Document:

employmentagreementpdt.htm

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT (“Agreement”) is made and entered into as of the 9th day of October, 2014 (“Effective Date”), by and between Radio One, Inc. (“Company”), a Delaware corporation having its principal place of business at 1010 Wayne Avenue, 14th Floor, Silver Spring, Maryland, and Peter D. Thompson (“Employee”), an individual residing at 1111 23rd Street NW, Unit 4A, Washington, D.C.

 

RECITALS

WHEREAS, Company is engaged in the business of owning and managing broadcast media, directly and through subsidiaries and affiliates, including certain radio stations serving various Nielsen Audio Total Survey Areas; and

WHEREAS, Company desires to employ Employee to perform such services as described below, in accordance with the terms hereof; and

WHEREAS, Employee desires to be employed by Company, in accordance with the terms hereof;

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants hereinafter set forth, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Company and Employee, intending to be legally bound, hereby agree as follows:

 

COVENANTS

	
1.  

	
Employment.  Company hereby employs Employee in the position of Executive Vice President and Chief Financial Officer.

 

	
2.  

	
Term and Exclusive Negotiation Period.

 

	
(a)  

	
Term. Employee’s employment under this Agreement shall commence on January 1, 2014 (“Commencement Date”) and shall continue in full force and effect for a period of three (3) years until December 31, 2016 (“Term”), unless earlier terminated by Company pursuant to the provisions of Section 10 hereof.

 

	
(b)  

	
Exclusive Negotiation Period. The parties hereto agree that either of them may initiate a period of exclusive good faith negotiation to commence no earlier than ninety (90) days prior to the expiration date of this Agreement and terminate thirty (30) days after Employee ceases to be employed by Company (“Exclusive Negotiation Period”), during which time the parties will engage in exclusive good faith negotiations for extending this Agreement on mutually agreeable terms and conditions.  If either party initiates negotiations, Company agrees to provide Employee with the compensation terms that Company would be willing to pay to extend the Agreement for an additional period of time beyond the Term. If the parties are unable to reach agreement to extend this Agreement within the Exclusive Negotiation Period, Employee thereafter shall be permitted to solicit and/or entertain offers from, and to negotiate with, third parties, following the expiration of the Exclusive Negotiation Period.

 

	
3.  

	
Duties.

 

	
3.1.  

	
Employee hereby agrees to the following, without limitation:

 

	
(a)  

	
Employee shall perform such duties as are usual and customary for a Chief Financial Officer, including achieving annual business and performance objectives as established by the Chief Executive Officer.

 

	
(b)  

	
Employee’s performance shall be at the direction of, and in accordance with the determination of, the Chief Executive Officer.

 

	
3.2.  

	
Employee shall devote Employee’s best efforts to the business and affairs of Company and the performance of Employee’s duties under this Agreement.

 

	
3.3.  

	
Employee shall devote Employee’s full time, energy, and skill to the performance of the services in which Company is engaged, at such time and place as Company may direct. Employee shall not undertake, either as an owner, director, shareholder, employee or otherwise, the performance of services for compensation (actual or expected), either directly or indirectly, on behalf of Employee or any other person or entity, without the prior express written consent of Company.

 

	
3.4.  

	
Employee shall faithfully and industriously assume and perform with skill, care, diligence, and attention all responsibilities and duties connected with Employee’s employment on behalf of Company.

 

	
3.5.  

	
The normal working hours of Employee shall be as established by the Chief Executive Officer.

 

	
3.6.  

	
Employee shall be based in Company’s Corporate Offices in Silver Spring, Maryland and shall reside in the Washington, D.C. metropolitan area.

 

  

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4.  

	
Compensation.

 

	
(a)  

	
Base Compensation. Subject to subsection (b) hereof, effective as of October 1, 2014, Employee’s base compensation shall be the amount of Six Hundred Fifty Thousand Dollars ($650,000) per year, subject to applicable deductions and payable semimonthly in accordance with Company’s standard payroll schedule and policy.

 

	
(b)  

	
Adjustment to Compensation. Company shall retain the right to adjust Employee’s base compensation as a result of economic conditions, provided that other similarly-situated employees shall have their compensation adjusted in a similar manner.

 

	
(c)  

	
Signing Bonus. Following full execution of this Agreement, Company shall pay to Employee a one-time Signing Bonus in the amount of Six Hundred Fifty Thousand Dollars ($650,000), subject to applicable deductions. Employee agrees that if Employee’s employment with Company terminates prior to December 31, 2016, Employee shall repay Company a pro rata share of the Signing Bonus at the rate of one-thirty-sixth (1/36th) for each month or portion of a month that Employee’s employment is less than thirty-six (36) months; except that Employee shall not be required to repay Company the pro rata share of the Signing Bonus if Employee’s employment is terminated by Company for other than cause pursuant to Section 10(b) of this Agreement.  Employee further agrees that Company shall be entitled to withhold from any compensation due Employee the amount of any portion of the Signing Bonus required to be repaid to Company.

 

	
(d)  

	
Annual Performance Bonus Potential.

 

	
(i)  

	
Performance Bonus. Employee shall be eligible to receive performance bonus compensation in an amount not to exceed One Hundred Seventy Five Thousand Dollars ($175,000) per year, subject to applicable deductions, at the conclusion of each calendar year that (i) Employee remains actively employed by Company, (ii) Employee is in compliance with the terms of this Agreement as well as Company policies, procedures, and directives concerning job performance and conduct, and (iii) Employee achieves certain performance metrics as determined by Company’s Chief Executive Officer and Board of Directors. For the avoidance of doubt, eligibility for payment requires Employee to be actively employed by Company on the date the bonus is paid.  Bonus criteria are subject to change by Company, in its sole discretion, upon reasonable notice to Employee.  Subject to Section 4(d)(iii) hereof, bonus payments due Employee pursuant to this subsection shall be made to Employee as a cash lump sum no later than the end of the quarter following the calendar year for which the bonus was calculated.

 

	
(ii)  

	
Discretionary Performance Bonus.  Employee shall be eligible to receive discretionary performance bonus compensation in an amount not to exceed One Hundred Seventy Five Thousand Dollars ($175,000) per year, subject to applicable deductions, at the conclusion of each calendar year that (i) Employee remains actively employed by Company, (ii) Employee is in compliance with the terms of this Agreement as well as Company policies, procedures, and directives concerning job performance and conduct, and (iii) Employee’s performance satisfies certain criteria to be determined by Company’s Chief Executive Officer and Board of Directors, in their sole discretion. For the avoidance of doubt, eligibility for payment requires Employee to be actively employed by Company on the date the bonus is paid.  Subject to Section 4(d)(iii) hereof, bonus payments due Employee pursuant to this subsection shall be made to Employee as a cash lump sum no later than the end of the quarter following the calendar year for which the bonus was calculated.

 

	
(iii)  

	
Stock Substitution. Company, in its sole discretion, reserves the right to substitute equivalent shares of Class D common stock under the Radio One 2009 Stock Option and Restricted Stock Grant Plan (“Plan”) in lieu of cash payments otherwise due under Section 4(d)(i) through (ii) of this Agreement.  The number of shares granted shall be equal to the amount of the bonus earned, divided by the closing share price on the grant date, which date shall be the fifth calendar day of the month following the date on which the bonus was calculated. Other material terms of the stock grant shall be as set forth in the Plan and related policies, which documentation shall be made available to Employee on or about the effective date of the grant.

 

  

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(e)  

	
Restricted Stock Grant and Stock Options.

 

	
(i)  

	
Restricted Stock. Subject to the provisions of the Plan, as defined in this Agreement, Employee shall receive a restricted stock grant of Three Hundred Fifty Thousand (350,000) shares of Class D common stock, provided that Employee remains employed by Company on the vesting dates.  Such shares shall vest in the following increments: Two Hundred Thousand (200,000) shares on April 6, 2015, Seventy Five Thousand (75,000) shares on December 31, 2015, and Seventy Five Thousand (75,000) shares on December 31, 2016.

 

	
(ii)  

	
Stock Options.  Subject to the provisions of the Plan, as defined in this Agreement, Employee shall be granted an option to purchase Two Hundred Twenty Five Thousand (225,000) shares of Company’s Class D common class stock at the market price of Two Dollars and Seventy Five Cents ($2.75) per share (i.e., the closing price per share on October 6, 2014), provided that Employee remains employed by Company on the vesting dates. Such options shall vest in equal increments of One Hundred Twelve Thousand Five Hundred (112,500) on December 31, 2015 and December 31, 2016.

 

	
(iii)  

	
Other material terms of the restricted stock grant and stock options shall be as set forth in the Plan and related documentation to be made available to Employee upon reasonable request.

 

	
5.  

	
Paid Time Off and Benefits.

 

	
5.1.  

	
Employee shall be eligible to accrue up to Two Hundred Sixteen (216) Paid Time Off (“PTO”) hours annually in accordance with Company’s PTO Policy.  All PTO requests must be approved in advance by the Chief Executive Officer.

 

	
5.2.  

	
Employee shall be eligible to participate in the employee benefit plans and programs that Company generally makes available to its employees, subject to the terms and conditions of each such benefit plan or program.  Notwithstanding the foregoing, any severance payable to Employee shall be governed solely by this Agreement, and Employee shall not be eligible to participate in any severance program of general application maintained by Company.

 

	
5.3.  

	
Employee shall be entitled to a car allowance in an amount not to exceed One Thousand Two Hundred Dollars ($1,200) per month.  Employee acknowledges and understands that all amounts paid to or on behalf of Employee for as a car allowance shall be treated as taxable income to Employee for tax purposes.

 

	
5.4.  

	
Company reserves the right to amend or change, in its sole discretion, any of its PTO, leave, and other employee benefit plans and programs.

 

	
6.  

	
Exclusive Services and Rights.  Employee shall not tender any services of the kind or nature provided for under this Agreement, either directly or indirectly, on behalf of Employee or any other person or entity, without the prior express written consent of Company.

 

	
7.  

	
Personal Conduct.  Employee agrees to comply with all applicable policies, requirements, directions, requests, and rules of Company, and further agrees to not at any time commit any act, or become involved in any situation or occurrence, that may reflect unfavorably on Company’s reputation, bring Company into public scandal, or subject Company to ridicule, as determined solely by Company, including but not limited to matters of moral turpitude, theft, fraud, or deceit.  Employee acknowledges and agrees that violation of this Section 7 may subject Employee to disciplinary action, including, without limitation, termination of employment.  It is understood and agreed that nothing in this Section will be interpreted or applied in a manner that is inconsistent with applicable laws.

 

	
8.  

	
Payola. Employee warrants and represents that Employee will not accept or agree to pay any money, service or other valuable consideration, as defined in Section 507 of the Communications Act of 1934, as amended, for the broadcast of any matter over Company’s stations, without Company’s approval and full disclosure to the listening public at the time of broadcast. Employee agrees to promptly notify the Chief Executive Officer and the Senior Vice President of Programming Content of any occurrences whereby anyone offers any money, service or other valuable consideration for the broadcast of any matter over Company’s stations. Employee further warrants and represents that Employee will comply in all respects with Company’s Payola, Plugola, & Music Selection Compliance Policy. Employee acknowledges and agrees that Company shall have the right to terminate this Agreement for cause upon Employee’s violation of this Section 8.

 

	
9.  

	
Plugola. Employee warrants and represents that Employee will not cause to be broadcast any material that directly or indirectly promotes any activity in which Employee has a financial interest, absent prior disclosure to, and approval by, the Chief Executive Officer and the Senior Vice President of Programming Content. Should the Chief Executive Officer and the Senior Vice President of Programming Content grant such approval, Employee shall disclose the fact of Employee’s financial interest in the activity to the listening public. Employee acknowledges and agrees that Company shall have the right to terminate this Agreement for cause upon Employee’s violation of this Section 9.

 

 

 

  

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10.  

	
Termination.

 

	
(a)  

	
Termination for Cause.  Employee’s employment may be terminated at any time for cause.  For purposes of this Agreement, “cause” may include, but is not limited to, any one or more of the following:

 

	
(i)  

	
Employee’s breach of any material provision of this Agreement.

 

	
(ii)  

	
Employee’s arrest, indictment, or conviction on a felony charge or other crime involving moral turpitude, or plea of guilty or nolo contendere to a felony charge or other crime involving moral turpitude.

 

	
(iii)  

	
Employee’s insubordination or willful refusal to follow the reasonable instructions of Employee’s superiors, including but not limited to the Chief Executive Officer or the Board of Directors.

 

	
(iv)  

	
Employee’s failure to perform the duties of the Employee’s position in a satisfactory manner.

 

	
(v)  

	
Employee’s willful disregard of Company policies and procedures.

 

	
(vi)  

	
Any act or failure to act by Employee that in any manner threatens the qualification of Company or its affiliates to maintain a broadcast license issued by the Federal Communications Commission (“FCC”), or that results in a violation of any rule or regulation of the FCC.

 

	
(vii)  

	
Employee’s making of any disparaging oral or written statements regarding Company or any of its subsidiaries or affiliates, including, without limitation, its officers, directors, shareholders, managers, clients, sponsors, or advertisers, in a manner or under circumstances not protected by applicable law.

 

	
(viii)  

	
Employee’s acting in a tortious manner toward another employee, contractor, listener, client, sponsor, or advertiser.

 

	
(ix)  

	
Employee’s use, possession, or distribution of illegal drugs, a non-prescribed controlled substance, or alcohol, or Employee’s being under the influence of any of the foregoing, on Company premises or during the performance of Employee’s duties.

 

	
(x)  

	
Employee’s fraud, misappropriation of funds, embezzlement, theft or acts of similar dishonesty.

 

	
(xi)  

	
Employee’s intentional or willful misconduct that may subject Company to criminal or civil liability.

 

	
(xii)  

	
Breach of Employee’s duty of loyalty, including the diversion or usurpation of corporate opportunities properly belonging to Company.

 

	
(xiii)  

	
Employee’s falsification of Company documents or other misrepresentation related to the business and affairs of Company.

 

	
(xiv)  

	
Employee’s excessive tardiness or absenteeism.

 

	
(xv)  

	
Any conduct of Employee, whether on duty or off duty, that adversely affects Company’s reputation and goodwill in the community, as determined by Company in its sole discretion, where such conduct is not protected by applicable law.

 

	
(b)  

	
Termination for Other Than Cause. Company shall have the right to terminate Employee’s employment at any time for other than cause.  In the event that Company terminates Employee’s employment for other than cause, provided that Employee executes a general liability release in a form satisfactory to Company, Company shall pay to Employee the amount of six (6) months’ base compensation, subject to applicable federal, state, and local deductions.  For purposes of Section 409A of the United States Internal Revenue Code of 1986, as amended, and the Treasury Regulations (including proposed regulations) and guidance promulgated thereunder (collectively, “Code Section 409A”), Employee’s termination pursuant to this subsection (b) is intended to mean an involuntary Separation from Service as defined in Code Section 409A.

 

  

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(c)  

	
Termination by Death or Disability.

 

	
(i)  

	
Employee’s employment shall terminate immediately upon Employee’s death.  In the event of termination by reason of death, Employee shall be entitled only to compensation earned as of the last day worked.

 

	
(ii)  

	
Subject to compliance with federal and state laws, if Employee, with or without a reasonable accommodation, shall be incapable of substantially performing the essential functions, duties, responsibilities, and obligations set forth in this Agreement, Company shall have the right to terminate Employee’s employment immediately upon the date on which the Employee suffers a “Disability.” “Disability” means that Employee is (a) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (b) by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of Company, or (c) determined to be totally disabled by the Social Security Administration. In the event of termination by reason of disability, Employee shall be entitled only to compensation earned as of the last day worked.

 

	
(iii)  

	
Employee’s heirs, beneficiaries, successors, or assigns shall not be entitled to any of the compensation or benefits to which Employee is entitled under this Agreement, except: (a) to the extent specifically provided in this Employment Agreement; (b) to the extent required by law; or (c) to the extent that Company’s benefit plans or policies under which Employee is covered provide a benefit to Employee’s heirs, beneficiaries, successors, or assigns.

 

	
(d)  

	
No Future Employment or Other Relationship.  In the event of the termination of Employee’s employment, whether for cause or for other than cause, Employee agrees never to seek, directly or indirectly, any employment, business or other relationship with Company, or any subsidiary or affiliate of Company, on behalf of Employee and/or on behalf of any person or entity associated in any way with Employee. Employee acknowledges and agrees that Company and any of its subsidiaries or affiliates, in their sole discretion, shall have the right to reject any employment application, business proposal, or other proposal made by Employee, or made on Employee’s behalf, or made by or on behalf of any person or entity associated in any way with Employee.  Employee further acknowledges and agrees that the terms of this subsection shall be good and sufficient cause for Company, or any subsidiary or affiliate of Company, to reject any employment application, business proposal, or other proposal made by Employee, or made on Employee’s behalf, or made by or on behalf of any person or entity associated in any way with Employee, and that any refusal to reemploy or do business with Employee or anyone associated with Employee or acting on Employee’s behalf shall legitimately be based upon the terms of this subsection alone and not for any other reason. For the avoidance of doubt, this subsection shall not operate to waive or extinguish any rights or claims of Employee that cannot be waived or extinguished under applicable law. Notwithstanding the foregoing, nothing in this subsection shall preclude Company or any subsidiary or affiliate of Company, in its sole discretion, from seeking or initiating a subsequent employment, business, or other relationship with Employee or a person or entity associated with Employee.

 

	
(e)  

	
Return of Company Property.  In the event of termination of Employee’s employment, Employee shall immediately return to Company, without limitation, all papers, materials, reports, memoranda, notes, plans, records, reports, computer tapes, software, and any other documents or items of whatever nature owned by Company or supplied to Employee by Company in connection with, or in the course of, Employee’s employment.

 

	
(f)  

	
Cooperation. Employee agrees to fully cooperate with Company and its attorneys in connection with any pending or future litigation, claim, dispute, investigation, or other proceeding arising out of or relating to (i) matters of which Employee has knowledge or, if Employee’s employment has terminated, (ii) matters of which Employee was involved prior to the termination of Employee’s employment. Employee’s cooperation shall include, without limitation, providing assistance to Company’s counsel, experts, and consultants, and providing truthful testimony in pretrial and trial or hearing proceedings. Company will use reasonable efforts to minimize interruptions to Employee’s schedule to the extent consistent with its interests in the matter and will reimburse Employee for reasonable and appropriate out-of-pocket expenses actually incurred by Employee in connection with such cooperation, upon reasonable substantiation of such expenses.

 

	
(g)  

	
Code Section 409A. To the extent any severance payments due Employee pursuant to subsection (b) hereof shall be treated as deferred compensation under Code Section 409A, payment of such amount shall be delayed until the first day of the seventh month following the date of Employee’s termination, but only to the extent that such delay is necessary in order to avoid penalties under Code Section 409A with respect to payments to a Specified Employee, as defined in Treasury Regulations Section 1.409A-1(i) upon Separation from Service, as defined in Treasury Regulations Section 1.409A-1(h).

 

  

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11.  

	
Confidential Information.

 

	
11.1.  

	
“Confidential Information” is information however delivered, disclosed or discovered that Employee has, or in the exercise of ordinary prudence should have, reason to believe is confidential or that Company designates as confidential, including, but not limited to:

 

	
(a)  

	
Company Information:  company proprietary information, technical data, trade secrets or know-how, including but not limited to: research, processes, pricing strategies, communication strategies, sales strategies, sales literature, sales contracts, product plans, products, inventions, methods, services, computer codes or instructions, software and software documentation, equipment, costs, customer lists, business studies, business procedures, finances and other business information disclosed to Employee by Company, either directly or indirectly in writing, orally or by drawings or observation of parts or equipment and such other documentation and information as is necessary in the conduct of the business of Company; and

 

	
(b)  

	
Third Party Information:  confidential or proprietary information received by Company from third parties.

 

	
11.2.  

	
Company’s failure to mark any of the Confidential Information as confidential or proprietary will not affect its status as Confidential Information.

 

	
11.3.  

	
Employee agrees that the terms, conditions and subject matter of this Agreement are considered Confidential Information, except that Employee may disclose the terms, conditions and subject matter of this Agreement to Employee’s attorneys, accountants or financial advisors, and spouse or domestic partner.

 

	
11.4.  

	
Confidential Information does not include information that has ceased to be confidential by reason of any of the following: (i) was in Employee’s possession prior to the date of this Agreement, provided that such information is not known by Employee to be subject to another confidentiality agreement with, or other obligation of secrecy to, Company, or another party; (ii) is generally available to the public and became generally available to the public other than as a result of a disclosure in violation of this Agreement; (iii) became available to Employee on a non-confidential basis from a third party, provided that such third party is not known by Employee to be bound by a confidentiality agreement with, or other obligation of secrecy to, Company, or another party or is otherwise prohibited from providing such information to Employee by a contractual, legal or fiduciary obligation; or (iv) Employee is required to disclose pursuant to applicable law or regulation (as to which information, Employee will provide Company with prior notice of such requirement and, if practicable, an opportunity to obtain an appropriate protective order).

 

	
11.5.  

	
Employee shall not, either during or after the termination of Employee’s employment with Company, communicate or disclose to any third party the substance or content of any Confidential Information, or use such Confidential Information for any purpose other than the performance of Employee’s obligations hereunder. Employee acknowledges and agrees that any Confidential Information obtained by Employee during the performance of Employee’s employment concerning the business or affairs of Company, or any subsidiary, affiliate, or joint venture of Company, is the property of Company, or such subsidiary, affiliate, or joint venture of Company, as the case may be.

 

	
11.6.  

	
Employee agrees to return all Confidential Information, including all copies and versions of such Confidential Information (including but not limited to information maintained on paper, disk, CD-ROM, network server, or any other retention device whatsoever) and other property of Company, to Company immediately upon Employee’s separation from Company (regardless of the reason for the separation).

 

	
11.7.  

	
The terms of this Section 11 are in addition to, and not in lieu of, any other contractual, statutory, or common law obligations that Employee may have relating to the protection of Company’s Confidential Information or its property. The terms of this Section 11 shall survive for two (2) years following Employee’s separation from employment with Company.

 

  

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12.  

	
Noncompetition and Nonsolicitation.

 

	
12.1.  

	
Employee acknowledges that, by reason of Employee’s employment, Employee will have access to and may acquire considerable knowledge of proprietary or confidential information concerning Company’s business, operations, sales goals, marketing plans, business strategies, clients, potential clients, and suppliers, which information, if known by or disclosed to Company’s competitors or clients, would place Company at a competitive disadvantage and cause harm to Company.

 

	
12.2.  

	
As a condition of employment, Employee agrees to be bound by a separate Noncompetition Agreement, which shall be executed contemporaneously herewith and attached to this Agreement as Schedule I.  Additionally, for a period of one (1) year immediately following the termination of Employee’s employment with Company (“Restrictive Period”):

 

	
(a)  

	
Employee shall not, directly or indirectly, solicit, divert, or take away, or attempt to solicit, divert, or take away, the business or patronage of any client, potential client, or account of Company that was a client, potential client, or account of Company while Employee was employed by Company.

 

	
(b)  

	
Employee shall not, directly or indirectly, induce or attempt to induce any employee of Company, or any of Company’s subsidiaries and affiliates, to leave the employ of Company, or any of Company’s subsidiaries and affiliates.

 

	
(c)  

	
Employee shall not, directly or indirectly, employ or attempt to employ any person who is an employee of Company, or any of Company’s subsidiaries and affiliates.

 

	
(d)  

	
Employee shall not, directly or indirectly, solicit, induce, or attempt to induce any customer, supplier, or third party having a business relationship with Company, or any of Company’s subsidiaries and affiliates, to cease doing business with, or materially alter its relationship with, Company, or any of Company’s subsidiaries and affiliates.

 

	
12.3.  

	
Employee acknowledges and agrees that every effort has been made to limit the Restrictive Period and the restrictions placed upon Employee to those that are reasonable and necessary to protect Company’s legitimate interests.

 

	
12.4.  

	
If any restriction set forth in this Section 12 is found by any court of competent jurisdiction to be unenforceable, it is hereby agreed that this Section 12 shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

 

	
13.  

	
Equitable Relief and Legal Action.

 

	
13.1.  

	
Employee acknowledges and agrees that Employee’s breach of Section 11 or Section 12 of this Agreement will cause Company substantial and irreparable harm, and therefore, in the event of any such breach, in addition to such other remedies that may be available to Company, Company shall be entitled to equitable relief, including specific performance and injunctive relief.

 

	
13.2.  

	
In the event that legal action is commenced to enforce this Agreement and Company is the prevailing party, Employee acknowledges and agrees that Company shall be entitled to an award of costs and reasonable attorneys’ fees, plus interest.

 

	
14.  

	
Ownership of Intellectual Property.

 

	
14.1.  

	
For purposes of this Agreement, the term “Intellectual Property” shall mean all trade secrets, ideas, inventions, designs, developments, devices, methods and processes (whether or not patented or patentable, reduced to practice) and all patents and patent applications related thereto, all copyrights, copyrightable works and mask works and all registrations and applications for registration related thereto, all confidential information, and all other proprietary rights contributed to, or conceived or created by, Employee or anyone acting on Employee’s behalf (whether alone or jointly with others) at any time during the course of Employee’s employment that (i) relate to the business or to actual or anticipated research or development for Company; (ii) result from any services that Employee or anyone acting on Employee’s behalf performs for Company; or (iii) are created using the equipment, supplies, or facilities of Company.

 

	
14.2.  

	
All Intellectual Property is, shall be and shall remain the exclusive property of Company.  Employee hereby assigns to Company all right, title and interest, if any, in and to the Intellectual Property; provided, however, that, when applicable, Company shall own the copyrights in all copyrightable works included in the Intellectual Property pursuant to the “work-made-for-hire” doctrine (rather than by assignment), as such term is defined in the Copyright Act of 1976.  All Intellectual Property shall be owned by Company irrespective of any copyright notices or confidentiality legends to the contrary that may be placed on such works by Employee or by others. Employee shall ensure that all copyright notices and confidentiality legends on all work product authored by Employee or anyone acting on Employee’s behalf shall conform to Company’s practices and shall specify Company as the owner of the work.

 

  

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15.  

	
Legal Right and Conflict of Interest.

 

	
15.1.  

	
Employee covenants and warrants that Employee has the unlimited legal right to enter into this Agreement and to perform in accordance with its terms without violating the rights of others or any applicable law, and that Employee has not and shall not become a party to any other agreement of any kind and shall not perform any work or service on behalf of any individual, business, corporation, or organization that would create a conflict of interest in the performance of Employee’s obligations under this Agreement.

 

	
15.2.  

	
Employee agrees to conduct Employee’s personal affairs in a manner that does not conflict with Company’s interests.  Employee agrees not to enter into any transaction, acquire any interest, or take any action that is contrary to Company’s interests or incompatible with Employee’s duty of loyalty to Company and Employee’s obligations under this Agreement.

 

	
15.3.  

	
Employee acknowledges and agrees that Employee will not, directly or indirectly (whether as a director, officer, partner, employee, agent, or stockholder of another company), compete with Company, or furnish any service to Company or its customers, as an independent contractor, while employed by Company.  Employee further agrees that Employee will not use Company’s name to further Employee’s personal interests.

 

	
16.  

	
Force Majeure.  Company shall have no liability under this Agreement if performance by Company of its obligations hereunder shall be prevented, interfered with, interrupted or omitted because of any act of God, act of terrorism, failure of facilities, labor dispute, or government or court action, or any other cause beyond the control of Company.

 

	
17.  

	
Notices.  All notices and other communications required or permitted to be given by this Agreement shall be in writing and shall be deemed received if and when either hand delivered and a signed receipt is given thereof, delivered by overnight courier (e.g., FedEx), or delivered by registered or certified United States mail, return receipt requested, postage prepaid and addressed as follows, or at such other address as any party hereto shall notify the other of in writing:

 

 

If to Company:                                     Radio One, Inc.

1010 Wayne Avenue, 14th Floor

Silver Spring, Maryland  20910

Attention:  Chief Administrative Officer

 

 

Copy to Company Attorney:             Radio One, Inc.

1010 Wayne Avenue, 14th Floor

Silver Spring, Maryland  20910

Attention:  General Counsel

 

 

If to Employee:                                     Peter D. Thompson

(At last known address on file with Company)

 

 

	
18.  

	
Code Section 409A Compliance. To the extent applicable, it is intended that the compensation and benefits arrangements under this Agreement be in full compliance with Code Section 409A.  This Agreement shall be construed in a manner to give effect to such intention.  In no event whatsoever (including, but not limited to as a result of this Section or otherwise) shall Company or any of its subsidiaries or affiliates be liable for any tax, interest or penalties that may be imposed on Employee by Code Section 409A.  Neither Company nor any of its subsidiaries or affiliates shall have any obligation to indemnify or otherwise hold Employee harmless from any or all such taxes, interest or penalties or liability for any damages related thereto. Employee acknowledges that Employee has been advised to obtain independent legal, tax or other counsel in connection with Code Section 409A.

 

  

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19.  

	
Miscellaneous Provisions.

 

	
(a)  

	
No Assignment or Delegation.  Employee acknowledges that the services to be rendered by Employee pursuant to this Agreement are unique and personal, and agrees that Employee shall not assign any of Employee’s rights nor delegate any of Employee’s duties under this Agreement.

 

	
(b)  

	
Inurement.  This Agreement shall inure to the benefit of, and be enforceable by, any successors or assigns of Company.

 

	
(c)  

	
No Waiver.  Failure to invoke any right, condition, or covenant in this Agreement by either party shall not be deemed to imply or constitute a waiver of any right, condition, or covenant of this Agreement.

 

	
(d)  

	
Severability and Enforceability.  In the event that any provision of this Agreement shall be held invalid by a court of competent jurisdiction, such provision shall be deleted from the Agreement, which shall then be construed to give effect to the remaining provisions thereof. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision.  Similarly, if the scope of any restriction or covenant contained herein should be or become too broad or extensive to permit enforcement thereof to its full extent, then the parties hereto agree that a court of competent jurisdiction should enforce any such restriction or covenant to the maximum extent permitted by law.

 

	
(e)  

	
Governing Law.  This Agreement and the relationship among the parties shall be construed under and governed by the laws of the State of Delaware, without regard to the conflict of laws rules thereof.

 

	
(f)  

	
Headings.  The headings in this Agreement are solely for convenience of reference and shall be given no effect in the construction or interpretation of this Agreement.

 

	
(g)  

	
Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.

 

	
(h)  

	
Entire Agreement. This Agreement constitutes the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes all previous written or oral agreements, offers, representations, warranties, statements, correspondence, and understandings between the parties with respect to the subject matter hereof. This Agreement cannot be amended or modified except by a written agreement signed by all parties hereto.

 

 

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

 

 

RADIO ONE, INC.                                                                           PETER D. THOMPSON

By:                                                                                      Signature:                                                                

 

Linda J. Vilardo

Title:       Vice President                                                                   Address:   1111 23rd Street NW

Unit 4A

Washington, D.C.  20037

Date:                                                                                                   Date:                                

 

 

 

 

 

 

 

 

 

 

 

 

  

9Exhibit 10.2

CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BASED UPON A REQUEST FOR CONFIDENTIAL TREATMENT AND THE NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.

Exclusive License and Development Agreement

between

Sorrento Therapeutics, Inc.

and

China Oncology Focus Limited

 

 

 

1

 

 

THIS EXCLUSIVE LICENSE AND DEVELOPMENT AGREEMENT (this “Agreement”) is made and entered into as of this 3rd day of  October, 2014 (“Effective Date”) between Sorrento Therapeutics, Inc., a company organized and existing under the laws of the State of Delaware, United States of America (“USA”) with its principal offices at 6042 Cornerstone Court West, Suite B, San Diego, California 92121 US (“SORRENTO”), and China Oncology Focus Limited, a company organized and existing under the laws of British Virgin Islands with its registered office at Offshore Incorporations Centre, P.O. BOX 957, Road Town, Tortola, British Virgin Islands (“Lee’s”), an Affiliate of Lee’s Pharmaceutical Holdings Limited with a principal offices at Unit 110-111, Bio-Informatics Centre, No. 2 Science Park West Avenue, Hong Kong Science Park, Shatin, Hong Kong. 

SORRENTO and Lee’s may be referred to herein individually as a “Party” and collectively as the “Parties.”

Recitals:

	
A.
	
SORRENTO is the owner of all rights, title and interest in and to the Patent Rights (as defined in Article 1.11) and the Licensed Compound (as defined in Article 1.6) disclosed in the Patent Rights, and desires to have Lee’s conduct pre-clinical and clinical research and development relating to the Licensed Compound and be able to manufacture and market the Licensed Compound and the Licensed Products in the territories of the PRC (as defined in article 1.13)  Hong Kong SAR, Macau SAR and Taiwan .

	
B.
	
Lee’s has expertise in the areas of pre-clinical and clinical development and marketing infrastructure in the Territory (as defined in Article 1.14).  Lee’s wishes to: (i) conduct pre-clinical research and clinical development at its sole expense; (ii) file an IND (as defined in Article 1.4) with the CFDA (as defined in Article 1.2) to obtain approval to conduct clinical development of the Licensed Compound in the PRC; and (iii) file an NDA (as defined in Article 1.9) with the CFDA to obtain marketing approval of the Licensed Compound in the PRC. In accordance with the provisions of this Agreement, Lee’s will share with SORRENTO and its licensees of the Licensed Compound for countries outside of the Territory the data it has obtained in pursuing regulatory approval of the Licensed Compound in the PRC.

	
C.
	
Hence, the Parties desire to collaborate with the aim of developing and commercializing the Licensed Compound and the Licensed Products, and SORRENTO wishes to grant Lee’s an exclusive license to develop, make, have made, use, sell, offer to sell and import the Licensed Compound and the Licensed Products in the Territory for this purpose. 

THEREFORE, in consideration of the premises and mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

ARTICLE 1. DEFINITIONS

The terms defined herein have the meanings ascribed to them whenever used in this Agreement, unless otherwise clearly indicated by the context:

	
1.1
	
“Affiliate(s)” of a Person or Persons shall mean any other Person that, directly or indirectly, controls such Person or is controlled by such Person or is under common control with such Person, where “control” means power and ability to direct the management and policies of the controlled Person through ownership of voting shares of the controlled Person or by contract or otherwise.

	
1.2
	
 “CFDA” shall mean the China Food and Drug Administration or any successor entity.

	
1.3
	
“Field” shall mean treatment and management of human diseases and disorders.  

	
1.4
	
“IND” shall mean an Investigational New Drug Application or its equivalent in the PRC.

	
1.5
	
“Intellectual Property” shall mean: (i) patents, patent applications, patent licenses, know-how licenses, trade names, trademarks, service marks, trade dress, logos, corporate names and copyrights and any registration and application for registration; (ii) trade secrets, confidential information and proprietary information; (iii) whether or not confidential, technology, know-how, data, manufacturing and other processes and techniques, research and development information, drawings specifications, designs, plans, data, business and marketing plans, customer and supplier lists and information; (iv) databases, computer software and other information technology, including operating systems, source codes and specifications; and (v) all rights to bring actions or recover damages or other losses for present or past infringement of any of the foregoing.

2

 

 

	
1.6
	
“Licensed Compound” shall mean the IgG1 form of the fully human antibody called “*” listed as * clones * and * that binds to human PD-L1 and is described in published PCT application * where the antibody is called “*”, which is covered by the Patent Rights. 

	
1.7
	
“Licensed Materials” shall mean the materials described in Exhibit E attached hereto.

	
1.8
	
“Licensed Products” shall mean any pharmaceutical product containing the Licensed Compound as an active ingredient, alone or in combination with other active ingredients and commercialized for an indication within the Field.

	
1.9
	
“NDA” shall mean a New Drug Application or its equivalent in the PRC.

	
1.10
	
“Net Sales” shall mean the gross amount actually received by Lee’s and its sublicensees on sales of Licensed Products, less: (a) credits or allowances, if any, actually granted; (b) discounts actually allowed; (c) freight, postage, and insurance charges and additional special packaging charges; and (d) customs duties, and excises, sales, taxes, duties or other taxes imposed upon and paid with respect to such sales (excluding what is commonly known as income taxes). In the case of any Licensed Product that contains or includes the Licensed Compound in combination with any other clinically active product(s) or ingredient(s) that is not a Licensed Compound (the “Other Product”), whether packaged together or in the same therapeutic formulation (a “Combination Product”), Net Sales for such Combination Product shall be calculated by multiplying actual Net Sales of such Combination Product by the fraction A/(A+B) where A is the average invoice price of the Licensed Product containing the Licensed Compound only, if sold separately, and B is the average invoice price of the Other Product in the Combination Product, if sold separately. If the Other Product in the Combination Product is not sold separately, Net Sales for the purpose of determining royalties of the Combination Product shall be calculated by multiplying actual Net Sales of such Combination Product by the fraction A/C, where A is the average invoice price of the Licensed Product containing the Licensed Compound only, if sold separately, and C is the average invoice price of the Combination Product.  If neither the Licensed Product containing the Licensed Compound only nor the Other Product in the Combination Product is sold separately, the Parties shall determine Net Sales for such Combination Product by mutual agreement based on the relative contribution of the Licensed Product containing the Licensed Compound only and the Other Product to the Combination Product.

	
1.11
	
“Patent Rights” shall mean all patents and patent applications that SORRENTO controls on the Effective Date and during the term of this Agreement (as defined in Article 11.1) including the patents and patent applications listed in Exhibit B attached hereto that include the Licensed Compound within the scope of its claims, which Patent Rights are necessary to develop, make, have made, use and sell the Licensed Products in the Territory. 

	
1.12
	
“Person” shall mean any entity, corporation, company, partnership, association, trust, organization, government authority or individual.

	
1.13
	
“PRC” shall mean the People’s Republic of China.

	
1.14
	
“Territory” shall mean the PRC (including Hong Kong SAR and Macau SAR) and Taiwan and excludes the rest of the world.

[*]  Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portion

 

ARTICE 2. LICENSE

	
2.1
	
Grant of License.  In consideration of the obligations and undertakings expressed in this Agreement and subject to the terms and conditions of this Agreement, SORRENTO hereby grants to Lee’s, and Lee’s accepts, an exclusive (even as to SORRENTO) license to develop, manufacture, make, have made, use, sell, offer to sell and import the Licensed Products under the Patent Rights, within the Field, and restricted to the Territory during the term of this Agreement.

	
2.2
	
Rights to Grant Sublicense.  Subject to the Article 4 below, SORRENTO hereby grants to Lee’s, and Lee’s accepts, a right to sublicense Lee’s rights under this Agreement, including the right to develop, manufacture, sell and offer to sell the Licensed Compound and the Licensed Products in the Field and within the Territory.  All sublicensees shall hold their rights contingent on Lee’s rights under this Agreement.  Any loss by Lee’s of its rights under this Agreement due to a termination of this Agreement for Lee’s breach, or due to any other reason, shall automatically cause all of the sublicensees to lose the same rights under the Sublicense Agreements (as defined in Article 3.1 below).

3

 

 

	
2.3
	
No Implied License.  Except as specifically provided in this Agreement, SORRENTO does not grant Lee’s any other licenses or rights whether by implication, estoppel or otherwise. 

ARTICLE 3. SUBLICENSE

	
3.1
	
Sublicenses.  During the term (as defined in Article 11.1) Lee’s may enter into one or more sublicense agreement(s) (“Sublicense Agreement”) to sublicense its rights under Article 2 for the manufactureand sale of the Licensed Products in the Territory. Subject to the terms and conditions of this Agreement, any Sublicense Agreement shall be executed by Lee’s and sublicensee, meanwhile SORRENTO shall be informed with written notice. Lee’s has the right, at its discretion, to replace sublicensee or add another third party to enter into an Sublicense Agreement, provided the Sublicense Agreement (a) is subject to the terms and conditions hereof; (b) approved by sublicensee; and (c) SORRENTO is provided with written notice, subject to SORRENTO’s prior written consent as provided in Article 3.2 below. 

	
3.2
	
Consultation.  Lee’s shall consult with and obtain SORRENTO’s written consent prior to entering into any Sublicense Agreement, provided, however, that SORRENTO shall not unreasonably withhold or delay such consent and provided that no such consent shall be required in case of any Sublicense Agreement is entered into with any Affiliate of Lee’s.    Unless otherwise agreed by SORRENTO, each Sublicense Agreement shall require the sublicensee’s management to communicate its plan for the manufacture and sale of the Licensed Products and implement processes for consistent communication and coordination between the third party and SORRENTO during the term of the Sublicense Agreement. 

	
3.3
	
Responsibility of Lee’s.  Lee’s agrees that it shall be fully responsible and liable for any breach of the terms of this Agreement by any of its sublicensees to the same extent as if Lee’s itself has committed any such breach. 

ARTICLE 4. PAYMENTS

	
4.1
	
License Issue Fee. As consideration for the rights and licenses granted by SORRENTO to Lee’s under this Agreement, Lee’s shall pay SORRENTO an upfront license fee of US$* (US$ *) upon execution of this Agreement.

	
4.2
	
Development Expenses.  In exchange for the license under Article 2, Lee’s shall pay all fees and expenses incurred for the pre-clinical and clinical development (“Development Expenses”) of the Licensed Compound in the Territory. 

	
4.3
	
Royalties and Fees. Lee’s or its sublicensees shall pay SORRENTO a royalty based on Net Sales of Licensed Products by Lee’s and its sublicensees during the term of this Agreement in the Territory. The royalty rate shall be: (i) *percent (*%) for the first US$* of Net Sales per calendar year; (ii) *percent (*%) for Net Sales per calendar year of US$* to US$* per calendar year; (iii) * percent (*%) for Net Sales per calendar year of US$* to US$* per calendar year; (iv) * percent (*%) for Net Sales per calendar year of US$* to US$* per calendar year; (v) *percent  (*%) for Net Sales per calendar year of US$* to US$* per calendar year; and (vi) *percent (*%) for Net Sales per calendar year in excess of US$*. All amounts payable hereunder shall be net amounts without any deductions or withholdings but subject to applicable tax withholdings. 

	
4.4
	
Duration of Royalty Obligations. Lee’s royalty obligations as to each Licensed Product shall terminate on a country-by-country basis concurrently with the expiration of the last to expire of a claim within the licensed Patent Rights that covers such Licensed Product in the given country of the Territory or, if no patents issue containing a claim within the licensed Patent Rights in the given country of the Territory or if no patent applications are filed in that given country of the Territory, then ten (10) years from the first commercial sale in that country.

[*]  Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portion

4

 

 

	
4.5
	
Sublicense Payments.  Any and all non-refundable upfront or milestone payments due to Lee’s pursuant to the Lee’s grant of a sublicense to a third party for the Licensed Products (“Sublicense Revenues”) shall be reported to SORRENTO by Lee’s within sixty (60) days after the end of the calendar quarter in which Lee’s received payment of such Sublicense Revenue (each, a “Notice”).  Lee’s shall pay to SORRENTO a non-creditable, non-refundable percentage of these Sublicense Revenues according to the following schedule concurrently with the delivery of the Notice relating to such Sublicense Revenue (“Sublicense Payments”):

 

			
	
Time of Grant by Lee’s to Sublicensee 
(developmental milestone achieved)
	
Percent of Sublicense Revenues
Payable by Lee’s to SORRENTO

	
4.5.1 
	
Sublicense executed prior to initiation of a Phase I clinical trial
	
*%

	
4.5.2 
	
Sublicense executed upon or after the initiation of a Phase I clinical trial, but before the completion of a Phase II clinical trial
	
*%

	
4.5.3 
	
Sublicense executed upon or after the completion of a Phase II clinical trial
	
*%

Any non-cash consideration in lieu of cash payment received by Licensee from Sublicensees or other third parties pursuant to the grant of a sublicense to the Licensed Product shall be valued at its fair market value as of the date of receipt.

	
4.6
	
Payment Method - Due Dates. All payments by Lee’s shall be made by wire transfer to an account designated by SORRENTO from time to time. All payments shall be subject to applicable local governmental and withholding taxes. All royalties and other amounts shall be paid in $USD. 

	
4.7
	
Overdue Payments.  In the event any payment due hereunder is not made when due, the payment shall accrue interest (beginning on the date such payment is due) calculated at the prime interest rate quoted by The Wall Street Journal, Eastern edition, on the date said payment is due plus two percent (2%) per annum and such payment when made shall be accompanied by all interest so accrued.  The remittance of such interest shall not foreclose SORRENTO from exercising any other rights it may have pursuant to this Agreement because such payment is late.

[*]  Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portion

ARTICLE 5. ROYALTY REPORTS AND ACCOUNTING

	
5.1
	
Royalty Reports and Records. Upon commencement of the sale of any Licensed Products, Lee’s shall furnish, or cause to be furnished to SORRENTO, written royalty reports governing each of Lee’s semesters (January-June and July-December) showing:

	
(i)
	
The Net Sales of all Licensed Products sold by Lee’s and its sublicensees during the reporting period and the royalties payable by Lee’s in $USD;

	
(ii)
	
the exchange rates used to calculate the royalties payable in $USD; and

	
(iii)
	
any withholding taxes required to be made from such royalties.

With respect to sales of the Licensed Products invoiced in $USD, if any, the gross sales, Net Sales and royalties payable shall be expressed in $USD.  With respect to sales of the Licensed Products invoiced in a currency other than $USD, the gross sales, Net Sales and royalties payable shall be expressed in such currency with the $USD equivalent of the royalty payable, calculated using the simple average of the exchange rates published in the Wall Street Journal, Eastern Edition, under the heading “Current Trading” on the last day of each month during the reporting period.

Royalty reports shall be made on a semester basis.  Yearly royalty reports shall be due within ninety (90) days of the close of every semester (January-June and July-December) and shall be prepared in accordance with IFRS.  Lee’s shall keep accurate records in sufficient detail to enable royalties and other payments payable hereunder to be determined.

5

 

 

	
5.2
	
Right to Audit.  SORRENTO shall have the right, at its sole discretion, however no more than once every calendar year and upon prior notice to Lee’s, through an independent certified public accountant selected by SORRENTO to have access during normal business hours to those records of Lee’s as may be reasonably necessary to verify the accuracy of the royalty reports required to be furnished by Lee’s pursuant to Article 4.3 of this Agreement.  Lee’s shall include in all Sublicense Agreements a provision requiring the sublicensee to keep and maintain records of sales made pursuant to such sublicense in accordance with IFRS and to grant access to such records by SORRENTO’s independent certified public accountant, as applicable, under the same terms that SORRENTO has access to Lee’s records. If such independent certified public accountant report shows any underpayment of royalties by Lee’s or its sublicensees; within thirty (30) days after Lee’s receipt of such report, Lee’s shall remit or shall cause its sublicensees to remit to SORRENTO:

	
(i)
	
the amount of such underpayment; and

	
(ii)
	
if such underpayment exceeds five (5%) percent of the total royalties owed for the fiscal year then being reviewed, the reasonably necessary fees and expenses of such independent certified public accountant performing the audit.  Otherwise, fees and expenses of SORRENTO's accountants shall be borne by SORRENTO.  Upon the expiration of thirty-six (36) months following the end of any fiscal year, the calculation of royalties payable with respect to such fiscal year shall be binding and conclusive on SORRENTO and Lee’s, unless an audit for such fiscal year is initiated before expiration of such thirty-six (36) months.  Lee’s shall retain, and shall cause its sublicensees to retain those records required to be maintained pursuant to this Article 5.2 in respect of each fiscal year for a period of thirty six (36) months after the end of such fiscal year.

ARTICLE 6. MILESTONE PAYMENTS

	
6.1.
	
CFDA Achievement Payments. 1st NDA approval by the CFDA (1st indication) – US$ * (US$*); 2nd NDA regulatory approval granted by the CFDA for new indication - US$ * (US$ *). 

	
6.2
	
Sales Milestone Payments. Upon achievement of each of the milestone events set out in the following table, Lee’s shall pay the amount set out next to such milestone event in the table: 

 

		
	
Milestone event
	
Amount to be paid

	
 
	
 

	
The first calendar year in which the annual Net Sales in the Territory by Lee’s exceed US$ *
	
US$ * (US$ *)

	
The first calendar year in which the annual Net Sales in the Territory by Lee’s exceed US$ *
	
US$ * (US$*)

	
The first calendar year in which the annual Net Sales in the Territory by Lee’s exceed US$ *
	
US$ * (US$ *)

	
The first calendar year in which the annual Net Sales in the Territory by Lee’s l exceed US$ *
	
US$ * (US$ *)

	
The first calendar year in which the annual Net Sales in the Territory by Lee’s exceed US$ *
	
US$ * (US$ *)

Payment of the sales milestones described above shall be made within six (6) months after the end of the calendar year in question. Only one sales milestone can, however, be due in the same calendar year. If more than one such milestone is achieved in the same calendar year, the second milestone will be deferred to the first royalty payment date of the subsequent calendar year.

	
6.3
	
Required Stock Purchase. Simultaneous with the execution of this Agreement, Lee’s or a Lee’s Affiliate shall subscribe to purchase 400,000  new shares of Sorrento Therapeutics common stock for a total purchase price of US$ 3 Million six hundred thousand (US$ 3,600,000) under a Stock Purchase Agreement whose form is provided as Exhibit C.

[*]  Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portion

6

 

 

ARTICLE 7. ADDITIONAL OBLIGATIONS

	
7.1
	
SORRENTO Obligations.  

	
(i)
	
Following the Effective Date and during the term of this Agreement, SORRENTO shall promptly provide to Lee’s 

	
(a) 
	
all the technology, know-how, data, manufacturing, development and other information which is necessary to develop, make, have made, use and sell the Licensed Compound and the Licensed Products in the Territory; and 

	
(b) 
	
the Licensed Materials. 

	
(ii) 
	
SORRENTO shall be responsible for patent strategy and pay all patent filings and future patent prosecutions and maintenance costs. 

	
7.2
	
Lee’s Obligations.  Lee’s warrants and covenants that:

	
(a)
	
Lee’s shall take all steps necessary to insure that the Licensed Compound or any Licensed Products are not sold, distributed, transported, exported or otherwise commercialized outside of the Territory by Lee’s or its Affiliates, sublicensees or distributors.

	
(b)
	
Lee’s shall be responsible for the actions of any distributors, Affiliates or sublicensees. 

	
(c)
	
If the Licensed Compound or any Licensed Products are sold, distributed, transported, exported or otherwise commercialized outside of the Territory by Lee’s or its Affiliates, sublicensees or distributors, Lee’s shall be responsible for any and all payment arising in connection with SORRENTO’s pursuing any and all legal actions against such violation.

	
(d)
	
Lee’s agrees that SORRENTO has the right to use all pre-clinical protocol and data, as well as clinical trial protocol, data and results obtained in the Territory to support development and commercialization of the Licensed Compound outside of the Territory.

	
7.3
	
Lee’s Diligence Obligations and Commercial Development Plan.  Lee’s agrees to provide to SORRENTO a commercial development plan within six (6) months of the Effective Date, under which Lee’s intends to bring the Licensed Product to the point of commercial use (the “Commercial Development Plan”) within the Territory. The Commercial Development Plan shall incorporate the target performance benchmarks listed in Exhibit D, as may be amended from time to time (the “Benchmarks”). Upon its completion, Lee’s Commercial Development Plan shall be executed by SORRENTO and Lee’s and incorporated herein.

	
7.4
	
Progress Reports on Commercial Development Plan and Benchmarks.  Lee’s shall provide written annual reports on its product development progress or efforts to commercialize under the Commercial Development Plan in the Territory within sixty (60) days after June 30 of each calendar year.  These progress reports shall include, but not be limited to:  progress on research and development, copies of the Licensed Products’ data generated during that year, status of applications for regulatory approvals, manufacturing, sublicensing, marketing, importing, and sales during the preceding calendar year, as well as plans for the period ending June 30 of the following calendar year.  If reported progress differs materially from that projected in the Commercial Development Plan, Lee’s shall explain the reasons for such differences.  In any such annual report, Lee’s may propose amendments to the Commercial Development Plan or Benchmarks. 

ARTICLE 8. OWNERSHIP OF INTELLECTUAL PROPERTY

	
8.1
	
General.  Each Party shall retain all of the right, title and interest in and to the Intellectual Property owned by such Party as of the Effective Date. Any improvements, enhancements, updates, or the equivalents of each Party’s Intellectual Property (“Improvements”) shall be owned by the Party which owns such Intellectual Property.

	
8.2
	
Improvement. If Lee’s, its Affiliates, and/or sublicensees, develop or create any Improvements in relation to the Licensed Compound and/or the Licensed Products during the term of this Agreement, such Improvements shall be solely owned by Lee’s. Lee’s shall immediately disclose such Improvements and the relevant technical documents and other data in connection therewith to SORRENTO as soon as practically possible after they are developed or created. Lee’s hereby grants to SORRENTO an exclusive license to use and otherwise exploit such Improvements outside the Territory.

7

 

 

If SORRENTO desires to exploit any such Improvements, SORRENTO shall notify Lee’s in writing. Following Lee’s receipt of such notice, the Parties shall negotiate in good faith and on a case-by-case basis, the terms and conditions of such license, including commercially reasonable royalty rates, provided that such royalty shall in no event exceed 5% on relevant net sales. 

For the sake of clarity, it is understood that the direct or indirect use or reference to Lee’s Improvements in relation to: (i) the conduct of clinical trials; and/or (ii) the obtainment of regulatory approvals; and/or (iii) the commercialization of Licensed Products outside the Territory will imply the automatic exploitation of such Improvements by SORRENTO.

	
8.3
	
This Section is purposely left blank.

	
8.4
	
Third Party Infringement.  If Lee’s becomes aware of any activity that it believes represents an infringement of any Intellectual Property licensed under this Agreement, Lee’s shall promptly advise SORRENTO of all relevant facts and circumstances pertaining to the potential infringement. SORRENTO shall have the first right, but not the obligation, to enforce or have enforced, at its own expense, its rights to the Intellectual Property, including, without limitation, the Patent Rights, licensed hereunder against infringement by a third party in the Territory and shall be entitled to retain recovery from such enforcement in the Territory (an “Enforcement Action”).   In the event that SORRENTO fails to initiate an Enforcement Action to enforce its rights to the Intellectual Property against infringement by a third party in the Territory within ninety (90) days of a request by Lee’s to do so, Lee’s may (but shall not be obligated to) initiate an Enforcement Action against such infringement at its own expense.  The Party initiating or defending any such Enforcement Action (the “Enforcing Party”) shall keep the other Party reasonably informed of the progress of any such Enforcement Action, and such other Party shall have the right to participate with counsel of its own choice at its own expense.  In any event, the other Party shall reasonably cooperate with the Enforcing Party, including providing reasonably necessary information and materials and, if required to bring such action, the furnishing of a power of attorney or being named as a party, at the Enforcing Party’s request and expense. Neither Party shall settle any such Enforcement Action in a manner adverse to the other Party without the prior written consent of the other Party, which consent shall not be unreasonably withheld.

ARTICLE 9. INDEMNIFICATION

	
9.1
	
Disclaimer.  Except as otherwise expressly set forth in this Agreement, SORRENTO makes no assertions and extends no warranties or conditions of any kind, either express or implied, with respect to the intellectual property licensed hereunder or information disclosed hereunder, including, but not limited to, express or implied warranties of merchantability for a particular purpose, validity of any intellectual property licensed hereunder, whether patented or unpatented, or non-infringement of the property rights of third parties.

	
9.2
	
Indemnification.  Each party shall indemnify and hold harmless the other Party and its agent, directors, employees and Affiliates (“Indemnified Persons”) from and against any and all liabilities, damages, costs or expenses (including reasonable attorneys’ fees and disbursements) arising out of or related to any third party claim, demand, suit, action or proceeding (“Third Party Claim”) which is the results of (i) any breach or non-performance of the indemnifying Party’s obligations, assertions or warranties under this Agreement, or (ii) the gross negligence or intentional misconduct of the indemnifying Party; provided, however, that the foregoing indemnification obligation shall not apply to the extent that the Third Party Claim is the results of (y) any breach or non-performance of an Indemnified Person’s obligations, assertions or warranties under this Agreement, or (z) the gross negligence or intentional misconduct of an Indemnified Persons.

	
9.3
	
Lee’s Indemnification Obligation.  Lee’s shall indemnify and hold harmless SORRENTO and SORRENTO Indemnified Persons from and against any Third Party Claim which is the results of (i) the death of, injury to, or damage to property of any Person resulting from the research, development, manufacture and/or use of the Licensed Compound in the Territory, or (ii) any product liability, pre-clinical trial liability or other claims to the extent caused by Lee’s fault, whether willful or negligent.

	
9.4
	
Indemnification Procedures.  The Indemnified Persons shall give written notice to the indemnifying Party with reasonable promptness upon becoming aware of any Third Party Claim or other facts upon which a claim for indemnification will be based; the notice shall set forth such information with respect thereto as is then reasonably available to the Indemnified Persons.  The indemnifying Party shall have the right to undertake the defense of any such Third Party Claim and the Indemnified Persons shall cooperate in such defense and make available all records, materials and witnesses reasonably requested by the indemnifying Party in connection therewith at the indemnifying Party’s expense.  The indemnifying Party shall not be liable for any Third Party Claim settled without its consent, which consent shall not be unreasonably withheld or delayed.

8

 

 

ARTICLE 10. CONFIDENTIALITY

	
10.1
	
  Confidentiality.  Each Party shall, and shall cause its Affiliates and sublicensees to, keep secret and confidential all Intellectual Property licensed hereunder, non-public information, data and know-how of the other Party received prior to execution of or under this Agreement (“Confidential Information”) and shall not use the Confidential Information for any purpose other than for the purposes permitted in this Agreement, provided that a Party shall have no obligation to maintain the secrecy of Confidential Information which: (a) at the time of disclosure by the disclosing Party is in the public domain; (b) after disclosure by the disclosing Party enters the public domain through no improper conduct of the receiving Party or its Affiliate; (c) prior to disclosure by the disclosing Party was already in the possession of the receiving Party as evidenced by the receiving Party’s written records; (d) subsequent to disclosure hereunder is obtained by the receiving Party from third parties who are lawfully in possession of such information, data and know-how and are not subject to an obligation to refrain from disclosing such information, data and know-how to others; or (e) is required to be revealed under compulsion of law, provided that the Party under a legal compulsion to disclose the Confidential Information makes every effort to preserve the confidentiality of the information and also provides the disclosing Party sufficient prior notice of the disclosure, so that such disclosing Party shall have an opportunity to take whatever action it deems necessary or desirable to protect its Confidential Information. 

	
10.2
	
  Exceptions.  Notwithstanding the provisions of Article 10.1, a Party shall be entitled to disclose Confidential Information for the purpose of implementing this Agreement: (a) to any of the Party’s representatives who have a need to know, provided the recipients have been informed of and are bound to secrecy obligations substantially similar to the provisions of this Article 11; (b) prior to filing an IND package, a Party shall be entitled to disclose Confidential Information to Regulatory Authorities who have a need to know which have been advised of the confidential status of the Confidential Information, provided all necessary procedures are followed to preserve confidentiality; (c) to the extent such disclosure is reasonably necessary in filing or prosecuting patent, copyright and trademark applications, prosecuting or defending litigation, complying with applicable governmental regulations, obtaining regulatory approval, conducting preclinical or clinical trials, or otherwise required by law, provided, however, that if a Party is required by law or regulation to make any such disclosure of the other Party's Confidential Information it will, except where impracticable for necessary disclosures, for example in the event of medical emergency, give reasonable advance notice to the other Party of such disclosure requirement and, except to the extent inappropriate in the case of patent applications, will use its reasonable efforts to secure confidential treatment of such Confidential Information required to be disclosed; or (d) to the extent mutually agreed in writing by the Parties.

Specific aspects or details of Confidential Information shall not be deemed to be within the public domain or in the possession of the receiving Party merely because the Confidential Information is embraced by more general information in the public domain or in the possession of the receiving Party.  Further, any combination of Confidential Information shall not be considered in the public domain or in the possession of the receiving Party merely because individual elements of such Confidential Information are in the public domain or in the possession of the receiving Party unless the combination and its principles are in the public domain or in the possession of the receiving Party.

	
10.3
	
  Survival.  The provisions of this Article 10 shall survive termination of this Agreement howsoever caused. 

ARTICLE 11. TERM AND TERMINATION

	
11.1
	
Term.  This Agreement shall take effect from the Effective Date and will continue in full force and effect on a country-by-country basis until the last to expire of the Patent Rights, unless earlier terminated by the terms of this Agreement. In the event that there are no patents issue containing a claim within the licensed Patent Rights in the given country of the Territory or if no patent applications are filed in that given country of the Territory, then this Agreement expires ten (10) years from the first commercial sale in that country of the Territory. Upon expiration of this Agreement, the licenses granted to Lee’s under Articles 2 and 3 shall become fully paid-up and irrevocable. 

	
11.2
	
In the event that any of the following occurs, either Party shall be entitled to immediately terminate this Agreement by giving written notice to that effect: (i) the other Party becomes generally unable to pay its debts as they become due; (ii) the other Party takes possession of or a receiver is appointed over any of the substantial property or assets of such other Party so that it is not expected to achieve the purpose of this Agreement; (iii) the other Party makes any voluntary arrangement with its creditors or becomes subject to an administration order; or (iv) the other Party goes into liquidation (except for the purposes of amalgamation or reconstruction and in such manner that the entity resulting therefrom effectively agrees to be bound by or assume the obligations imposed on that other party under this Agreement).

9

 

 

	
11.3
	
Termination by SORRENTO.  SORRENTO shall have the right to terminate this Agreement, without recourse by Lee’s, upon: (i) a material breach of this Agreement by Lee’s, (ii) Lee’s failure to pay royalties and other amounts set forth in Article 3 to SORRENTO within sixty (60) days of the due date; (iii) an infringement by Lee’s, its sublicensee or a third party of Intellectual Property licensed hereunder; (iv) production, manufacture, sale, or any other use or exploit of the Licensed Compound or Licensed Products outside of the Territory by Lee’s or its sublicensee or (v) Lee’s or a sublicensee’s failure to diligently pursue Licensed Products’ approval as set forth in Section 7.3 herein. 

	
11.4
	
Termination by Lee’s.  Lee’s shall have the right to terminate this Agreement, without recourse by SORRENTO, upon (i) a material breach of this Agreement by SORRENTO such as any other grant by SORRENTO to a third party of a license to make, have made, use, sell and offer to sell the Licensed Compound in the Field inside of the Territory or the making, using, selling or offering to sell directly by SORRENTO or by its other licensees of the Licensed Compound in the Field in the Territory; or (ii) at any time upon at least sixty (60) days prior written notice.

	
11.5
	
Obligation Upon Termination.  (i) If this Agreement is terminated pursuant to Article 11.3 or 11.4 (ii):  (a) Lee’s shall forfeit any and all rights related to the Intellectual Property licensed hereunder, and all data, discoveries and materials provided under this Agreement shall be promptly returned to SORRENTO by and at the expense of Lee’s; (b) Lee’s shall transfer SORRENTO all data, discoveries, materials, information and know-how in Lee’s or its Affiliates’ possession relating to the Licensed Compound and the Licensed Products, at the expense of Lee’s; (c) if Lee’s develops or creates any Improvements in relation to the Licensed Compound, Lee’s shall duly transfer the ownership of such Improvements to SORRENTO, at no cost to SORRENTO; (d) if Lee’s has filed an IND with the CFDA and obtained approval to conduct clinical trial of the Licensed Compound, Lee’s shall assign such approval and the related documents in connection therewith to SORRENTO or a party designated by the SORRENTO within thirty (30) days after SORRENTO’s request, at no cost to SORRENTO; (e) Lee’s shall, during the term of this Agreement and at any time thereafter, properly execute and deliver any and all documents, affidavits, etc., requested by SORRENTO to confirm SORRENTO’s ownership to the Intellectual Property licensed hereunder, at the expense of Lee’s; and (f) if Lee’s has entered into a Sublicense Agreement with one or more sublicensees, upon the request of SORRENTO at its discretion, Lee’s shall terminate the Sublicense Agreement or transfer any and all rights and obligations of Lee’s under the Sublicense Agreement to SORRENTO, at no cost to SORRENTO; (ii) If this Agreement is terminated pursuant to Article 11.4 (i), Lee’s, its Affiliates and sublicensees shall automatically receive an exclusive, non-royalty bearing license under the Patent Rights in the Territory.  

	
11.6
	
Compensation.  In the event of termination of this Agreement due to any causes attributable to any Party, such Party shall compensate the other Party for any and all damages incurred by the other Party due to the termination, unless explicitly otherwise provided herein.  No Party shall be entitled to compensation for damages if the Parties decide to terminate this Agreement by mutual consent due to unexpected results from studies on the Licensed Compound, including confirmation of a toxicity level which indicates that additional development of the Licensed Compound cannot be conducted. 

ARTICLE 12. GENERAL PROVISIONS

	
12.1
	
Assignment.  Neither Party shall assign this Agreement or any part thereof without the prior written consent of the other Party, which consent shall not be unreasonably withheld or delayed.  Each Party may, however, without such consent, assign or sell its rights under this Agreement: (a) in connection with the sale or transfer of all or substantially all of its pharmaceutical business to a third party; (b) in the event of a merger or consolidation with a third party; or (c) to an Affiliate.  No assignment shall relieve any Party of responsibility for the performance of any accrued obligation which such Party has under this Agreement.  Any assignment shall be contingent upon the assignee assuming in writing all of the obligations of its assignor under this Agreement.

	
12.2
	
Independent Contractors. The relationship between each of the Parties shall not constitute a partnership or agency.  No Party has the power or the right to bind, commit or pledge the credit of any other Party.

	
12.3
	
Publicity.  The Parties agree to keep the existence of this Agreement and the terms hereof confidential and agrees not to disclose any such information to any third party (other than counsel) without the prior written consent of the other Party.

	
12.4
	
Governing Law; Governing Language.  This Agreement and all amendments, modifications, alterations, or supplements hereto, and the rights of the Parties hereunder, shall be construed under and governed by the laws of California, exclusive of its conflicts of laws principles.  This Agreement has been prepared in the English language and the English language shall control its interpretation.  All consents, notices, reports and other written documents to be delivered or provided by a Party under this Agreement shall be in the English language, and in the event of any conflict between the provisions of any document and the English language translation thereof, the terms of the English language translation shall control.

10

 

 

	
12.5
	
Dispute Resolution.  If any dispute or disagreement shall arise between the Parties hereto concerning the construction of this Agreement or the rights, duties or liabilities of either Party hereunder, the Parties shall strive to settle the dispute amicably, but if they are unable to do so, the dispute or difference shall be solely and finally settled by arbitration in London, United Kingdom under the Rules of Arbitration of the International Chamber of Commerce by three (3) arbitrators appointed in accordance with such Rules.  Each Party will be responsible for all of its own costs and expenses including but not limited to attorneys’ fees and expenses, travel, expert witnesses, consultants, transcripts and the like.  The filing fee and arbitrator’s fee will be paid by the appealing Party. Notwithstanding the foregoing, to the extent permitted by the applicable law, SORRENTO will be permitted, at its sole cost and expense, to seek injunctive and permanent relief to prevent any violation of this Agreements or loss of any rights relating to or arising in connection with Intellectual Property licensed hereunder to any court of competent jurisdiction.  

	
12.6
	
Entire Agreement.  This Agreement, together with the Exhibits attached hereto, constitutes the entire agreement between the Parties with respect to the subject matter hereof and shall not be modified, amended or terminated, except as herein provided or except by another agreement in writing executed by the Parties hereto. 

	
12.7
	
Waiver.  No provision of this Agreement may be waived except by a writing signed by the Party entitled to the benefit thereof, and no such waiver of any provision hereof in one instance shall constitute a waiver of any other provision or of such provision in any other instance.  No omission, delay or failure on the part of any Party hereto in exercising any rights hereunder will constitute a waiver of such rights or of any other rights hereunder.

	
12.8
	
Severability. In the event that any of the provisions of this Agreement shall be determined invalid, void or unenforceable, such provision shall be deemed to be deleted from this Agreement and the remaining provisions of this Agreement shall continue in full force and effect.

	
12.9
	
Force Majeure. If an event of force majeure, any act, cause, contingency or circumstances beyond the reasonable control of such Party, including, but not limited to, any government action, order or restriction (whether foreign, federal or state), war (whether or not declared), public strike, riot, labor dispute, act of God, flood or public or natural disaster (“Force Majeure”) occurs, such occurrence could not have been reasonably foreseen by either Party at the execution hereof, and such occurrence is not attributable to either Party, and a Party is prevented from performing its obligations under this Agreement (the “Affected Party”), such Affected Party shall not be liable for failure to perform, in whole or in part, its obligations under this Agreement and shall promptly provide written notice after the occurrence of the Force Majeure to the other non-affected Party (the “Non-Affected Party”).  The Affected Party shall use all reasonable efforts to expeditiously mitigate the delay or failure to perform its obligations affected by the Force Majeure.  Both Parties will discuss in good faith and determine treatment of this Agreement and shall continue at all times to perform and observe the terms and conditions of this Agreement insofar as they are not affected by such Force Majeure.

	
12.10
	
Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

11

 

 

	
12.11
	
Notices.  All notices, statements, and reports required to be given under this Agreement shall be in writing and shall be deemed to have been given upon delivery in person or, when deposited in the mail in the country of residence of Party giving the notice, registered or certified postage prepaid or with a professional courier service (e.g., FedEx or UPS), and addressed as follows:

 

		
	
To SORRENTO:
	
Sorrento Therapeutics Inc.
6042 Cornerstone Court West
San Diego, California 92121 US
Attn: Henry Ji, Ph.D.

 

	
 
	
 

	
 
	
Fax: +858 210 3759
e-mail: hji@sorrentotherapeutics.com

 

	
 
	
 

	
To Lee’s:
	
China Oncology Focus Limited
Offshore Incorporations Centre
PO BOX 957
Road Town, Tortola
British Virgin Islands
c/o Unit 110-111, Bio-Informatics Centre
No. 2 Science Park West Avenue
Hong Kong Science Park, Shatin, Hong Kong.
Attn: Dr. Li Xiaoyi

 

	
 
	
 

	
 
	
Fax: +852 2314 1708
e-mail: drli@leespharm.com

 

	
 
	
 

Any Party hereto may change the address to which notices to such Party are to be sent by giving notice to the other Party at the address and in the manner provided above. Any notice may be given, in addition to the manner set forth above, by facsimile or e-mail, provided that the Party giving such notice obtains acknowledgment by facsimile or e-mail that such notice has been received by the Party to be notified.  Notices made in this manner shall be deemed to have been given when such acknowledgment has been transmitted.  Any provision of this Article 12.11 to the contrary notwithstanding, any notice to SORRENTO shall be effective if given as to SORRENTO prescribed above by Lee’s, despite any failure to deliver copies as prescribed above.

 

 

 

12

 

 

IN WITNESS WHEREOF, SORRENTO and Lee’s have caused this Agreement to be signed by their duly authorized representatives, under seal, as of the day and year indicated above.

 

					
	
 
	
Sorrento Therapeutics, Inc.
	
 

	
 
	
 
	
 

	
 
	
By:
	
   /s/ Henry Ji
	
 

	
 
	
Print Name:
	
Henry Ji, Ph.D.
	
 

	
 
	
Title:
	
President & CEO
	
 

	
 
	
Date:
	
October 3, 2014
	
 

	
 
	
 
	
 
	
 

	
 
	
China Oncology Focus Limited
	
 

	
 
	
 
	
 

	
 
	
By:
	
   /s/ Benjamin Li
	
 

	
 
	
Print Name:
	
Benjamin Li 
	
 

	
 
	
Title:
	
Chief Executive Officer
	
 

	
 
	
Date:
	
October 3, 2014

 

 

 

13

 

 

Exhibit A

Licensed Compound

	
l
	
IgG1 form of * listed as * clones * and *. 

[*]  Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portion

 

 

 

 

 

 

Exhibit B

Patent Rights

 

						
	
Territory
	
Title
	
Application No
	
Status
	
Publication No.
	
Ownership

	
WIPO
	
Antigen binding proteins that bind PD-L1
	
*
	
Pending
	
US * A2
	
Sorrento Therapeutics, Inc.

[*]  Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portion

 

 

 

 

 

 

Exhibit C

Stock Purchase Agreement

 

 

 

 

 

 

Exhibit D

Commercial Development Plan and Benchmarks

To be filled within 6 months of the Effective Date

 

 

 

 

 

 

Exhibit E

Licensed Materials

Research cell bank (RCB) stocks of Chinese hamster ovary (CHO) lines stably transfected and expression the * clones * and * will be licensed from Sorrento to Lee’s Pharma. These materials will be used to generate the master cell bank (MCB) for production of preclinical and clinical antibody material. 

[*]  Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portion

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