Document:

Exhibit 10.2

 

LICENSE AGREEMENT

 

This agreement (the “Agreement”), dated the 28th day of March 2008
(the “Effective Date”), is by and between Cephalon, Inc., a Delaware
corporation (“Cephalon”), and Acusphere, Inc., a Delaware corporation (“Acusphere”).

 

INTRODUCTION

 

1.                                       Acusphere owns the Licensed Patent Rights
and the Licensed Know-How.

 

2.                                       Cephalon is in the business of developing
and marketing pharmaceutical products.

 

3.                                       Acusphere and Cephalon are interested in
establishing a licensing relationship pursuant to which Acusphere shall grant
Cephalon certain rights and licenses under the Licensed Patent Rights and
Licensed Know-How.

 

NOW, THEREFORE, Cephalon and Acusphere agree as follows:

 

Article I

Definitions

 

When used in this Agreement, each of the following terms shall have the
meanings set forth in this Article I:

 

Section 1.1                                      “Affiliate”. 
Affiliate means, with respect to a Party, any Person that controls, is
controlled by, or is under common control with such Party.  For purposes of this Section 1.1, “control”
shall refer to (a) in the case of a Person that is a corporate entity,
direct or indirect ownership of fifty percent (50%) or more of the stock or
shares having the right to vote for the election of directors of such Person
and (b) in the case of a Person that is not a corporate entity, the
possession, directly or indirectly, of the power to direct, or cause the
direction of, the management or policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

 

Section 1.2                                      “AI-850TM”. 
AI-850TM means a pharmaceutical formulation of the active ingredient
paclitaxel, which utilizes HDDS TechnologyTM, as described in Investigational
New Drug Application (“IND”) #63817 .

 

Section 1.3                                      “AI-850TM Clinical Data”.  AI-850TM Clinical Data means all pre-clinical
and clinical data and databases relating to AI-850TM, including without
limitation, raw case report files, final study reports, toxicology reports,
regulatory information including IND #63817, 
and such other information and data as may have been generated during or
in connection with the pre-clinical and phase I clinical studies conducted on
AI-850TM.

 

Section 1.4                                      “Bankruptcy Code”.  Bankruptcy Code means 11 U.S.C §§ 101-1330,
as amended.

 

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Section 1.5                                      “Confidential Information”.  Confidential Information means non-public
information disclosed by Acusphere to Cephalon relating to the Licensed
Know-How and AI-850TM, but excluding the AI-850TM Clinical Data.

 

Section 1.6                                      “Control”. 
Control and cognates thereof means, with respect to any Licensed
Know-How, Patent Rights or Confidential Information, the possession by a Party,
whether directly or through Affiliates of such Party, of the ability to grant
the right to access or use, or to grant a license or the right to disclose or
transfer such Licensed Know-How, Patent Rights or Confidential Information,
without violating the terms of any agreement or other written arrangement with,
or the rights of any Third Party.

 

Section 1.7                                      “Cover”. 
Cover and cognates thereof means, with respect to a product, that, but
for a license granted to a Party under a Valid Claim, the Development or
Commercialization of such product would infringe such Valid Claim.

 

Section 1.8                                      “Field”. 
Field means oncology therapeutics.

 

Section 1.9                                      “HDDS TechnologyTM”.  HDDS TechnologyTM means that certain
proprietary porous matrix drug delivery system owned or Controlled by
Acusphere, constituting a porous matrix containing a hydrophobic active
ingredient that has an enhanced dissolution rate relative to the unprocessed
active ingredient.

 

Section 1.10                                “Licensed Know-How”.  Licensed Know-How means all inventions,
methods, processes, techniques, improvements, designs, formulae,
specifications, and technical, scientific and business information (including,
without limitation, all biological, chemical, pharmacological, toxicological,
clinical and assay information, data and analyses), whether or not patentable,
which are Controlled by Acusphere and which relate to the HDDS TechnologyTM  as used within the Field(including, without
limitation, AI-850TM) and in whatever form existing (including, without
limitation, paper, notebooks, books, files, ledgers, records, tapes, discs,
diskettes, CD-Rom and any other media on which the foregoing can be stored).

 

Section 1.11                                “Licensed Patent Rights”.  Licensed Patent Rights means (a) the
Patent Rights set forth on Exhibit A, and (b) counterparts of
the Patent Rights set forth on Exhibit A in any country of the
world.

 

Section 1.12                                “Party”. 
Party means Cephalon or Acusphere; “Parties” means Cephalon and
Acusphere.

 

Section 1.13                                “Patent Rights”.  Patent Rights means United States and foreign
patents and patent applications and all substitutions, divisions,
continuations, continuations-in-part, requests for continued examinations,
reissues, reexaminations and extensions thereof.

 

Section 1.14                                “Person”. 
Person means any natural person or any corporation, company,
partnership, joint venture, firm or other entity, including without limitation
a Party.

 

Section 1.15                                “Third Party”. 
Third Party means any person or entity other than a Party or any of its
Affiliates.

 

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Section 1.16                                “Valid Claim”. 
Valid Claim means a claim of any issued, unexpired United States or
foreign patent, which shall not have been donated to the public, disclaimed,
nor held invalid or unenforceable by a court of competent jurisdiction in an
unappealed or unappealable decision.

 

Article II

Grant of
License; Disclosure of Know-How; Clinical Data

 

Section 2.1                                      License Grant.  Subject to
the terms and conditions of this Agreement, Acusphere hereby grants to Cephalon
an exclusive, worldwide, royalty-free right and license under the Licensed
Patent Rights and the Licensed Know-How for all applications, uses and purposes
in the Field, including without limitation, to develop, make, have made, use,
offer for sale, sell and import pharmaceutical formulations and products,
including AI-850TM.

 

Section 2.2                                      Disclosure of Licensed Know-How.   
During the term of this Agreement, Cephalon shall have access, as
reasonably requested by Cephalon, to personnel of Acusphere and its Affiliates
at reasonable times during normal business hours and upon prior notice for
discussions relating to regulatory, scientific, medical and other technology
contained in or relating to the Licensed Know-How.  In addition, to the extent reasonably
necessary, Cephalon shall have access to all documents of Acusphere and its
Affiliates identified by Cephalon as important as a result of such discussions.

 

Section 2.3                                      Transfer of Pre-Clinical and Clinical Data. 
Within ten (10) days of the Effective Date, Acusphere shall
transfer to Cephalon, at Acusphere’s sole cost and expense, all preclinical and
clinical data related to HDDS TechnologyTM in the Field, including AI-850TM
Clinical Data,; provided, however, that Acusphere may retain confidential
copies of the AI-850TM Clinical Data to demonstrate its compliance with
applicable legal requirements.  During
the term of this Agreement, Cephalon shall have access, as reasonably requested
by Cephalon, to personnel of Acusphere and its Affiliates at reasonable times
during normal business hours and upon prior notice for discussions relating to
regulatory, scientific, medical and other matters relating to preclinical and
clinical data related to HDDS TechnologyTM in the Field, including the AI-850TM
Clinical Data. In addition, to the extent reasonably requested by Cephalon,
Acusphere shall provide access to its, and its Affiliates, facilities,
personnel and records in connection with any regulatory filings or submissions
that Cephalon may make with respect to AI-850TM. 
After the transfer of the preclinical and clinical data related to HDDS
TechnologyTM in the Field, including AI-850 Clinical Data to Cephalon, Acusphere
shall have no right, title or interest in such data.

 

Section 2.4                                      Sublicensees.  Cephalon
shall be entitled to grant one or more sublicenses under the licenses granted
pursuant to Section 2.1.  Such
sublicenses shall be subject and subordinate to the terms and conditions of this
Agreement.

 

Section 2.5                                      Section 365(n) of the Bankruptcy Code. 
All rights and licenses granted under or pursuant to this Agreement are,
and shall otherwise be, deemed to be, for purposes of Section 365(n) of
the Bankruptcy Code, licenses of rights to “intellectual property” as defined
under Section 101(35A) of the Bankruptcy Code.  The Parties shall retain and may fully
exercise all of their respective rights and elections under the Bankruptcy
Code.

 

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Section 2.6                                      Right of First Negotiation. 
Acusphere retains all of rights to any Patent Rights relating to the
HDDS TechnologyTM in the Field that are created by Acusphere or its Affiliates
after the Effective Date (“New Patent Rights”). 
Each time Acusphere files a patent application contained in the New
Patent Rights, Acusphere shall notify Cephalon in writing.  During the period beginning upon Cephalon’s
receipt of each such notice and ending one hundred eighty (180) days thereafter
(the “Option Period”), Cephalon shall have the option to notify Acusphere in
writing that it desires to enter into an exclusive license to such New Patent
Rights.  If Cephalon so notifies
Acushere, then for a period of ninety (90) days after such notice, Acusphere
shall exclusively negotiate with Cephalon in good faith a definitive agreement
for such exclusive license containing customary representations, warranties,
covenants and agreements, satisfactory in form and substance to the Parties.

 

Section 2.7                                      License Payment.  As full
consideration for the licenses granted in Section 2.1, within five (5) days
after the Effective Date, Cephalon shall make a one-time license payment by
wire transfer of immediately available funds to Acusphere of Ten Million U.S.
Dollars ($10,000,000).

 

Section 2.8                                      No Royalties.  Upon payment
of the amount set forth in Section 3.1, the licenses granted in Section 2.1
shall be fully paid-up.  No royalty
payments shall be due in connection with the Licensed Patent Rights or the
Licensed Know-How.

 

Article III

Intellectual
Property Protection and Related Matters

 

Section 3.1                                      Prosecution and Maintenance of Licensed
Patent Rights.

 

(a)                                  Right to Prosecute and Maintain. 
Acusphere shall have the first right and option to file and prosecute
any patent applications and to maintain any patents included in the Licensed
Patent Rights.  Acusphere shall , with
respect to those Licensed Patent Rights that constitute patent applications, (i) provide
all draft patent applications to Cephalon sufficiently in advance of filing for
Cephalon to have a reasonable opportunity to comment thereon and shall take
such comments into consideration in the application filed; (ii) promptly
furnish Cephalon with copies of all substantive communications between
Acusphere and applicable patent offices relating to such patent applications, and
take Cephalon’s comments and suggestions into consideration when framing
responses and submissions to such patent offices; (iii) keep Cephalon
advised of the status of actual and prospective patent filings included in the
Licensed Patent Rights.  Acusphere shall
give Cephalon the opportunity to provide comments upon and make requests of
Acusphere concerning the preparation, filing, prosecution, protection and
maintenance of those Licensed Patent Rights constituting patent applications,
and shall consider such comments and requests in good faith; provided, however,
that final decision-making authority shall vest in Acusphere.  If Acusphere declines the option to file and
prosecute any such patent applications or maintain any such patents, it shall
give Cephalon reasonable notice to this effect, sufficiently in advance to
permit Cephalon to undertake such filing, prosecution and/or maintenance
without a loss of rights.  Thereafter
Cephalon may notify Acusphere that it wishes to acquire such patent and/or patent
applications, in which case, Acusphere shall, for no additional consideration,
assign all of its rights, title and interest in and to such patent and/or 

 

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patent
application to Cephalon, and Cephalon may file and prosecute such patent
applications and/or maintain such patent in its sole discretion.

 

(b)                                 Costs and Expenses. 
Each Party shall bear its own costs and expenses in preparing, filing,
prosecuting and maintaining Licensed Patent Rights.

 

(c)                                  Cooperation. 
Each Party agrees to cooperate with the other with respect to the
filing, prosecution and maintenance of patents and patent applications pursuant
to this Section 5.1, including without limitation:

 

(i)                                     the execution of all such documents and
instruments and the performance of such acts as may be reasonably necessary in
order to permit the other Party to file, prosecute or maintain patents and
patent applications as provided for in Section 4.1(a); and

 

(ii)                                  making its employees, agents and consultants
reasonably available to the other Party (or to the other Party’s authorized
attorneys, agents or representatives), to the extent reasonably necessary to
enable the prosecuting Party to file, prosecute or maintain patents and patent
applications as provided for in Section 4.1(a).

 

Section 3.2                              Third Party Infringement.

 

(a)                                  Notifications of Competitive Infringement. 
Each Party agrees to notify the other Party when it becomes aware of the
reasonable probability of infringement of the Licensed Patent Rights in the
Field (“Competitive Infringement”).

 

(b)                                 Infringement Action. 
Within forty-five (45) days (or longer if the Parties mutually agree) of
becoming aware of Competitive Infringement, Acusphere shall have the right to
institute an infringement suit or take other appropriate action that it
believes is reasonably required to protect the Licensed Patent Rights from such
Competitive Infringement.  If Acusphere
elects to bring suit against an infringer, Acusphere shall keep Cephalon
reasonably informed of the progress of the action and give Cephalon a
reasonable opportunity in advance to consult with Acusphere and offer its views
about major decisions affecting the litigation. 
Acusphere shall consider those views in good faith, but shall have the
right to control the action.  If
Acusphere elects to bring suit against an infringer and Cephalon is joined as a
party in such suit (which it shall do if so requested by Acusphere), Cephalon
shall have the right to approve counsel selected by Acusphere to represent the
Parties, which approval shall not be unreasonably withheld, conditioned or
delayed.  The expenses of such suit or
suits that Acusphere elects to bring, including any reasonable out-of-pocket
expenses of Cephalon incurred in connection therewith, shall be paid for
entirely by Acusphere.  If Acusphere does
not take action in the prosecution, prevention, or termination of any
Competitive Infringement and has not commenced negotiations with the infringer
for the discontinuance of such Competitive Infringement within forty-five (45)
days (or longer if the Parties mutually agree) of becoming aware of Competitive
Infringement, Cephalon may elect to do so. 
If Cephalon elects to bring suit against such infringer and Acusphere is
joined as a party in such suit (which it shall do if so requested by Cephalon),
Acusphere shall have the right to approve counsel selected by Cephalon to
represent the Parties, which approval shall not be unreasonably withheld,
conditioned or delayed.  The expenses of
such suit or suits that Cephalon elects to bring, including any reasonable
out-of-

 

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pocket
expenses of Acusphere incurred in connection therewith, shall be paid for
entirely by Cephalon.  Neither Party
shall compromise or settle any litigation in a manner that imposes any
obligation on the other Party or that otherwise adversely impacts the
development or commercialization of pharmaceutical products related to HDDS
TechnologyTM in the Field, or the patents or patent applications included in the
Licensed Patent Rights without the prior written consent of the other Party,
which consent shall not be unreasonably withheld, conditioned or delayed.

 

(c)                                  Recoveries.  Any recovery
obtained by any Party as a result of any proceeding described in this Section 4.2
or from any claim asserted in a proceeding described in Section 4.3, by
settlement or otherwise, shall be applied in the following order of priority:

 

(i)                                     first, to reimburse each Party for all
litigation costs in connection with such proceeding paid by that Party and not
otherwise recovered (on a pro rata basis based on each Party’s respective
litigation costs, to the extent the recovery was less than all such litigation
costs); and

 

(ii)                                  second, to the Party instituting such
proceeding.

 

Section 3.3                                      Infringement of Third Party Patents. 
If a claim alleging infringement of Third Party patents is made against
Cephalon, then Cephalon shall defend against such a claim at its cost and
expense, but Acusphere may be represented in such event by legal counsel in an
advisory capacity at its own expense. 
Cephalon shall keep Acusphere informed of the status of the case.

 

Section 3.4                                      Cooperation. 
In the event that either Cephalon or Acusphere takes action pursuant to Section 4.2
or Section 4.3 above, the other Party shall cooperate with the Party so
acting to the extent reasonably possible.

 

Article IV

Confidentiality

 

Section 4.1                                      Confidential Information. 
All Confidential Information disclosed by Acusphere to Cephalon during
the term of this Agreement shall not be used by Cephalon except in connection
with the activities contemplated by this Agreement (including, without
limitation, the licenses granted pursuant to Section 2.1), shall be
maintained in confidence by Cephalon (except to the extent reasonably necessary
in connection with regulatory filings relating to AI-850TM and/or relating to
practicing the Licensed Patent Rights or Licensed Know-How in the Field; for
the filing, prosecution and maintenance of Patent Rights; or to develop and
commercialize products Covered by the Licensed Patent Rights or Licensed
Know-How in the Field), and shall not otherwise be disclosed by Cephalon to any
other person, firm, or agency, governmental or private (except consultants,
advisors and Affiliates in accordance with Section 5.2), without the prior
written consent of Acusphere, except to the extent that the Confidential
Information:

 

(a)                                  was known or used by Cephalon or its
Affiliates prior to its date of disclosure to Cephalon; or

 

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(b)                                 either before or after the date of the
disclosure to Cephalon is lawfully disclosed to Cephalon or its Affiliates by
sources other than Acusphere rightfully in possession of the Confidential
Information; or

 

(c)                                  either before or after the date of the
disclosure to Cephalon becomes published or generally known to the public
through no fault or omission on the part of Cephalon; or

 

(d)                                 is independently developed by or for
Cephalon or its Affiliates without reference to or reliance upon the
Confidential Information; or

 

(e)                                  is required to be disclosed by Cephalon
or its Affiliates to comply with applicable laws or regulations, to defend or
prosecute litigation or to comply with legal process.

 

Section 4.2                                      Employee, Consultant and Advisor Obligations. 
Cephalon agrees that it and its Affiliates shall provide Confidential
Information received from Acusphere only to its and their respective employees,
consultants and advisors who have a need to know such Confidential Information.

 

Section 4.3                                      Term.  All
obligations of confidentiality imposed under this Article V shall expire
ten (10) years following termination or expiration of this Agreement.

 

Article V

Representations and Warranties

 

Section 5.1                                      Representations of Authority. 
Cephalon and Acusphere each represents and warrants to the other that as
of the Effective Date it has full right, power and authority to enter into this
Agreement and to perform its respective obligations under this Agreement.

 

Section 5.2                                      Consents.  Cephalon and
Acusphere each represents and warrants that as of the Effective Date all
necessary consents, approvals and authorizations of all government authorities
and other persons required to be obtained by such Party in connection with
execution, delivery and performance of this Agreement have been obtained.

 

Section 5.3                                      No Conflict.  Cephalon and
Acusphere each represents and warrants that, as of the Effective Date, the
execution and delivery of this Agreement and the performance of such Party’s
obligations hereunder (a) do not conflict with or violate any requirement
of applicable laws or regulations and (b) do not conflict with, violate or
breach or constitute a default of, or require any consent under, any
contractual obligations of such Party, except such consents as have been
obtained as of the Effective Date.

 

Section 5.4                                      Employee, Consultant and Advisor Obligations. 
Cephalon and Acusphere each represents and warrants that, as of the
Effective Date, each of its and its Affiliates’ employees, consultants and
advisors has executed an agreement or has an existing obligation under law
obligating such employee, consultant or advisor to maintain the confidentiality
of Confidential Information to the extent required under Article V.

 

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Section 5.5                                      Litigation.  Acusphere
represents and warrants that there is no pending or, to its knowledge,
threatened litigation against it relating to AI-850TM, except as disclosed in Exhibit A
attached hereto.

 

Section 5.6                                      Intellectual Property.  Acusphere
represents and warrants to Cephalon that, as of the Effective Date, (a) Acusphere
owns the entire right, title and interest in and to the Licensed Patent Rights
and Licensed Know-How, (b) Acusphere has the right to grant to Cephalon
the rights and licenses under the Licensed Patent Rights and Licensed Know-How
granted in this Agreement, (c) none of the Licensed Patent Rights was
fraudulently procured from the relevant governmental patent granting authority,
(d) as of the Effective Date, there is no claim or demand of any Person
pertaining to, or any proceeding which is pending or threatened, that asserts
the invalidity, misuse or unenforceability of the Licensed Patent Rights or
challenges Acusphere’s ownership of the Licensed Patent Rights or Licensed
Know-How or makes any adverse claim with respect thereto, and, to the knowledge
of Acusphere, there is no basis for any such claim, demand or proceeding, (e) to
the knowledge of Acusphere, as of the Effective Date, the Licensed Patent
Rights are not being infringed and the Licensed Know-How is not being used by
any Third Party, (f) to the knowledge of Acusphere, AI-850TM and the
process used to make AI-850TM does not infringe any Third Party Patent Rights,
except as disclosed in writing to Cephalon, 
and (g) the Licensed Patent Rights include all of the Patent Rights
Controlled by Acusphere on the Effective Date which Cover the HDDS TechnologyTM
in the Field or, in the case of patent applications included in the Patent
Rights, claims if issued,  would Cover
the HDDS TechnologyTM in the Field .

 

Section 5.7                                      No Warranties.  EXCEPT AS
OTHERWISE EXPRESSLY SET FORTH HEREIN, THE PARTIES MAKE NO REPRESENTATIONS AND
EXTEND NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED.

 

Article VI

Term and
Termination

 

Section 6.1                                      Term.  This
Agreement shall become effective as of the Effective Date, may be terminated as
set forth in this Article VII, and otherwise remains in effect until the
expiration of all of the Patent Rights included within the Licensed Patent
Rights.

 

Section 6.2                                      Termination For Material Breach. 
Upon any material breach of this Agreement by either Party (in such
capacity, the “Breaching Party”), the other Party may terminate this Agreement
by providing sixty (60) days’ written notice to the Breaching Party, specifying
the material breach.  The termination
shall become effective at the end of the sixty (60) day period unless the
Breaching Party cures such breach during such sixty (60) day period.

 

Section 6.3                                      Survival.  Upon
expiration or termination of this Agreement for any reason, nothing in this
Agreement shall be construed to release either Party from any obligations that
matured prior to the effective date of expiration or termination; and the
following provisions shall expressly survive any such expiration or
termination:  Article II, Section 3.2,
Article V, Section 8.1, Section 8.2 and Section 8.15.

 

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Article VII

Miscellaneous
Provisions

 

Section 7.1                                      Indemnification.

 

(a)                                  Cephalon.  Cephalon
agrees to defend Acusphere, its Affiliates and their respective directors,
officers, employees and agents at Cephalon’s cost and expense, and shall
indemnify and hold harmless Acusphere and its Affiliates and their respective
directors, officers, employees and agents from and against any liabilities,
losses, costs, damages, fees or expenses arising out of any Third Party claim
relating to (i) any breach by Cephalon of any of its representations,
warranties or obligations pursuant to this Agreement or (ii) personal
injury, property damage or other damage resulting from the development or
commercialization in the Field by Cephalon or its Affiliates or sublicensees of
a product Covered by any of the Licensed Patent Rights.

 

(b)                                 Acusphere.  Acusphere
agrees to defend Cephalon, its Affiliates and their respective directors,
officers, employees and agents at Acusphere’s cost and expense, and shall
indemnify and hold harmless Cephalon and its Affiliates and their respective
directors, officers, employees and agents from and against any liabilities,
losses, costs, damages, fees or expenses arising out of any Third Party claim
relating to (i) any breach by Acusphere of any of its
representations, warranties or obligations pursuant to this Agreement or (ii) personal
injury, property damage or other damage resulting from the development or
commercialization outside the Field by Acusphere or its Affiliates or
sublicensees of a product Covered by any of the Licensed Patent Rights.

 

(c)                                  Claims for Indemnification. 
A person entitled to indemnification under this Section 8.1 (an “Indemnified
Party”) shall give prompt written notification to the person from whom
indemnification is sought (the “Indemnifying Party”) of the commencement of any
action, suit or proceeding relating to a Third Party claim for which indemnification
may be sought or, if earlier, upon the assertion of any such claim by a Third
Party (it being understood and agreed, however, that the failure by an
Indemnified Party to give notice of a third-party claim as provided in this Section 8.1(c) shall
not relieve the Indemnifying Party of its indemnification obligation under this
Agreement except and only to the extent that such Indemnifying Party is
actually damaged as a result of such failure to give notice).  Within thirty (30) days after delivery of such
notification, the Indemnifying Party may, upon written notice thereof to the
Indemnified Party, assume control of the defense of such action, suit,
proceeding or claim with counsel reasonably satisfactory to the Indemnified
Party.  If the Indemnifying Party does
not assume control of such defense, the Indemnified Party shall control such
defense.  The Party not controlling such
defense may participate therein at its own expense; provided  that,
if the Indemnifying Party assumes control of such defense and the Indemnified
Party reasonably concludes, based on advice from counsel, that the Indemnifying
Party and the Indemnified Party have conflicting interests with respect to such
action, suit, proceeding or claim, the Indemnifying Party shall be responsible
for the reasonable fees and expenses of counsel to the Indemnified Party solely
in connection therewith; provided, however, that in no event
shall the Indemnifying Party be responsible for the fees and expenses of more
than one counsel for all Indemnified Parties. 
The Party controlling such defense shall keep the other Party advised of
the status of such action, suit, proceeding or claim and the defense thereof
and shall consider 

 

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recommendations
made by the other Party with respect thereto. 
The Indemnified Party shall not agree to any settlement of such action,
suit, proceeding or claim without the prior written consent of the Indemnifying
Party, which shall not be unreasonably withheld, delayed or conditioned.  The Indemnifying Party shall not agree to any
settlement of such action, suit, proceeding or claim or consent to any judgment
in respect thereof that does not include a complete and unconditional release of
the Indemnified Party from all liability with respect thereto or that imposes
any liability or obligation on the Indemnified Party without the prior written
consent of the Indemnified Party.

 

Section 7.2                                      Governing Law.  This
Agreement shall be construed and the respective rights of the Parties
determined according to the substantive laws of the State of Delaware, USA,
notwithstanding the provisions governing conflict of laws under such Delaware
law to the contrary.

 

Section 7.3                                      Assignment.  Neither Party
may assign this Agreement in whole or in part without the consent of the other
Party, except if such assignment occurs in connection with the sale or transfer
of all or substantially all of the business and assets of such Party.  Notwithstanding the foregoing, (a) either
Party may assign its rights (but not its obligations) pursuant to this
Agreement in whole or in part to an Affiliate of such Party and (b) Cephalon
may assign the license rights to the Licensed Patent Rights granted pursuant to
Section 2.1 hereof without the consent of Acusphere.  .

 

Section 7.4                                      Entire Agreement; Amendments. 
This Agreement constitutes the entire agreement between the Parties with
respect to the subject matter hereof, and supersedes all previous arrangements
with respect to the subject matter hereof, whether written or oral.  Any amendment or modification to this
Agreement shall be made in writing signed by both Parties.

 

Section 7.5                                      Notices.

 

Notices to Acusphere shall be addressed to:

 

Acusphere, Inc.

500 Arsenal Street

Waterton, MA  02472

Attention: Chief
Executive Officer

 

with a copy, which shall not constitute notice, to:

 

Goodwin Procter
LLP

53 State Street

Boston, MA 02109

Attention:  Lawrence S. Wittenberg

 

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Notices to Cephalon shall
be addressed to:

 

Cephalon, Inc.

41 Moores Road

Frazer, PA 
19355

Attention: 
General Counsel

 

with a copy, which shall not constitute notice, to:

 

Wilmer Cutler Pickering Hale and Dorr LLP

60 State Street

Boston, MA 
02109

Attention:  Steven D. Barrett

 

Any
Party may change its address by giving notice to the other Party in the manner
herein provided.  Any notice required or
provided for by the terms of this Agreement shall be in writing and shall be (a) sent
by registered or certified mail, return receipt requested, postage prepaid, (b) sent
via a reputable overnight or international express courier service, or (c) personally
delivered, in each case properly addressed in accordance with the paragraph
above.  The effective date of notice
shall be the actual date of receipt by the Party receiving the same.

 

Section 7.6                                      Force Majeure.  No failure or
omission by the Parties hereto in the performance of any obligation of this
Agreement shall be deemed a breach of this Agreement or create any liability if
the same shall arise from any cause or causes beyond the control of the
Parties, including, but not limited to, the following: acts of God; acts or
omissions of any government; any rules, regulations or orders issued by any
governmental authority or by any officer, department, agency or instrumentality
thereof; fire; storm; flood; earthquake; accident; war; rebellion;
insurrection; riot; and invasion.  The
Party claiming force majeure shall notify the other Party with notice of the
force majeure event as soon as practicable, but in no event longer than ten (10) business
days after its occurrence, which notice shall reasonably identify such
obligations under this Agreement and the extent to which performance thereof
will be affected.

 

Section 7.7                                      Public Announcements.  Any public
announcements or publicity with respect to the execution of this Agreement
shall be agreed upon by the Parties in advance of such announcement.

 

Section 7.8                                      Independent Contractors.  It is
understood and agreed that the relationship between the Parties hereunder is
that of independent contractors and that nothing in this Agreement shall be
construed as authorization for either Acusphere or Cephalon to act as agent for
the other.

 

Section 7.9                                      No Strict Construction.  This
Agreement has been prepared jointly and shall not be strictly construed against
any Party.

 

Section 7.10                                Headings.  The captions
or headings of the sections or other subdivisions hereof are inserted only as a
matter of convenience or for reference and shall have no effect on the meaning
of the provisions hereof.

 

11

 

Section 7.11                                No Implied Waivers; Rights Cumulative. 
No failure on the part of Acusphere or Cephalon to exercise, and no
delay in exercising, any right, power, remedy or privilege under this
Agreement, or provided by statute or at law or in equity or otherwise, shall
impair, prejudice or constitute a waiver of any such right, power, remedy or
privilege or be construed as a waiver of any breach of this Agreement or as an
acquiescence therein, nor shall any single or partial exercise of any such
right, power, remedy or privilege preclude any other or further exercise
thereof or the exercise of any other right, power, remedy or privilege.

 

Section 7.12                                Severability.  If, under
applicable law or regulation, any provision of this Agreement is invalid or
unenforceable, or otherwise directly or indirectly affects the validity of any
other material provision(s) of this Agreement (such invalid or
unenforceable provision, a “Severed Clause”), this Agreement shall endure
except for the Severed Clause.  The
Parties shall consult one another and use reasonable efforts to agree upon a
valid and enforceable provision that is a reasonable substitute for the Severed
Clause in view of the intent of this Agreement.

 

Section 7.13                                Execution in Counterparts. 
This Agreement may be executed in counterparts, each of which
counterparts, when so executed and delivered, shall be deemed to be an
original, and all of which counterparts, taken together, shall constitute one
and the same instrument.

 

Section 7.14                                No Third Party Beneficiaries. 
No person or entity other than Acusphere, Cephalon and their respective
Affiliates and permitted assignees hereunder shall be deemed an intended
beneficiary hereunder or have any right to enforce any obligation of this
Agreement.

 

Section 7.15                                No Consequential Damages. 
NEITHER PARTY HERETO WILL BE LIABLE FOR INDIRECT, INCIDENTAL,
CONSEQUENTIAL, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES ARISING OUT OF THIS
AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, OR FOR LOST PROFITS ARISING
FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF
SUCH DAMAGES.  NOTHING IN THIS SECTION 8.15
IS INTENDED TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF
EITHER PARTY WITH RESPECT TO THIRD PARTY CLAIMS.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

12

 

IN WITNESS WHEREOF, the Parties have executed this
Agreement as of the date first set forth above.

 

	
   

  	
  CEPHALON, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Martin Reeves

  
	
   

  	
   

  
	
   

  	
  Name: 

  	
  Martin Reeves

  
	
   

  	
   

  
	
   

  	
  Title:  VP,
  Business Development & Strategic Planning

  
	
   

  	
   

  
	
   

  	
  ACUSPHERE, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/Sherri C. Oberg

  
	
   

  	
   

  
	
   

  	
  Name: 

  	
  Sherri C. Oberg

  
	
   

  	
   

  
	
   

  	
  Title: President & CEO

  
				

 

13

 

Exhibit A

 

Pending and Issued Licensed Patent
Rights as of the Effective Date

 

	
  Our Reference

  	
   

  	
  U.S. Patent No.

  	
   

  	
  U.S. Serial No.

  	
   

  
	
  ACU 109*

  	
   

  	
  6,395,300

  	
   

  	
  09/433,486

  	
   

  
	
  ACU 109 DIV*

  	
   

  	
  6,645,528

  	
   

  	
  09/694,407

  	
   

  
	
  ACU 109 DIV (2)*

  	
   

  	
  6,932,983

  	
   

  	
  09/706,045

  	
   

  
	
  ACU 109 CIP

  	
   

  	
   

  	
   

  	
  10/053,929

  	
   

  
	
  ACU 109 CIP DIV

  	
   

  	
   

  	
   

  	
  10/924,642

  	
   

  
	
  ACU109CIPDIV(2)

  	
   

  	
   

  	
   

  	
  10/928,886

  	
   

  
	
  ACU110

  	
   

  	
  6,610,317

  	
   

  	
  09/798,824

  	
   

  
	
  ACU110REISSUE

  	
   

  	
   

  	
   

  	
  11/213,257

  	
   

  

 

* The European counterpart of these patents, EP 1180020, has
been granted in Europe and is subject to opposition proceedings in the European
Patent Office.Exhibit 10.1

 

SEPARATION AGREEMENT AND GENERAL RELEASE

 

This Separation Agreement and General Release (“Agreement”) is being
entered into as of the last signature date below (the “Effective Date”) by and between
Leslie Johnston Browne (hereinafter “Dr. Browne”) and Pharmacopeia, Inc.
(hereinafter the “Company” or “Pharmacopeia”). 
Dr. Browne and Pharmacopeia are referred to jointly as the “Parties”
or individually as a “Party.”

 

WHEREAS, Dr. Browne was employed by the Company
as its President and Chief Executive Officer pursuant to the terms of an
Amended and Restated Employment Agreement dated March 5, 2008 (hereinafter
the “Employment Agreement”).  Capitalized
terms used in this Agreement shall either have the meaning set forth herein or
that set forth in the Employment Agreement;

 

WHEREAS, the Parties desire to set forth
their understandings and mutual agreements with respect to Dr. Browne’s
separation from the Company, Dr. Browne’s benefits and obligations
following his separation from the Company, and all other matters between them;

 

NOW, THEREFORE, in consideration of the
mutual promises and undertakings contained herein, and intending to be legally
bound hereby, the Parties agree as follows:

 

Section 1.              Separation from Employment

 

(a)           Separation Date.  The Company employed Dr. Browne through April 9,
2008 (“Separation Date”).  Dr. Browne
 performed all of his regular duties
through the Separation Date.  The Company
will pay Dr. Browne all compensation and benefits accrued, but unpaid,
through the Separation Date.  Effective
as of the Separation Date, Dr. Browne resigned from the Company’s Board of
Directors, and also withdrew his nomination for election to the Company’s Board
of Directors to be considered at the Company’s next annual meeting.  Following the Separation Date, Dr. Browne
agrees to cooperate reasonably with the Company regarding the transition of his
duties, and to respond to any reasonable requests for information or for
assistance on matters as to which he has specific  knowledge, including assistance regarding any
litigation matters.  The Company and Dr. Browne
agree that any such cooperation will not unduly interfere with Dr. Browne’s
future employment or other commitments, and that the Company will reimburse Dr. Browne
for any related and documented out-of-pocket expenses.

 

(b)           Separation Payment.            The Company will pay Dr. Browne
$810,261.00 in a lump sum payment (“Separation Payment”), which constitutes a
payment of: (i) two (2) times an amount equal to Dr. Browne’s
annual Base Salary in effect as of the Separation Date, plus (ii) an
amount equivalent to an additional twenty-one (21) days’ Base Salary in effect
as of the Separation Date, minus (iii) $22,839.00 paid in April 2008
by the Company as an advance with respect to such additional twenty-one (21)
days’ Base Salary.  The Separation
Payment will be made within thirty (30) days after the Effective Date.

 

 

(c)           Bonus Payment; Accrued
and Unused Vacation Pay.  The Company
will pay Dr. Browne a lump sum bonus payment (“Bonus Payment”) in the
amount of $67,479.00, which represents a pro rata payment through April 30,
2008 for Dr. Browne’s Incentive Bonus for calendar year 2008 based on Dr. Browne’s
target bonus as determined by the Board of Directors of the Company (the “Board”)
for 2008.  The Bonus Payment will be made
within thirty (30) days after the Effective Date.  Dr. Browne acknowledges that in April 2008
the Company paid him a cash payment for his accrued but unused vacation and
time-off pay in the amount of $40,487.98.

 

(d)           Benefits.  As of the Separation Date, all benefits will
be discontinued (excluding vested benefits) except that the Company will
maintain Dr. Browne’s group medical coverage under the Company’s insured
health plan for a period of twenty-four (24) months after the Separation Date
and such coverage will be provided to Dr. Browne at a monthly premium cost
that is no greater than the monthly premium cost that is applicable to such
coverage as of the date hereof, subject to such increases applicable to all
other active employees of the Company. 
The Company will reimburse Dr. Browne up to an aggregate $10,000 for
(i) documented legal and tax advisory fees and expenses that he incurs in
connection with the negotiation of this Agreement and (ii) documented
travel, meals and registration expenditures incurred by the Company or Dr. Browne
and related to professional conferences or meetings for which Dr. Browne
registered prior to the Separation Date and which he attends.

 

(e)           No Other Payments;
Withholdings.  Except as described in
this Section 1 and Section 2 hereof, Dr. Browne is not entitled
to any other compensation, severance, benefits, or other benefits or payments
in connection with his employment or the separation of his employment with the Company.  The Company shall make all legally required
withholdings and deductions from any of the payments to be made to Dr. Browne
under this Agreement in accordance with the Company’s current withholding
practices.   Dr. Browne agrees to
pay all legally required taxes with respect to any of the payments to be made
to him by the Company under this Agreement (other than employer-paid taxes such
as FICA), and he shall be responsible for obtaining his own independent tax
advice.

 

Section 2.              Stock Options

 

After the Separation Date, the Company will allow all vested options to
purchase Company stock held by Dr. Browne as of the Separation Date to be
exercisable pursuant to the terms of the stock option agreement(s) under
which the options were granted.  For the
avoidance of doubt, the Company confirms that Dr. Browne has the right
pursuant to the terms of such stock option agreement(s) to exercise such
vested options for the remainder of their respective original 10-year terms
under such stock option agreement(s).  A
listing of Dr. Brown’s outstanding stock options and termination dates is
attached hereto as Exhibit A.

 

 

Section 3.              Complete General
Release of Claims

 

In consideration of the terms and conditions of
this Agreement and the Employment Agreement, and for other good and valuable
consideration, the receipt of which is hereby acknowledged, Employee on behalf
of himself and his heirs, executors, administrators, and assigns, hereby releases
and discharges the Company and its subsidiaries, divisions, affiliates and
parents, and their respective past, current and future officers, directors,
employees, agents, and/or owners, and their respective successors, and assigns
and any other person or entity claimed to be jointly or severally liable with
the Company or any of the aforementioned persons or entities (collectively the “Released
Parties”) from any and all manner of actions and causes of action, suits,
debts, dues, accounts, bonds, covenants, contracts, agreements, judgments,
charges, claims, and demands whatsoever (“Claims”) which Employee and his
heirs, executors, administrators, and assigns have, had, or may hereafter have,
against the Released Parties or any of them arising out of or by reason of any
cause, matter, or thing whatsoever from the beginning of the world to the date
hereof.  This General Release of Claims
includes, without limitation, any and all matters relating to Employee’s
employment by the Company and the cessation thereof, and any and all matters
arising under any federal, state, or local statute, rule, or regulation, or
principle of contract law or common law, including but not limited to, the
Family and Medical Leave Act of 1993, as  amended, 29 U.S.C. §§
2601 et  seq., Title VII of the Civil Rights Act of 1964, as
amended, 42 U.S.C. §§ 2000 et  seq., the Age Discrimination
in Employment Act of 1967, as  amended, 29 U.S.C. §§ 621 et
seq. (the “ADEA”), the Americans with Disabilities Act of 1990, as
amended, 42 U.S.C. §§ 12101 et  seq., the Worker Adjustment
and Retraining Notification Act of 1988, as  amended, 29 U.S.C. §§
2101 et  seq., Employee Retirement Income Security Act of 1974, as
amended, 29 U.S.C. §§ 1001 et  seq. (“ERISA”), the New
Jersey Law Against Discrimination, N.J.S.A. 10:15-1, et  seq., the
New Jersey Conscientious Employee Protection Act, N.J.S.A. 34:19-1 to 19-8, the
New Jersey Wage and Hour Act, N.J.S.A. 34-11-56a et  seq., and any
other equivalent or similar federal, state, or local statute; provided,
however, that Employee does not release or discharge the Released Parties from (i) any
of the Company’s obligations to him under (or his right to enforce) this Agreement,
(ii) any vested or accrued benefits to which he may be entitled under any
employee benefit plan or program of the Company, and (iii) any coverage
that Dr. Browne has under existing or future director and officer
insurance policies procured by the Company. 
It is understood that nothing in this General Release is to be construed
as an admission on behalf of the Released Parties of any wrongdoing with
respect to Employee, any such wrongdoing being expressly denied.

 

To the best of the Company’s knowledge, as of the Separation Date the
Company was not aware of any facts or circumstances that could give rise to any
claim or cause of action that the Company may have against Dr. Browne.

 

The Company hereby agrees to provide Dr. Browne with a reasonable
opportunity to review and provide reasonable comments on any press release
issued after the last signature date below that names Dr. Browne and relates
to or discusses his separation from the Company.  Dr. Browne acknowledges that he reviewed
the press release issued by the Company on April 10, 2008 related to his
separation from the Company and the related Report on Form 8-K.

 

 

Dr. Browne represents and warrants that he fully understands the
terms of this General Release, and that he knowingly and voluntarily, of his
own free will, without any duress, being fully informed, and after due
deliberation, accepts its terms and signs below as his own free act.  Except as otherwise provided herein, Dr. Browne
understands that as a result of executing this General Release, he will not
have the right to assert that the Company or any other of the Released Parties
unlawfully terminated his employment or violated any of his rights in
connection with his employment or otherwise.

 

Section 4.              Covenant Not to
Sue

 

Dr. Browne agrees and covenants not to file, initiate, or join any
lawsuit (either individually, with others, or as part of a class), in any
forum, pleading, raising, or asserting any Claim(s) barred or released by Section 3
of this Agreement.  If he does so, and
the action is found to be barred in whole or in part by this Agreement, Dr. Browne
agrees to pay the attorneys’ fees and costs, or the proportions thereof,
incurred by the applicable Released Party in defending against those Claims
that are found to be barred by Section 3 of this Agreement.  Nothing in this Section 4 precludes Dr. Browne
from challenging the validity of the release in Section 3 under the
requirements of the Age Discrimination in Employment Act, and Dr. Browne
shall not be responsible for reimbursing the attorneys’ fees and costs of the
Released Parties in connection with such a challenge to the validity of the
release.  Dr. Browne, however,
acknowledges that the release in Section 3 applies to all Claims that he
has under the Age Discrimination in Employment Act, and that, unless the
release is held to be invalid, all of Dr. Browne’s Claims under that Act
shall be extinguished by execution of this Agreement.

 

Section 5.              Acknowledgments

 

Dr. Browne is hereby advised to consult with counsel before
executing this Agreement.  Dr. Browne
hereby acknowledges and understands that he has the right to consider this
Agreement, including the General Release contained in Section 3, for a
period of twenty-one (21) days prior to execution.  Dr. Browne further acknowledges and
understands that for seven (7) days following his execution of this
Agreement, Dr. Browne may revoke this Agreement by providing written
notice to the Company as provided in Section 11 hereof.  This Agreement shall not become effective or
enforceable until the seven-day revocation period has expired without
revocation, and Dr. Browne shall not be eligible for benefits under this
Agreement in the event of a revocation.

 

Section 8.              Public Disclosure
of Agreement

 

Dr. Browne acknowledges that the Company
intends to file this Agreement in its entirety with the U.S. Securities and
Exchange Commission as an exhibit to a public report of the Company made
pursuant to the Federal securities laws. 
Dr. Browne further acknowledges that all of the terms and
conditions of this Agreement will become generally available to the public as a
result of such filing.

 

 

Section 9.              Confidential Information/Non-Competition

 

Dr. Browne acknowledges that he remains
bound by the Confidential Information and Non-Competition provisions in the
Employment Agreement (Sections 10 and 11 of the Employment Agreement) in
accordance with their terms.  In order to
assure that Dr. Browne does not inadvertently breach any term or condition
of such Confidential Information and Non-Competition provisions, the Company
hereby agrees to respond to any written request from Dr. Browne within a
reasonable period of the Company’s receipt of such request, and answer within
such period any question posed by Dr. Browne, that is intended to obtain
assurance that any proposed action or activity that may be undertaken by Dr. Browne
shall not violate or breach such provisions. 
The failure of the Company to so respond to any such request or question
shall be deemed to represent the Company’s approval and acquiescence of Dr. Browne’s
request, and the Company shall be estopped from claiming that such undertaking
violates or breaches such provisions.

 

Section 10.            No Admission Of
Wrongdoing

 

Nothing in this Agreement constitutes or should be construed to
constitute an admission or evidence of any liability or fault or wrongdoing on
the part of any Party.

 

Section 11.            Notice

 

Any notice, request, or other communication required or permitted to be
delivered under this Agreement must be in writing and will be considered
received as of the date delivered if delivered in person, on the next business
day if sent by a nationally recognized overnight courier service, and on the
second business day if mailed by registered mail, return receipt requested,
postage prepaid.  If to Dr. Browne,
the notice, request, or other communication must be addressed and sent to Dr. Browne
at his most recent residential address as then on file with the Company (or at
such other address provided by Dr. Browne to the Company in accordance
with this Section).  If to the Company,
the notice, request, or other communication must be addressed to Pharmacopeia Inc.,
P.O. Box 5350 Princeton, NJ 08543-5350, Attention: General Counsel or to
such other address as the Company furnishes to Dr. Browne in accordance
with this Section.

 

Section 12.            Governing Law

 

This Agreement shall be governed by and construed in accordance with the
laws of the State of New Jersey, irrespective of the principles of conflicts of
law applicable therein.

 

Section 13.            Arbitration

 

The Parties acknowledge that they remain
bound by the Arbitration provision in the Employment Agreement, and that such
provision shall also apply to any and all disputes 

 

 

between the parties (except actions to
enforce Section 9 of this Agreement) arising under or relating to this
Agreement.

 

Section 14.            Enurement and
Assignment

 

This Agreement shall bind and inure to the benefit of the successors
and assigns of the Company, and the heirs, executors, or personal
representatives of Dr. Browne.  This
Agreement may not be assigned by Dr. Browne.  This Agreement may be assigned to any
successor in interest to the Company and Dr. Browne hereby consents to
such assignment.

 

Section 15.            Waiver

 

The waiver by either Party of any breach of any provision of this
Agreement shall not operate or be construed as a waiver of any subsequent
breach.

 

Section 16.            Severability

 

In the event that any section, paragraph or term of this Agreement
shall be determined to be invalid or unenforceable by any competent authority
or tribunal for any reason, the remainder of this Agreement shall be unaffected
thereby and shall remain in full force and effect, and any such section,
paragraph, or term shall be deemed modified to the extent necessary to make it
enforceable.

 

Section 17.            Entire Agreement;
Prior Agreements; Amendment

 

This Agreement, the Indemnity Agreement dated January 25, 2005
between the Company and Dr. Browne and the stock option agreements
referred to in Section 2 contain the entire agreement of the Parties with
respect to the subject matter hereof and supersedes any and all prior or
contemporaneous agreements, oral or written. 
This Agreement supersedes the Employment Agreement except for the Confidentiality,
Non-Competition, Arbitration and any other provisions that have been
incorporated herein and which remain in full force.  This

 

 

Agreement may not be changed, altered, or otherwise amended except by
mutual agreement in writing signed by the Parties.

 

THE UNDERSIGNED, INTENDING TO BE LEGALLY BOUND BY THE FOREGOING TERMS,
HEREBY APPLY THEIR SIGNATURES VOLUNTARILY AND WITH FULL UNDERSTANDING OF THE
TERMS OF THIS AGREEMENT AND EXECUTE THIS AGREEMENT AS OF THE DATES SET FORTH
BELOW.

 

 

	
  /s/ Leslie Johnston Browne

  	
   

  	
  May 7, 2008

  
	
  Leslie Johnston Browne

  	
   

  	
  Dated

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PHARMACOPEIA, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Joseph A. Mollica

  	
   

  	
  May 8, 2008

  
	
  By:

  	
  Joseph A. Mollica

  	
   

  	
  Dated

  
	
  Title:

  	
  Chairman of the Board and

  	
   

  	
   

  
	
   

  	
  Interim President and

  	
   

  	
   

  
	
   

  	
  Chief Executive Officer

  	
   

  	
   

  

 

 

Exhibit A

 

	
   

  	
  Pharmacopeia, Inc.

  	
   

  
	
  Closing Statement

  	
  PO
  Box 5350

  	
   

  
	
   

  	
  Princeton,
  NJ 08543-5350

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Termination Date:

  	
  4/9/2008

  	
   

  	
   

  
	
   

  	
   

  
	
  Leslie Browne

  	
   

  
				

 

Exercisable Options

 

	
   

  	
   

  	
  Grant

  	
   

  	
  Plan/

  	
   

  	
   

  	
   

  	
  Shares

  	
   

  	
  Shares

  	
   

  	
  Shares

  	
   

  	
  Vesting

  	
   

  	
  Total

  	
   

  	
  Last Date

  	
   

  
	
  Number

  	
   

  	
  Date

  	
   

  	
  Type

  	
   

  	
  Price ($)

  	
   

  	
  Granted

  	
   

  	
  Exercised

  	
   

  	
  Exercisable

  	
   

  	
  Stop Date

  	
   

  	
  Price

  	
   

  	
  To Exercise

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00005176

  	
   

  	
  03/01/06

  	
   

  	
  2004/ISO

  	
   

  	
  4.7500

  	
   

  	
  23,440.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  4/9/2008

  	
   

  	
  $

  	
  0.00

  	
   

  	
   

  	
   

  
	
  00005336

  	
   

  	
  03/01/06

  	
   

  	
  2004/NQ

  	
   

  	
  4.7500

  	
   

  	
  51,561.00

  	
   

  	
  0.00

  	
   

  	
  39,061.00

  	
   

  	
  4/9/2008

  	
   

  	
  $

  	
  185,539.75

  	
   

  	
  03/01/16

  	
   

  
	
  00005348

  	
   

  	
  02/28/07

  	
   

  	
  2004/ISO

  	
   

  	
  4.6700

  	
   

  	
  23,151.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  4/9/2008

  	
   

  	
  $

  	
  0.00

  	
   

  	
   

  	
   

  
	
  00005349

  	
   

  	
  02/28/07

  	
   

  	
  2004/NQ

  	
   

  	
  4.6700

  	
   

  	
  76,849.00

  	
   

  	
  0.00

  	
   

  	
  25,000.00

  	
   

  	
  4/9/2008

  	
   

  	
  $

  	
  116,750.00

  	
   

  	
  02/28/17

  	
   

  
	
  00005105

  	
   

  	
  08/09/04

  	
   

  	
  2004/NQ

  	
   

  	
  5.2000

  	
   

  	
  223,080.00

  	
   

  	
  0.00

  	
   

  	
  198,080.00

  	
   

  	
  4/9/2008

  	
   

  	
  $

  	
  1,030,016.00

  	
   

  	
  08/09/14

  	
   

  
	
  00005104

  	
   

  	
  08/09/04

  	
   

  	
  2004/ISO

  	
   

  	
  5.2000

  	
   

  	
  76,920.00

  	
   

  	
  0.00

  	
   

  	
  76,920.00

  	
   

  	
  4/9/2008

  	
   

  	
  $

  	
  399,984.00

  	
   

  	
  08/09/14

  	
   

  
	
  00005527

  	
   

  	
  02/25/08

  	
   

  	
  2004/ISO

  	
   

  	
  3.8400

  	
   

  	
  25,141.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  4/9/2008

  	
   

  	
  $

  	
  0.00

  	
   

  	
   

  	
   

  
	
  00005528

  	
   

  	
  02/25/08

  	
   

  	
  2004/NQ

  	
   

  	
  3.8400

  	
   

  	
  74,859.00

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  4/9/2008

  	
   

  	
  $

  	
  0.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  TOTALS

  	
   

  	
   

  	
   

  	
  575,001.00

  	
   

  	
  0.00

  	
   

  	
  339,061.00

  	
   

  	
   

  	
   

  	
  $

  	
  1,732,289.75

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]