shall not be construed as excluding reference to Additional Interest in those provisions hereof or thereof where such express mention is not made. 

In the event that Additional Interest actually paid with respect to the Notes pursuant to the preceding paragraphs are based on rates of
deduction or withholding of withholding taxes in excess of the appropriate rate applicable to the Holder of such Notes, and, as a result thereof such Holder is entitled to make claim for a refund or credit of such excess from the authority imposing
such withholding tax, then such Holder shall, by accepting such Notes, be deemed to have assigned and transferred all right, title, and interest to any such claim for a refund or credit of such excess to the Company. However, by making such
assignment, the Holder makes no representation or warranty that the Company will be entitled to receive such claim for a refund or credit and incurs no other obligation with respect thereto. 

All references herein and in the Indenture to principal in respect of any Note shall be deemed to mean and include any Redemption Price
payable in respect of such Note pursuant to any redemption right hereunder (and all such references to the Stated Maturity of the principal in respect of any Note shall be deemed to mean and include the Redemption Date with respect to any such
Redemption Price), and all such references to principal, premium, interest or Additional Interest shall be deemed to mean and include any amount payable in respect hereof pursuant to Section 1009 of the Base Indenture. 

The Company may, at its option, redeem the Notes upon not less than 30 nor more than 60 days’ notice, at any time and, only in the case
of clauses (ii) and (iii) below, from time to time: 
 (i) in whole but not in part at a Redemption Price equal to the sum of (A) 100%
of the principal amount of the Notes being redeemed, (B) any accrued and unpaid interest thereon to the Redemption Date, (C) any premium applicable in the case of redemption prior to Maturity and (D) any Additional Interest which
would otherwise be payable thereon up to but not including the Redemption Date, solely if, as a result of any amendment to, or change in, the laws (or any rules or regulations thereunder) of Mexico or any political subdivision or taxing authority
thereof or therein affecting taxation or any amendment to or change in an official interpretation or application of such laws, rules or regulations, which amendment to or change in such laws, rules or regulations becomes effective on or after
June 26, 2019, the Company would be obligated, after taking such measures as the Company may consider reasonable to avoid such requirement, to pay Additional Interest in excess of the Additional Interest that the Company would be obligated to
pay if payments made on the Notes were subject to withholding or deduction of Mexican Taxes at the rate of 4.9%; provided, however, that (1) no notice of redemption pursuant to this clause (i) may be given earlier than 90
days prior to the earliest date on which the Company would but for such redemption be obligated to pay such Additional Interest if a payment on the Notes were then due and (2) at the time such notice of redemption is given, the Company’s
obligation to pay such Additional Interest remains in effect; 
 (ii) prior to the Par Call Date, in whole or in part, at a Redemption Price
equal to the greater of (1) 100% of the outstanding principal amount of the Notes being redeemed and (2) the sum of the present values of the Remaining Payments, discounted to the Redemption Date on an annual basis (assuming a 365-day year or 366-day year (in the event of a leap year), as applicable, and the actual number of days elapsed) at the Bund Rate plus 0.20% (20 basis points), plus, in the
case of (1) and (2), accrued and unpaid interest on the principal amount of the Notes being redeemed to the Redemption Date; and 

  
 6 

 (iii) on or after the Par Call Date, in whole or in part, at a Redemption Price equal to
100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest on the outstanding principal amount of the Notes being redeemed to the Redemption Date. 

For purposes of clauses (ii) and (iii) above, the following terms shall have the specified meanings: 

“Par Call Date” means, March 26, 2027 (the date that is three months prior to the stated maturity of the Notes). 

“Bund Rate” means, as of any Redemption Date, the rate per annum equal to the yield to maturity as of such Redemption Date of the
Comparable German Bund Issue, assuming a price for the Comparable German Bund Issue (expressed as a percentage of its principal amount) equal to the Comparable German Bund Price for such Redemption Date. 

“Comparable German Bund Issue” means the German Bundesanleihe security selected by any Reference German Bund Dealer as having a
fixed maturity most nearly equal to the Par Call Date that would be utilized at the time of selection and in accordance with customary financial practice, in pricing new issues of euro-denominated corporate debt securities in a principal amount
approximately equal to the then outstanding principal amount of the Notes to be redeemed and of a comparable maturity to the Par Call Date; provided, however, that, if the Par Call Date is not equal to the fixed maturity of the German
Bundesanleihe security selected by such Reference German Bund Dealer, the Bund Rate shall be determined by linear interpolation (calculated to the nearest one–twelfth of a year) from the yields of German Bundesanleihe securities for which such
yields are given, except that if the remaining term to the Par Call Date is less than one year, a fixed maturity of one year shall be used. 

“Comparable German Bund Price” means, with respect to any Redemption Date, the average of all Reference German Bund Dealer
Quotations for such date (which, in any event, must include at least two such quotations), after excluding the highest and lowest such Reference German Bund Dealer Quotations, or if the Paying Agent obtains fewer than four such Reference German Bund
Dealer Quotations, the average of all such quotations. 
 “Reference German Bund Dealer” means each of Barclays Bank PLC, Merrill
Lynch International, J.P. Morgan Securities plc, UBS AG London Branch, Banco Santander, S.A. and UniCredit Bank AG, or their affiliates, which are dealers of German Bundesanleihe securities and one other leading dealer of German Bundesanleihe
securities reasonably designated by the Company; provided, however, that if any of the foregoing shall cease to be a dealer of German Bundesanleihe securities, the Company will substitute therefor another dealer of German Bundesanleihe
securities. 
 “Reference German Bund Dealer Quotation” means, with respect to each Reference German Bund Dealer and any
Redemption Date, the average, as determined by the Paying Agent (in consultation with the Company), of the bid and asked prices for the Comparable German Bund Issue (expressed in each case as a percentage of its principal amount) quoted in writing
to the Paying Agent by such Reference German Bund Dealer at 3:30 p.m. (Frankfurt, Germany time) on the third business day preceding such Redemption Date. 

“Remaining Payments” means, the remaining payments of principal of, and interest on, the Notes that would be due after the related
Redemption Date as if the Notes were redeemed on the Par Call Date. If such Redemption Date is not an Interest Payment Date with respect to the Notes, the amount of the next succeeding scheduled interest payment on the Notes will be reduced by the
amount of interest accrued on the Notes to such Redemption Date. 

  
 7 

 The Indenture permits, with certain exceptions as therein provided, the amendment thereof
and the modification of the rights and obligations of the Company, on the one hand, and the rights of the Holders of the Notes, on the other hand, to be affected under the Indenture at any time by the Company and the Trustee with the consent of the
Holders of a majority in principal amount of the Notes at the time Outstanding. The Indenture also contains provisions (1) permitting the Holders of a majority in principal amount of the Notes at the time Outstanding, on behalf of the Holders
of all Notes, to waive compliance by the Company with certain provisions of the Indenture and (2) permitting the Holders of a majority in principal amount of the Notes at the time Outstanding, on behalf of the Holders of all Notes, to waive
certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 

As provided in and subject to the provisions of the Indenture, the Holder of this Note shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee, or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Notes,
the Holders of not less than 25% in principal amount of the Notes at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee indemnity and/or
security satisfactory to it, and the Trustee shall not have received from the Holders of a majority in principal amount of Notes at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such
proceeding, for 60 days after receipt of such notice, request and offer of indemnity and/or security. The foregoing shall not apply to any suit instituted by the Holder of this Note for the enforcement of any payment of principal hereof or premium,
if any, and/or interest hereon on or after the respective due dates expressed herein. 
 No reference herein to the Indenture and no
provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and premium, if any, and interest on this Note at the times, place and rate, and in the coin
or currency, herein prescribed. 
 As provided in the Indenture, and subject to certain limitations therein set forth (including, without
limitation, the restrictions on transfer under Section 304 of the Base Indenture), the transfer of this Note is registrable in the Register, upon surrender of this Note for registration of transfer at the office of the Trustee or agency of the
Company in any place where the principal of and any premium and interest on this Note are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, shall be issued to the designated transferee or
transferees. 
 The Notes are issuable only in registered form without coupons in denominations of €100,000 and integral multiples of
€1,000 in excess thereof. As provided in the Indenture, and subject to certain limitations therein set forth, Notes are exchangeable for a like aggregate principal amount of Notes of like tenor of a different authorized denomination, as
requested by the Holder surrendering the same. 

  
 8 

 No service charge shall be made for any such registration of transfer or exchange, but the
Company or the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or of the Trustee
may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note is overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

This Note is a Global Note and is subject to the provisions of the Indenture relating to Global Notes, including the limitations in
Section 304 of the Base Indenture on transfers and exchanges of Global Notes. 
 This Note and the Indenture shall be governed by, and
construed in accordance with, the law of the State of New York. 
 All terms used in this Note which are defined in the Indenture and not
otherwise defined herein shall have the meanings assigned to them in the Indenture. 
  

 
 ABBREVIATIONS

 The following abbreviations, when used in the inscription of the face of this Note, shall be construed as though they were written out in
full according to applicable law: 
  

			
	TEN COM - as tenants in common	  	
UNIF GIFT MIN ACT—                   
 

                          
                      (Cust)

	TEN ENT - as tenants by the entireties	  	
Custodian                      under
Uniform
                     (Minor)

	 JT TEN - as joint tenants with right

                of survivorship and
not as
                 tenants in
common
	  	 Gifts to Minors
Act                      

                          
            (State)

 Additional abbreviations may also be used 

though not in the above list. 
  

 

  
 9 

 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE 

The following increases or decreases in this Global Note have been made: 

 

															
	 Date of transfer

or
exchange                    
	 	Amount of decrease
in principal amount
of this Global Note	 	  	Amount of increase
in principal amount
of this Global Note	 	  	Principal amount of
this Global Note
following such
decrease or increase	 	  	 Signature of

authorized signatory

of Trustee or

Registrar

		 				  				  				  	

  
 10Blueprint

Exhibit 10.1

 

 
EXECUTION
COPY

 

EMPLOYMENT AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (the “Agreement”), effective as of
this 1st day of July, 2019, is entered into by Palatin
Technologies, Inc., a Delaware corporation with its principal place
of business at 4B Cedar Brook Drive, Cranbury, NJ, 08512 (the
“Company”), and Carl Spana
(“Employee”).

 

The
Company desires to continue employing the Employee, and the
Employee desires to continue to be employed by the Company. In
consideration of the mutual covenants and promises contained
herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the parties hereto,
the parties agree that the following terms of this Employment
Agreement shall supersede in all respects any prior agreements
governing employment between the parties:

 

1.0

Term of
Employment. The Company hereby agrees to continue employing
the Employee, and the Employee hereby accepts the continuation of
employment with the Company, upon the terms set forth in this
Agreement, for the period commencing on July 1, 2019 (the
“Commencement Date”) and ending on June 30, 2022 unless
sooner terminated in accordance with the provisions of Section 4
(the “Employment Period”).

2.0

Position Title & Capacity.

2.1

The Employee shall
serve as Chief Executive Officer and President, with
responsibilities consistent with this position and as the
Company’s Board of Directors (the "Board") may determine from
time to time, with powers and duties as may be determined, from
time to time, by the Board, consistent with the Employee’s
position. The Employee shall report to the Company’s Board of
Directors. The Employee shall be based at the Company’s
corporate headquarters, which is based in Cranbury, New Jersey. The
Employee shall also be available for travel at such times and to
such places as may be reasonably necessary in connection with the
performance of his duties hereunder.

2.2

The Employee may
serve as an employee director on the Board as determined and
approved by the Board during the Employment Period and for no
additional compensation; however, upon termination of employment
for any reason, the Employee will no longer serve as a member of
the Company’s Board of Directors and will take any and all
actions necessary to effectuate such resignation as may be
reasonably requested by the Company.

2.3

The Employee hereby
accepts such employment and agrees to undertake the duties and
responsibilities inherent in such position and such other duties
and responsibilities as the Board shall from time to time
reasonably assign to him. The Employee agrees to devote
substantially all of his business time, attention and energies to
the business and interests of the Company during the Employment
Period. The Employee agrees to abide by the rules, regulations,
instructions, personnel practices and policies of the Company and
any changes therein which may be adopted from time to time by the
Company. The Employee acknowledges receipt of copies of all such
rules and policies committed to writing as of the date of this
Agreement.

2.4

The Employee
specifically covenants, warrants and represents to the Company that
he has the full, complete and entire right and authority to enter
into this Agreement, that he has no agreement, duty, commitment or
responsibility of any kind or nature whatsoever with any
corporation, partnership, firm, company, joint venture or other
entity or other person which would conflict in any manner
whatsoever with any of his duties, obligations or responsibilities
to the Company pursuant to this Agreement, that he is not in
possession of any document or other tangible property of any
corporation, partnership, firm, company, joint venture or other
entity or other person of a confidential or proprietary nature
which would conflict in any manner whatsoever with any of his
duties, obligations or responsibilities to the Company pursuant to
his Agreement, and that he is fully ready, willing and able to
perform each and all of his duties, obligations and
responsibilities to the Company pursuant to this
Agreement.

 

1

 

 

3.0

Compensation and
Benefits. During the Employment Period, unless sooner
terminated in accordance with the provisions of Section 4, the
Employee shall receive the following compensation and
benefits:

3.1

Salary. The
Company shall pay the Employee, in equal semi-monthly installments
or otherwise in accordance with the Company’s standard
payroll policies as such policies may exist from time to time, an
annual base salary of $600,000. Such salary shall be subject to
review, as determined by the Company’s Compensation Committee
and approved by the Board, on an annual basis, but the Board shall
not decrease the Employee’s annual base salary at any such
annual review.

3.2

Cash Performance
Bonus. The Employee will be included in the Company’s
annual bonus compensation program based on a June 30th year end in an
amount to be decided by the Company’s Compensation Committee
and approved by the Board, payable no later than September
30th of
each year during the Employment Period. The annual incentive bonus
target shall be set by the Compensation Committee, but shall be no
less than sixty percent (60%) of annual base salary and will be
based on specific performance objectives as predetermined by the
Compensation Committee, with the Compensation Committee determining
the June 30th year end percent
achievement of performance objectives. The Compensation Committee
may recommend a discretionary additional amount based on
performance.

3.3

Stock
Options. As additional compensation for services rendered,
the Company has granted to the Employee the right and option to
purchase shares of the Company’s Common Stock and in the
future may grant additional options to purchase shares of the
Company’s Common Stock to the Employee in accordance with the
terms of the Company’s stock plan then in effect.
Notwithstanding any option certificate or agreement to the
contrary, the following provisions apply to all options granted to
the Employee either prior to or after the Commencement
Date:

(a)

All such options
that are not vested as of the Date of Termination (as defined in
Section 6) shall immediately vest and become fully exercisable as
of the Date of Termination, except in the case of termination: (i)
for Cause (as defined in Section 6) or (ii) at the election of the
Employee for any reason other than pursuant to Section 4.1 or for
Good Reason pursuant to Section 4.4 or 4.5. Notwithstanding the
foregoing if upon a Change in Control as defined in Section 6.5 (c)
or (d), any of the options are terminated in connection with the
Change in Control, then all such options that are not vested as of
the date of the Change in Control shall immediately vest and become
fully exercisable immediately prior to the Change in Control;
and

(b)

All of such options
that are vested as of the Date of Termination and that were
outstanding immediately prior to the Commencement Date shall expire
on the first to occur of: (i) 24 months following the
Employee’s retirement; (ii) 24 months following the
Employee’s Date of Termination other than (A) for Cause (as
defined in Section 6), or (B) termination at the election of the
Employee pursuant to Section 4.6; (iii) the expiration date of the
option as set forth in the applicable option certificate or
agreement; or (iv) as otherwise provided in the applicable option
plan in the event of the dissolution or liquidation of the Company,
or a merger, reorganization or consolidation in which the Company
is not the surviving corporation. For purposes of this subsection,
“retirement” requires that the Employee not render
services of any nature for any entity as a regular employee, and
not render services of any nature for any entity for more than an
average of twenty (20) hours per week as a consultant or term
employee. All of such options that were granted on or after the
Commencement Date shall expire on the expiration date of the option
as set forth in the applicable option certificate or agreement in
the event the Employee’s employment terminates other than (A)
for Cause (as defined in Section 6), or (B) at the election of the
Employee pursuant to Section 4.6.

Nothing
in this Section 3.3 shall apply to or affect any equity award that
is not either an incentive stock option under Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”)
or a non-qualified stock option.

 

3.4

Restricted Share
Units. As additional
compensation for services rendered, the Company has granted to the
Employee restricted share units for the issuance of the
Company’s Common Stock and in the future may grant additional
restricted share units for the issuance of the Company’s
Common Stock
to the Employee in accordance with the
terms of the Company’s
stock plan then in effect. Notwithstanding any restricted share
unit certificate or agreement to the contrary, all restricted share
units granted to the Employee either prior to or after the
Commencement Date that are not
vested as of the Date of Termination (as defined in Section 6)
shall immediately vest as of the Date of Termination, except in the
case of termination: (a) for Cause (as defined in Section 6) or (b)
at the election of the Employee for any reason other than
pursuant to Section 4.1
or for Good Reason pursuant to
Section 4.4 or 4.5. To the extent that vesting of any such
restricted shares units otherwise would have been contingent upon
the achievement of performance objectives, vesting of such
restricted share units pursuant to this Section 3.4 shall be (i) at
the “target” level, regardless of achievement of
performance objectives, in the case of termination pursuant to
Section 4.3 or 4.5; or (ii) based upon actual achievement of
performance objectives as determined after the end of the
applicable performance period, in the case of termination under any
other circumstances entitling the Employee to accelerated vesting
pursuant to this Section 3.4. Notwithstanding the foregoing, if
upon a Change in Control as defined in Section 6.5 (c) or (d), any
of the restricted share units are terminated in connection with the
Change in Control, then all such restricted share units that are
not vested as of the date of the Change in Control shall vest as of
the date of the Change in Control.

 

2

 

 

3.5

Fringe-Benefits. The Employee shall be
entitled to participate in all benefit programs that the Company
establishes and makes available to its employees, if any, to the
extent that the Employee’s position, tenure, salary, age,
health and other qualifications make him eligible to participate.
The Employee shall also be entitled to holidays and annual vacation
leave in accordance with the Company’s policy as it exists
from time to time.

3.6

Reimbursement of Expenses. The Company
shall reimburse the Employee for all reasonable travel,
entertainment and other expenses incurred or paid by the Employee
in connection with, or related to, the performance of his duties,
responsibilities or services under this Agreement, upon
presentation by the Employee of documentation, expense statements,
vouchers and/or such other supporting information as the Company
may request, provided however, that the amount available for such
travel, entertainment and other expenses may be fixed in advance by
the Board.

3.7

Insurance. The Employee will be covered
under the Company’s Directors’ and Officers’
liability insurance to the same extent the Company’s
directors and other officers are covered.

4.0

Employment
Termination. The employment of the Employee by the Company
pursuant to this Agreement shall terminate upon the occurrence of
any of the following:

4.1

Expiration of the
Employment Period in accordance with Section 1, unless the Company
and Employee agree to extend the Agreement term or otherwise
continue Employee’s employment on mutually agreeable
terms.

4.2

At the election of
the Company, for Cause (as defined in Section 6), immediately upon
written notice by the Company to the Employee, which notice of
termination shall have been approved by a majority of the
Board.

4.3

Immediately upon
the death or determination of Disability (as defined in Section 6)
of the Employee.

4.4

At the election of
the Employee, for Good Reason (as defined in Section 6),
immediately upon written notice of not less than sixty (60) days
prior to termination by the Employee to the Company.

4.5

At the election of
the Company upon or within twelve (12) months following a Change in
Control (as defined in Section 6), or at the election of the
Employee for Good Reason (as defined in Section 6) upon or within
twelve (12) months following a Change in Control (as defined in
Section 6), immediately upon written notice of
termination.

4.6

At the election of
either party, upon written notice of termination.

5.0

Effect of Termination.

5.1

Compensation &
Benefits.

(a)

As referenced in
this section, compensation following the Employee’s
termination shall be in the form of severance. Severance will be
based on the employee’s base salary in effect as of the
employee’s last day of employment (without regard to any
reduction that constitutes Good Reason) and will be paid in one
lump-sum amount.

(b)

Severance is not
considered compensation for purposes of employee and employer
matching contributions under the 401(k) plan.

(c)

As referenced in
this section, upon termination of the Employee’s employment
with the Company, medical and dental benefits will be available to
the Employee, at his election, solely pursuant to the provisions of
COBRA with the Company paying the full cost of COBRA coverage for a
period up to 24 months if employment is terminated for any reason
except an Employee resignation without Good Reason (as defined in
Section 6) and a Company discharge for Cause (as defined in Section
6). If the Employee is discharged for Cause or the Employee resigns
without Good Reason, the Employee will be required to remit the
COBRA cost (102% of total benefit cost) of coverage.

(d)

Upon termination of
the Employee’s employment with the Company, apart from the
Employee’s election under COBRA to continue medical and
dental benefits (as described in Section 5.1(c)), the Employee will
cease to be eligible for participation in the Company’s
health and welfare insurance and any other fringe benefit programs
that pursuant to their contracts or Company policy require an
active employee status.

 

3

 

 

5.2

Termination By The
Company or at Election of the Employee (other than for Good
Reason).

(a)

If the Employee
elects to terminate his employment for any reason other than for
Good Reason pursuant to Section 4.4 or 4.5, no severance and/or
benefits shall be paid, and the Employee shall be entitled only to
receive payment of his earned but unpaid salary, and accrued
vacation, as of his last day of actual employment by the Company,
which amounts shall be paid within ten (10) days after the Date of
Termination;

(b)

If the Company
elects to terminate the Employee (other than for Cause) pursuant to
Section 4.6, or if the Employee’s employment terminates upon
the expiration of this Agreement pursuant to Section 4.1, the
Company shall pay to the Employee twenty-four (24) months of his
salary in effect on the Date of Termination in one-lump sum amount
within sixty (60) days after the Date of Termination, plus medical
and dental benefits (as described in Section 5.1(c));

(c)

If the Company
terminates the Employee for Cause pursuant to Section 4.2, no
severance and/or benefits shall be paid, and the Employee shall be
entitled only to receive payment of his earned but unpaid salary,
and accrued vacation, as of the Date of Termination. Employee may
elect COBRA medical and dental benefits, in which case the Employee
will be required to remit the COBRA cost (102% of total benefit
cost) of coverage.

5.3

Termination By
Employee Election For Good Reason. If the Employee
terminates employment at his election for Good Reason pursuant to
Section 4.4, other than as provided for in Section 5.4, the Company
shall pay to the Employee twenty-four (24) months of his salary in
effect on the Date of Termination in one-lump sum amount within
sixty (60) days after the Date of Termination, plus medical and
dental benefits (as described in Section 5.1(c)).

5.4

Termination
Following a Change In Control. If the Company terminates the
employment relationship upon or following a Change In Control
pursuant to Section 4.5, or if the Employee terminates employment
at his election for Good Reason upon or following a Change in
Control pursuant to Section 4.5:

(a)

The Company shall
pay to the Employee his annual salary in effect at that time in a
lump sum amount, calculated at two (2.0) times such annual salary,
within sixty (60) days after the Date of Termination, plus
medical/dental care benefits (as described in Section 5.1(c));
and

(b)

For a six (6) month
period after the Date of Termination, the Company shall reimburse
the Employee for reasonable fees and expenses actually incurred by
him for outplacement services in an amount, not to exceed $25,000,
mutually agreed upon by and between the Employee and the Company,
promptly, within ten days, receipt by the Company of satisfactory
evidence of payment of such fees and expenses, but in no event no
later than March 15 of the year following the year in which the
expenses were actually incurred.

5.5

Termination by
Reason of the Employee’s Death or Disability. If,
prior to the expiration of the Employment Period, the
Employee’s employment is terminated by the Employee’s
death or Disability pursuant to Section 4.3, the Company shall pay
to the Employee, or in the case of the Employee’s death, to
the estate of the Employee, twenty-four (24) months of his salary
in effect on the Date of Termination in one-lump sum amount within
sixty (60) days after the Date of Termination, plus medical and
dental benefits (as described in Section 5.1(c)).

5.6

Withholding and
Deductions, 409A.

(a)

All payments
hereunder shall be subject to withholding and to such other
deductions as shall at the time of such payment be required
pursuant to any income tax or other law, whether of the United
States or any other jurisdiction, and, in the case of payments to
the executors or administrators to the Employee's estate, the
delivery to the Company of all necessary tax waivers and other
documents.

(b)

Notwithstanding
anything in this Agreement to the contrary, in the event it shall
be determined that any payment or distribution by the Company or
any of its affiliated companies to or for the benefit of the
Employee (whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise) (a
“Payment”) would be an excess parachute payment within
the meaning of section 280G of the Code (such excess only, an
“Excess Payment”), then the Employee shall forfeit the
Excess Payments to the extent the after-tax value to the Employee
of the Payments as reduced by such forfeiture would be greater than
the after-tax value to the Employee of the Payments absent such
forfeiture. The forfeiture of Excess Payments, if applicable, shall
be applied by: first reducing the cash severance described in
Section 5.4(a) hereof, then to cancellation of accelerated vesting
of performance-based equity awards (based on the reverse order of
the date of grant), then to cancellation of accelerated vesting of
other equity awards (based on the reverse order of the date of
grant), and then to any other Payments on a pro-rata basis. All
determinations required to be made under this Section 5.6(b), and
the assumptions to be used in arriving at such determination, shall
be made by a major accounting firm with expertise in such matters
designated by the Company and reasonably acceptable to the Employee
(the “Accounting Firm”), which shall provide detailed
supporting calculations both to the Company and the Employee within
15 business days of the receipt of notice from the Employee that
there has been (or that there is likely to be) a Payment, or such
earlier time as is requested by the Company. In connection with
making determinations under this Section 5.6(b), the Accounting
Firm shall take into account the value of any reasonable
compensation for services to be rendered by the Employee before or
after the change in control, including any noncompetition
provisions that may apply to the Employee (whether set forth in
this Agreement or otherwise), and the Company shall cooperate in
the valuation of any such services, including any noncompetition
provisions. Any determination by the Accounting Firm in good faith
shall be binding upon the Company and the Employee. All fees and
expenses of the Accounting Firm for services performed pursuant to
this Section 5.6(b) shall be borne solely by the
Company.

 

4

 

 

(c)

As provided herein,
the Company shall pay the full cost of the Employee’s COBRA
premiums under this Section 5.

(d)

The payments and benefits provided for in Sections
5.2(b), 5.3, 5.4, 5.5, 5.6(b) and 5.6(c) of this Agreement are
intended to constitute a short-term deferral pursuant to Treas.
Reg. § 1.409A-1(b)(4) and thus not “nonqualified
deferred compensation” subject to Section 409A of the Code.
If the payments and benefits provided for in Sections 5.2(b), 5.3,
5.4, 5.5, 5.6(b) and 5.6(c) of this Agreement are deemed to provide
for the payment of non-qualified deferred compensation benefits in
connection with a separation of service under Section 409A(2)(a)(i)
of the Code, the following interpretations apply to Sections
5.2(b), 5.3, 5.4, 5.5, 5.6(b) and 5.6(c): (i) Any termination of
the Employee’s employment triggering payment of benefits
under Sections 5.2(b), 5.3, 5.4, 5.5, 5.6(b) and 5.6(c) must
constitute a “separation from service” under Section
409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h)
before distribution of such benefits can commence. To the extent
that the termination of Employee’s employment does not
constitute a separation of service under Section 409A(a)(2)(A)(i)
of the Code and Treas. Reg. §1.409A-1(h) (as the result of
further services that are reasonably anticipated to be provided by
Employee to the Company at the time the Employee’s employment
terminates), any benefits payable under Sections 5.2(b), 5.3, 5.4,
5.5, 5.6(b) and 5.6(c) that constitute deferred compensation under
Section 409A of the Code shall be delayed until after the date of a
subsequent event constituting a separation of service under Section
409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h). For
purposes of clarification, this Section 5.6(d) shall not cause any
forfeiture of benefits on the Employee’s part, but shall only
act as a delay until such time as a “separation from
service” occurs; (ii) If the Employee is a “specified employee”
(as that term is used in
Section 409A of the Code and regulations and other guidance issued
thereunder) on the date his separation from service becomes
effective, any benefits payable under Sections 5.2(b), 5.3, 5.4,
5.5, 5.6(b) and 5.6(c) that constitute non-qualified deferred
compensation under Section 409A of the Code shall be delayed until
the earlier of (A) the business day following the six-month
anniversary of the date his separation from service becomes
effective, and (B) the date of his death, but only to the extent necessary to
avoid such penalties under Section
409A of the Code. On the earlier of (A) the business day following
the six-month anniversary of the date his separation from service
becomes effective, and (B) the Employee’s death, the Company
shall pay the Employee in a lump sum the aggregate value of the
non-qualified deferred compensation that the Company otherwise
would have paid to the Employee prior to that date under Sections
5.2(b), 5.3, 5.4, 5.5, 5.6(b) and 5.6(c) of this Agreement; (iii)
It is intended that each installment of the payments and benefits
provided under Sections 5.2(b), 5.3, 5.4, 5.5, 5.6(b) and 5.6(c) of
this Agreement shall be treated as a separate “payment”
for purposes of Section 409A of the Code; (iv) Neither the Company
nor the Employee shall have the right to accelerate or defer the
delivery of any such payments or benefits except to the extent
specifically permitted or required by Section 409A of the Code);
and (v) to the extent that the period between the Date of
Termination and the date upon which payment is required to be made
or commence begins in one calendar year and ends in a second
calendar year, payment will be made or commence in the second
calendar year.

5.7

Release of
Claims.  The
Employee’s entitlement to severance, payment of COBRA
premiums, and accelerated vesting of options, restricted share
units and other equity incentive awards, is contingent upon the
Employee’s execution, within 21 days after the Date of
Termination (or such longer period as required by applicable law),
and non-revocation of a general release of claims in a form
prepared by the Company and presented to the Employee upon
termination of his employment hereunder, as well as the
Employee’s compliance with the provisions of Section 7
hereof.

5.8

No Requirement to
Mitigate. The Employee shall not be required to mitigate the
amount of any payment provided for in this Section 5 by seeking
other employment or otherwise.

6.0

Definitions.
For purposes of this Agreement the following definitions
apply:

6.1

“Cause”
shall mean the occurrence of any of the following
circumstances:

(a)

(i) the
Employee’s material breach of, or habitual neglect or failure
to perform the material duties which he is required to perform
under, the terms of this Agreement; (ii) the Employee’s
material failure to follow the reasonable directives or policies
established by or at the direction of the Board; or (iii) the
Employee’s engaging in conduct that is materially detrimental
to the interests of the Company such that the Company sustains a
material loss or injury as a result thereof, provided that the
breach or failure of performance by the Employee under
subparagraphs (i) through (iii) hereof is not cured, to the extent
cure is possible, within ten (10) days of the delivery to the
Employee of written notice thereof;

(b)

the willful breach
by the Employee of Section 7 of this Agreement or any provision of
any confidentiality, invention and non-disclosure, non-competition
or similar agreement between the Employee and the Company;
or

(c)

the conviction of
the Employee of, or the entry of a pleading of guilty or nolo
contendere by the Employee to, any crime involving moral turpitude
or any felony.

 

5

 

 

 

6.2

“Date of
Termination”
shall mean the Employee’s last day of actual employment by
the Company (or its successor) for any reason including death or
Disability.

6.3

“Disability”
shall mean the inability of the Employee, by reason of illness,
accident or other physical or mental disability, for a period of
120 days, whether or not consecutive, during any 360-day period, to
perform the services contemplated under this Agreement. A
determination of disability shall be made by a physician
satisfactory to both the Employee and the Company; provided,
however, that if the Employee and the Company do not agree on a
physician, the Employee and the Company shall each select a
physician and these two together shall select a third physician,
whose determination as to disability shall be binding on all
parties.

6.4

“Good
Reason” shall mean the occurrence of any of the
following circumstances, and the Company’s failure to cure
such circumstances within thirty (30) days of the delivery to the
Company of written notice by the Employee of such circumstances;
provided that the Employee gives notice to the Company of the
existence of the event or condition constituting Good Reason within
thirty (30) days after such event or condition initially occurs or
exists, and the Employee terminates his employment within one
hundred and twenty (120) days after the initial occurrence of the
event or condition constituting Good Reason:

(a)

any material
adverse change in the Employee’s duties, authority or
responsibilities as described in Section 2.1 hereof which causes
the Employee’s position with the Company to become of
significantly less responsibility or assignment of duties and
responsibilities inconsistent with the Employee’s
position;

(b)

a material
reduction in the Employee’s salary as in effect on the
Commencement Date or as the same may be increased from time to
time;

(c)

the failure of the
Company to continue in effect any material compensation or benefit
plan in which the Employee participates as in effect on the
Commencement Date, unless an equitable arrangement (embodied in an
ongoing substitute or alternative plan) has been made with respect
to such plan, or the failure by the Company to continue the
Employee’s participation therein (or in such substitute or
alternative plan) on a basis not materially less favorable, both in
terms of the amount of benefits provided and the level of the
Employee’s participation relative to other participants, as
in effect on the Commencement Date;

(d)

any material
adverse change in the Employee’s compensation resulting from
(i) the failure by the Company to continue to provide the Employee
with benefits substantially similar to those enjoyed by the
Employee under any of the Company’s health and welfare
insurance, retirement and other fringe-benefit plans insurance, in
which the Employee was participating as in effect on the
Commencement Date, (ii) the taking of any action by the Company
which would directly or indirectly materially reduce any of such
benefits, or (iii) the failure by the Company to provide the
Employee with the number of paid vacation days to which he is
entitled in accordance with the Company’s normal vacation
policy in effect on the Commencement Date or in accordance with any
agreement between the Employee and the Company existing at that
time; or

(e)

the relocation of
the Employee to a location which is a material distance from
Cranbury, New Jersey.

(f)

For purposes of
this Agreement, “Good Reason” shall be interpreted in a
manner, and limited to the extent necessary, so that it will not
cause adverse tax consequences for either party with respect to
Section 409A of the Code, and any successor statute, regulation and
guidance thereto.

6.5

“Change in
Control” shall mean the occurrence of any of the
following events:

(a)

any
“person,” as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) (other than the Company, any trustee or
other fiduciary holding securities under an employee benefit plan
of the Company, or any corporation owned directly or indirectly by
the stockholders of the Company in substantially the same
proportion as their ownership of stock of the Company) becomes the
“beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company
representing more than 50% of the combined voting power of the
Company’s then outstanding securities;

(b)

the date the
individuals who, during any twelve month period, constitute the
Board (the “Incumbent Board”) cease for any reason to
constitute at least a majority of the Board, provided that any
person becoming a director during the twelve month period whose
election, or nomination for election by the Company’s
stockholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board (other than an
election or nomination of an individual whose initial assumption of
office is in connection with an actual or threatened election
contest relating to the election of the directors of the Company,
as such terms are used in Rule 14a-11 of Regulation 14A under the
Exchange Act) shall be, for purposes of this Agreement, considered
as though such person were a member of the Incumbent
Board;

(c)

a merger or
consolidation of the Company approved by the stockholders of the
Company with any other corporation, other than (i) a merger or
consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) 50% or more of the
combined voting power of the voting securities of the Company or
such surviving entity outstanding immediately after such merger or
consolidation or (ii) a merger or consolidation effected to
implement a re-capitalization of the Company (or similar
transaction) in which no “person” (as defined in
Section 6.4(a)) acquires more than 50% of the combined voting power
of the Company’s then outstanding securities; or

(d)

a sale of all or
substantially all of the assets of the Company.

 

6

 

 

7.0

Restrictive Covenants.

(a)

For the purposes of
this Agreement:

(i)

“Competing Products” means any
products or processes of any person or organization other than the
Company in existence or under development, which are substantially
the same, may be substituted for, or applied to substantially the
same end use as the products or processes that the Company is
developing or has developed or commercialized during the time of
the Employee’s employment with the Company.

(ii)

“Competing Organization”
means any person or organization engaged in, or with definitive
plans to become engaged in, research or development, production,
distribution, marketing or selling of a Competing
Product.

(b)

The Employee
acknowledges that he has, on or prior to the date of the Agreement,
executed and delivered to the Company an Employee Agreement on
Confidentiality, Intellectual Property, Debarment Certification and
Conflict of Interest (the “Confidentiality Agreement”)
and the Employee hereby affirms and ratifies his obligations
thereunder; and the Employee agrees that after termination by the
Company for Cause pursuant to Section 4.2 (except in the case where
such termination occurs within 12 months following a Change in
Control), by the Employee pursuant to Section 4.6, or by either
party upon expiration of the Employment Period, he will not render
services of any nature, directly or indirectly, to any Competing
Organization in connection with any Competing Product within any
geographical territory as the Company and such Competing
Organization are or would be in actual competition, for a period of
twenty-four (24) months, commencing on the Date of
Termination.

(c)

The Employee agrees
that he will not, during the Employment Period and for a period of
nine (9) months commencing on the Date of Termination, directly or
indirectly employ, solicit for employment, or advise or recommend
to any other person that they employ or solicit for employment, any
person whom he knows to be an employee of the Company or any
parent, subsidiary or affiliate of the Company.

(d)

In the event a
court of competent jurisdiction should find any provision in this
Section 7 to be unfair or unreasonable, such finding shall not
render such provision unenforceable, but, rather, this provision
shall be modified as to subject matter, time and geographic area so
as to render the entire section valid and enforceable.

8.0

Notices. All
notices required or permitted under this Agreement shall be in
writing and shall be deemed effective upon either: (a) personal
delivery; or (b) three (3) days following deposit with the United
States Postal Service for delivery by registered or certified mail,
postage prepaid, or one (1) day following deposit with a reputable
overnight courier service, addressed to the other party at the
address shown above, or at such other address or addresses as
either party shall designate to the other in accordance with this
Section 8.

9.0

Pronouns.
Whenever the context may require, any pronouns used in this
Agreement shall include the corresponding masculine, feminine or
neuter forms, and the singular forms of nouns and pronouns shall
include the plural, and vice versa.

10.0

Entire
Agreement. This Agreement, together with the Confidentiality
Agreement, constitutes the entire agreement between the parties and
supersedes all prior agreements and understandings, whether written
or oral, relating to the subject matter of this Agreement,
including the Employment Agreement between the Company and the
Employee dated as of July 1, 2016.

11.0

Amendment.
This Agreement may be amended or modified only by a written
instrument executed by both the Company and the Employee. Any such
amendment shall comply with the requirements of Section 409A of the
Code, if applicable.

12.0

Governing
Law. This Agreement shall be construed, interpreted and
enforced in accordance with the laws of New Jersey, without regard
to its principles of conflict of laws.

13.0

Successors and
Assigns. This Agreement shall be binding upon and inure to
the benefit of both parties and their respective successors and
assigns, including any corporation with which or into which the
Company may be merged or which may succeed to its assets or
business; provided, however, that the obligations of the Employee
are unique and personal and shall not be assigned by
him.

 

7

 

 

14.0

Waiver of Breach.

14.1

Waiver by the
Company. 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
or waiver of any right on any other occasion. No waiver by the
Company shall be valid unless in writing signed by an authorized
officer of the Company and approved by a majority of the
Board.

14.2

Waiver by the
Employee. No delay or
omission by the Employee 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 Employee on any one occasion shall
be effective only in that instance and shall not be construed as a
bar or waiver of any right on any other occasion. No waiver by the
Employee shall be valid unless in a writing signed by the
Employee.

15.0

Miscellaneous.

15.1

The captions of the
sections of this Agreement are for convenience of reference only
and in no way define, limit or affect the scope or substance of any
section of this Agreement.

15.2

In case any
provision of this Agreement shall be invalid, illegal or otherwise
unenforceable, the validity, legality and enforceability of the
remaining provisions shall in no way be affected or impaired
thereby.

16.0

Survival.
The provisions of Sections 3.3, 5, 6, 7 and 8 shall survive the
termination of this Agreement.

17.0

Timing of
Reimbursements. All reimbursements made by the Company
pursuant to this Agreement will be made within 30 days from the
date the Employee submits documentation of the expenses. Employee
will submit documentation substantiating expenses within 30 days
from the date the expenses are incurred.

 

 

 

 

8

EXECUTION COPY

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as
an instrument under seal effective as of the day and year set forth
above.

 

 

	
PALATIN
TECHNOLOGIES, INC. 

	

 

	

 

	
EMPLOYEE

	

 

	
/s/ Stephen T.
Wills

	

 

	

 

	
/s/ Carl
Spana

	

 

	
Name: Stephen T.
Wills

	

 

	

 

	
Name: Carl
Spana

	

 

	
Title:
Executive V.P.,
Chief Financial Officer and Chief Operating
Officer

	

 

	

 

	
Title:
Chief
Executive Officer and President

	

 

	
Date: June 26,
2019    
 

	

 

	

 

	
Date: June 26,
2019    

	

 

 

 

 

 

 

9

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