Document:

EX-10.18

 Exhibit 10.18 

 
 

 
 November 2, 2020 

Laurence Reid 
  

	Re:	 Decibel Therapeutics, Inc. Change in Control Agreement 

Dear Laurence: 
 The Company desires to provide you with
accelerated vesting of equity after a change in control (as defined herein) in certain circumstances. Accordingly, the Company agrees to provide a change in control benefit to you on the terms and conditions set forth in this Change in Control
Agreement (the “Agreement”) between Decibel Therapeutics, Inc. (the “Company,” which term shall include any successor by merger, consolidation, sale of substantially all of the Company’s assets or
otherwise) and (“you”), to be effective on the same day as your employment commences (the “Effective Date”). Terms that are not defined herein where used appear on Exhibit A hereto. This benefit of
stock is in lieu of any acceleration benefit that would otherwise be payable to you under any employment agreement between you and the Company, any severance pay plan maintained by the Company for the benefit of Company employees, or by statute.
This Agreement does not represent an employment contract for any definite term or period, which means that either you or the Company can terminate your employment at any time, for any reason or no reason, and with or without notice, except as
expressly set forth in any employment agreement between you and the Company. 
 Equity Acceleration. If, during the 15 month period commencing three
months prior to the closing of a Change in Control, (i) your employment ends as a result of Termination without Cause or your resignation for Good Reason, or (ii) the acquirer fails to assume the equity obligation (a “Qualifying
Termination”) and subject to the release requirement in Section 2 and to your continuing compliance with any restrictive covenant agreements between you and the Company, to the extent not already vested and exercisable, the vesting
of your Stock-Based Award shall become accelerated by 100%, so that your Stock-Based Award is fully vested, pending satisfying the release requirements, upon the occurrence of the Qualifying Termination, subject to compliance, if necessary, with
Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”). “Stock-Based Award” means any option, stock appreciation right, restricted stock,
or restricted stock unit granted by the Company to you pursuant to the Company’s 2015 Stock Incentive Plan of Decibel Therapeutics, Inc. or any successor plan or agreement, or any other Company equity compensation plan or agreement in which you
participated. 
 Required Release. The Company’s obligation to provide equity acceleration under this Agreement is subject (a) to your
signing a release of claims in favor of the Company, confirmation of continued compliance with restrictive covenants, and post-employment cooperation on a form with customary terms to be supplied by the Company at or promptly following the Date of
Termination, which release becomes enforceable within 60 days (or such shorter period as the Company specifies) following the Date of Termination (the “Release”) and (b) to your meeting in full your obligations under any
restrictive covenant agreements in effect between you and the Company. The date for acceleration is the date of the first payroll whose cutoff date follows the date the Release becomes enforceable, provided that if the 60 day period for providing an
enforceable release extends into a calendar year subsequent to the year containing the Date of Termination, the acceleration will be no earlier than the first business day of such subsequent year. 

  
 

 

 Amendment; Survival. This Agreement may be amended or modified only by a written instrument signed by
you and by an expressly authorized representative of the Company. The Company shall require any successor-in interest whether directly or indirectly by purchase, merger, consolidation, reorganization or
otherwise to all or substantially all of the business assets of the Company, expressly to assume and agree to perform this Agreement in the same manner and to the same extent as the Company would be required to perform if no such succession had
taken place. 
 Withholding; Section 409A. All benefits hereunder shall be subject to reduction for applicable tax withholdings.
If and to the extent any portion of any compensation or other benefit provided to you in connection with your employment termination is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A
and you are a specified employee as defined in Section 409A(a)(2)(B)(i), as determined by the Company in accordance with its procedures, by which determination you hereby agree that you are bound, such portion of the compensation or other
benefit shall not be paid or provided before the earlier of (i) the expiration of the six month period measured from the date of your “separation from service” (as determined under Section 409A) or (ii) the
tenth day following the date of your death following such separation from service (or such later date as is required for administrative practicability and permitted under Section 409A) (the “New Acceleration Date”). The
acceleration of equity that otherwise would have been provided to you during the period between the date of separation from service and the New Acceleration Date shall be provided to you in the first payroll period beginning after such New
Acceleration Date. This Agreement is intended to comply with the provisions of Section 409A and this Agreement shall, to the extent practicable, be construed in accordance therewith. Terms defined in this Agreement will have the meanings given
such terms under Section 409A if and to the extent required to comply with Section 409A. In any event, the Company makes no representations or warranty and will have no liability to you or any other person if any provisions of acceleration
of equity under this Agreement are determined to constitute deferred compensation subject to Code Section 409A but not to satisfy the conditions of that section. 

No Mitigation. In no event shall you be obligated to seek other employment or take any other action by way of mitigation of the acceleration of equity
provided to you under any of the provisions of the Agreement, and in no event shall your equity hereunder be reduced by any compensation earned by you as a result of employment by another employer. 

Amendment to Conform to Law. The Company may amend this Agreement to comply with or avail itself of any changes in common law or statutory law or
regulations related to the terms of this Agreement. 
 Notices. Any and all notices, requests, demands and other communications provided for by this
Agreement shall be in writing and shall be effective when delivered in person or deposited in the United States mail, postage prepaid, registered or certified, and addressed to you at your last known address on the books of the Company or, in
the case of the Company, at its principal place of business, attention of the Chief Human Resources Officer, or to such other address as either party may specify by notice to the other actually received. 

Entire Agreement. This Agreement together with the “Laurence Reid Offer Letter”, the Employee Confidentiality, Noncompetition and Assignment
Agreement, and the Equity Documents executed in parallel with this Agreement constitute the entire agreement between the parties and supersede all prior communications, agreements and understandings, written or oral, with respect to the terms and
conditions of your compensation as a result of a Change in Control, including, as of the Effective Date, any such terms in a prior offer letter or employment agreement between the Company and you. 

  
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 Severability. Each provision of this Agreement shall be considered severable such that if any one
provision or clause conflicts with existing or future applicable law, or may not be given full effect because of such law, this shall not affect any other provision of the Agreement which, consistent with such law, shall remain in full force and
effect. All surviving clauses shall be construed so as to effectuate the purpose and intent of the parties. 
 Headings. The headings and captions in
this Agreement are for convenience only and in no way define or describe the scope or content of any provision of this Agreement. 
 Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument. 

Governing Law. This Agreement shall be governed by the laws of the Commonwealth of Massachusetts without regard to its conflicts of laws principles.

  

									
	LAURENCE REID	 	 	 	DECIBEL THERAPEUTICS, INC.
					
	By:	 	/s/ Laurence Reid	 		 	By:	 	/s/ Abbie Celniker
					
	Name:	 	Laurence Reid	 		 	Name:	 	Abbie Celniker
					
	Title:	 	CEO	 		 	Title:	 	Chair, Compensation Committee
					
	Date:	 	11/2/2020	 		 	Date:	 	11/2/2020

  
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 Exhibit A 

Definitions 
 Definitions. The
following terms as used in this Agreement shall have the following meanings: 
 “Affiliate” means any business entity in which the
Company holds, directly or indirectly, an equity, profits, or voting interest of 30% or more, and includes any subsidiary. 

“Cause” means, for purposes of this Agreement (i) material breach by you of any other agreement with the Company or any of its
Affiliates; (ii) other conduct by you that is materially harmful to the business, interests or reputation of the Company or any of its Affiliates; (iii) fraud, embezzlement or other material dishonesty by you with respect to the Company or
any of its Affiliates; (iv) your conviction of, or pleading guilty or no contest to, any crime involving moral turpitude or any; (v) a breach of any confidentiality agreement with the Company; or (vi) a breach of any non-competition/non-solicitation agreement with the Company. With respect to a breach of (i) or (ii), you shall be given 30 days, after written notice of such
breach, to cure a breach to the reasonable satisfaction of the Company. 
 “Change in Control” or “Change in Control of
the Company” shall mean the occurrence hereafter of any of the following, provided, in each case, that such event also constitutes a “change in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5) if necessary to avoid the imposition of additional taxes under Section 409A (as defined below): 

a change in the composition of the Board over a period of thirty-six consecutive months or less such that a majority
of the members of the Board ceases to consist of individuals who are Continuing Members; for such purpose, a “Continuing Member” shall mean an individual who is a member of the Board on the date of this Agreement and any
successor of a Continuing Member who is elected to the Board or nominated for election by action of a majority of Continuing Members then serving on the Board; 

any merger or consolidation that results in the voting securities of the Company outstanding immediately prior thereto representing (either by remaining
outstanding or by being converted into voting securities of the surviving or acquiring entity) less than 50% of the combined voting power of the voting securities of the Company or such surviving or acquiring entity outstanding immediately after
such merger or consolidation; 
 any sale of all or substantially all of the assets of the Company to any Person; 

the complete liquidation or dissolution of the Company; or 
 the
acquisition of “beneficial ownership” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of securities of the Company representing 50% or more of the combined voting
power of the Company’s then outstanding securities (other than through a merger or consolidation or an acquisition of securities directly from the Company) by any Person, other than the Company, any trustee or other fiduciary holding securities
under an employee benefit plan of the Company or any corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportion as their ownership of stock of the Company. 

“Good Reason” means any action on the part of the Company not consented to by you in writing that has the following effect or effects:
(i) any action by the Company that results in a material diminution in your reporting relationship, authority, duties or responsibilities; provided, however, that a sale or transfer of less than all or substantially all of the business
of the Company or any of its subsidiaries or other reduction of less than all or substantially all of its business or that of its subsidiaries, or the fact that the Company has 

  
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become a subsidiary of another company or that the securities of the Company are no longer publicly traded, in and of itself shall not constitute a material diminution in your authority, duties
or responsibilities has occurred; (ii) any material reduction in your base salary; or (iii) the Company requires you to be based at any office or location that is more than 50 miles distant from your base office or work location
immediately prior to relocation, except if such new location is closer to your residence at the time such requirement is imposed. Notwithstanding the occurrence of any such event or circumstance, such occurrence shall not be deemed to constitute
Good Reason unless (x) you give the Company the notice of termination no more than 90 days after the initial existence of such event or circumstance (or series of either), (y) such event or circumstance has not been fully corrected within
30 days of the Company’s receipt of such notice and (z) the Date of Termination occurs within 30 days following the end of the correction period if the Good Reason has not been corrected. In addition, if the Company has become a subsidiary
of another company and your employment with the Company continues for a period of 12 months following such time as the Company becomes a subsidiary without your consent in writing, termination of your employment by you within 30 days of such first
anniversary shall be deemed for Good Reason. 
 “Termination without Cause” means a termination of your employment by the Company
for any reason other than (i) Cause, (ii) illness or injury, or (iii) death that occurs during the 15 month period commencing three months prior to closing of a Change in Control and subject to the release requirement in Section 2 and
to your continuing compliance with any restrictive covenant agreements between you and the Company. 
 Sincerely, 

/s/ Abbie Celniker
                                 

Title 
 Please sign below for your acceptance of the terms of
this Agreement. 
 I accept the terms of this Agreement. 

/s/ Laurence
Reid        11/2/2020             

Employee                    Date 

  
 5EX-10.19

 Exhibit 10.19 

 
 

 
 June 17, 2016 
 Re:
Offer of Employment 
 Dear Steve: 
 Decibel
Therapeutics, Inc. (the “Company”) is pleased to offer to employ you as Chief Executive Officer, reporting to the Company’s Board of Directors. Your effective date of hire as an employee will be July 5, 2016. For purposes of this
offer letter, the actual first day of your employment shall be referred to as the “Start Date”. 
 Your compensation for this position will be at
the rate of $450,000 per year, payable semi-monthly in accordance with the Company’s normal pay schedule. All payments are subject to required tax withholdings. 

You will be eligible to participate each year in the annual bonus plan adopted by the Company, and the Company shall adopt and implement such a plan if
reasonable in light of financial, business and other circumstances and factors-at the discretion of the Board of Directors. If and when such bonus plan is adopted by the Company, your annual target performance bonus for your first year of employment
shall be 40% of your base salary. The bonus will be based upon achievement of both corporate and individual goals. All payments are subject to legally required tax withholdings. 

Subject to the approval by the Board of Directors of the Company (the “Board”), in connection with the commencement of your employment, you will
receive the right to purchase 3,556,801 of the Company’s common stock (the “Restricted Stock”), as of your start date, at an exercise or purchase price equal to the fair market value of the Company’s common stock on the date of
grant or issuance, subject to the standard terms and conditions of Decibel Therapeutics, Inc. Stock Incentive Plan and form of stock option or restricted stock agreement, including vesting, subject to continued employment. The Restricted Stock will
be subject to the terms and conditions of the Company’s then-current incentive stock plan and form of restricted stock agreement (the “Equity Documents”). The Restricted Stock will vest as follows: one quarter of the shares will vest
on the first anniversary of the Start Date, and following that, 1/48th of the shares will vest on a monthly basis, in arrears. Vesting is contingent on your continued full-time employment with the Company. 

 We have agreed to establish an additional, incentive-based compensation element for you in your role as CEO.
The concept of such award anticipates that upon achievement of specific key milestones to be defined, mutually agreed to and approved with the Board of Directors of the Company (the “Board”), you will be eligible for an additional
performance based award in the form of a cash bonus and equity grant, both subject to approval by the Board of Directors of the Company (the ‘‘Board”). After your start date and on boarding with the company, you will be involved in
the design and implementation of this specific award. We anticipate this will happen within the first quarter of employment with the Company. 
 You will be
eligible to participate in the Company’s benefits plans subject to the terms and conditions of such plans. Currently, the Company offers Medical and Dental Insurance Programs as well as the Life, AD&D Short and Long Term Disability Plans
and 401 (k) Plan subject to the terms and conditions of those plans. Presently, the Company pays for 85% of the premium cost and reimburses the first 75% of the medical plan annual deductible expenses through an HRA administered by HRC Total
Solutions, 100% of the cost of Life and AD&D insurance as well as Short and Long Term Disability plans. You will accrue 15 paid vacation days each year on pro-rata basis for the first 5 years of service; and you will receive paid holidays in
accordance with the company holiday schedule. (Current Benefits Summary Attached. Benefits are subject to change at any time in the Company’s sole discretion). 

In order for Decibel to have every opportunity to achieve its vision of making a difference in the lives of patients and their families who are impacted by
hearing disorders, it is essential for the CEO role to be full time endeavor. We are supportive of the CEO participating on outside board roles and we will work together to ensure that we have the right balance. We need to make every effort to
ensure the time commitment on outside activities does not interfere with the needs of leading Decibel. 
 It is our understanding that you will continue to
serve in your capacity as a Board, Committee Member or Trustee for the following organizations; Molecular Partners, PMV Pharma, Visterra, Humatics, The Sync Project, Berklee College of Music and Warp Drive Bio (pending). Any additional board,
committee and/or consulting engagements will be subject to pre-approval by the Board of Directors of the Company (the “Board”). 
 It is
understood that you are an “at-will” employee. You are not being offered employment for a definite period of time, and either you or the Company may terminate the employment relationship at any time and for any reason, with or without
Cause or prior notice and without additional compensation to you, subject to the following: 
 (a) the Company may terminate your employment for
“Cause” (as defined below) upon written notice to you effective immediately, in which case you will not be entitled to receive any form of payment other than your earned salary but accrued but unused vacation through your date of
termination (the “Accrued Obligations”); 
 (b) you may terminate your employment voluntarily other than for “Good Reason” (as defined
below) upon at least thirty (30) days’ prior written notice to the Company, in which case you will not be entitled to receive any form of payment other than the Accrued Obligations; and 

(c) the Company may terminate your employment without Cause upon written notice to you effective immediately, provided and notwithstanding the foregoing, in
the event that the Company terminates your employment without Cause, then, subject to you entering into and complying with a separation 

  
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agreement and general release in a form provided by the Company, you will be entitled to a severance pay in an amount equal to: (i) nine (9) months of your then base salary as of the
date of termination, such amount to be paid in equal installments over a nine (9) month period after the date of your termination in accordance with the Company’s usual payroll practices and periods, subject to applicable taxes and
withholding, and (ii) payment for nine (9) months of monthly COBRA premiums at the same rate as the Company pays for active employees for you and your eligible dependents, subject to applicable COBRA terms and in compliance with applicable
non-discrimination or other requirements under the Internal Revenue Code (the “Code”), the Patient Protection and Affordable Care Act, or the Health Care and Education Reconciliation Act (the “Severance Benefits”). In the
interest of clarity, in the event your employment is terminated as a result of your (i) death, (ii) disability, (iii) resignation (iv) termination for Cause by the Company you will be entitled to the Accrued Obligations (as
defined below) but you will not be entitled to the Severance Benefits or any other compensation. 
 During the severance period, should you be otherwise
employed or consulting more than 50% of your time, the severance payments will discontinue. 
 In addition, following such resignation or termination, as
applicable, the Company will pay you the prorated portion of the target bonus for the fiscal year in which you are terminated (with such prorated portion determined by the number of days you were employed during such fiscal year). This payment will
be made once the Company has paid out annual performance bonuses for all employees. 
 (d) For purposes of this letter agreement: 

“Cause” means: 
 Your dishonest statements or acts
with respect to the Company or any affiliate of the Company, or any current or prospective customers, suppliers vendors or other third parties with which such entity does business that results in or is reasonably anticipated to result in material
harm to the Company; (ii) your commission of (A) a felony or (B) any misdemeanor involving moral turpitude, deceit, dishonesty or fraud; (iii) your failure to perform your assigned duties and responsibilities to the reasonable
satisfaction of the Company which failure continues, in the reasonable judgment of the Company, for thirty (30) days after written notice given to you by the Company describing such failure in reasonable detail; (iv) your gross negligence,
willful misconduct or insubordination with respect to the Company that results in or is reasonably anticipated to result in harm to the Company; or (v) your material violation of any provision of any agreement(s) between you and the Company,
including any agreement relating to noncompetition, nonsolicitation, nondisclosure and/or assignment of inventions. 
 “Good Reason” means that
you have complied with the “Good Reason Process” (hereinafter defined) following the occurrence of any of the following events: (i) a material diminution in your responsibilities, authority or duties; (ii) a material diminution
in your Base Salary except for across-the-board salary reductions based on the Company’s financial performance similarly affecting all or substantially all senior management employees of the Company; or (iii) change of more than 50 miles
in the geographic location at which you provide services to the Company (each a “Good Reason Condition”). Notwithstanding the foregoing, a suspension of your responsibilities, authority and/or duties for the Company during any portion of a
bona fide internal investigation or an investigation by regulatory or law enforcement authorities shall not be a Good Reason Condition. Good Reason Process shall mean that (i) you reasonably determine in good faith that a Good Reason Condition
has occurred; (ii) you notify the Company in writing of the occurrence of the Good Reason Condition within 30 days of the occurrence of such condition; (iii) you cooperate in good faith with the Company’s efforts, for a

  
 -3- 

 
period not Jess than 30 days following such notice (the “Cure Period”), to remedy the Good Reason Condition; (iv) notwithstanding such efforts, the Good Reason condition continues
to exist; and (v) you terminate employment within 30 days after the end of the Cure Period. If the Company cures the Good Reason Condition during the Cure Period, Good Reason shall be deemed not to have occurred. 

(f) The Severance Payments shall commence within 60 days after the Date of Termination and shall be made on the Company’s regular payroll dates;
provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, the Severance Payments shall begin to be paid in the second calendar year. In the event you miss a regular payroll period between the Date
of Termination and first Severance Payment date, the first Severance Payment shall include a “catch up” payment. Solely for purposes of Section 409A of the Internal Revenue Code of 1986, as amended, each Severance Payment is
considered a separate payment. 
 The time for payment, or schedule for payment, of any severance payments due hereunder may not be accelerated, except as
provided for in the Treasury Regulations promulgated under Section 409A of the Internal Revenue Code of 1986 (the “Codell), or any law replacing or superseding such Section or regulations. Notwithstanding the preceding provisions of this
Section 6(d), in the case that the Company becomes a publicly traded company and you are deemed a “specified employee” (as defined in Section 409A(2)(B)(i) of the Code), no severance payment may be made earlier than the date
which is six (6) months after the termination of employment hereunder (or, if earlier, the date of the death of the Executive) if and to the extent required by applicable law or other rules of any stock exchange upon which any of shares of the
Company’s capital stock are then traded. 
 All payments described herein are subject to legally required tax withholdings. 

In the event that, within the twelve (12) month period that immediately follows or the 30 day period immediately prior to a Change in Control (as defined
below), your employment with the Company is terminated: (i) on account of your death or Permanent Disability, (ii) by the Company without Cause, or (iii) as a result of your resignation for Good Reason, then fifty (50%) percent
of your then unvested equity (or outstanding unvested restricted stock and/or options to purchase shares of the Company’s Common Stock) shall accelerate and become fully vested. As used herein, “Change in Control” shall mean the
(i) the sale of the Company in which the shareholders of the Company in their capacity as such no longer own a majority of the outstanding equity securities of the Company (or its successor); (ii) any sale of all or substantially all of
the assets or capital stock of the Company (other than in a spin-off or similar transaction) or (iii) any other acquisition of the business of the Company, as determined by the Company’s Board of Directors in their sole discretion. For the
avoidance of doubt, in no event shall a bona fide equity or debt financing of the Company, including a financing in which greater than 50% of the Company’s outstanding equity securities are acquired by a third-party, or reorganization required
to effect an initial public offering, be deemed a “Change in Control” for purposes of this letter. 
 (b) In connection with a Change of Control,
the Company agrees to give due consideration to obtaining such vote by disinterested shareholders (and/or members) as may be necessary such that Section 280G of the Code and the applicable IRS regulations thereunder, will not apply to any
compensation, payment or distribution by the Company to you in connection with such Change of Control. 

  
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 Your normal place of work will be at the location of Decibel Therapeutics, Inc., currently at 215 First
Street, Cambridge MA 02142. Enclosed is a “Non-Solicitation, Non-Competition, Confidentiality and Assignment Agreement” (the “Agreement”), the terms of which are incorporated by reference herein. 

In making this offer, the Company understands, and in accepting it you represent that you are not under any obligation to any former employer or any person or
entity which would prevent, limit, or impair in any way the performance by you of your duties as an employee of the Company. 
 The Immigration Reform and
Control Act requires employers to verify the employment eligibility and identity of new employees. You will be required to complete a Form 1-9 which will be provided to you before the Start Date. Please bring the appropriate documents listed on that
form with you when you report for work. We will not be able to employ you if you fail to comply with this requirement. 
 This letter agreement and the
Agreement referenced above constitute the complete agreement between you and the Company, contain all of the terms of your employment with the Company and supersede any prior agreements, representations or understandings (whether written, oral or
implied) between you and the Company. This letter agreement may not be amended or modified, except by an express written agreement signed by both you and a duly authorized officer of the Company, although your job duties, title, reporting
relationship, compensation and benefits may change from time to time, at the Company’s option. 
 Please indicate your acceptance of this contingent
offer by signing and returning the enclosed copy of this letter and the Employee Agreement. You may indicate your acceptance of this offer by signing on the appropriate space below and returning a signed, scanned copy of this letter and the Employee
Agreement to Susan O’Connor, Human Resources or returning by mail to Susan O’Connor, Human Resources 215 First Street, Cambridge, MA 02142. 

We look forward to your joining the Company and are pleased that you will be working with us. 

 

	
	Very truly yours,
	
	/s/ Kevin Starr
	Kevin Starr
	Chairman of the Board
	Decibel Therapeutics, Inc.

  

					
	Accepted and Agreed:	 		 	
			
	/s/ Steven H. Holtzman	 		 	 June 20, 2016

	Steven H. Holtzman	 		 	Date

  
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