SEC Contract Filing

Filing Date: 2020-11-09

Document Content:
<DOCUMENT>
<TYPE>EX-10.7
<SEQUENCE>5
<FILENAME>srne-ex107_225.htm
<DESCRIPTION>EX-10.7
<TEXT>
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<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:12pt;font-style:normal;text-transform:none;font-variant: normal;">Exhibit 10.7</p>
<p style="text-align:right;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:12pt;">&nbsp;</p>
<p style="text-align:center;margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:12pt;font-style:normal;text-transform:none;font-variant: normal;">CHANGE OF CONTROL SEVERANCE AGREEMENT </p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:12pt;text-indent:5.24%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">THIS CHANGE OF CONTROL SEVERANCE AGREEMENT (this &#8220;<font style="font-weight:bold;font-style:italic;">Agreement</font>&#8221;), dated as of November 5, 2020 (the &#8220;<font style="font-weight:bold;font-style:italic;">Effective Date</font>&#8221;), is made by and between Sorrento Therapeutics, Inc., a Delaware corporation (<font style="color:#000000;">together with any successor thereto, </font>the &#8220;<font style="font-weight:bold;font-style:italic;">Company</font>&#8221;), and Najjam Asghar (the &#8220;<font style="font-weight:bold;font-style:italic;">Executive</font>&#8221;) <font style="color:#000000;">(collectively referred to herein as the &#8220;</font><font style="font-weight:bold;font-style:italic;color:#000000;">Parties</font><font style="color:#000000;">&#8221;)</font>.</p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:12pt;text-indent:5.24%;font-weight:bold;font-variant: small-caps;font-family:Times New Roman;font-size:12pt;font-style:normal;text-transform:none;">Whereas<font style="font-weight:normal;font-variant: normal;">, the Board of Directors of the Company (the &#8220;</font><font style="font-style:italic;font-variant: normal;">Board</font><font style="font-weight:normal;font-variant: normal;">&#8221;) has determined that it is in the best interests of the Company and its stockholders to (i) assure that the Company will have the continued dedication and objectivity of Executive, notwithstanding the possibility, threat or occurrence of a Change of Control (as defined below), and (ii) provide Executive with an incentive to continue Executive&#8217;s employment prior to a Change of Control and to motivate Executive to maximize the value of the Company upon a Change of Control for the benefit of its stockholders; </font></p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:12pt;text-indent:5.24%;font-weight:bold;font-variant: small-caps;font-family:Times New Roman;font-size:12pt;font-style:normal;text-transform:none;">Whereas<font style="font-weight:normal;font-variant: normal;">, the Board believes that it is imperative to provide Executive with certain severance benefits upon Executive&#8217;s termination of employment following a Change of Control; and </font></p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:12pt;text-indent:5.24%;font-weight:bold;font-variant: small-caps;font-family:Times New Roman;font-size:12pt;font-style:normal;text-transform:none;">Whereas<font style="font-weight:normal;font-variant: normal;">, the benefits described in this Agreement are intended to provide Executive with enhanced financial security, and incentive and encouragement to remain with the Company, notwithstanding the possibility of a Change of Control.</font></p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:12pt;text-indent:5.24%;font-weight:bold;font-variant: small-caps;font-family:Times New Roman;font-size:12pt;font-style:normal;text-transform:none;">Now, Therefore<font style="font-weight:normal;font-variant: normal;">, </font><font style="color:#000000;font-weight:normal;font-variant: normal;">in consideration of the foregoing and of the respective covenants and agreements set forth below, the Parties hereto agree as follows</font><font style="font-weight:normal;font-variant: normal;">: </font></p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:12pt;text-indent:7.69%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1.<font style="margin-left:36pt;"></font><font style="font-weight:bold;text-decoration:underline;">Duration of Agreement</font>. The term of this Agreement will commence on the date hereof and shall continue until the earliest of: (a)&#160;a termination by written consent of the Parties; and (b)&#160;a termination of Executive&#8217;s employment for any reason. Notwithstanding the previous sentence, if Executive becomes entitled to benefits under this Agreement, this Agreement will terminate when all of the obligations of the Parties with respect to this Agreement have been satisfied. </p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:12pt;text-indent:7.69%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2.<font style="margin-left:36pt;"></font><font style="font-weight:bold;text-decoration:underline;">Certain Definitions</font>. For purposes of this Agreement: </p>
<p style="text-align:justify;margin-bottom:0pt;margin-top:12pt;text-indent:11.54%;font-family:Times New Roman;font-size:12pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(a)<font style="margin-left:36pt;"></font>&#8220;<font style="font-weight:bold;font-style:italic;">Cause</font>&#8221; shall mean <font style="color:#000000;">(i)&#160;Executive&#8217;s dishonesty that is intended to material