Document:

Exhibit 10.1

 

 

August 24, 2016

 

Christophe Couturier

14 Ardley Road

Winchester, MA 01890

 

Dear Christophe,

 

On behalf of OvaScience, Inc. (the “Company”), I am pleased to set forth below the terms of your employment with the Company.

 

1.                                      Title, Duties and Position.

 

(a)                                 You will commence employment on or after the target date of September 6, 2016, subject to and pursuant to clause (b) of this Section 1, to serve on a full-time basis as Chief Financial Officer of the Company.  In this role, you will report to the Chief Executive Officer of the Company and will have such duties and responsibilities as are customary for such position and as are otherwise assigned to you from time to time by the Company.  You agree to devote your full business time, best efforts, skill, knowledge, attention and energies to the advancement of the Company’s business and interests and to the performance of your duties and responsibilities as an employee of the Company, and not to engage in any other business activities without the Company’s prior approval.

 

(b)                                 The Company understands that you may have a three month notice of termination requirement (the “Notice Requirement”) in your contract with a French affiliate of your current employer (the “French Affiliate Contract”).  You shall use your best efforts to confirm that the Notice Requirement is no longer effective or obtain a waiver or termination of the Notice Requirement that permits you to commence your employment with the Company on the target date of September 6, 2016 or as soon as possible thereafter.  You shall commence employment with the Company on the earliest date (on or after the target date of September 6, 2016) on which (i) your current employer confirms to you in writing that the Notice Requirement is no longer effective or (ii) any waiver or termination of the Notice Requirement becomes effective; provided however, that if you do not commence employment on or before December 28, 2016 for any reason, this agreement shall terminate and be null and void.

 

2.                                      Compensation.

 

(a)                                 Your base salary rate will be $33,333.34 per month ($400,000.08 on an annualized basis), subject to tax and other withholdings as required by law, to be paid in installments in accordance with the Company’s standard payroll practices. Such salary may be adjusted from time to time in accordance with normal business practice and in the sole discretion of the Company.

 

(b)                                 You shall be eligible to receive an annual bonus during your employment hereunder, commencing with respect to fiscal year 2016, in accordance with the annual incentive program applicable generally to senior executives of the Company. The amount of the annual bonus will be based on the 

 

 

achievement of individual and corporate performance objectives established by the Chief Executive Officer of the Company, in consultation with the Board, for the applicable year. Your target annual bonus will be 50% of your then current base salary (the “Target Bonus”). The annual bonus you will earn will be determined based on the achievement of the applicable performance objectives (the “Performance Objectives”) as determined by the Board in its sole discretion. The Board shall have the discretion to award greater than 100% of the Target Bonus (but in no event more than 150% of the Target Bonus) in the event that the Board determines that you have exceeded the Performance Objectives.  Any annual bonus payable under this Section 2(b) shall be paid to you by no later than March 15th of the year following the year in which such bonus is earned. You must be an active employee of the Company on the date on which bonuses are distributed in order to receive and to be deemed as having earned any bonus award. You will be eligible to earn up to your full annualized bonus for 2016 (and only for 2016) without pro ration for the number of months that you were with the Company in 2016.

 

3.                                      Benefits.  You will be eligible to participate in any and all benefit programs that the Company establishes and makes available to its employees from time to time, provided you meet the specific eligibility criteria as set forth in (and subject to all provisions of) the plan documents governing those programs.  The benefits made available by the Company, and the rules, terms and conditions for participation in such benefit plans, may be changed by the Company at any time and from time to time without advance notice.  You will be covered by Director & Officer liability insurance at least to the same extent as provided to other officers of the Company.

 

4.                                      Vacation.  You may be eligible for a maximum of 20 days of vacation per calendar year, subject to proration to your date of hire and to be taken at such times as may be approved by the Company. The number of vacation days for which you are eligible shall accrue at the rate of 1.66 days per month that you are employed during such calendar year.  On your employment start date, you will be credited with four days of paid vacation in addition to your standard accrual.

 

5.                                      Reimbursement of Business Expenses.  During the execution of your duties in this position, you may from time to time incur expenses. Upon presentation of appropriate documentation itemizing such expenditures and attaching all supporting vouchers and receipts, you shall be reimbursed for all reasonable and necessary business and entertainment expenses incurred in connection with the performance of your duties in accordance with the Company’s expense reimbursement practices, which are not expressed in a written policy.

 

6.                                      Equity.

 

(a)                                 Subject to the approval of the Board (including a majority of the independent members of the Board) or Compensation Committee at the first scheduled meeting of the Board or Compensation Committee after your employment start date, the Company will grant to you a non-qualified stock option (the “Option”) for the purchase of an aggregate of 200,000 shares of Common Stock of the Company (subject to appropriate adjustments for stock splits, stock dividends, combinations, recapitalizations and similar transactions affecting the Common Stock of the Company after the date hereof) at a price per share equal to the closing sale price of the Common Stock on the Nasdaq Global Market on the date of grant, as an inducement material to you joining the Company, pursuant to Rule 5635(c)(4) of the Nasdaq Listed Company Manual.  The Option shall be subject to all terms, vesting schedules and other provisions set forth in a separate option agreement. The Option will have a term of ten (10) years except as set forth in the stock option agreement and be subject to a vesting schedule of four (4) years, with 25% of the shares vesting on the first anniversary of your employment start date and 6.25% of the shares vesting each quarter thereafter. Notwithstanding anything to the contrary in the stock option agreement, if a “Change in Control Event” (as defined on Exhibit A attached hereto) occurs and, within one (1) year of such Change in Control Event, your employment is terminated by the Company (or any successor) without

 

 

“Cause” (as defined on Exhibit A) or by you for “Good Reason” (as defined on Exhibit A), the vesting schedule of the Option shall be accelerated in full.  You may be eligible to receive future stock options grants as the Board shall deem appropriate and in its sole and absolute discretion.

 

(b)                                 Subject to the approval of the Board or Compensation Committee at the first scheduled meeting of the Board or Compensation Committee after your employment start date, the Company will grant to you a restricted stock unit award under the Company’s 2012 Stock Incentive Plan (the “Plan”) representing the right to receive 50,000 shares of the Company’s common stock (the “RSUs”). The RSUs shall vest over four (4) years, with 25% of the RSUs vesting on the first anniversary of your employment start date and 6.25% of the RSUs vesting each quarter thereafter. The RSUs shall be granted under and subject to the terms of the Plan and a Restricted Stock Unit Award Agreement (the “RSU Agreement”) between you and the Company.

 

(c)                                  If you remain employed by the Company, at the first regularly scheduled meeting of the Board or the Compensation Committee (whichever occurs first) in 2017, the Company will grant to you, subject to the sole discretion of the Compensation Committee or the Board, up to 75,000 Options (the “2017 Performance Option”), subject to the percentage achievement of performance objectives in 2016.  You may receive a grant under Annual LTI Program currently under development in lieu of this grant if both parties so agree. The per share exercise price of the 2017 Performance Option shall be the fair market value (under the Plan) of a share of common stock as of the date of the grant.  The 2017 Performance Option shall be (i) made up of incentive stock options to the extent legally permissible, and otherwise shall be nonstatutory stock options, (ii) subject to all terms of the Plan and a separate option agreement, and (iii) subject to a vesting schedule of four (4) years, with 25% of the shares vesting on the first anniversary of the grant date and 6.25% of the shares vesting each quarter thereafter. Notwithstanding the foregoing, the grant of the 2017 Performance Option shall be subject to the availability of shareholder approved shares for the Plan and Board or Compensation Committee approval.

 

7.                                      Termination of Employment.  If the Company terminates your employment without Cause (as defined on Exhibit A attached hereto) or you terminate your employment for Good Reason (as defined on Exhibit A), you shall be eligible to receive the following Severance Benefits, subject to the waiver and release agreement requirements described below: (a) severance pay in an amount equal to six (6) months of your base salary as in effect on the date of your termination from employment (the “date of termination”), payable in accordance with the Company’s regular payroll procedures proportionately over a six (6) month period (such period, the “Severance Period”); (b) should you be eligible for and elect to continue receiving group medical and dental insurance coverage under the law known as COBRA, the Company shall continue to pay on your behalf, through the earlier of (x) the last day of the Severance Period, or (y) the date that you become eligible for group health and/or dental insurance coverage from any new employer, that portion of the monthly premiums for such coverage that it pays for active and similarly situated employees receiving the same type of coverage, provided that the payments will cease if determined to be discriminatory under applicable law.  No severance pay or other severance benefit hereunder shall be provided to you unless, within 60 days following the date of termination, you first execute and do not revoke (as may be applicable) a waiver and release agreement which shall be given to you by the Company within three days following the date of termination, and which provides for a release of any and all claims that you have or might have against the Company (provided, however, that without your consent, you shall not be required to release any rights to Severance Benefits that you may have under this offer letter, or any vested rights you may have as of the date of termination in any qualified retirement or pension plan of the Company, or any rights you may have to indemnification pursuant to any then-applicable Company by-laws or insurance policies), and the release becomes effective on or before the 60th day. The severance payments shall commence on the first payroll period following the date the waiver and release agreement becomes effective (the “Payment Date”). Notwithstanding the foregoing, if the 60th day following the date of termination occurs in the calendar year following the 

 

 

termination, then the Payment Date shall be no earlier than January 1 of  such subsequent calendar year.  The distribution of any severance payments shall be subject to the provisions of Exhibit B attached hereto.

 

8.                                      Inventions, Confidentiality, Non-Competition and Non-Solicitation.  You will be required to execute an Invention and Non-Disclosure Agreement and a Non-Competition and Non-Solicitation Agreement in the forms attached, as a condition of employment.

 

9.                                      Other Agreements and Governing Law; Jury Trial Waiver.  You represent that you are not bound by any employment contract, restrictive covenant or other restriction preventing you from entering into employment with or carrying out your responsibilities for the Company, or which is in any way inconsistent with the terms of this letter, other than the French Affiliate Contract and Notice Requirement.  Please note that this offer letter is your formal offer of employment and supersedes any and all prior or contemporaneous agreements, discussions and understandings, whether written or oral, relating to the subject matter of this letter or your employment with the Company.  The resolution of any disputes under this letter will be governed by Massachusetts law.  Both the Company and you expressly waive any right that either party has or may have to a jury trial with respect to any dispute arising out of or in any way related to your employment with and/or termination of employment from the Company.

 

10.                               Proof of Legal Right to Work.  You agree to provide to the Company, within three days following your hire date, documentation of your identity and eligibility to work in the United States, as required by the Immigration Reform and Control Act of 1986. If you need to obtain a work visa in order to be eligible to work in the United States, your employment with the Company will be conditioned upon your obtaining a work visa in a timely manner as determined by the Company.

 

11.                               Company Policies and Procedures.  As an employee of the Company, you will be required to comply with all Company policies and procedures.  Violations of the Company’s policies may lead to immediate termination of your employment.  Further, the Company’s premises, including all workspaces, furniture, documents and other tangible materials, and all information technology resources of the Company (including computers, data and other electronic files, and all internet and email) are subject to oversight and inspection by the Company at any time.  Company employees should have no expectation of privacy with regard to any Company premises, materials, resources or information.

 

12.                               At-Will Employment.  This letter shall not be construed as an agreement, either expressed or implied, to employ you for any stated term, and shall in no way alter the Company’s policy of employment at will, under which both you and the Company remain free to terminate the employment relationship, with or without cause, at any time, for any reason or no reason, with or without notice. Similarly, nothing in this letter shall be construed as an agreement, either express or implied, to pay you any compensation or grant you any benefit beyond the end of your employment with the Company, except as otherwise explicitly stated herein.

 

 

If you agree with the provisions of this letter, please sign this letter in the space provided below and return it to Toni Spinazzola in Human Resources.  Christophe, I am confident that you will make a great addition to the OvaScience team and I look forward to working together.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
OVASCIENCE, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Harald Stock
    
	
 
    	
 
    	
Harald Stock
    
	
 
    	
 
    	
Chief Executive Officer
    

 

The foregoing correctly sets forth the terms of my at-will employment by OvaScience, Inc.

 

	
Name:
    	
/s/ Christophe Couturier
    	
 
    	
Date: 
    	
September 6, 2016
    
	
 
    	
Christophe Couturier
    	
 
    	
 
    

 

 

Exhibit A

 

Definitions

 

“Cause” for termination shall be deemed to exist upon:

 

(A)                         a good faith finding by the Company (i) of repeated or willful failure of the employee, after written notice, to perform his or her reasonably assigned duties for the Company, or (ii) that the employee has engaged in dishonesty, gross negligence or misconduct, which dishonesty, gross negligence or misconduct has had a material adverse effect on the business or affairs of the Company;

 

(B)                         the conviction of the employee of, or the entry of a pleading of guilty or nolo contendere by the employee to, any crime involving moral turpitude or any felony; or

 

(C)                         a breach by the employee of any material provision of any invention and non-disclosure agreement or non-competition and non-solicitation agreement with the Company, which breach is not cured within a 10-day written notice thereof.

 

A “Change in Control Event” shall be deemed to exist upon the sale of all or substantially all of the outstanding shares of capital stock, assets or business of the Company, by merger, consolidation, sale of assets or otherwise (other than a transaction in which all or substantially all of the individuals and entities who were beneficial owners of the capital stock of the Company immediately prior to such transaction beneficially own, directly or indirectly, more than 50% of the outstanding securities (on an as-converted to Common Stock basis) entitled to vote generally in the election of directors of the (i) resulting, surviving or acquiring corporation in such transaction in the case of a merger, consolidation or sale of outstanding shares, or (ii) acquiring corporation in the case of a sale of assets).

 

“Good Reason” shall be deemed to exist upon:

 

(A)                         the relocation of the Company’s offices such that the employee’s daily commute is increased by at least 30 miles each way without the written consent of the employee;

 

(B)                         material reduction of the employee’s annual base salary without the prior consent of the employee (other than in connection with, and substantially proportionate to, reductions by the Company of the annual base salary of more than 50% of its employees); or

 

(C)                         material diminution in employee’s duties, authority or responsibilities without the prior consent of the employee, other than changes in duties, authority or responsibilities resulting from the employee’s misconduct;

 

provided, however, that (i) no such event or condition shall constitute Good Reason unless (x) the employee gives the Company a written notice of termination for Good Reason not more than 90 days after the initial existence of the condition, (y) the grounds for termination if susceptible to correction are not corrected by the Company within 30 days of its receipt of such notice and (z) the employee’s termination of employment occurs within six months following the Company’s receipt of such notice; and (ii) at all times “Good Reason” will be interpreted in a manner consistent with the definition of “good reason” within the meaning of Section 409A (as defined below in Exhibit B).

 

 

Exhibit B

 

Payments Subject to Section 409A

 

1.                                      Subject to this Exhibit B, payments or benefits during the Severance Period under this offer letter (“Severance Payments”) shall begin only upon the date of your “separation from service” (determined as set forth below) which occurs on or after the termination of your employment.  The following rules shall apply with respect to distribution of the Severance Payments, as applicable:

 

(a)                                  It is intended that each installment of the Severance Payments shall be treated as a separate “payment” for purposes of Section 409A of the Code and the guidance issued thereunder (“Section 409A”).  Neither the Company nor you shall have the right to accelerate or defer the delivery of any such Severance Payments except to the extent specifically permitted or required by Section 409A.

 

(b)                                  If, as of the date of your “separation from service” from the Company, you are not a “specified employee” (within the meaning of Section 409A), then each installment of the Severance Payments shall be made on the dates and terms set forth in the offer letter.

 

(c)                                   If, as of the date of your “separation from service” from the Company, you are a “specified employee” (within the meaning of Section 409A), then:

 

(i)                                     Each installment of the Severance Payments due under the offer letter that, in accordance with the dates and terms set forth herein, will in all circumstances, regardless of when your separation from service occurs,  be paid within the Short-Term Deferral Period (as defined under Section 409A) shall be treated as a short-term deferral within the meaning of Treasury Regulation Section 1.409A-1(b) (4) to the maximum extent permissible under Section 409A and shall be made on the dates and terms set forth in the offer letter; and

 

(ii)                                  Each installment of the Severance Payments due under the offer letter that is not described in this Exhibit B, Section 1(c)(i) and that would, absent this subsection, be paid within the six-month period following your “separation from service” from the Company shall not be paid until the date that is six months and one day after such separation from service (or, if earlier, your death), with any such installments that are required to be delayed being accumulated during the six-month period and paid in a lump sum on the date that is six months and one day following your separation from service and any subsequent installments, if any, being paid in accordance with the dates and terms set forth herein; provided, however, that the preceding provisions of this sentence shall not apply to any installment of Severance Payments if and to the maximum extent that that such installment is deemed to be paid under a separation pay plan that does not provide for a deferral of compensation by reason of the application of Treasury Regulation 1.409A-1(b)(9)(iii) (relating to separation pay upon an involuntary separation from service).  Any installments that qualify for the exception under Treasury Regulation Section 1.409A-1(b)(9)(iii) must be paid no later than the last day of your second taxable year following the taxable year in which the separation from service occurs.

 

2.                                      The determination of whether and when your separation from service from the Company has occurred shall be made and in a manner consistent with, and based on the presumptions set forth in, Treasury Regulation Section 1.409A-1(h).  Solely for purposes of this Exhibit B, Section 2, “Company” shall include all persons with whom the Company would be considered a single employer under Section 414(b) and 414(c) of the Code.

 

 

3.                                      All expense reimbursements shall be paid as soon as administratively practicable.  If an expense reimbursement or provision of in-kind benefit is not exempt from Section 409A of the Code, the following rules apply: (i) in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred; (ii) the amount of reimbursable expenses incurred or provision of in-kind benefits in one tax year shall not affect the expenses eligible for reimbursement or the provision of in-kind benefits in any other tax year; and (iii) the right to reimbursement for expenses or provision of in-kind benefits is not subject to liquidation or exchange for any other benefit.

 

4.                                      The Company makes no representation or warranty and shall have no liability to you or to any other person if any of the provisions of the offer letter (including this Exhibit) are determined to constitute deferred compensation subject to Section 409A but that do not satisfy an exemption from, or the conditions of, that section.Exhibit 10.1

 

EXECUTION COPY

 

EXCHANGE AGREEMENT

 

This EXCHANGE AGREEMENT, dated as of
August 29, 2016 (this “Agreement”), is made between Cognate Bioservices, Inc., a Delaware corporation
(“Cognate”) and Northwest Biotherapeutics, Inc., a Delaware corporation (the
"Company").

 

RECITALS

 

A.           The Nasdaq Stock
Market (“Nasdaq”) has reviewed certain stock and warrant issuances made by the Company to Cognate, including
issuances pursuant to the July 30, 2013 Conversion and Lock-Up Agreements (the “July 2013 Agreement”) and the
four January 17, 2014 agreements between Cognate and the Company (the “January 2014 Agreements”), and has determined
that Nasdaq’s rules required shareholder approval of such issuances prior to issuance.

 

B.           The Company has
submitted a remediation plan to regain compliance with Nasdaq’s rules, and the transactions contemplated by this Agreement
are an integral part of such remediation plan.

 

C.           As set forth
herein, the Company and Cognate wish to provide for the issuance of certain shares of the Company’s convertible preferred
stock and Company warrants, in exchange for shares of the Company’s common stock, par value $0.001 per share (the “Common
Stock”) and Company warrants currently held by Cognate.

 

AGREEMENT

 

In consideration of the
foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

 

1.           Exchange
of Securities. The Company and Cognate shall, pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended (the “Securities
Act”), exchange securities as set forth herein. Subject to the conditions set forth herein, the closing (the “Closing”)
of the transactions set forth herein shall occur on a date agreed between the parties, which shall be no later than the 10th business
day after the later of the date of this Agreement and the date on which the conditions in Section 2(a) are satisfied or waived.

 

(a)           At the Closing, subject
to the conditions set forth herein:

 

(i)           the Company
shall issue to Cognate warrants (the “New Warrants”) with substantially the terms set forth in Exhibit A
for the purchase of 4,305,772 shares of Common Stock (the “Warrant Shares”); and

 

(ii)           Cognate
shall return, transfer and deliver to the Company for retirement (and in the case of warrants, cancellation) the following (collectively,
the “Returned Securities”): (i) 731,980 shares of Common Stock and 6,880,574 warrants issued to Cognate pursuant
to the January 2014 Agreements; and (ii) 3,495,438 and 4,556,654 shares of Common Stock issued to Cognate in October 2015 pursuant
to the most favored nations provisions of the July 2013 Agreement and January 2014 Agreements, respectively.

 

     

     

    

 

(b)           The Company and Cognate
also agree hereby that the terms of the July 2013 Agreements and the January 2014 Agreements with respect to the issuance of the
Company’s securities are amended hereby, effective at the Closing, to delete and remove any most favored nations rights provided
for therein.

 

2.           Conditions
Precedent to the Closing.

 

(a)           Conditions
to the Obligations of the Company and Cognate. The obligations of the Company and Cognate to consummate the Closing shall be
subject to the satisfaction (or waiver by the Company or Cognate, as applicable) on or prior to the Closing of the following conditions:
(a) Nasdaq shall not have raised any objections to the transaction contemplated hereby and shall have confirmed to the Company
that the Company’s remediation plan has been accepted and that, upon the Closing, the remediation plan shall be deemed complete;
(b) the consummation of the transactions hereby shall not have been enjoined or prohibited by applicable law; and (c) no proceeding
by any governmental authority challenging such transactions in any material respect shall have been initiated or threatened.

 

(b)           Conditions
to the Obligations of Cognate. The obligations of Cognate to consummate the Closing shall be subject to the satisfaction (or
waiver by Cognate) on or prior to Closing of the following conditions:

 

(i)           Representations
and Warranties. Each of the representations and warranties of the Company contained in this Agreement shall be true and correct
in all material respects both when made and as of such Closing (or in the case of representations and warranties that are made
as of a specified date, which representations and warranties shall be true and correct in all material respects as of such specified
date).

 

(ii)           Covenants.
The Company shall have performed and complied in all material respects with all agreements and conditions required by this Agreement
to be performed or complied with by it prior to or at such Closing.

 

(iii)           Deliveries.
Prior to or at the Closing, the Company shall deliver to Cognate a duly executed counterpart of the New Warrants and any other
documents or instruments reasonably requested prior to such Closing by Cognate in connection with the consummation of the transactions
contemplated by this Agreement.

 

(iv)           Authorization
of New Warrants. The Company’s board of directors shall have duly authorized the New Warrants.

 

(c)           Conditions
to the Obligations of the Company. The obligations of the Company to consummate the Closing shall be subject to the satisfaction
(or waiver by the Company) on or prior to Closing of the following conditions:

 

(i)           Representations
and Warranties. Each of the representations and warranties of Cognate contained in this Agreement shall be true and correct
in all material respects both when made and as of such Closing (or in the case of representations and warranties that are made
as of a specified date, which representations and warranties shall be true and correct in all material respects as of such specified
date).

 

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(ii)           Covenants.
Cognate shall have performed and complied in all material respects with all agreements and conditions required by this Agreement
to be performed or complied with by it prior to or at such Closing.

 

(iii)           Deliveries.
Prior to or at the Closing, Cognate shall surrender to the Company for retirement all shares of Common Stock constituting Returned
Securities, the warrants constituting Returned Securities to the extent previously delivered to Cognate, a duly executed counterpart
of the New Warrants and any other documents or instruments reasonably requested prior to such Closing by the Company in connection
with the consummation of the transactions contemplated by this Agreement.

 

3.           Representations
and Warranties.

 

(a)           Representations
and Warranties by Cognate. In connection with the exchange of securities pursuant to this Agreement, Cognate hereby represents
and warrants to the Company as of the date hereof and as of the Closing that:

 

(i)           Cognate
has all necessary power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate
the transactions contemplated hereby. This Agreement has been duly and validly executed by Cognate and, assuming the due authorization,
execution and delivery by the Company, this Agreement constitutes the legal, valid and binding obligation of Cognate, enforceable
in accordance with its terms, subject to the effect of any bankruptcy or similar laws affecting the rights and remedies of creditors’
generally and general principles of equity. The execution, delivery and performance of this Agreement by Cognate does not and will
not conflict with, violate or cause a breach of Cognate’s certificate of incorporation or bylaws, applicable law or any material
agreement, contract or instrument to which Cognate is a party or any judgment, order or decree to which Cognate is subject.

 

(ii)           The
execution and delivery of this Agreement by Cognate does not, and the performance of this Agreement by Cognate shall not, require
any consent, approval, authorization or permit of, or filing with or notification to, any governmental entity except for applicable
requirements, if any, of the Exchange Act and except where the failure to obtain such consents, approvals, authorizations or permits,
or to make such filings or notifications, would not prevent or delay the performance by Cognate of its obligations under this Agreement.

 

(iii)           The
New Warrants will be received by Cognate for Cognate’s own account and not with a view to, or intention of, distribution
thereof in violation of the Securities Act of 1933, as amended, or any applicable state securities laws. Cognate has had the opportunity
to ask questions of the Company and its officers and employees and to receive to its satisfaction such information about the business
and financial condition of the Company as Cognate considers necessary or appropriate for deciding whether to receive the New Warrants,
and Cognate is fully capable of understanding and evaluating the risks associated with the ownership of the New Warrants and of
bearing the loss of value of the New Warrants. Except as set forth herein, Cognate is not relying on and has not relied on any
representation by the Company or its representatives with respect to the New Warrants.

 

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(iv)           Cognate
is the sole legal and beneficial owner of the Returned Securities and will transfer and deliver to the Company at the closing of
the transactions contemplated hereunder valid title to the Returned Securities, free and clear of all security interests, liens,
claims, pledges, options, rights of first refusal, preemptive or similar rights, agreements, limitations on Cognate’s voting
rights, charges and other encumbrances of any nature whatsoever (collectively, “Encumbrances”).

 

(b)           Representations
and Warranties by the Company. In connection with the exchange of securities pursuant to this Agreement, the Company hereby
represents and warrants to Cognate, as of the date hereof and as of the Closing, that:

 

(i)           The
Company has all necessary power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to
consummate the transactions contemplated hereby. This Agreement has been duly and validly executed by the Company and, assuming
the due authorization, execution and delivery by Cognate, this Agreement constitutes the legal, valid and binding obligation of
the Company, enforceable in accordance with its terms, subject to the effect of any bankruptcy or similar laws affecting the rights
and remedies of creditors’ generally and general principles of equity. The execution, delivery and performance of this Agreement
by the Company does not and will not conflict with, violate or cause a breach of the Company’s certificate of incorporation
or bylaws, applicable law or any material agreement, contract or instrument to which the Company is a party or any judgment, order
or decree to which the Company is subject.

 

(ii)           The
execution and delivery of this Agreement by the Company does not, and the performance of this Agreement by the Company shall not,
require any consent, approval, authorization or permit of, or filing with or notification to, any governmental entity except for
applicable requirements, if any, of the Exchange Act and the filing of the Certificate of Designations with the Secretary of State
of the State of Delaware and except where the failure to obtain such consents, approvals, authorizations or permits, or to make
such filings or notifications, would not prevent or delay the performance by the Company of its obligations under this Agreement.

 

(iii)           The
New Warrants will be duly authorized by the Company on or before the Closing and, when issued and delivered to Cognate in accordance
with the terms of this Agreement and upon delivery of the Returned Securities to the Company, assuming the due authorization, execution
and delivery by Cognate, the New Warrants will constitute the legal, valid and binding obligation of the Company, enforceable in
accordance with its terms, subject to the effect of any bankruptcy or similar laws affecting the rights and remedies of creditors’
generally and general principles of equity. The Warrant Shares will be duly authorized by the Company on or before the Closing
and, upon due and proper exercise of the New Warrants (in whole or in part), the Warrant Shares will be validly issued, fully paid
and nonassessable, free and clear of any and all Encumbrances

 

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4.           Registration.

 

(a)           The Company agrees
to file with the U.S. Securities and Exchange Commission (the “SEC”) a registration statement on Form S-3 (or
such other form of registration statement as may be appropriate in the event Form S-3 is not then available to the Company) pursuant
to which the Company shall register for resale by Cognate the remaining shares of Common Stock in the 2014 Issuances and the shares
of Common Stock issuable upon exercise of the New Warrants. The Company shall take all commercially reasonable efforts to file
such registration statement no later than 90 days following the Closing or as soon thereafter as practical. The Company agrees
to use commercially reasonable best efforts to cause such resale registration statement to become effective as soon as practicable
following the filing thereof with the SEC.

 

(b)           Subject to Section
4(a), Cognate understands that the New Warrants will not initially be registered and all stock or warrant certificates or uncertificated
book entry provisions evidencing the New Warrants may bear the following legend:

 

THESE SECURITIES
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED FOR
SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE ACT OR UNLESS
SUCH TRANSACTION IS IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS.

 

5.           Miscellaneous.

 

(a)           Further Assurances.
The parties hereto agree to execute and deliver any such additional documents or instruments of assignment, transfer or conveyance,
and to take any other action, as may be necessary or appropriate to effectuate the transactions described in this Agreement.

 

(b)           Specific Performance.
The parties hereto acknowledge and agree that money damages may not be an adequate remedy for any breach of the provisions of this
Agreement and that any party hereto will have the right to injunctive relief, in addition to all of its other rights and remedies
at law or in equity, to enforce the provisions of this Agreement.

 

(c)           Entire Agreement.
This Agreement embodies the complete agreement and understanding among the parties to this Agreement with respect to the subject
matter of this Agreement and supersedes and preempts any prior understandings, agreements or representations by or among the parties,
written or oral, which may have related to the subject matter of this Agreement in any way.

 

(d)           Severability.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule or law, or public
policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of this Agreement is not affected in any manner materially adverse to any party. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereby shall negotiate in good
faith to modify this Agreement so as to effect the original intent of the parties as closely as possible to the fullest extent
permitted by applicable law in a mutually acceptable manner in order that the terms of this Agreement remain as originally contemplated.

 

    	 	5	 

     

    

 

(e)           Governing Law.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to the
laws of any other jurisdiction that might be applied because of the conflicts of laws principles thereof.

 

(f)           MUTUAL WAIVER
OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED
BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES),
THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, EACH PARTY TO THIS AGREEMENT
HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY
OF THE PARTIES HERETO, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO
THIS AGREEMENT AND/OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(g)           Consent to
Jurisdiction. Each party (i) hereby irrevocably submits to the exclusive jurisdiction of the United States courts and New York
State courts sitting in Manhattan, New York City, State of New York, for the purposes of any suit, action or proceeding arising
out of or related to this Agreement and (ii) hereby waives, and agrees not to assert in any such suit, action or proceeding, any
claim that it is not personally subject to the jurisdiction of such courts, that the suit action or proceeding is brought in an
inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing in this Section 4(g) shall affect
or limit any right to serve process in any other manner permitted by law.

 

(h)           Counterparts;
Delivery by Facsimile or Electronic Mail. This Agreement may be executed in counterparts, each of which shall be deemed an
original and all of which, when taken together, shall constitute one and the same instrument. This Agreement and each other agreement
or instrument entered into in connection with this Agreement, to the extent signed and delivered by means of facsimile machine
or electronic mail, shall be treated for all purposes as an original agreement or instrument and shall be considered to have the
same binding legal effect as if it were the original signed version delivered in person.

 

(i)           Survival of
Representations, Warranties and Covenants. The representations and warranties contained in or made pursuant to this Agreement
shall survive the closing of the transactions contemplated hereunder.

 

(j)           Modification;
Amendment. This Agreement may be modified only by written instrument or agreement executed by the each of the parties hereto.

 

    	 	6	 

     

    

 

(k)           Termination.
This Agreement may be terminated at any time prior to the Closing by: (i) mutual written agreement of the Company and Cognate or
(ii) by the Company, by written notice to Cognate, if Nasdaq rejects the Company’s remediation plan or notifies the Company
that, upon the Closing, the remediation plan shall not be deemed complete.

 

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remainder of this page has been intentionally left blank.]

 

 

 

 

 

    	 	7	 

     

    

 

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

 

 

	 	NORTHWEST BIOTHERAPEUTICS, INC.
	 	 
	 	 
	 	By:	     	 
	 	Name:
	 	Title:
	 	 
	 	 
	 	COGNATE BIOSERVICES, INC.
	 	 
	 	 
	 	By:	 	      
	 	Name:
	 	Title:

 

 

 

 

 

 

    	 	8

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