Document:

Exhibit
10.16

 

Patent Purchase and Assignment Agreement

 

By and
between

 

1.
TecLic Technical Licenses GmbH (formerly BetaResearch Gesellschaft für
Entwicklung und Vermarktung digitaler Infrastrukturen mbH)

Koenigstrasse 1

D-01097 Dresden

Germany

—
“TecLic” or “ASSIGNOR” —

and

 

2. ActivIdentity Corporation (formerly
ActivCard Corp.)

6623 Dumbarton Circle

Fremont, California 94555

USA

 

—
“ActivIdentity” or “ASSIGNEE” —

 

—
Together the “Parties” (individually the “Party”) —

 

 

WHEREAS, TecLic is the owner
of the entire right, title and interest in and to US Patent No. 6,575,360;
corresponding EU Patent EP0981803 B1 nationalized in Germany (DE59802639), France (EP0981803), Great Britain
(EP0981803) and Austria (EP0981803);  Russian
Patent No. RU2212707 C2; South African Patent No. ZA98/04060; and pending
Malaysia Patent Application No. PI98002174 (respectively, the “US Patent,” the “EU
Patent,” the “Germany Patent,” the “Great Britain Patent,” the “France Patent,”
the “Austria Patent,” the Russia Patent,” the “South Africa Patent” and the “Malaysia
Patent Application,” respectively, and together, the “Patents”).

 

WHEREAS, presently, the
title of all of the Patents is in the former corporate name of TecLic, i.e.,
all of the Patents currently are titled under TecLic’s former corporate name,
i.e.,  “BetaResearch Gesellschaft für
Entwicklung und Vermarktung digitaler Infrastrukturen mbH” (“BetaResearch”),
and TecLic has provided to ActivIdentity formal proof of the legal identity of
BetaResearch by certified excerpts of the register of commerce of Munich and
Dresden, Germany, copies of which are attached hereto and made a part hereof,
designated Exhibits A and B.

 

NOW, THEREFORE, in
consideration of the foregoing premises and the covenants as hereinafter set
forth, and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties hereto agree as follows:

 

1.              Sale of the
Patents

a.               TecLic, by these presents,
does hereby sell, assign and transfer unto ActivIdentity, and ActivIdentity
does hereby purchase and accept from TecLic, the entire right, title and
interest in and to the Patents (as defined above), any patent issuing on the 

 

 

Malaysian Patent Application, and any divisionals,
continuations, continuations in part, extensions and reissues thereof, under
such terms and conditions as hereinafter set forth.

b.              The individual purchase
prices of the Patents conveyed herein (each, an “Individual Purchase Price”)
shall consist of the following amounts:

  i.    EUR 1,525,000.00 for the US Patent;

 ii.    EUR 1,525,000.00 for the EU Patent,
including the Germany Patent, Great Britain Patent, France Patent and Austria
Patent;

iii.    EUR 50,000.00 for the Russia Patent;

 iv.   EUR 30,000.00 for the South Africa Patent;
and

  v.   EUR 20,000.00 for the Malaysia Patent
Application and each Patent issuing thereon.

c.               The total purchase price
thus amounts to Euro 3,150,000.00 (in words: Euro three million one hundred and
fifty thousand) (the “Total Purchase Price”).

d.              The Total Purchase Price is due
and payable within two (2) weeks after execution of this agreement (the “Agreement”)
by both Parties and payable net and without any bank fees to the following bank
account of  TecLic:

                Commerzbank
München

                Account No.: 296 00 86

                Bankleitzahl: 700 400
41

                Swift Code: COBADEFF700

                        The payment obligation shall
be deemed satisfied only if payment of the Total Purchase Price is made to the
bank account provided in this Section 1.d (the “Account”).  No later than one (1) German business day
after TecLic’s receipt of confirmation from Commerzbank München that the Total
Purchase Price has been posted to the Account, TecLic shall acknowledge safe
receipt of the Total Purchase Price by facsimile notice to ActivIdentity, to
the attention of Mr. Thomas Jahn.

e.               If the Total Purchase Price
has not been paid in total within three (3) weeks after execution of this
Agreement by both Parties (the “Three-Week Deadline”), TecLic shall be entitled
to terminate this Agreement by facsimile notice to ActivIdentity to the attention
of Mr. Thomas Jahn.  TecLic shall deliver
such notice no later than one (1) week following the Three-Week Deadline.  At its sole discretion, TecLic may, by
written notice to ActivIdentity, elect to extend the Three-Week Deadline, in
which case, TecLic shall have an additional one (1) week beyond any such
extension to terminate this Agreement if the Total Purchase Price has not been
paid within the extended Three-Week Deadline. 
If TecLic terminates this Agreement in accordance with this Section 1.e,
TecLic shall immediately refund to ActivIdentity any and all 

2

 

payments made by ActivIdentity, regardless of
whether such payments were made before or after the Three-Week Deadline.

2.               Covenants,
Warranties and Limitation of Liability

a.               TecLic covenants, warrants
and agrees that:  (i) TecLic has the
exclusive right to sell, assign and transfer the entire right, title and
interest in and to the Patents to be conveyed herein; (ii) TecLic is the sole
legal owner of the Patents and the Patents have neither been assigned nor
pledged to a third party and are free of any and all encumbrances; (iii) TecLic
is entitled and has the authority to assign the Patents to ActivIdentity; (iv)
all of the Patents are in full force and effect and all payments and requested actions
to patent offices to which the Patents pertain have been made and satisfied to
maintain in force the Patents at the time of execution of this Agreement; and
(v) TecLic shall not assign or pledge the Patents to a third party following
the execution of this
Agreement.  Nothing
contained herein shall constitute a representation or warranty by TecLic that
the Malaysia Patent Application has issued or will issue.  TecLic hereby indemnifies and
agrees to hold ActivIdentity harmless from, against, and in respect of, and
shall, on demand and upon presentation to TecLic of proof thereof, reimburse
ActivIdentity for any and all losses, liabilities or damages suffered or
incurred by ActivIdentity (a) by reason of any untrue representation, breach of
warranty or non-fulfillment of any covenant by TecLic contained herein or in
any certificate, document or instrument delivered to ActivIdentity pursuant
hereto or in connection herewith or (b) which would not have been suffered or
incurred if such representation were true and not breached or if such covenant
were fully performed.  Each
representation, warranty, indemnity, covenant and agreement made by TecLic or
ActivIdentity in this Agreement shall survive the closing of this Agreement.

b.              The Parties hereby agree
that all costs associated with assigning and transferring the Patents to
ActivIdentity shall be borne solely by ActivIdentity.

c.               UPON EXECUTION OF THE SALE,
ASSIGNMENT AND TRANSFER OF THE PATENTS AS PROVIDED HEREIN, THE PATENTS SHALL BE
PROVIDED “AS IS” TO ASSIGNEE.  ASSIGNEE
HAS THOROUGHLY EXAMINED THE PATENTS AND SHALL ACCEPT THEM “AS IS”.  EXCEPT AS EXPRESSLY PROVIDED FOR IN THIS
AGREEMENT, ASSIGNOR DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, WITH REGARD
TO THE PATENTS AND THIS AGREEMENT, INCLUDING THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTIES OF
NON-INFRINGEMENT OR ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE IN
TRADE.

d.              UNDER NO CIRCUMSTANCES SHALL
ANY LIABILITY OR INDEMNITY
OBLIGATION OF TECLIC OR ACTIVIDENTITY EXCEED THE INDIVIDUAL PURCHASE PRICE OF ONE
OR MORE OF THE PATENTS THAT IS OR ARE THE SUBJECT OF THE DISPUTE INVOLVING SUCH
LIABILITY OR INDEMNITY OBLIGATION.

3

 

e.               THIS
AGREEMENT IS NOT AND SHALL NOT BE CONSTRUED TO CONSTITUTE A LICENSE, EXPRESS OR
IMPLIED, TO ANY OTHER TECLIC OR BETARESEARCH INTELLECTUAL PROPERTY.  NOTWITHSTANDING
THE FOREGOING, TECLIC AGREES THAT IT WILL NOT ASSERT ANY OF ITS EXISTING
PATENTS NOT ASSIGNED HEREIN AGAINST ACTIVIDENTITY FOR PRACTICING AN INVENTION
COVERED BY THE CLAIMS OF THE PATENTS ASSIGNED HEREIN.

3.              Assignment
of the Patents

a.               Simultaneously with the
execution of this Agreement, TecLic shall execute and deliver to ActivIdentity
such documents and instruments as ActivIdentity shall request (the “National
Assignment Documents”), the forms of which are set out in Annex 1 a) - c)
attached hereto, to request the commissioners of the United States Patent and
Trademark Office, the European Patent Office and the other national patent
offices wherein the Patents were issued or are pending (a “National Patent
Authority”), whose duty is to issue patents or other evidence or forms of
industrial property protection on applications as aforesaid, to issue the same
to ASSIGNEE, its successors, legal representatives and assigns, in accordance
with the terms of the applicable National Assignment Document.  ASSIGNEE shall bear all costs related to the
execution and registration of the National Assignment Documents.  TecLic agrees that it will execute and
deliver to ActivIdentity any and all additional documents and/or instruments
that may be reasonably requested by ActivIdentity and necessary to vest full
and complete legal and equitable title to the Patents in ActivIdentity, without
further consideration than now paid, but at the expense of ActivIdentity, its
successors or assigns.

b.              Upon execution of the
National Assignment Documents by TecLic, such documents shall be placed in
escrow with Tobias von Tucher of the law firm White & Case LLP, to be
released to ActivIdentity or Cabinet JP COLAS, as directed by those parties,
upon confirmation of payment by ActivIdentity of the Total Purchase Price, in
accordance with Section 1.d of this Agreement. 
If the National Assignment Documents are released to Cabinet JP COLAS,
such release shall be addressed as follows:

Cabinet JP COLAS

37, avenue Franklin D. Roosevelt

75008 Paris

France

Attention:  Jean-Pierre Colas

Fax: + 33 (0)1 45 61 91 98

c.               Under the condition
precedent of having received the Total Purchase Price in full within the time
period set forth in Section 1.d of this Agreement, TecLic hereby assigns the
Patents to ActivIdentity, which accepts such assignment.

d.              The Parties agree that the
full title to the Patents shall be transferred to the ASSIGNEE upon:  (i) execution of this Agreement by both
Parties; (ii) execution by 

4

 

TecLic of the National Assignment Documents; and
(iii) payment by ActivIdentity of the Total Purchase Price to TecLic.  TecLic shall instruct the patent attorneys
listed in Annex 2 attached hereto to receive their instructions with
respect to the Patents from Cabinet JP Colas from the date of assignment of the
Patents.

e.               From the date of assignment
of the Patents, ActivIdentity shall be entitled to enforce the Patents and
recover damages for past, present and future infringements thereof.  At the request of ActivIdentity, TecLic shall
provide reasonable support to ActivIdentity in any action concerning the
Patents that is initiated by ActivIdentity, including using its best efforts to
obtain the reasonable support of Mr. Thomas Hagn (“Hagn”).  In such event, ActivIdentity shall, and upon presentation to ActivIdentity of
proof thereof, pay all costs, fees and any expenses of any kind incurred
by TecLic or Hagn in full and in advance to TecLic and Hagn respectively.  In addition, ActivIdentity shall defend,
indemnify and hold harmless TecLic and Hagn from any claims, counterclaims and
costs incurred in any way related to the enforcement of the Patents.

4.              Notices

a.               Every notice given or
required to be given under this Agreement (a “Notice”) shall be in writing and
in the English language.  A Notice shall,
in the case of a recipient being a company, be sent to the office where the
company is registered from time to time.

b.              Every Notice shall be sent
by courier, or by prepaid airmail or by facsimile transmission.  Every Notice shall be addressed as follows:

As to TecLic:

White & Case LLP

Königstraße 1

01097 Dresden

Germany

Attention:  Dr. Axel Bauer, Esq.

Fax:  +49 351 8888-191

As to ActivIdentity:

ActivIdentity Corporation

6623 Dumbarton Circle

Fremont, California 94555

USA

Attention:  Mr. Thomas Jahn

Fax:  +1 510 574 0101

c.               A Notice shall be deemed
effective as of the date of dispatch, provided it is dispatched on a normal
business day in its country of origin (a “Business Day”); otherwise, a Notice
shall be deemed effective as of the next Business Day.

5

 

d.              In proving service of
Notice, it shall be sufficient to prove that delivery was made or that the
envelope containing the Notice was properly addressed and posted either by
prepaid first class recorded delivery post or by prepaid airmail, as the case
may be, or that the sender’s facsimile transmission report confirmed receipt.

5.              General

a.               None of the rights or
obligations of a Party under this Agreement may be assigned or transferred
without the prior written consent of the other Party.

b.              This Agreement and the
documents referred to herein constitute the entire agreement between the
Parties relating to the subject matter hereof, and supersede all previous
agreements between the Parties relating to such subject matter.  There shall be deemed to be comprised in this
Agreement all letters and acknowledgements exchanged between ActivIdentity and
TecLic contemporaneously with and expressed to be ancillary to this Agreement.

c.               Each Party confirms that, in
agreeing to enter into this Agreement, such Party has not relied on any
representation, warranty, collateral contract or other assurance except those
set out in this Agreement.  To the extent
any previous representation, warranty, collateral contract or assurance was
made to or with a Party, that Party waives all rights and remedies with respect
thereto.  However, nothing in this clause
shall limit or exclude liability for fraud.

d.              The express rights and
remedies provided in this Agreement do not exclude any other rights and
remedies provided by law, except to the extent that the rights and remedies of
a Party are expressly excluded or restricted by the terms of this Agreement.

e.               Any variation or waiver of
any terms of this Agreement shall not be binding unless set out in writing,
expressed to amend this Agreement and signed by or on behalf of ActivIdentity
and TecLic.

f.                 If any provision of this
Agreement, or any part of a provision of this Agreement, is found to be
illegal, invalid or unenforceable, the remaining provisions, or the remainder
of the provision concerned, shall continue in effect and the illegal, invalid
or unenforceable provision shall be replaced by a provision which ActivIdentity
and TecLic would have agreed upon should they have known about such deficiency.

g.              Any date or period mentioned
in this Agreement may be extended by agreement between ActivIdentity and
TecLic.  However, as regards any date or
period (whether or not extended by agreement), time shall be of the essence of
this Agreement.

h.              Neither of the Parties shall
at any time make any announcement of this transaction or disclose any term of
this Agreement, or of any document referred to in this Agreement, without the
prior written approval of the other Party except to the extent that such
information is already lawfully in the public domain.  The Parties shall each use their best efforts
to keep the terms of this Agreement and the documents referred to herein, which
are not already lawfully in the public domain from time to time, 

6

 

strictly confidential.  Despite the above, a Party shall be entitled
to make any announcement or disclosure which is imposed on that Party (or on
any holding company of that Party) by law or by the rules of any regulatory
body to which that Party (or holding company) is subject, but the Parties
shall, as far as practicable, consult with one another prior to making such
announcement or disclosure regarding the form of such announcement or disclosure.  Nothing in this Section 5.h shall be
interpreted as prohibiting ActivIdentity from presenting or producing this
Agreement to or before a National Patent Authority whenever necessary for
registering the assignment of one of the Patents in the corresponding country
in the event that the National Patent Authority deems the relevant National
Assignment Document unsuitable.  In such
a case, ActivIdentity will use its best efforts to preserve the confidentiality
of the payment terms under this Agreement, including, as appropriate, by
redacting such terms from the document before submitting them to any National
Patent Authority.

i.                  This Agreement may be
executed in any number of counterparts and all the counterparts when taken
together will constitute one agreement. 
Each Party may enter into this Agreement by executing a counterpart.

j.                  Each individual signing this
Agreement on behalf of a Party represents that he has been fully empowered by
that Party to execute this Agreement, that all necessary action to authorize
execution of this Agreement by him has been taken by such Party, and that the
Party on whose behalf he executes this Agreement has full authority, power and
capacity to enter into this Agreement and that all necessary actions have been
taken to enable that Party lawfully to enter into this Agreement.

6.              Applicable
Law, Jurisdiction

a.               This Agreement shall be
governed by, and construed in accordance with, the laws of the Federal Republic
of Germany.

b.              The Parties irrevocably
consent to the exclusive jurisdiction and venue of courts located in Munich,
Federal Republic of Germany in connection with any dispute or action relating
to this Agreement.

 

[THIS SPACE INTENTIONALLY LEFT BLANK]

7

IN TESTIMONY WHEREOF,
ASSIGNOR has caused this Patent Purchase and Assignment Agreement to be duly
executed by its duly authorized officer on the date set forth below.

TECLIC TECHNICAL LICENSES
GMBH

	
  By:

  	
  Dr.
  Axel Bauer, Geschäftsführer (CEO)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Dr. Axel Bauer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date: July 6, 2006

  	
   

  
				

 

 

 

FEDERAL
REPUBLIC OF GERMANY

On this 6th day of July 2006, before me the
undersigned, a Notary Public for the Federal Republic of Germany, personally
appeared Dr. Axel BAUER, personally known to me (or proved to me on the basis
of satisfactory evidence) to be the person whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
authorized capacity, and that by his signature on the instrument the person, or
the entity upon behalf of which the person acted, executed the instrument.

Witness my hand and official seal.

	
   

  	
   

  	
   

  
	
   

  	
  Signature of Notary

  	
   

  

 

IN TESTIMONY WHEREOF, ASSIGNEE has caused this
Patent Purchase and Assignment Agreement to be duly executed by its duly
authorized officer on the date set forth below.

 

	
  ACTIVIDENTITY CORPORATION

  
	
   

  	
   

  
	
  By:   Thomas
  Jahn, Chief Operating Officer (COO)

  
	
   

  	
   

  
	
               /s/
  Thomas Jahn

  	
   

  
	
   

  	
   

  
			

 

 

Date: July 6, 2006

 

 

 

 

On this 6th day of July
2006, before me the undersigned, a Notary Public for the Federal Republic of
Germany, personally appeared Mr. Thomas JAHN, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person whose name is
subscribed to the within instrument and acknowledged to me that he executed the
same in his authorized capacity, and that by his signature on the instrument
the person, or the entity upon behalf of which the person acted, executed the
instrument.

Witness my hand and official seal.

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature of Notary

  	
   

  

 

 

Annex 1 a

 

 

ASSIGNMENT 

 

WHEREAS,
TecLic Technical Licenses GmbH, a
Gesellschaft mit beschränkter Haftung organized and existing under and by
virtue of the laws of the Federal Republic of Germany and having a principal
place of business at Koenigstrasse 1, D-01097 Dresden, Germany, formerly known
as BetaResearch Gesellschaft für Entwicklung und Vermarktung digitaler
Infrastrukturen mbH of Unterföhring (Germany), the change of Corporate name and
address of which has been recorded with the German Register of Commerce, as per
excerpt annexed therewith, designated,

 

(hereinafter
“ASSIGNOR”)

is the present owner of the entire right
title and interest in and to United States Patent No. 6,575,360, issued on June
10, 2003, entitled “Device and Method for Personalizing Chip Cards” (the “Patent”);
and

 

WHEREAS,
ActivIdentity Corporation, a corporation organized and existing under and by
virtue of the laws of the State of Delaware, United States of America (U.S.A.),
and having a principal place of business at 6623 Dumbarton Circle, in the City
of Fremont, and State of California 94555, U.S.A.,

 

(hereinafter
“ASSIGNEE”)

desires to obtain the entire right, title and
interest in and to the Patent and the inventions described and claimed therein
for its own use and behalf and for its legal representatives, successors and
assigns,

 

NOW,
THEREFORE, in consideration of good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, ASSIGNOR, by these presents, does

 

 

 

hereby
sell, assign, and transfer, unto ASSIGNEE, the entire right, title and interest
in and to US Patent No. 6,575,360 (including any reissues, divisionals,
continuations and continuations-in-part thereof), along with the right to
recover for past and future infringement thereof, and further including: all
income, royalties, and damages hereafter due and/or payable to ASSIGNOR,
including all rights to sue for past, present and future misappropriations
thereof, and all rights corresponding to any of the above throughout the world.

 

Authority
is hereby given to the holder of an original copy of the present confirmative
agreement for having recorded on the US Register for Patents the assignment,
and the previous change of Corporate name and address of the ASSIGNOR as well.

 

[Signature Pages to Follow]

 

2

 

IN
TESTIMONY WHEREOF, ASSIGNOR has caused this Patent Assignment Agreement to be
duly executed by its duly authorized officer on the date set forth below.

 

 

	
  TecLic Technical
  Licenses GmbH

  
	
  By:

  	
   

  
	
  Name:

  	
  Axel
  BAUER

  
	
  Title:

  	
  Geschäftsführer
  (CEO)

  
	
  Date: July 6, 2006

  
			

 

 

FEDERAL
REPUBLIC OF GERMANY

 

 

On
this 6th day of July 2006, before me the undersigned, a Notary Public for the
Federal Republic of Germany, personally appeared Dr Axel BAUER, personally
known to me (or proved to me on the basis of satisfactory evidence) to be the
person whose name is subscribed to the within instrument and acknowledged to me
that he executed the same in his authorized capacity, and that by his signature
on the instrument the person, or the entity upon behalf of which the person
acted, executed the instrument.

 

Witness
my hand and official seal.

 

	
   

  
	
  Signature of Notary

  

 

3

 

IN TESTIMONY WHEREOF, ASSIGNEE has caused this
Patent Assignment Agreement to be duly executed by its duly authorized officer
on the date set forth below.

ActivIdentity Corporation

 

 

	
  By:

  	
   

  
	
  Name:

  	
  Thomas Jahn

  
	
  Title:

  	
  Chief Operating Officer
  (COO)

  
	
  Date:

  	
   

  
			

 

 

On this 6th day of July 2006, before me the undersigned, a Notary
Public for the  Federal Republic of
Germany, personally appeared Thomas JAHN, personally known to me (or proved to
me on the basis of satisfactory evidence) to be the person whose name is subscribed
to the within instrument and acknowledged to me that he executed the same in
his authorized capacity, and that by his signature on the instrument the
person, or the entity upon behalf of which the person acted, executed the
instrument.

 

Witness
my hand and official seal.

 

	
   

  
	
  Signature of Notary

  

 

4

 

Annex 1 b

 

	
  ASSIGNMENT

  CONFIRMATIVE AGREEMENT

   

  BETWEEN THE UNDERSIGNED

   

  the
  Assignor

   

  TecLic Technical Licenses GmbH

  Koenigstrasse 1

  D-01097 Dresden

                  Germany

   

  formerly known as
  BetaResearch Gesellschaft für Entwicklung und Vermarktung digitaler
  Infrastrukturen mbH, of Unterföhring (Germany),

  the change of
  Corporate name of which is recorded with the German Register of Commerce, as
  per excerpt annexed therewith,

  ON
  THE ONE PART,

   

  AND

  the Assignee,

   

  ActivIdentity Corporation

  6623 Dumbarton Circle

  Fremont, California
  94555

                  U.S.A.

  ON THE OTHER PART,

   

  WHEREAS

   

  By separate
  Patent Purchase and Assignment Agreement executed on the same date as this
  agreement, the Assignor assigned to the Assignee the following patents,
  patent application and any patent issuing on such patent application:

  -  national
  patents issued or to be issued from the European Patent No.
  0 981 803, i.e.

                     •             Germany Patent (DE59802639),

                     •             France Patent (EP0981803),

  	
  CONTRAT CONFIRMATIF

  DE CESSION

   

   

  ENTRE LES SOUSSIGNEES

   

  le Cédant,

   

  TecLic
  Technical Licenses GmbH

  Koenigstrasse 1

  D-01097 Dresde

                  Allemagne

   

  préalablement dénommée
  BetaResearch Gesellschaft für Entwicklung und Vermarktung digitaler
  Infrastrukturen mbH, de Unterföhring (Allemagne),

  lequel changement de
  dénomination sociale est inscrit au Registre du Commerce allemande, selon
  l’extrait ci-annexé,

  D’UNE PART,

   

  ET

  le Cessionnaire,

   

  ActivIdentity
  Corporation

  6623 Dumbarton Circle

  Fremont, California
  94555

                  U.S.A.

  D’AUTRE PART,

   

  ETANT ENTENDU QUE

   

  Par Accord d’Achat et
  de Cession de Brevets séparé signé le même jour que le présent contrat, le
  Cédant a cédé au Cessionnaire les brevets, demande de brevet et tout brevet
  issu de ladite demande de brevet, suivants :

  -  brevets
  nationaux issus ou qui seront issus du Brevet Européen n°
  0 981 803, à savoir :

                     •             brevet allemand
  (DE59802639),

                     •             obrevet français
  (EP0981803),

  

 

 

5

 

	
                     •             Great
  Britain Patent (EP0981803), and

                     •             Austria
  Patent (EP0981803);

  -  Russia Patent No. RU2212707;

  -  South-Africa Patent No. ZA98/04060;

  -  US Patent No. 6,575,360;

  -  Malaysian Patent Application No. PI98002174.

   

  NOW, THEREFORE, IN
  CONSIDERATION

  Of good and valuable consideration, the receipt and sufficiency of
  which is hereby acknowledged, the parties hereto agree as follows:

  1°-

  The Assignor hereby confirms, ratifies and acknowledges the assignment
  and the transfer onto the Assignee, who accepts, of all his rights on said
  Patents.

  2°-

  This agreement is made for the purpose of carrying out the above
  mentioned Patent Purchase and Assignment Agreement, and shall not modify any
  terms thereof.

  3°-

  Authority is hereby given to the holder of an original copy of the
  present confirmative agreement for having recorded with each appropriate
  agency of any country in which any and all of the Patents have issued or have
  been registered the assignment, and the previous change of Corporate name and
  address of the Assignor as well.

  Made at

   

  this

   

  in eight exemplars

  	
                     •             brevet
  britannique (EP0981803),  et

                     •             brevet
  autrichien (EP0981803);

  -  brevet russe n° RU2212707;

  -  brevet sud-africain n° ZA98/04060;

  -  brevet US n° 6,575,360;

  -  demande de brevet en Malaisien° PI98002174.

   

  IL A ETE PAR LES PRESENTES, EN CONTREPARTIE

  De bonne et valable contrepartie, dont les
  présentes constituent quittance, convenu par les parties ce qui suit:

   

  1°-

  Le Cédant par les présentes confirme, ratifie et reconnaît la cession et
  le transfert au Cessionnaire, qui accepte, de tous les droits qu’il possède
  sur ces brevets.

  2°-

  Le présent contrat est établi en application de l’Accord d’Achat et de Cession de Brevets mentionné ci avant et
  ne modifie pas les termes de ce dernier.

  3°-

  Pour faire inscrire la présente cession, ainsi que le changement de
  dénomination et adresse du Cédant préalable, auprès de chaque administration
  appropriée existante dans tous les pays dans lesquels tous les brevets ont
  été délivrés ou ont été enregistrés, tous pouvoirs sont donnés au porteur
  d’un original des présentes.

   

  fait à

   

  Le

   

  en huit exemplaires

  

 

6

 

	
  TecLic
  Technical Licenses GmbH

   

  By : Axel BAUER

  Title : Geschäftsführer
  (CEO)

   

  ActivIdentity
  Corporation

   

  By : Thomas JAHN

  Title : Chief Operating Officer (COO)

  	
  TecLic Technical Licenses GmbH

   

  Par : Axel BAUER

  Titre : Geschäftsführer (CEO)

   

  ActivIdentity Corporation

   

  Par : Thomas JAHN

  Titre : Chief Operating Officer (COO)

  

 

7

 

 

 

Annex 1 c

 

	
  RUSSIAN
  FEDERATION —

   

  ASSIGNMENT OF A PATENT

   

  This Agreement is made
  between:

  TecLic Technical Licenses GmbH

  Koenigstrasse 1

  D-01097 Dresden, Germany

   

  formerly called:

  BetaResearch Gesellschaft für
  Entwicklung und

  Vermarktung digitaler Infrastrukturen mbH,

  Betastrasse 1,

  D-85774 Unterführing, Germany

   

  the change of Corporate
  name of which is recorded

  with the German Register of Commerce, as per the

  extract annexed therewith

   

  (hereinafter referred to
  as “ASSIGNOR”), AND

   

  ActivIdentity Corporation

  6623 Dumbarton Circle

  Fremont, California 94555,
  USA

   

  (hereinafter referred to
  as “ASSIGNEE”, or if cited

  together, as “PARTIES”).

   

  GENERAL PROVISIONS

   

  ASSIGNOR holds the title
  and rights to the patent No.

  RU 2212707

  In the application No.
  99125838 (PCT/DE98/01360)

  Title: Device and method
  for personalizing chip cards

   

  PARTIES HAVE AGREED ON THE
  FOLLOWING:

   

  1.             ASSIGNOR hereby assigns the rights to the

  subject patent to ASSIGNEE, and ASSIGNEE accrues

  the right to this patent in accordance with

  Article 10 (5) of the Russian Patent Law.

   

  2.             PARTIES have agreed on the sum of the

  reward and on the payment plan.

  3.             This Agreement is executed in  3 copies.

   

  
	
  Signed at,

  	
   

  
	
   

  	
  (place)

  

 

8

 

	
   

  	
   

  
	
  (Date)

  

 

	
  For
  and on behalf of ASSIGNOR /

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /By:

  	
  /
  Axel BAUER

  
	
  (signature
  / 

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /Title:

  	
  Geschäftsführer
  (CEO)

  	
   

  
	
   

  	
   

  	
   

  
	
  For
  and on behalf of ASSIGNEE /

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /By:

  	
  /Thomas
  Jahn

  
	
  (signature
  /

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /Title:

  	
  Chief
  Operating Officer (COO)

  	
   

  
													

 

9

 

 

 

Annex 2

Patent Attorneys

	
  Patent Country

  	
   

  	
  Attorney Name

  	
   

  	
  Firm

  	
   

  	
  Address/Tel./Fax

  
	
  Europe

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Germany

  	
   

  	
  Mr. Franz-Josef Schöniger

  	
   

  	
  Betten & Resch

  	
   

  	
  Theatinerstr. 8

  80333 Munich

  Germany

  Tel: +49-89-2 42 41 70

  Fax: +49-89-2 60 78 96

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  France

  	
   

  	
   

  	
   

  	
  BREVALEX

  	
   

  	
  3, rue du Doctor Lancereaux

  75008 Paris

  France

  Tel: +33-1-53 83 94 00

  Fax: +33-1-45 63 83 33

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Great Britain

  	
   

  	
   

  	
   

  	
  Venner, Shipley LLP

  	
   

  	
  20 Little Britain

  London ECIA 7DH

  Great Britain

  Tel: +44-20-7600 4212

  Fax: +44-20-7600 4188

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Austria

  	
   

  	
   

  	
   

  	
  Dipl.-Ing.
  Patentan-waltskanzlei Matschnig

  	
   

  	
  P.O. Box 252

  1070 Vienna

  Austria

  Tel: +43-1-52 334 96

  Fax: +43-1-52 648 86

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Russia

  	
   

  	
   

  	
   

  	
  Patentanwälte v. Füner
  Ebbinghaus Finck Hano

  	
   

  	
  P.O. Box 95 01 50

  81517 Munich

  Germany

  Tel: +49-89-45 92 02

  Fax: +49-89-48 20 58

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  USA

  	
   

  	
   

  	
   

  	
  DLA Piper Rudnick Gray Cary US LLP

  	
   

  	
  2000 University Avenue

  East Palo Alto, CA 94303

  USA

  Tel: +1-650-833 2000

  Fax: +1-650-833 2001

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  South Africa

  	
   

  	
  Mr. A.J.S. Dunlop

  	
   

  	
  HAHN & HAHN Patent Attorneys

  	
   

  	
  Hahn Forum

  222 Richard Street

  Hatfield 0028 D. 219 Pretoria

  South Africa

  Tel: +27-27-12 342 1774 56

  Fax: +27-27-12 342 3027

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Malaysia

  	
   

  	
   

  	
   

  	
  BADRI, KUHAN, YEOH & GHANDI

  	
   

  	
  Suite 44-2, 2nd Fl.

  TK&G Chambers, No. 44 Jalan Kemuja

  P.O. Box

  Kuala Lumpur

  Tel: +60-603-283 41 45

  Fax: +60-603-283 52 84

  

 

10Exhibit
10.6

 

RIGEL
PHARMACEUTICALS, INC.

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (“Agreement”)
is entered by and between Dr. Donald G. Payan (“Executive”) and RIGEL PHARMACEUTICALS, INC. (the “Company”), a Delaware
corporation on December 17, 2007 (the “Effective
Date”).

 

WHEREAS, Executive has been providing services
to the Company under the terms of an offer letter dated January 16, 1997,
as amended (the “Existing
Agreement”); and

 

WHEREAS, in connection with certain changes to
the Internal Revenue Code of 1986, as amended (the “Code”),
and for other reasons, the Company and Executive wish to amend the terms of the
Existing Agreement as set forth herein, which terms will expressly override the
Existing Agreement.

 

NOW,
THEREFORE, in
consideration of the mutual promises and covenants contained herein, it is
hereby agreed by and between the parties hereto as follows, effective as of the
Effective Date:

 

1.             EMPLOYMENT BY THE COMPANY.

 

1.1          Title and Responsibilities.  Subject to
the terms set forth herein, Executive will continue to be employed by the
Company as the person responsible for all of the Company’s scientific research;
currently, the Executive holds the title of Executive Vice President, Chief Scientific
Officer.  Executive will report to the
Company’s Chief Executive Officer and the Company’s Board of Directors (the “Board”). During his
employment with the Company, Executive will devote his best efforts and
substantially all of his business time and attention (except for vacation
periods and reasonable periods of illness or other incapacity permitted by the
Company’s general employment policies) to the business of the Company.

 

1.2          At-Will Employment. 
Executive’s relationship with the Company is at-will.  The Company will have the right to terminate
this Agreement and Executive’s employment with the Company at any time with or
without Cause (as defined below), and with or without advance notice.  In addition, the Company retains the
discretion to modify the terms of Executive’s employment, including but not
limited to position, duties, reporting relationship, office location,
compensation, and benefits, at any time. 
Executive’s at-will employment relationship may only be changed in a
written agreement approved by the Board and signed by Executive and a duly
authorized officer of the Company.

 

1.3          Company Employment Policies.  The
employment relationship between the parties will continue to be governed by the
general employment policies and procedures of the Company, including those
relating to the protection of confidential information and assignment of
inventions.

 

 

2.             COMPENSATION.

 

2.1          Salary.  Executive will earn a base salary in 2007 at
an annualized rate of $420,000, payable on the Company’s standard payroll
dates.  Executive will be considered for
annual increases in base salary in accordance with Company policy.

 

2.2          Target Bonus.  Subject to annual review by the
Board or a duly authorized committee thereof (either, the “Committee”),
Executive will be eligible to earn a target annual bonus of up to fifty percent
(50%) of Executive’s base salary (the “Target  Bonus”).  Whether Executive earns a Target Bonus, and
if so, in what amount, will be determined solely by the Committee in its
discretion.  Executive must remain an
active employee through the time the Committee determines bonus amounts for
executives of the Company in order to earn any bonus.

 

2.3          Equity Awards.  Executive’s
current compensatory equity awards are not affected by this Agreement and will
remain in effect in accordance with the terms of the applicable award
agreements and stock plan(s).

 

2.4          Standard Company Benefits.  Executive will
be entitled to participate in the Company’s employee benefits and compensation
plans which may be in effect from time to time and provided by the Company to
its executives, under the terms and conditions of such benefit and compensation
plans.

 

3.             CONFIDENTIAL INFORMATION.

 

3.1          Intellectual Property.         As
a condition of his continued employment, Executive must continue to comply with
the Employee Proprietary Information and Inventions Agreement (the “Proprietary Agreement”)
he has executed previously.  Nothing in
this Agreement is intended to modify in any respect the Proprietary Agreement,
and the Proprietary Agreement will remain in full force and effect.

 

3.2          Solicitation.          As a condition of receiving the Severance
Benefits (as defined below), Executive agrees that for one (1) year
following the termination of employment with the Company, Executive will not
personally initiate or participate in the solicitation of any employee of the
Company or any of its affiliates to terminate his or her relationship with the
Company or any of its affiliates in order to become an employee for any other
person or business entity.

 

4.             TERMINATION OF EMPLOYMENT; CHANGE
OF CONTROL

 

4.1          Termination Without Cause or Resignation for Good Reason – No Change of
Control.  If the Company terminates Executive’s
employment at any time without Cause (and other than as a result of death or
disability), or if Executive resigns from all positions he then holds with the
Company for Good Reason, and such termination is not a “Qualifying Termination”
(as defined below), Executive will be eligible for the following severance
benefits (the “Severance
Benefits”):  (i) the
Company will make a lump sum severance payment to Executive in an amount equal
to two (2) years of 

 

2

 

Executive’s then-current base salary plus 200% of the Eligible
Bonus, where the Eligible Bonus is an average of the percent earned of the
Target Bonus for performance for the last two year multiplied by the current Target
Bonus, subject to withholdings and deductions, (ii) if Executive timely
elects continued health insurance coverage pursuant to the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended (together with any applicable
state law of similar effect, “COBRA”),
the Company will reimburse Executive for the COBRA premiums for himself and his
eligible dependents for eighteen (18) months following the date his employment
terminates or until such earlier date as he becomes eligible for health
insurance coverage from another source (provided that Executive must promptly
inform the Company, in writing, if he becomes eligible for health insurance
coverage from another source within eighteen (18) months after the termination),
(iii) acceleration of all then-outstanding compensatory equity awards, and
(iv) a modification of the post-termination exercise period of such equity
awards until the earlier of (a) the original end of the term of each such award
(generally 10 years from the date of grant) or (b) the one (1) year
anniversary of the date of the Qualifying Termination.  Executive will not be entitled to the
Severance Benefits unless and until the requirements set forth in Section 5
of this Agreement are satisfied.

 

(a)           Definition of Cause. 
For purposes of this Agreement, “Cause” will mean: (1) an intentional
action or intentional failure to act by Executive that was performed in bad
faith and to the material detriment of the business of the Company; (2) Executive’s
intentional refusal or intentional failure to act in accordance with any lawful
and proper direction or order of his or her superiors  that has not been cured within ten (10) days
after written notice from the Company, or that has caused irreparable damage
incapable of cure; (3) Executive’s 
habitual or gross neglect of the duties of employment that has not been
cured within ten (10) days after written notice from the Company, or that
has caused irreparable damage incapable of cure; (4) Executive’s
indictment, charge, or conviction of a felony or any crime involving moral
turpitude, or participation in any act of theft or dishonesty, in each case,
that has had or could reasonably be expected to have a material detrimental
effect on the business of the Company; or (5) Executive’s violation of any
material provision of the Proprietary Agreement or violation of any material
provision of any other written Company policy or procedure.

 

(b)           Definition of Change of
Control.  For purposes of this Agreement, a “Change of Control” has the meaning
set forth in the Severance Plan (as defined below).

 

(c)           Definition of Resignation for
Good Reason.  For purposes of this Agreement, a “Resignation for Good Reason” means
Executive has resigned from all positions he then-holds with the Company (or
any successor thereto) if (1):  (i)    
there is a material
diminution of Executive’s authority, including but not limited to decision-making
authority, duties, or responsibilities; (ii)     there is a material reduction in the
Executive’s annual base compensation (including the base salary and target
bonus opportunity), where material is considered greater than 5%; (iii)   the Executive is required to relocate his
or her primary work location to a facility or location that would increase the
Executive’s one way commute distance by more than twenty (20) miles
from the 

 

3

 

Executive’s primary work location as of immediately prior to such
change; (iv)    A material diminution
in the authority, duties, or responsibilities of the supervisor to whom
the Executive is required to report,
including a requirement that the Executive report to a corporate officer
or employee instead of reporting directly to the board of directors of a
corporation (or similar governing body with respect to an entity other than a
corporation); (v)  a material diminution in the budget over
which the Executive retains authority; (vi)  the Executive is
required, as a condition to continued service, to enter into any agreement with
the Company or a successor thereto regarding confidentiality, non-competition,
non-solicitation or other similar restrictive covenant that is materially more
restrictive than under the Proprietary Agreement; (vii)  the Company
materially breaches its obligations under this Plan or any then-effective
written employment agreement with the Executive; or (viii) any
acquirer, successor or assign of the Company fails to assume and perform, in
all material respects, the obligations of the Company hereunder; and (2) the
Executive provides written notice to the Company’s General Counsel within the
60-day period immediately following such action; and (3) such action is
not remedied by the Company within thirty (30) days following the Company’s
receipt of such written notice; and (4) the Executive’s resignation is
effective not later than sixty (60) days after the expiration of such thirty
(30) day cure period.

 

4.2          Qualifying Termination Upon Change of Control.  Executive will be an “Eligible Employee” under the
Company’s Change of Control Severance Plan (the “Severance
Plan”).  Upon a “Qualifying
Termination” (as defined in the Severance Plan), Executive will not receive any
part of the Severance Benefits and instead Executive’s rights to receive any
severance pay or post-termination benefit continuation will be only as set
forth in the Severance Plan and as otherwise required by applicable law.

 

4.3          Other Terminations. If, at any time, the Company terminates Executive’s
employment at any time for Cause or as a result of death or disability, or if
Executive resigns other than for Good Reason, Executive’s salary will cease on
the date of termination, and Executive will not be entitled to any Severance
Benefits, severance pay, pay in lieu of notice or any other such compensation,
or any accelerated vesting of any equity awards, other than payment of accrued
salary and such other accrued benefits as expressly required in such event by
applicable law or the terms of any applicable Company benefit plans or new
agreements made at that time.

 

(a)           Certain Offsets. 
The Company will reduce Executive’s Severance Benefits, in whole or in
part, by any other severance benefits, pay in lieu of notice, or other similar
benefits payable to Executive by the Company that become payable in connection
with Executive’s termination of employment, including but not limited to any
payments that are owed pursuant to (i) any other severance plan, policy or
practice, or any individually negotiated employment contract or agreement with
the Company relating to severance benefits, in each case, as is in effect on
Executive’s termination date, (ii) any applicable legal requirement,
including, without limitation, the Worker Adjustment and Retraining
Notification Act (the “WARN Act”),
or (iii) any Company policy or practice providing for Executive to remain
on the payroll without being in active service for a limited period of time
after being given notice of the termination of Executive’s 

 

4

 

employment.  The
termination payments and benefits provided under this Agreement are intended to
satisfy, to the greatest extent possible, any and all statutory obligations
that may arise out of Executive’s termination of employment.  In the Company’s sole discretion, such
reductions may be applied on a retroactive basis, with severance benefits
previously paid being recharacterized as payments pursuant to the Company’s
statutory obligation.  If Executive is
indebted to the Company at his or her termination date, the Company reserves
the right to offset any severance payments to Executive by the amount of such
indebtedness.

 

4.4          Code Section 409A. 
If the Company (or, if applicable, the successor entity thereto)
determines that the severance payments and benefits provided under this Agreement or the Severance Plan (any such
payments, the “Plan
Payments”) constitute “deferred compensation” under Code Section 409A
(together, with any state law of similar effect, “Section 409A”) and if Executive is
a “specified employee” of the Company or any successor entity thereto, as such
term is defined in Section 409A(a)(2)(B)(i) (a “Specified Employee”),
then, solely to the extent necessary to avoid the incurrence of the adverse
personal tax consequences under Section 409A, the timing of the Plan
Payments will be delayed as follows:  on the earliest to occur of (1) the
date that is six months and one day after the termination date, and (2) the
date of Executive’s
death (such earliest date, the “Delayed Initial Payment Date”), the Company (or the
successor entity thereto, as applicable) will (i) pay to Executive a lump sum amount equal to the sum of
the Plan Payments that Executive would otherwise have received through the Delayed
Initial Payment Date if the commencement of the payment of the Plan Payments
had not been delayed pursuant to this Section 4.5 and (ii) commence
paying the balance of the Plan Payments in accordance with the applicable
payment schedules set forth in this Agreement or the Severance Plan, as
applicable.  Prior to the imposition of
any delay on the Plan Payments as set forth above, it is intended that (A) each
installment of the Plan Payments be regarded as a separate “payment” for
purposes of Treasury Regulations Section 1.409A-2(b)(2)(i), (B) all
Plan Payments satisfy, to the greatest extent possible, the exemptions from the
application of Section 409A provided under Treasury Regulations Sections
1.409A-1(b)(4) and 1.409A-1(b)(9)(iii), and (C) the Plan Payments
consisting of COBRA premiums also satisfy, to the greatest extent possible, the
exemption from the application of Section 409A provided under Treasury
Regulations Section 1.409A-1(b)(9)(v).

 

5.             RELEASE.  As a condition of receiving the Severance Benefits,
Executive will execute, and allow to become effective, a release substantially
in the form attached hereto as EXHIBIT A (with
the Company having the authority, in its discretion, to modify the form of the
release to comply with applicable law, the “Release”) and will continue to comply
with his obligations under the Proprietary Agreement.  Unless the Release is timely executed by
Executive within the time frame set forth therein, delivered to the Company,
and becomes effective after the termination of Executive’s employment with the
Company (the date on which the Release becomes effective, the “Release Date”, which date will in no
event be later than February 28 of the year following the year in which
termination occurs), Executive will not receive any of the Severance Benefits
provided for under this Agreement.  Any
lump sum Severance Benefits owed to Executive will be paid within ten 

 

5

 

(10) business days
following the Release Date, but in no event later than March 15 of the
year following the year in which termination occurs.

 

6.             GENERAL PROVISIONS.

 

6.1          Notices.  Any notices provided hereunder must be in
writing and will be deemed effective upon the earlier of personal delivery
(including, personal delivery by facsimile transmission), delivery by express
delivery service (e.g. Federal Express), or the third day after mailing by
first class mail, to the Company at its primary office location and to
Executive at his address as listed on the Company payroll (which address may be
changed by either party by written notice).

 

6.2          Severability.  Whenever possible, each
provision of this Agreement will be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under
any applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability will not affect any other provision or any other
jurisdiction, and such invalid, illegal or unenforceable provision will be
reformed, construed and enforced in such jurisdiction so as to render it valid,
legal, and enforceable consistent with the intent of the parties insofar as
possible.

 

6.3          Waiver.  If either party should waive any breach of
any provisions of this Agreement, he or it will not thereby be deemed to have
waived any preceding or succeeding breach of the same or any other provision of
this Agreement.

 

6.4          Entire Agreement.  This Agreement, including its
exhibits, constitutes the entire agreement between Executive and the Company
regarding the subject matter hereof.  As
of the Effective Date, this Agreement supersedes and replaces any and all other
agreements, promises, or representations, written or otherwise, between
Executive and the Company with regard to this subject matter, including the
Existing Agreement.  This Agreement is
entered into without reliance on any agreement, promise, or representation,
other than those expressly contained or incorporated herein, and, except for
those changes expressly reserved to the Company’s or Board’s discretion in this
Agreement, the terms of this Agreement cannot be modified or amended except in
a writing signed by Executive and a duly authorized officer of the Company
which is approved by the Board.

 

6.5          Counterparts.  This Agreement may be executed
in separate counterparts, any one of which need not contain signatures of more
than one party, but all of which taken together will constitute one and the
same Agreement.  Signatures transmitted
via facsimile will be deemed the equivalent of originals.

 

6.6          Headings and Construction.  The headings
of the sections hereof are inserted for convenience only and will not be deemed
to constitute a part hereof or to affect the meaning thereof.  For purposes of construction of this
Agreement, any ambiguities will not be construed against either party as the
drafter.

 

6

 

6.7          Successors and Assigns.  This Agreement
is intended to bind and inure to the benefit of and be enforceable by
Executive, the Company, and their respective successors, assigns, heirs,
executors and administrators, except that Executive may not assign any of his
duties hereunder and he may not assign any of his rights hereunder without the written
consent of the Company.

 

6.8          Arbitration.  To provide a mechanism for rapid and
economical dispute resolution, Executive and the Company agree that any and all
disputes, claims, or causes of action, in law or equity, arising from or relating
to this Agreement (including the Release) or its enforcement, performance,
breach, or interpretation, or arising from or relating to Executive’s
employment with the Company or the termination of Executive’s employment with
the Company, will be resolved, to the fullest extent permitted by law, by
final, binding, and confidential arbitration held in San Francisco, California,
and conducted by JAMS, Inc. (“JAMS”), under its then-applicable Rules and
Procedures.  By agreeing to this arbitration procedure, both Executive and the Company
waive the right to resolve any such dispute through a trial by jury or judge or
by administrative proceeding. 
Executive will have the right to be
represented by legal counsel at any arbitration proceeding at his expense.  The arbitrator will:  (a) have the authority to compel
adequate discovery for the resolution of the dispute and to award such relief
as would otherwise be available under applicable law in a court proceeding; and
(b) issue a written statement signed by the arbitrator regarding the
disposition of each claim and the relief, if any, awarded as to each claim, the
reasons for the award, and the arbitrator’s essential findings and conclusions
on which the award is based.  The Company
will bear all fees for the arbitration, except for any attorneys’ fees or costs
associated with Executive’s personal representation.  The arbitrator, and not a court, will also be
authorized to determine whether the provisions of this paragraph apply to a
dispute, controversy or claim sought to be resolved in accordance with these
arbitration procedures.  Notwithstanding
the provisions of this paragraph, the parties are not prohibited from seeking
injunctive relief in a court of appropriate jurisdiction to prevent irreparable
harm on any basis, pending the outcome of arbitration.  Any awards or orders in such
arbitrations may be entered and enforced as judgments in the federal and the
state courts of any competent jurisdiction.

 

6.9          Governing Law.  All questions concerning the
construction, validity and interpretation of this Agreement will be governed by
the law of the State of California without regard to conflicts of laws
principles.

 

6.10        Term.     This Agreement will automatically terminate on December 31,
2010; provided that no such termination shall affect the right to any unpaid
benefit due the Executive under this Agreement.

 

6.11        Exhibits.

 

Exhibit A – Release Agreement

 

7

 

IN WITNESS WHEREOF, the parties have executed this EMPLOYMENT AGREEMENT effective as of the
Effective Date written above.

 

RIGEL PHARMACEUTICALS, INC.

 

 

	
  By:

  	
  /s/
  Dolly A. Vance

  	
   

  
	
   

  	
  Dolly
  A. Vance

  
	
   

  	
  Senior Vice
  President, General Counsel and Corporate Secretar

  

 

DR. DONALD G. PAYAN

 

 

	
   

  	
  /s/
  Donald G. Payan

  	
   

  

 

 

EXHIBIT A

 

RELEASE AGREEMENT

 

I
understand and agree completely to the terms set forth in the Rigel
Pharmaceuticals, Inc. Employment Agreement (the “Agreement”).

 

I understand that
this Release, together with the Agreement, constitutes the complete, final and
exclusive embodiment of the entire agreement between the Company, affiliates of
the Company and me with regard to the subject matter hereof.  I am not relying on any promise or
representation by the Company or the Employers that is not expressly stated
therein.  Certain capitalized terms used
in this Release are defined in the Agreement.

 

I hereby confirm
my obligations under my Proprietary Agreement with the Company and/or the
Employer.

 

Except
as otherwise set forth in this Release, I hereby generally and completely
release the Company, the Employers, and their current and former directors,
officers, employees, stockholders, shareholders, partners, agents, attorneys,
predecessors, successors, parent and subsidiary entities, insurers, affiliates,
and assigns (collectively, the “Released Parties”)
from any and all claims, liabilities and obligations, both known and unknown,
that arise out of or are in any way related to events, acts, conduct, or
omissions occurring prior to my signing this Agreement (collectively, the “Released Claims”).  The Released Claims include, but are not
limited to:  (1) all claims arising
out of or in any way related to my employment with the Company, the Employers
or their affiliates, or the termination of that employment; (2) all claims
related to my compensation or benefits, including salary, bonuses, commissions,
vacation pay, expense reimbursements, severance pay, fringe benefits, stock,
stock options, or any other ownership interests in the Company, the Employers,
or their affiliates; (3) all claims for breach of contract, wrongful
termination, and breach of the implied covenant of good faith and fair dealing;
(4) all tort claims, including claims for fraud, defamation, emotional
distress, and discharge in violation of public policy; and (5) all
federal, state, and local statutory claims, including claims for
discrimination, harassment, retaliation, attorneys’ fees, or other claims
arising under the federal Civil Rights Act of 1964 (as amended), the federal
Americans with Disabilities Act of 1990, the federal Age Discrimination in
Employment Act of 1967 (as amended) (“ADEA”), the
federal Employee Retirement Income Security Act of 1974 (as amended), and the
California Fair Employment and Housing Act (as amended).  Notwithstanding the foregoing, the following
are not included in the Released Claims (the “Excluded
Claims”): (1) any rights or claims for indemnification I
may have pursuant to any written indemnification agreement with the Company to
which I am a party, the charter, bylaws, or operating agreements of the
Company, or under applicable law;  or (2) any
rights which are not waivable as a matter of law.  In addition, nothing in this Release prevents
me from filing, cooperating with, or participating in any proceeding before the
Equal Employment Opportunity Commission, the Department of Labor, or the
California Department of Fair Employment and Housing, except that I hereby
waive my 

 

 

right to any monetary
benefits in connection with any such claim, charge or proceeding.  I hereby represent and warrant that, other
than the Excluded Claims, I am not aware of any claims I have or might have
against any of the Released Parties that are not included in the Released
Claims.

 

I acknowledge that
I am knowingly and voluntarily waiving and releasing any rights I may have
under the ADEA.  I also acknowledge that
the consideration given for the Released Claims is in addition to anything of
value to which I was already entitled.  I
further acknowledge that I have been advised by this writing, as required by
the ADEA, that: (a) the Released Claims do not apply to any rights or
claims that arise after the date I sign this Release; (b) I should consult
with an attorney prior to signing this Release (although I may choose
voluntarily not to do so); (c) I have twenty-one (21) days to consider
this Release (although I may choose to voluntarily to sign it sooner); (d) I
have seven (7) days following the date I sign this Release to revoke the
Release by providing written notice to an officer of the Company; and (e) the
Release will not be effective until the date upon which the revocation period
has expired unexercised, which will be the eighth day after I sign this Release
(“Effective Date”).

 

I acknowledge that
I have read and understand Section 1542 of the California Civil Code which
reads as follows: “A general release does
not extend to claims which the creditor does not know or suspect to exist in
his or her favor at the time of executing the release, which if known by him or
her must have materially affected his or her settlement with the debtor.”  I hereby expressly waive and relinquish all
rights and benefits under that section and any law of any jurisdiction of
similar effect with respect to my release of any claims hereunder.

 

I hereby represent
that I have been paid all compensation owed and for all hours worked, I have
received all the leave and leave benefits and protections for which I am
eligible, and I have not suffered any on-the-job injury for which I have not
already filed a workers’ compensation claim.

 

I acknowledge that
to become effective, I must sign and return this Release to the Company so that
it is received not later than twenty-one (21) days following the date it is
provided to me, and I must not revoke it thereafter.

 

	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
				

 

2

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