Document:

exv10w29

Exhibit 10.29

July 24, 2008

Stewart Craig, Ph.D.

960 North California Avenue

Palo Alto, CA 94303

Dear Stewart,

On behalf of StemCells, Inc., I am pleased to offer you the position of Senior Vice President,
Development and Operations, on the following terms and conditions:

	(1)	 	Job Responsibilities. Unless otherwise agreed in writing, and subject to the provisions
outlined below, your first day of employment will be September 15, 2008. You will report
directly to me and work at our offices located at 3155 Porter Drive in Palo Alto, California.
Initially your duties and responsibilities will include, but will not be limited to, oversight
and management of the following functions: (1) cell process design and engineering; (2)
clinical and commercial manufacturing; (3) facilities (Rhode Island and California); (4)
regulatory affairs; (5) quality systems; and (6) supply chain management As we discussed,
you have made previous commitments to external speaking engagements. The Company will allow
you the time to complete these commitments, as we may mutually agree upon from time to time,
provided that these activities do not directly conflict with Company business.

	(2)	 	Salary. Your base salary will be at the rate of $275,000 per year, paid bi-weekly, every
other Friday. In addition, you will be eligible for a bonus of up to 25% of your annual base
salary (calculated as of January 1 of the year for which bonuses are awarded). Funding of the
bonus program is at the discretion of the Company’s Board of Directors and is based upon their
evaluation of the Company’s performance in consideration of, among other things, previously
determined goals for the year. You will be eligible for inclusion in the Bonus Plan for the
2008 fiscal year on a pro rata basis, based on your performance from your date of hire through
December 31, 2008. Your salary will normally be reviewed early each calendar year; it is
possible that your salary will be reviewed in 2009, but there can be no assurance that you
will receive a salary increase then or at any other time.

	(3)	 	Stock Options. Subject to the approval of the Board of Directors, you will be granted an
option, pursuant to the Company’s 2006 Amended and Restated Equity Incentive Plan (the “2006
Plan”), to purchase two hundred thousand shares (200,000) shares of StemCells common stock,
with an exercise price per share equal to the closing price of the stock on the Nasdaq Global
Market on the date you begin your employment with the Company. The vesting of these shares
will commence after the first twelve months of your employment. At the end of twelve months,
1/4 will vest and 1/48 will vest monthly thereafter. In all other respects, the grant will be
subject to the terms of the 2006 Plan, including the requirement that you be an employee at
the date on which option shares vest. A copy of the Prospectus for the 2006 Plan will be
provided to you when your employment begins.

3155
Porter Drive  •  Palo Alto, CA 94304  •  Phone 650.475.3100  •  Fax 650.475.3101

www.stemcellsinc.com

 

 

Stewart Craig

July 24, 2008

Page 2

	(4)	 	Benefits. As an employee of StemCells, you will be eligible to participate in a
comprehensive benefits program which currently includes: medical, dental and vision benefits
for you and your dependents; term life insurance equivalent to your annual base salary up to
$400,000; short and long-term disability insurance; and a 401(k) savings plan and employer
match, which is currently made in Company stock. You will be eligible to participate in these
plans on the first of the month following your start date, except that you may elect to
participate in the 401(k) plan immediately. Details of these benefit plans will be provided
to you upon your employment. Your paid time off (PTO) as a full-time employee will be 25 days
(200 hours) per year, accrued at a rate of 7.69 hours per pay period, up to the maximum
accrual permitted by Company policy. In addition, the Company currently offers eight paid
holidays per year.

	(5)	 	Employment Documentation; Fitness to Work. As a condition of employment with StemCells, you
will be required to: (1) sign and return both a copy of this letter and a copy of the enclosed
Employment Agreement, which prohibits among other things the unauthorized use or disclosure of
Company proprietary information and requires the assignment of intellectual property (IP)
rights to any invention made by you as part of your work at StemCells; and (2) on or before
the first day of your employment, provide documents from the enclosed List of Acceptable
Documents which prove your identity and right to work in the United States. You will also be
expected to (i) abide by Company rules and regulations, (ii) sign and comply with the
Company’s Code of Ethics and Conduct, Harassment Policy and Publication Policy, and (iii)
acknowledge in writing that you will read and comply with the Company’s Employee Handbook.
You also must sign and return at least one week before your first day of employment the
enclosed employment application and release authorization for a background check. This offer
is contingent on satisfactory completion of reference checking by the Company.

	 	 	You have an option to receive the Hepatitis B vaccine which is paid for by the Company. A form
to elect or decline the vaccine is enclosed. Please fill out the form, sign and return it to
me.

	(6)	 	Confidentiality. As a Company employee, you will be expected not to use or disclose any
confidential information, including trade secrets, of any former or current employer or any
other person to whom you have an obligation of confidentiality. Rather, you will be expected
to use only that information which is generally known and used by persons with training and
experience comparable to your own, which is common knowledge in the industry or otherwise
legally in the public domain, or which is otherwise provided or developed by the Company. You
agree that you will not bring onto Company premises any unpublished documents or property
belonging to any former or current employer or other person to whom you have an obligation of
confidentiality. During our discussions about your proposed job duties, you assured us that
you would be able to perform your responsibilities within the guidelines just described.

	(7)	 	Board Ratification; At-Will Employment. This conditional employment offer will be submitted
to the Company’s Board of Directors for ratification at its regularly scheduled meeting on
August 4, 2008.

	 	 	Also, as set forth in your Employment Agreement, your employment with StemCells will be on an
at-will basis and for an unspecified duration, which means that neither this offer letter nor
any policy or procedure of StemCells (including the stock vesting and other payments made to
you by the Company over time based on your continued employment with the Company), nor any
verbal representation, shall confer any right to continuing employment. Either you or
StemCells may

 

 

Stewart Craig

July 24, 2008

Page 3

	 	 	terminate your employment relationship at any time with or without cause. In addition, the
Company expressly reserves the right to modify your compensation and benefits from time to time
as it deems necessary or advisable.

	 	 	However, if your employment with StemCells is involuntarily terminated without cause at any
time, including a change of control, you will be provided with salary continuation and benefits
continuation under COBRA from the date of termination until the date six (6) months after the
effective date of termination equal to the salary which you were receiving at the time of such
termination; payments shall be paid in accordance with the Company’s standard payroll practices
upon the Company’s receipt of a signed general release of any claims, whether known or unknown,
against the Company and its agents.

This letter, which includes your Employment Agreement, supersedes all prior discussions, agreements
and writings with regard to your employment and any related matters. The terms of this conditional
offer can only be amended in a written document signed by you and an officer of the Company.

Please indicate your acceptance of the terms and conditions of this conditional employment offer by
signing this letter and the enclosed Employment Agreement and returning them both to me. This
offer will remain open until July 31, 2008.

On behalf of the entire Company, I am delighted at the prospect of your joining us, as we work
together to deliver the promise of this exciting technology to physicians and patients, while at
the same time creating value for our employees and shareholders alike. We truly believe that you
will greatly contribute to the success of StemCells, and we all look forward to working with you.

Sincerely,

/s/ Martin McGlynn

Martin McGlynn

President and CEO

			
	Enclosures:	 	Employment Agreement

List of Acceptable Documents

Form to elect or decline Hepatitis B vaccine

Release Authorization

Employment Application

I accept the foregoing conditional offer of employment on the terms and conditions outlined above.

	 	 	 
	/s/ Stewart Craig

	 	July 27, 2008
	 

	 	 
	Stewart Craig

	 	Dateexv10w30

Exhibit 10.30

February 2, 2007

Kenneth B. Stratton

2724 Clifford Avenue

San Carlos, CA 94070

Dear Ken,

We are delighted to offer you the position of General Counsel of StemCells, Inc., effective
February 28, 2007. As General Counsel, you will report directly to me and will be responsible for
the Company’s legal affairs; your primary responsibility to advise me about, and to oversee, the
legal affairs of the Company. These will be among your specific responsibilities:

Working closely with the CEO, COO, CFO, the Director of HR and heads of the Company’s
various programs on internal and external matters that have legal or policy aspects;

Providing legal support to all staff members on matters such as patent disclosure, Company
insider trading and other policies, and review of proposed contractual agreements with
providers of goods or services (including, where necessary, editing agreements and
negotiating changes in their terms. Note that entering any agreement requires sign-off by
Company officers including CEO);

Participating in the drafting, and reviewing the non-financial aspects, of StemCells’
periodic reports to the SEC, making appropriate reports on Form 8-K, and generally
overseeing the Company’s activities in compliance with securities laws and regulations;

Drafting term sheets and various types of agreements, including licenses, material transfer
agreements, research agreements, clinical trial agreements, and confidentiality agreements,
and participating in and overseeing the drafting of the documentation of major
collaborations and financings; and

Overseeing the work of outside counsel, including patent counsel.

You will be a member of the Company’s leadership team and, ex officio, of each of its standing
committees: the StemCells Operating Committee, the StemCells Executive Officers Committee, the
Patent Committee and the Public Disclosure Committee. You will also, upon appointment by the Board
of Directors, be expected to serve as Secretary to the Board, which entails attending all meetings
of the Board and its Committees and drafting minutes as well as helping to schedule those meetings.

3155
Porter Drive • Palo Alto, CA 94304 • Phone 650.475.3100 • Fax 650.475.3101

www.stemcellsinc.com

 

 

Ken Stratton

February 2, 2007

Page 2

Your compensation package for this position will consist of:

	(1)	 	Salary. Your base salary will be at the rate of $220,000 per year paid bi-weekly, every
other Friday. In addition, you will be eligible for a bonus of up to 20% of your annual base
salary. Funding the bonus program is at the discretion of the Board of Directors and is based
upon their evaluation of company goals met for the year. Employee awards are based on meeting
individual goals and on salaries effective January 1 of the year for which bonuses are
awarded. You will be eligible for inclusion in the Bonus Plan for the 2007 fiscal year on a
pro rata basis, based on your performance from your date of hire through December 31, 2007.
While salaries are normally reviewed each calendar year after the first full year of service,
there is no assurance that you will receive a salary increase any time in the future.

	(2)	 	Stock Options. Subject to the approval of the Board of Directors of StemCells, you will be
granted an option, pursuant to the Company’s 2001 Equity Incentive Plan (the “2001 Plan”) for
the purchase of one hundred fifty thousand (150,000) shares of StemCells stock at the closing
price of the stock on February 28, 2007 or on the date on which you begin your employment, if
later. The vesting of these shares will commence after the first twelve months of your
employment. At the end of twelve months, 1/4 will vest and 1/48 will vest monthly thereafter.
In all other respects, the grant is subject to the terms of the 2001 Plan, including the
requirement that you be an employee at the date on which option shares vest. You will qualify
to receive additional stock option grants from time to time, usually on an annual basis. A
copy of the Prospectus for the 2001 Plan will be provided to you when your employment begins.

	 	 	In recognition of your forfeiture of stock options from your current employer, the Company will
provide you with a $25,000 loan, payable within 30 days of your hire date, which will be
forgiven upon completion of 12 months of continuous employment with StemCells, or in the event
of involuntary termination prior to the completion of one year of continuous service, the loan
will be forgiven upon execution of a signed release.

	(3)	 	Benefits. As an employee of StemCells, you will be eligible to participate in a
comprehensive benefits program which currently includes: medical, dental, and vision benefits
for you and your dependents; term life insurance equivalent to one time your annual base
salary up to $400,000 with a statement of good health; short and long-term disability
insurance; and a 401(k) savings plan and employer match in company stock. You will be
eligible to participate in these plans on the first of the month following your start date,
except that you may elect to participate in the 401(k) plan immediately. Details of these
benefit plans will be provided to you upon your employment. Your paid time off
(PTO) as a full-time employee will be 25 days (five weeks) per year, accrued at a rate of 7.69
hours per pay period, up to the maximum accrual permitted by Company policy. In addition, the
company currently offers eight paid holidays per calendar year.

 

 

Ken Stratton

February 2, 2007

Page 3

The Company will pay your yearly California bar dues and any other professional dues or fees
required for you to maintain your legal accreditation in California and in any other state
necessary for your job, in each case for so long as you are employed by StemCells. This will
include reimbursement for professional memberships (ACCA, etc.) and continuing legal education
(MCLE coursework) not supplied by StemCells, as we may jointly determine necessary or advisable.
You will also be a named person under the Company’s D&O insurance policy, for your information,
there is no exclusion from the policy for derivative claims of legal malpractice. In the event
that the Company adopts an indemnification policy covering any management employees, you will be
included among those covered by that policy.

As a condition of employment with StemCells, you will be required to: (1) sign and return one copy
of the enclosed Employment Agreement, along with a signed copy of this letter; and (2) on the first
day of your employment, provide documents from the enclosed List of Acceptable Documents which
prove your identity and right to work in the United States. You will also be required to
acknowledge receipt and understanding of certain company documents and policies such as Employee
Certification and Agreement of Compliance (Code of Ethics and Conduct), Harassment, Publication
Policy, Employment Handbook, Cobra Notice, Equity Incentive Plan, and Release Authorization for a
background check. This offer is also contingent on satisfactory completion of reference checking
by the Company.

You have an option to receive the Hepatitis B vaccine which is paid for by the Company. A form to
elect or decline the vaccine is enclosed. Please fill out the form, sign and return it.

To underscore an important aspect of the enclosed Employment Agreement, it is the strong
expectation of StemCells that you hold in strictest confidence the confidential business and
scientific information of the Company, and that you also refrain from any improper use of or
disclosure of proprietary information of your current employer or those with whom you might have an
agreement or duty to keep information in confidence.

As set forth in your Employment Agreement, your employment with StemCells will be on an at-will
basis and for an unspecified duration, which means that neither this offer letter nor any policy or
procedure of StemCells (including the stock vesting and other payments made to you by the Company
over time based on your continued employment with the Company), nor any verbal representation,
shall confer any right to continuing employment. Either you or StemCells may terminate your
employment relationship at any time with or without cause. In the event of termination of your
employment, you will not be entitled to any payments, benefits, damages or compensation. This
paragraph regarding at-will employment can only be amended in a written document signed by you and
an officer of the Company.

This letter supersedes all prior discussions, agreements and writings with regard to your
employment and any related matters.

 

 

Ken Stratton

February 2, 2007

Page 4

It is understood that if you accept this offer, your start date will be February 28, 2007. Please
indicate your acceptance by signing this letter and the Employment Agreement and returning a copy
of the letter together with the original Employment Agreement. This offer will remain open until
February 7, 2007.

Ken, I am personally thrilled at the prospect of your joining us, and I hope you will agree that we
have been very responsive to your comments, suggestions and feedback! I truly believe that you
will greatly contribute to the success of StemCells Inc., and your soon-to-be colleagues are
enthusiastically looking forward to working with you.

Sincerely,

/s/ Martin McGlynn

Martin McGlynn

President and Chief Executive Officer

			
	Enclosures:	 	Employment Agreement

List of Acceptable Documents

Form to elect or decline Hepatitis B vaccine

I accept the foregoing offer and shall commence employment on February 28, 2007.

	 	 	 
	/s/ Ken Stratton

	 	February 5, 2007
	 

	 	 
	Signature

	 	Date

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