Amended and Restated Employment Agreement, Clay B. Siegall



 Exhibit 10.48 
 AMENDED & RESTATED EXECUTIVE EMPLOYMENT AGREEMENT 
 THIS AMENDED &
RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the 15th day of December, 2008, by and between SEATTLE GENETICS, INC., a Delaware corporation (“Company”) and Clay B. Siegall
(“Executive”). 
 RECITALS: 
 WHEREAS, Executive and Company are parties to the Executive Employment Agreement dated October 26, 2001, as amended (the “Prior Agreement”) and wish to amend and restate the Prior
Agreement to clarify certain existing provisions in light of final regulations issued under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, the sufficiency of which is hereby
acknowledged, the parties agree as follows: 
  

	I.	DUTIES 

 1.1 Title and Responsibilities.
Executive shall serve as President and Chief Executive Officer of the Company. Executive’s responsibilities and duties shall include those inherent in Executive’s position with the Company and shall further include such other managerial
responsibilities and executive duties consistent with such position as may be assigned to Executive from time to time by the Chairman of the Board or the Board of Directors of the Company. Executive shall devote his best efforts and full business
time to the business and interests of the Company. During the term of Executive’s employment with the Company, Executive may serve on the board of directors of other companies, manage personal investments, and engage in civic and charitable
activities, provided that such activities shall not represent a conflict of interest with the Company and do not materially detract from fulfilling Executive’s responsibilities and duties to the Company. 
 1.2 Board of Directors. The Board of Directors of the Company shall take whatever steps are necessary to continue to nominate Executive for
election to the Board of Directors of the Company in every election of Executive’s class of directors presented to stockholders following execution of this Agreement. 
  

	II.	COMPENSATION 

 2.1 Base Salary. Executive
shall be paid a base salary (“Base Salary”) by the Company during the term of Executive’s employment at the rate determined by the Compensation Committee of the Board of Directors (the “Compensation
Committee”), which is currently $575,000.00 per year. Executive’s Base Salary shall be reviewed annually by the Compensation Committee and evaluated based on performance and salary levels of other executives of comparable position
within the industry and geographic location of the Company. Based upon 








 
such evaluation and review, Executive’s Base Salary may be adjusted from time to time as determined by the Compensation Committee in its sole
discretion. 
 2.2 Bonus. Executive may be eligible to receive an annual bonus
(“Annual Bonus”), currently targeted at fifty percent (50%) of Executive’s Base Salary, based upon performance criteria and financial and operational results of the Company as determined by the Compensation Committee. To
the extent that the Annual Bonus is earned and becomes payable in accordance with the terms under which it is offered and unless otherwise specified in a written document reflecting the bonus arrangement, any Annual Bonus earned by Executive will be
paid to Executive prior to two and one half (2 1/2) months following the year in which the Annual Bonus becomes payable as a
result of Executive’s vesting in the right to the Annual Bonus. 
 2.3 Stock Options. Executive may be eligible to
receive grants of stock options or purchase rights from time to time in the future, on such terms and subject to such conditions as the Compensation Committee shall determine as of the date of any such grant and pursuant to the existing stock
plan(s) of the Company. 
 2.4 Other Benefits. 
 (i) Executive shall be entitled to such employee benefits generally available to full-time salaried employees of the Company, including
without limitation, health insurance, paid vacation of not less than four (4) weeks per year, retirement plans and other similar benefits; provided, that Company reserves the right to amend, modify, terminate or make any other changes in such
benefits generally available to full-time salaried employees of the Company at any time in its sole discretion. 
 (ii) The
Company shall pay or reimburse Executive for all travel and entertainment expenses incurred by Executive in connection with Executive’s duties on behalf of the Company, subject to the reasonable approval of the Company. Executive shall only be
entitled to reimbursement to the extent that Executive follows the reasonable procedures established by the Company for reimbursement of such expenses which will include, but will not be limited to, providing satisfactory evidence of such
expenditures. 
  

	III.	TERMINATION OF EMPLOYMENT 

 3.1 Termination of
Employment and Severance Benefits. 
 (a) Termination of Employment. This Agreement may be
terminated upon the occurrence of any of the following events: 
 (i) The Company’s determination in good faith that it
is terminating Executive for Cause (as defined in Section 3.3 below) (“Termination for Cause”); 
 (ii)
The Company’s determination that it is terminating Executive without Cause, which determination may be made by the Company at any time at the Company’s sole discretion, for any or no reason (“Termination Without Cause”);

  

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 (iii) The effective date of a written notice sent to the Company from Executive stating
that Executive is electing to terminate his employment with the Company (“Voluntary Termination”); 
 (iv) A
change in Executive’s status such that a Constructive Termination (as defined in Section 3.2(d) below) has occurred; or 
 (v) Following Executive’s death or Disability (as defined in Section 3.4 below). 
 3.2
Severance Benefits. Executive shall be entitled to receive severance benefits upon termination of employment only as set forth in this Section 3.2 contingent upon resignation from all positions held by Executive and only if
Executive executes a full release and waiver of claims within thirty (30) days of Executive’s termination (and allows it to become effective in accordance with its terms): 
 (a) Voluntary Termination. If Executive’s employment terminates by Voluntary Termination, then Executive shall not be
entitled to receive payment of any severance benefits. Executive will receive payment(s) for all salary and unpaid vacation accrued as of the date of Executive’s termination of employment and Executive’s benefits will be continued under
the Company’s then existing benefit plans and policies in accordance with such plans and policies in effect on the date of termination and in accordance with applicable law. 
 (b) Involuntary Termination. If Executive’s employment is
terminated under Section 3.1(a)(ii) (Termination Without Cause) or 3.1(a)(iv) (Constructive Termination) above (such termination, an “Involuntary Termination”), Executive will be entitled to receive payment of severance
benefits equal to Executive’s regular monthly salary for twelve (12) months (the “Severance Period”); provided, that if the Involuntary Termination occurs within twelve (12) months after a Change in Control (as
defined below), such Severance Period shall be for a period of twenty-four (24) months. Such payments shall be made, at the Company’s option, in a lump sum within thirty (30) days after the date of Executive’s Involuntary
Termination or periodically over the Severance Period according to the Company’s standard payroll schedule, provided that such payments may not extend beyond two and one-half (2  1/2) months following the end of the calendar year in which the date of Involuntary Termination occurs. Executive will also be entitled to receive payment on the date of
Involuntary Termination of the pro rata portion of any Annual Bonus based on achievement of the specific corporate and individual performance targets established for the fiscal year in which the termination occurs, payable prior to two and one-half
(2 1/2) months following the end of the calendar year in which the date of Involuntary Termination occurs. Executive will receive
payment(s) for all salary and unpaid vacation accrued as of the date of Executive’s termination of employment and health insurance benefits will be continued through payment of Executive’s COBRA health insurance premiums by the Company
over the Severance Period so long as Executive timely elects to continue Executive’s health insurance coverage under COBRA and subject to COBRA’s terms, conditions and requirements. 
 (c) Termination for Cause. If Executive’s employment is terminated for Cause, then Executive shall not be entitled to
receive payment of any severance benefits. 

  

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Executive will receive payment(s) for all salary and unpaid vacation accrued as of the date of Executive’s termination of employment and
Executive’s benefits will be continued under the Company’s then existing benefit plans and policies in accordance with such plans and policies in effect on the date of termination and in accordance with applicable law. 
 (d) Constructive Termination. “Constructive Termination” shall be deemed to occur if (A) there is a
material reduction or change in job duties, responsibilities and requirements inconsistent with Executive’s position with the Company and prior duties, responsibilities and requirements, provided that neither a mere change in title alone nor
reassignment to a position that is substantially similar to the position held prior to the change in terms of job duties, responsibilities or requirements shall constitute a material reduction in job responsibilities; or (B) there is a
reduction in Executive’s then-current base salary by at least twenty percent (20%), provided that an across-the-board reduction in the salary level of all other senior executives by the same percentage amount as part of a general salary level
reduction shall not constitute such a salary reduction; or (C) Executive refuses to relocate to a facility or location more than 50 miles from the Company’s current location; provided, however, that in each case above, Executive must first
provide notice of the existence of the circumstances giving rise to a Constructive Termination within ninety (90) days of the initial existence of such circumstances and the Company must be provided with a period of thirty (30) days from
the date of receipt of such notice to cure the circumstances giving rise to a Constructive Termination; provided further that the Company may notify Executive at any time prior to expiration of the cure period that it will not cure the
circumstances, in which case the cure period shall end immediately upon such notification. 
 (e) Termination by Reason of Death or Disability. In the event that Executive’s employment with the Company terminates as a result of Executive’s death or Disability (as defined in
Section 3.4 below), Executive or Executive’s estate or representative will receive all salary and unpaid vacation accrued as of the date of Executive’s death or Disability and any other benefits payable under the Company’s then
existing benefit plans and policies in accordance with such plans and policies in effect on the date of death or Disability and in accordance with applicable law. In addition, Executive’s estate or representative will receive the amount of
Executive’s Annual Bonus for the fiscal year in which the death or Disability occurs to the extent that the Annual Bonus has been earned as of the date of Executive’s death or Disability, as determined by the Board of Directors or its
Compensation Committee based on the specific corporate and individual performance targets established for such fiscal year, which will be paid prior to two and one-half (2 1/2) months following the year of Executive’s death or Disability (subject to Executive’s termination as a result of such Disability). 
 3.3 Definition of Cause. For purposes of this Agreement, “Cause” for Executive’s termination will exist at any time
after the happening of one or more of the following events: 
 (a) An action or omission of Executive which constitutes a
willful and intentional material breach of this Agreement or the Confidentiality Agreement (defined below), including without limitation, Executive’s theft or other misappropriation of the Company’s proprietary information; 
  

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 (b) Executive’s commitment of fraud, embezzlement, misappropriation of funds or
breach of trust in connection with Executive’s employment; or 
 (c) Executive’s conviction of any crime which
involves dishonesty or a breach of trust, or gross negligence in connection with the performance of the Executive’s duties. 
 3.4.
Definition of Disability. For purposes of this Agreement “Disability” shall mean any medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be
expected to last for a continuous period of not less than twelve (12) months and renders Executive unable to perform the duties of President & CEO. 
  

	IV.	STOCK ACCELERATION 

 4.1 Accelerated Vesting.
In addition to any other right of acceleration that may be provided pursuant to any stock option plan or agreement pursuant to which Executive has been granted options to purchase shares of Common Stock of the Company, if Executive’s employment
is terminated due to an Involuntary Termination, the vesting of any unvested stock options and the lapsing of the Company’s repurchase right with respect to any shares of restricted stock held by Executive as of the date of Executive’s
Involuntary Termination shall accelerate such that the options shall become vested and the repurchase right shall lapse as to an additional twelve (12) months of vesting. In the event of a Change of Control (as defined below), in addition to
any other right of acceleration that may be provided pursuant to any stock option plan or agreement pursuant to which Executive has been granted options to purchase shares of Common Stock of the Company, the vesting of all stock options and the
lapse of the Company’s repurchase right with respect to all shares of restricted stock of the Company held by Executive shall be accelerated completely so that one hundred percent (100%) of the shares of common stock covered by the stock
options are fully vested and exercisable and the Company’s repurchase right has lapsed with respect to all shares of restricted stock held by Executive. 
 4.2 Definition of Change of Control. For purposes of this Agreement, “Change of Control” shall mean the occurrence of any of the following events: (i) an acquisition of the Company by
another entity by means of any transaction or series of related transactions (including, without limitation, any reorganization, merger or consolidation but excluding any merger effected exclusively for the purpose of changing the domicile of the
Company), or (ii) a sale of all or substantially all of the assets of the Company (collectively, a “Merger”), so long as in either case the Company’s stockholders of record immediately prior to such Merger will,
immediately after such Merger, hold less than fifty percent (50%) of the voting power of the surviving or acquiring entity. 
  

	V.	RESTRICTIVE COVENANTS 

 5.1 Confidentiality
Agreement. Executive shall sign, or has signed the Company’s form of Proprietary Information and Inventions Agreement (the “Confidentiality Agreement”) substantially in the form attached hereto as
Exhibit A. Executive hereby represents and warrants to the Company that he has complied with all obligations under the Confidentiality Agreement and agrees to continue to abide by the terms of the Confidentiality Agreement and further
agrees 

  

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that the provisions of the Confidentiality Agreement shall survive any termination of this Agreement or of Executive’s employment relationship with the
Company, including the noncompetition provisions of the Confidentiality Agreement. 
  

	VI.	OTHER PROVISIONS 

 6.1 Limitation on Severance
Benefits. In the event that any severance benefits provided for in this Agreement to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended
(the “Code”) and (ii) but for this Section 6.1, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s severance benefits under Section 3.2 shall be payable either:

 (a) in full, or 
 (b) as to such lesser amount which would result in no portion of such benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable
federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of benefits under Section 3.2 notwithstanding that all or some portion of
such benefits may be taxable under Section 4999 of the Code. Any determination required under this Section 6.1 shall be made in writing by independent public accountants appointed by Executive and reasonably acceptable to the Company (the
“Accountants”), whose determination shall be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required by this Section 6.1, the Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Executive shall furnish to the Accountants such
information and documents as the Accountants may reasonably request in order to make a determination under this Section 6.1. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated
by this Section 6.1. If a reduced amount is to be paid under this Section 6.1, reductions in payments and/or benefits shall occur in the following order: (1) reduction of cash payments, (2) cancellation of accelerated vesting of
stock awards other than stock options, (3) cancellation of accelerated vesting of stock options and (4) reduction of other benefits (if any) paid to the Executive. 
 6.2 Code Section 409A. This Agreement shall be interpreted to avoid any penalty sanctions under Section 409A of the Code and the final
regulations and any guidance promulgated thereunder (“Section 409A”). If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions under Section 409A, then such benefit or
payment shall be provided in full at the earliest time thereafter when such sanctions will not be imposed. All payments to be made upon a termination of employment under this Agreement may be made only upon a “separation of service” under
Section 409A. Notwithstanding anything to the contrary in this Agreement, if at the time of Executive’s termination of employment, Executive is a “specified employee” within the meaning of Section 409A, and the deferral of
the commencement of any severance payments or benefits otherwise payable pursuant to this Agreement as a result of such termination of employment is necessary in 

  

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order to prevent any accelerated income recognition or additional tax under Section 409A(a)(1), then the Company will not commence any payment of any
such severance payments or benefits otherwise required hereunder (but without any reduction in such payments or benefits ultimately paid or provided to Executive) that (a) will not and may not under any circumstances, regardless of when such
termination occurs, be paid in full by March 15 of the year following Executive’s termination (or two and one half (2 1/2) months after the close of the Company’s fiscal year, if later), and (b) are in excess of the lesser of (i) two (2) times Executive’s then annual compensation or (ii) two (2) times the limit on
compensation set forth in Section 401(a)(17) of the Code for the year in which Executive’s employment is terminated and will not be paid by the end of the second calendar year following the year in which the termination occurs, until the
first payroll date that occurs after the date that is six (6) months following Executive’s “separation of service” with the Company (as defined under Code Section 409A). If any payments are delayed due to such requirements,
such amounts will be paid in a lump sum to Executive on the earliest of (x) Executive’s death following the date of Executive’s termination of employment with the Company or (y) the first payroll date that occurs after the date
that is six (6) months following Executive’s “separation of service” with the Company. For these purposes, each severance payment or benefit is designated as a separate payment or benefit and will not collectively be treated as a
single payment or benefit. This provision is intended to comply with the requirements of Code Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under
Section 409A, and any ambiguities herein will be interpreted to so comply. The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary,
appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A. Notwithstanding anything to the contrary set forth in this Agreement, to the extent that any
amendment to this Agreement with respect to the payment of any severance payments or benefits would constitute under Section 409A a delay or acceleration in a payment or a change in the form of payment, then such amendment must be done in a
manner that complies with Section 409A(a)(4)(C). 
 6.3 Indemnification. The Company hereby agrees to indemnify and hold
the Executive harmless, to the fullest extent permitted by law and as set forth in the Amended and Restated Certificate of Incorporation of the Company, from and against any expenses, including legal fees, and all judgments, fines and amounts paid
in settlement and reasonably incurred in connection with legal, administrative or investigative proceedings to which the Executive is made, or threatened to be made, a party by reason of the fact the Executive is or was a director or officer of the
Company. 
 6.4 Entire Agreement. This Agreement, the Confidentiality Agreement and any agreement pertaining to Executive’s stock
options or shares of restricted stock contain the entire agreement and understanding of the parties with respect to Executive’s employment by the Company and compensation payable to Executive by the Company and supersede all prior
understandings, agreements and discussions, including the Prior Agreement. This Agreement may only be amended or modified by a written instrument executed by Executive and the Chairman of the Board of the Company if such offices are held by
different persons, or the Lead Director of the Board of Directors if Executive is the Chairman of the Board, in each case pursuant to authorization by the Board of Directors or the Compensation Committee thereof. 
  

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 6.5 Notices. Any and all notices permitted or required to be given under this Agreement must be in
writing. Notices will be deemed given (i) on the first business day after having been sent by commercial overnight courier with written verification of receipt, or (ii) on the third business day after having been sent by registered or
certified mail from a location on the United States mainland, return receipt requested, postage prepaid, whichever occurs first, at the address set forth below or at any new address, notice of which will have been given in accordance with this
Section 6.5: 
  

					
	If to the Company:	  	Seattle Genetics, Inc.	  	
		  	21823 30th Drive SE	  	
		  	Bothell, WA 98021	  	
		  	Attn: General Counsel	  	
			
	If to Executive:	  	Clay Siegall	  	
		  	c/o Seattle Genetics, Inc.	  	
		  	21823 30th Drive SE	  	
		  	Bothell, WA 98021	  	

 6.6 Non-Waiver. Failure to enforce at any time any of the provisions of this Agreement
shall not be interpreted to be a waiver of such provisions or to affect either the validity of this Agreement or the right of either party thereafter to enforce each and every provision of this Agreement. 
 6.7 Separability. If one or more provisions of this Agreement is finally determined to be invalid or unenforceable, such provision will not affect
or impair the other provisions of this Agreement, all of which will continue to be in effect and will be enforceable, provided, however, that any such invalid provisions shall, to the extent possible, be reformed so as to implement insofar as
practicable the intentions of the parties. 
 6.8 Term. The employment of Executive under this Agreement shall be for an unspecified
term. The Company and Executive acknowledge and agree that Executive’s employment is and shall continue to be at-will, as defined under applicable law, and that Executive’s employment with the Company may be terminated by either party at
any time for any or no reason, and with or without notice. If Executive’s employment terminates for any reason, Executive shall not be entitled to any payments, benefits, damages award or compensation other than as provided in this Agreement.

 6.9 Law. This Agreement shall be interpreted in accordance with the laws of the State of Washington. 
 6.10 No Duty to Mitigate. Executive shall not be required to mitigate the amount of any payment contemplated by this
Agreement (whether by seeking new employment or in any other manner), nor, except as otherwise provided in this Agreement, shall any such payment be reduced by any earnings that Executive may receive from any other source. 
  

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 6.11 Legal Fees. In the event either party breaches this Agreement, the nonbreaching party shall
be entitled to recover from the breaching party any and all damages, costs and expenses, including without limitation, attorneys’ fees and court costs, incurred by the nonbreaching party as a result of the breach. 
 6.12 Counterparts. This Agreement may be executed in counterparts which when taken together will constitute one instrument. Any copy of
this Agreement with the original signatures of all parties appended will constitute an original. 
  

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

  

			
	SEATTLE GENETICS, INC.
		
	By:	 	/s/ Felix Baker
	Name: Felix Baker, Ph.D.
	Its: Lead Director & Chairman of the Compensation Committee of the Board of Directors


  

	
	EXECUTIVE
	
	/s/ Clay B. Siegall
	CLAY B. SIEGALL


  

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