Document:

WELLS FARGO & COMPANY 8-K

 

Exhibit 4.2

 

[Face
of Note]

 

Unless
this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”),
to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede
& Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

	CUSIP NO. 95001B7C2	FACE AMOUNT:  $__________
	REGISTERED NO. ___	 

 

WELLS
FARGO & COMPANY

 

MEDIUM-TERM
NOTE, SERIES S

 

Due
Nine Months or More From Date of Issue

 

Principal
at Risk Securities Linked to the Lowest Performing of the Russell 2000® Index

and
the iShares® MSCI EAFE ETF due March 17, 2020

 

 

WELLS
FARGO & COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (hereinafter called the
“Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for
value received, hereby promises to pay to CEDE & Co., or registered assigns, an amount equal to the Maturity Payment
Amount (as defined below), in such coin or currency of the United States of America as at the time of payment is legal tender
for payment of public and private debts, on the Stated Maturity Date (as defined below), unless this Security is automatically
called as provided below under “Automatic Call.” The “Initial Stated Maturity Date” shall be March
17, 2020. If the Final Calculation Day (as defined below) is not postponed, the Initial Stated Maturity Date will be the “Stated
Maturity Date.” If the Final Calculation Day is postponed, the “Stated Maturity Date” shall be the
later of (i) the Initial Stated Maturity Date and (ii) three Business Days after the last Final Calculation Day as postponed.
“Business Day” shall mean a day, other than a Saturday or Sunday, that is neither a legal holiday nor a day
on which banking institutions are authorized or required by law or regulation to close in New York, New York. This Security shall
not bear any interest.

Any
payments on this Security at Maturity will be made against presentation of this Security at the office or agency of the Company
maintained for that purpose in the City of Minneapolis, Minnesota and at any other office or agency maintained by the Company
for such purpose.

“Face
Amount” shall mean, when used with respect to this Security, the amount set forth on the face of this Security as its
“Face Amount.”

    	 	 	 

    	 

    

Automatic
Call

If
the Closing Value (as defined below) of the Lowest Performing Market Measure (as defined below) on any of the Call Dates (as defined
in the table below) (including the Final Calculation Day) is greater than or equal to its Starting Value (as defined below), this
Security will be automatically called by the Company, and on the related Call Settlement Date (as defined below) the Holder hereof
will receive the Face Amount of this Security plus the Call Premium (as defined in the table below) applicable to the relevant
Call Date (together, the “Call Price”). Unless the Company defaults in the payment of the Call Price, this
Security will cease to be outstanding on such Call Settlement Date and the Holder hereof will have no further rights under this
Security after such Call Settlement Date. The Holder hereof will not receive any notice from the Company in the event this Security
is automatically called pursuant to the terms hereof.

The
Call Dates and the related Call Premiums are as follows:

	Call Date	 	Call Premium
	 	 	 
	March
12, 2019	 	5.00% of the Face Amount of this Security
	September
12, 2019	 	10.00% of the Face Amount of this Security
	March
12, 2020	 	15.00% of the Face Amount of this Security

 

The
Call Dates are subject to postponement for non-Trading Days and the occurrence of a Market Disruption Event. See the definition
of “Calculation Days” below.

The
“Call Settlement Date” for a Call Date shall be three Business Days after such Call Date, as such Call Date
may be postponed as provided herein; provided that the Call Settlement Date for the last Call Date shall be the Stated Maturity
Date.

Payment
of the Call Price, if any, will be made in such coin or currency of the United States of America as at the time is legal tender
for payment of public and private debts.

Determination
of Maturity Payment Amount and Certain Definitions

If
this Security is not automatically called prior to the Final Calculation Day as provided above under “Automatic Call,”
the “Maturity Payment Amount” of this Security will equal:

●

if the Ending Value of
the Lowest Performing Market Measure on the Final Calculation Day is greater than or equal to its Starting Value: the Face Amount
plus the Call Premium applicable to the Final Calculation Day;

●

if
the Ending Value of the Lowest Performing Market Measure on the Final Calculation Day is less than its Starting Value but greater
than or equal to its Threshold Value: the Face Amount; or

    	 	2	 

     

    

 

●

if the Ending Value of the Lowest Performing Market Measure on the Final Calculation Day is less than its Threshold Value:

 

 

All
calculations with respect to any payments on this Security (whether upon automatic call or at stated maturity) will be rounded
to the nearest one hundred-thousandth, with five one-millionths rounded upward (e.g., 0.000005 would be rounded to 0.00001); and
such payment will be rounded to the nearest cent, with one-half cent rounded upward.

“Index”
shall mean the Russell 2000 Index.

“Fund”
shall mean the iShares MSCI EAFE ETF.

“Market
Measure” shall mean each of the Index and the Fund.

The
“Pricing Date” shall mean September 12, 2018.

The
“Lowest Performing Market Measure” on any Call Date (including the Final Calculation Day) will be the Market
Measure with the lowest Performance Factor on that date.

The
“Performance Factor” with respect to a Market Measure on any Call Date (including the Final Calculation Day),
is its Closing Value on such date divided by its Starting Value (expressed as a percentage).

The
“Closing Value” with respect to the Index on any Trading Day is its Closing Level on that Trading Day; and
with respect to the Fund on any Trading Day is its Fund Closing Price on that Trading Day.

The
“Closing Level” of the Index on any Trading Day means the official closing level of the Index reported by the
Index Sponsor on such Trading Day, as obtained by the Calculation Agent on such Trading Day from the licensed third-party market
data vendor contracted by the Calculation Agent at such time; in particular, taking into account the decimal precision and/or
rounding convention employed by such licensed third-party market data vendor on such date, subject to the provisions set forth
below under “Adjustments to the Index,” “Discontinuance of the Index” and “Market Disruption Events.”

The
“Fund Closing Price” with respect to the Fund on any Trading Day means the product of (i) the Closing
Price of one share of the Fund (or one unit of any other security for which a Fund Closing Price must be determined) on such Trading
Day and (ii) the Adjustment Factor on such Trading Day.

 

The
“Closing Price” for one share of the Fund (or one unit of any other security for which a Closing Price must
be determined) on any Trading Day means the official closing price on such day published by the principal United States securities
exchange registered under the Securities

 

    	 	3	 

     

    

 

Exchange
Act of 1934, as amended, on which the Fund (or any such other security) is listed or admitted to trading.

 

The
“Adjustment Factor” means, with respect to a share of the Fund (or one unit of any other security for which
a Fund Closing Price must be determined), 1.0, subject to adjustment in the event of certain events affecting the shares of the
Fund. See “Anti-dilution Adjustments Relating To The Fund; Alternate Calculation—Anti-Dilution Adjustments”
below.

 

The
“Starting Value” with respect to the Russell 2000 Index is 1715.696, its Closing Value on the Pricing Date,
and with respect to the iShares MSCI EAFE ETF is $66.17, its Closing Value on the Pricing Date.

The
“Ending Value” of a Market Measure will be its Closing Value on the Final Calculation Day.

The
“Threshold Value” with respect to the Russell 2000 Index is 1372.5568, which is equal to 80% of its Starting
Value, and with respect to the iShares MSCI EAFE ETF is $52.936, which is equal to 80% of its Starting Value.

“Multiplier”
is equal to the Starting Value of the Lowest Performing Market Measure on the Final Calculation Day divided by its Threshold Value.

“Index
Sponsor” shall mean the sponsor or publisher of the Index.

“Fund
Sponsor” shall mean the sponsor of the Fund.

The
“Calculation Days” shall be the Call Dates (including the Final Calculation Day). If any Calculation Day is
not a Trading Day with respect to either Market Measure, such Calculation Day for each Market Measure will be postponed to the
next succeeding day that is a Trading Day with respect to each Market Measure. A Calculation Day for a Market Measure is also
subject to postponement due to the occurrence of a Market Disruption Event (as defined below) with respect to such Market Measure
on such Calculation Day. If a Market Disruption Event occurs or is continuing with respect to a Market Measure on any Calculation
Day, then such Calculation Day for such Market Measure will be postponed to the first succeeding Trading Day for such Market Measure
on which a Market Disruption Event for such Market Measure has not occurred and is not continuing; however, if such first succeeding
Trading Day has not occurred as of the eighth Trading Day for such Market Measure after the originally scheduled Calculation Day,
that eighth Trading Day shall be deemed to be the Calculation Day for such Market Measure. If a Calculation Day has been postponed
eight Trading Days for a Market Measure after the originally scheduled Calculation Day and a Market Disruption Event occurs or
is continuing with respect to such Market Measure on such eighth Trading Day, the Calculation Agent will determine the Closing
Value of such Market Measure on such eighth Trading Day (i) in the case of the Index, in accordance with the formula for
and method of calculating the Closing Level of the Index last in effect prior to commencement of the Market Disruption Event,
using the closing price (or, with respect to any relevant security, if a Market Disruption Event has occurred with respect to
such security, its good faith estimate of the value of such security at the Scheduled Closing Time of the Relevant Stock Exchange
for such security or, if earlier, the

    	 	4	 

     

    

actual
closing time of the regular trading session of such Relevant Stock Exchange) on such date of each security included in the Index
and (ii) in the case of the Fund, based on its good faith estimate of the value of the shares (or other applicable securities)
of the Fund as of the close of trading on such date. As used in clause (i) of the immediately preceding sentence, “closing
price” means, with respect to any security on any date, the Relevant Stock Exchange traded or quoted price of such security
as of the Scheduled Closing Time of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the
regular trading session of such Relevant Stock Exchange. Notwithstanding the postponement of a Calculation Day for one Market
Measure due to a Market Disruption Event with respect to such Market Measure on such Calculation Day, the originally scheduled
Calculation Day will remain the Calculation Day for the other Market Measure if such other Market Measure is not affected by a
Market Disruption Event on such day.

The
“Final Calculation Day” is March 12, 2020, subject to postponement as provided herein.

“Calculation
Agent Agreement” shall mean the Calculation Agent Agreement dated as of January 24, 2018 between the Company and
the Calculation Agent, as amended from time to time.

“Calculation
Agent” shall mean the Person that has entered into the Calculation Agent Agreement with the Company providing for, among
other things, the determination of whether this Security will be automatically called on any of the Call Dates, the Call Price,
if any, and the Maturity Payment Amount, which term shall, unless the context otherwise requires, include its successors under
such Calculation Agent Agreement. The initial Calculation Agent shall be Wells Fargo Securities, LLC. Pursuant to the Calculation
Agent Agreement, the Company may appoint a different Calculation Agent from time to time after the initial issuance of this Security
without the consent of the Holder of this Security and without notifying the Holder of this Security.

A
“Trading Day” with respect to the Index means a day, as determined by the Calculation Agent, on which (i) the
Relevant Stock Exchanges with respect to each security underlying the Index are scheduled to be open for trading for their respective
regular trading sessions and (ii) each Related Futures or Options Exchange is scheduled to be open for trading for its regular
trading session. The “Relevant Stock Exchange” for any security underlying the Index means the primary exchange
or quotation system on which such security is traded, as determined by the Calculation Agent. The “Related Futures or
Options Exchange” for the Index means an exchange or quotation system where trading has a material effect (as determined
by the Calculation Agent) on the overall market for futures or options contracts relating to the Index.

 

A
“Trading Day” with respect to the Fund means a day, as determined by the Calculation Agent, on which the Relevant
Stock Exchange and each Related Futures or Options Exchange with respect to the Fund or any successor thereto, if applicable,
are scheduled to be open for trading for their respective regular trading sessions. The “Relevant Stock Exchange”
for the Fund means the primary exchange or quotation system on which shares (or other applicable securities) of the Fund are traded,
as determined by the Calculation Agent. The “Related Futures or Options Exchange” for the Fund means each exchange
or quotation system where trading has a material

    	 	5	 

     

    

effect
(as determined by the Calculation Agent) on the overall market for futures or options contracts relating to the Fund.

Adjustments
to the Index

If
at any time the method of calculating the Index or a Successor Equity Index, or the closing level thereof, is changed in a material
respect, or if the Index or a Successor Equity Index is in any other way modified so that such index does not, in the opinion
of the Calculation Agent, fairly represent the level of such index had those changes or modifications not been made, then the
Calculation Agent will, at the close of business in New York, New York, on each date that the closing level of such index is to
be calculated, make such calculations and adjustments as, in the good faith judgment of the Calculation Agent, may be necessary
in order to arrive at a level of an index comparable to the Index or Successor Equity Index as if those changes or modifications
had not been made, and the Calculation Agent will calculate the closing level of the Index or Successor Equity Index with reference
to such index, as so adjusted. Accordingly, if the method of calculating the Index or Successor Equity Index is modified so that
the level of such index is a fraction or a multiple of what it would have been if it had not been modified (e.g., due to
a split or reverse split in such equity index), then the Calculation Agent will adjust the Index or Successor Equity Index in
order to arrive at a level of such index as if it had not been modified (e.g., as if the split or reverse split had not
occurred).

Discontinuance
of the Index

If
the Index Sponsor discontinues publication of the Index, and the Index Sponsor or another entity publishes a successor or substitute
equity index that the Calculation Agent determines, in its sole discretion, to be comparable to the Index (a “Successor
Equity Index”), then, upon the Calculation Agent’s notification of that determination to the Trustee and the Company,
the Calculation Agent will substitute the Successor Equity Index as calculated by the relevant Index Sponsor or any other entity
for purposes of calculating the Closing Value of the Index on any date of determination. Upon any selection by the Calculation
Agent of a Successor Equity Index, the Company will cause notice to be given to the Holder of this Security.

In
the event that the Index Sponsor discontinues publication of the Index prior to, and the discontinuance is continuing on, a Calculation
Day and the Calculation Agent determines that no Successor Equity Index is available at such time, the Calculation Agent will
calculate a substitute Closing Level for the Index in accordance with the formula for and method of calculating the Index last
in effect prior to the discontinuance, but using only those securities that comprised the Index immediately prior to that discontinuance.
If a Successor Equity Index is selected or the Calculation Agent calculates a level as a substitute for the Index, the Successor
Equity Index or level will be used as a substitute for the Index for all purposes, including the purpose of determining whether
a Market Disruption Event exists.

If
on a Calculation Day the Index Sponsor fails to calculate and announce the level of the Index, the Calculation Agent will calculate
a substitute Closing Level of the Index in accordance with the formula for and method of calculating the Index last in effect
prior to the failure, but using only those securities that comprised the Index immediately prior to that failure; provided
that, if a Market Disruption Event occurs or is continuing on such day with respect to

    	 	6	 

     

    

the
Index, then the provisions set forth above under the definition of “Calculation Days” shall apply in lieu of the foregoing.

Anti-dilution
Adjustments Relating To The Fund; Alternate Calculation 

Anti-dilution
Adjustments 

The
Calculation Agent will adjust the Adjustment Factor with respect to the Fund as specified below if any of the events specified
below occurs with respect to the Fund and the effective date or ex-dividend date, as applicable, for such event is after the Pricing
Date and on or prior to the Final Calculation Day.

The
adjustments specified below do not cover all events that could affect the Fund. The Calculation Agent may, in its sole discretion,
make additional adjustments to any terms of this Security upon the occurrence of other events that affect or could potentially
affect the market price of, or shareholder rights in, the Fund, with a view to offsetting, to the extent practical, any such change,
and preserving the relative investment risks of this Security. In addition, the Calculation Agent may, in its sole discretion,
make adjustments or a series of adjustments that differ from those described herein if the Calculation Agent determines that such
adjustments do not properly reflect the economic consequences of the events specified herein or would not preserve the relative
investment risks of this Security. All determinations made by the Calculation Agent in making any adjustments to the terms of
this Security, including adjustments that are in addition to, or that differ from, those described herein, will be made in good
faith and a commercially reasonable manner, with the aim of ensuring an equitable result. In determining whether to make any adjustment
to the terms of this Security, the Calculation Agent may consider any adjustment made by the Options Clearing Corporation or any
other equity derivatives clearing organization on options contracts on the Fund.

For
any event described below, the Calculation Agent will not be required to adjust the Adjustment Factor unless the adjustment would
result in a change to the Adjustment Factor then in effect of at least 0.10%. The Adjustment Factor resulting from any adjustment
will be rounded up or down, as appropriate, to the nearest one-hundred thousandth.

(A)       

Stock
Splits and Reverse Stock Splits

If
a stock split or reverse stock split has occurred, then once such split has become effective, the Adjustment Factor will be adjusted
to equal the product of the prior Adjustment Factor and the number of securities which a holder of one share (or other applicable
security) of the Fund before the effective date of such stock split or reverse stock split would have owned or been entitled to
receive immediately following the applicable effective date.

(B)       

Stock
Dividends

If
a dividend or distribution of shares (or other applicable securities) to which this Security is linked has been made by the Fund
ratably to all holders of record of such shares (or other applicable security), then the Adjustment Factor will be adjusted on
the ex-dividend date to equal the prior Adjustment Factor plus the

    	 	7	 

     

    

product
of the prior Adjustment Factor and the number of shares (or other applicable security) of the Fund which a holder of one share
(or other applicable security) of the Fund before the ex-dividend date would have owned or been entitled to receive immediately
following that date; provided, however, that no adjustment will be made for a distribution for which the number of securities
of the Fund paid or distributed is based on a fixed cash equivalent value.

(C)       

Extraordinary
Dividends

If
an Extraordinary Dividend (as defined below) has occurred, then the Adjustment Factor will be adjusted on the ex-dividend date
to equal the product of the prior Adjustment Factor and a fraction, the numerator of which is the Closing Price per share (or
other applicable security) of the Fund on the Trading Day preceding the ex-dividend date, and the denominator of which is the
amount by which the Closing Price per share (or other applicable security) of the Fund on the Trading Day preceding the ex-dividend
date exceeds the Extraordinary Dividend Amount (as defined below).

For
purposes of determining whether an Extraordinary Dividend has occurred:

(1)       

“Extraordinary
Dividend” means any cash dividend or distribution (or portion thereof) that the Calculation Agent determines, in its
sole discretion, is extraordinary or special; and

(2)       

“Extraordinary
Dividend Amount” with respect to an Extraordinary Dividend for the securities of the Fund will equal the amount per
share (or other applicable security) of the Fund of the applicable cash dividend or distribution that is attributable to the Extraordinary
Dividend, as determined by the Calculation Agent in its sole discretion.

A
distribution on the securities of the Fund described below under the section entitled “—Reorganization Events”
below that also constitutes an Extraordinary Dividend will only cause an adjustment pursuant to that “—Reorganization
Events” section.

(D)       

Other
Distributions

If
the Fund declares or makes a distribution to all holders of the shares (or other applicable security) of the Fund of any non-cash
assets, excluding dividends or distributions described under the section entitled “—Stock Dividends” above,
then the Calculation Agent may, in its sole discretion, make such adjustment (if any) to the Adjustment Factor as it deems appropriate
in the circumstances. If the Calculation Agent determines to make an adjustment pursuant to this paragraph, it will do so with
a view to offsetting, to the extent practical, any change in the economic position of a holder of this Security that results solely
from the applicable event.

    	 	8	 

     

    

(E)       

Reorganization
Events

If
the Fund, or any Successor Fund, is subject to a merger, combination, consolidation or statutory exchange of securities with another
exchange traded fund, and the Fund to which this Security is linked is not the surviving entity (a “Reorganization Event”),
then, on or after the date of such event, the Calculation Agent shall, in its sole discretion, make an adjustment to the Adjustment
Factor or the method of determining the Maturity Payment Amount, whether this Security is automatically called on any of the Call
Dates or any other terms of this Security as the Calculation Agent determines appropriate to account for the economic effect on
this Security of such event, and determine the effective date of that adjustment. If the Calculation Agent determines that no
adjustment that it could make will produce a commercially reasonable result, then the Calculation Agent may deem such event a
Liquidation Event (as defined below).

Liquidation
Events 

If
the Fund is de-listed, liquidated or otherwise terminated (a “Liquidation Event”), and a successor or substitute
exchange traded fund exists that the Calculation Agent determines, in its sole discretion, to be comparable to the Fund, then,
upon the Calculation Agent’s notification of that determination to the Trustee and the Company, any subsequent Fund Closing
Price for the Fund will be determined by reference to the Fund Closing Price of such successor or substitute exchange traded fund
(such exchange traded fund being referred to herein as a “Successor Fund”), with such adjustments as the Calculation
Agent determines are appropriate to account for the economic effect of such substitution on the holder of this Security.

If
the Fund undergoes a Liquidation Event prior to, and such Liquidation Event is continuing on, the date that any Fund Closing Price
of the Fund is to be determined and the Calculation Agent determines that no Successor Fund is available at such time, then the
Calculation Agent will, in its discretion, calculate the Fund Closing Price for the Fund on such date by a computation methodology
that the Calculation Agent determines will as closely as reasonably possible replicate the Fund, provided that if the Calculation
Agent determines in its discretion that it is not practicable to replicate the Fund (including but not limited to the instance
in which the sponsor of the index underlying the Fund discontinues publication of that index), then the Calculation Agent will
calculate the Fund Closing Price for the Fund in accordance with the formula last used to calculate such Fund Closing Price before
such Liquidation Event, but using only those securities that were held by the Fund immediately prior to such Liquidation Event
without any rebalancing or substitution of such securities following such Liquidation Event.

If
a Successor Fund is selected or the Calculation Agent calculates the Fund Closing Price as a substitute for the Fund, such Successor
Fund or Fund Closing Price will be used as a substitute for the Fund for all purposes, including for purposes of determining whether
a Market Disruption Event exists.

If
any event is both a Reorganization Event and a Liquidation Event, such event will be treated as a Reorganization Event for purposes
of this Security unless the Calculation Agent

    	 	9	 

     

    

makes
the determination referenced in the last sentence of the section entitled “—Anti-dilution Adjustments—Reorganization
Events” above.

Alternate
Calculation

If
at any time the method of calculating the Fund or a Successor Fund, or the index underlying the Fund or Successor Fund, is changed
in a material respect, or if the Fund or a Successor Fund is in any other way modified so that the Fund does not, in the opinion
of the Calculation Agent, fairly represent the price of the securities of the Fund or such Successor Fund had such changes or
modifications not been made, then the Calculation Agent may, at the close of business in New York City on the date that any Fund
Closing Price is to be determined, make such calculations and adjustments as, in the good faith judgment of the Calculation Agent,
may be necessary in order to arrive at a Closing Price of the Fund comparable to the Fund or such Successor Fund, as the case
may be, as if such changes or modifications had not been made, and calculate the Fund Closing Price and the Maturity Payment Amount
and determine whether this Security is automatically called on any Call Date with reference to such adjusted Closing Price of
the Fund or such Successor Fund, as applicable.

Market
Disruption Events 

A
“Market Disruption Event” with respect to the Index means any of the following events as determined by the
Calculation Agent in its sole discretion:

(A)                       

The occurrence or existence of a material suspension of or limitation imposed on trading by the Relevant Stock Exchanges or otherwise
relating to securities which then comprise 20% or more of the level of the Index or any Successor Equity Index at any time during
the one-hour period that ends at the Close of Trading on that day, whether by reason of movements in price exceeding limits permitted
by those Relevant Stock Exchanges or otherwise.

 

(B)                       

The occurrence or existence of a material suspension of or limitation imposed on trading by any Related Futures or Options Exchange
or otherwise in futures or options contracts relating to the Index or any Successor Equity Index on any Related Futures or Options
Exchange at any time during the one-hour period that ends at the Close of Trading on that day, whether by reason of movements
in price exceeding limits permitted by the Related Futures or Options Exchange or otherwise.

 

(C)                       

The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market
participants in general to effect transactions in, or obtain market values for, securities that then comprise 20% or more of the
level of the Index or any Successor Equity Index on their Relevant Stock Exchanges at any time during the one-hour period that
ends at the Close of Trading on that day.

 

(D)                       

The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market
participants in general to effect

 

    	 	10	 

     

    

 

transactions
in, or obtain market values for, futures or options contracts relating to the Index or any Successor Equity Index on any Related
Futures or Options Exchange at any time during the one-hour period that ends at the Close of Trading on that day.

 

(E)                       

The closure on any Exchange Business Day of the Relevant Stock Exchanges on which securities that then comprise 20% or more of
the level of the Index or any Successor Equity Index are traded or any Related Futures or Options Exchange with respect to the
Index or any Successor Equity Index prior to its Scheduled Closing Time unless the earlier closing time is announced by the Relevant
Stock Exchange or Related Futures or Options Exchange, as applicable, at least one hour prior to the earlier of (1) the actual
closing time for the regular trading session on such Relevant Stock Exchange or Related Futures or Options Exchange, as applicable,
and (2) the submission deadline for orders to be entered into the Relevant Stock Exchange or Related Futures or Options Exchange,
as applicable, system for execution at such actual closing time on that day.

 

(F)                       

The Relevant Stock Exchange for any security underlying the Index or Successor Equity Index or any Related Futures or Options
Exchange with respect to the Index or Successor Equity Index fails to open for trading during its regular trading session.

 

For
purposes of determining whether a Market Disruption Event has occurred with respect to the Index:

 

(1)      

the relevant percentage contribution of a security to the level of the Index or any Successor Equity Index will be based on a
comparison of (x) the portion of the level of such index attributable to that security and (y) the overall level of
the Index or Successor Equity Index, in each case immediately before the occurrence of the Market Disruption Event;

 

(2)      

the “Close of Trading” on any Trading Day for the Index or any Successor Equity Index means the Scheduled Closing
Time of the Relevant Stock Exchanges with respect to the securities underlying the Index or Successor Equity Index on such Trading
Day; provided that, if the actual closing time of the regular trading session of any such Relevant Stock Exchange is earlier than
its Scheduled Closing Time on such Trading Day, then (x) for purposes of clauses (A) and (C) of the definition of “Market
Disruption Event” above, with respect to any security underlying the Index or Successor Equity Index for which such Relevant
Stock Exchange is its Relevant Stock Exchange, the “Close of Trading” means such actual closing time and (y) for
purposes of clauses (B) and (D) of the definition of “Market Disruption Event” above, with respect to any futures
or options contract relating to the Index or Successor Equity Index, the “Close of Trading” means the latest actual
closing time of the regular trading session of any of the Relevant Stock Exchanges, but in no event later than the Scheduled Closing
Time of the Relevant Stock Exchanges;

 

    	 	11	 

     

    

 

(3)

the “Scheduled Closing Time” of any Relevant Stock Exchange or Related Futures or Options Exchange on any Trading
Day for the Index or any Successor Equity Index means the scheduled weekday closing time of such Relevant Stock Exchange or Related
Futures or Options Exchange on such Trading Day, without regard to after hours or any other trading outside the regular trading
session hours; and

 

(4)      

an “Exchange Business Day” means any Trading Day for the Index or any Successor Equity Index on which each
Relevant Stock Exchange for the securities underlying the Index or any Successor Equity Index and each Related Futures or Options
Exchange with respect to the Index or any Successor Equity Index are open for trading during their respective regular trading
sessions, notwithstanding any such Relevant Stock Exchange or Related Futures or Options Exchange closing prior to its Scheduled
Closing Time.

 

A
“Market Disruption Event” with respect to the Fund means any of the following events as determined by the Calculation
Agent in its sole discretion:

 

(A)       

The
occurrence or existence of a material suspension of or limitation imposed on trading by the Relevant Stock Exchange or otherwise
relating to the shares (or other applicable securities) of the Fund or any Successor Fund on the Relevant Stock Exchange at any
time during the one-hour period that ends at the Close of Trading on such day, whether by reason of movements in price exceeding
limits permitted by such Relevant Stock Exchange or otherwise.

 

(B)       

The
occurrence or existence of a material suspension of or limitation imposed on trading by any Related Futures or Options Exchange
or otherwise in futures or options contracts relating to the shares (or other applicable securities) of the Fund or any Successor
Fund on any Related Futures or Options Exchange at any time during the one-hour period that ends at the Close of Trading on that
day, whether by reason of movements in price exceeding limits permitted by the Related Futures or Options Exchange or otherwise.

 

(C)       

The
occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market participants
in general to effect transactions in, or obtain market values for, shares (or other applicable securities) of the Fund or any
Successor Fund on the Relevant Stock Exchange at any time during the one-hour period that ends at the Close of Trading on that
day.

 

(D)       

The
occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market participants
in general to effect transactions in, or obtain market values for, futures or options contracts relating to shares (or other applicable
securities) of the Fund or any Successor Fund on any Related Futures or Options Exchange at any time during the one-hour period
that ends at the Close of Trading on that day.

 

    	 	12	 

     

    

 

(E)       

The
closure of the Relevant Stock Exchange or any Related Futures or Options Exchange with respect to the Fund or any Successor Fund
prior to its Scheduled Closing Time unless the earlier closing time is announced by the Relevant Stock Exchange or Related Futures
or Options Exchange, as applicable, at least one hour prior to the earlier of (1) the actual closing time for the regular
trading session on such Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, and (2) the submission
deadline for orders to be entered into the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, system
for execution at the Close of Trading on that day.

 

(F)       

The
Relevant Stock Exchange or any Related Futures or Options Exchange with respect to the Fund or any Successor Fund fails to open
for trading during its regular trading session.

 

For
purposes of determining whether a market disruption event has occurred with respect to the Fund:

(1)       

“Close
of Trading” means the Scheduled Closing Time of the Relevant Stock Exchange with respect to the Fund or any Successor
Fund; and

 

(2)
       

the “Scheduled Closing Time” of the Relevant Stock Exchange or any
Related Futures or Options Exchange on any Trading Day for the Fund or any Successor Fund means the scheduled weekday closing
time of such Relevant Stock Exchange or Related Futures or Options Exchange on such Trading Day, without regard to after hours
or any other trading outside the regular trading session hours.

 

Calculation
Agent

The
Calculation Agent will determine whether this Security will be automatically called on any of the Call Dates, the Call Price,
if any, and the Maturity Payment Amount. In addition, the Calculation Agent will (i) determine if adjustments are required
to the Closing Values of the Market Measures under the circumstances described in this Security, (ii) if publication of the
Index is discontinued, select a Successor Equity Index or, if no Successor Equity Index is available, determine the Closing Value
of the Index under the circumstances described in this Security, (iii) if the Fund undergoes a Liquidation Event, select
a Successor Fund or, if no Successor Fund is available, determine the Closing Value of the Fund and (iv) determine whether
a Market Disruption Event has occurred.

The
Company covenants that, so long as this Security is Outstanding, there shall at all times be a Calculation Agent (which shall
be a broker-dealer, bank or other financial institution) with respect to this Security.

All
determinations made by the Calculation Agent with respect to this Security will be at the sole discretion of the Calculation Agent
and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security.

    	 	13	 

     

    

Tax
Considerations

The
Company agrees, and by acceptance of a beneficial ownership interest in this Security each Holder of this Security will be deemed
to have agreed (in the absence of a statutory, regulatory, administrative or judicial ruling to the contrary), for United States
federal income tax purposes to treat this Security as a prepaid derivative contract that is an “open transaction.”

Redemption
and Repayment

This
Security is not subject to repayment at the option of the Holder hereof prior to March 17, 2020. Except as set forth above under
“Automatic Call,” this Security is not subject to redemption prior to March 17, 2020. This Security is not entitled
to any sinking fund.

Acceleration

If
an Event of Default, as defined in the Indenture, with respect to this Security shall occur and be continuing, the Maturity Payment
Amount (calculated as set forth in the next sentence) of this Security may be declared due and payable in the manner and with
the effect provided in the Indenture. The amount payable to the Holder hereof upon any acceleration permitted under the Indenture
will be equal to the Maturity Payment Amount, calculated as provided herein as though the date of acceleration was the Final Calculation
Day; provided that if the Closing Value of the Lowest Performing Market Measure on the date of acceleration is equal to or greater
than its Starting Value, then the amount payable on this Security will be calculated using a Call Premium that is prorated to
the date of acceleration.

 

 

Reference is hereby
made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature
or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not
be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

 

[The
remainder of this page has been left intentionally blank]

 

 

    	 	14	 

     

    

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

DATED:

 

	 	WELLS FARGO & COMPANY
	 	 	 
	 	By:	 
	 	 	 
	 	 	Its:
	 	 	 
	 	Attest:	 
	 	 	 
	 	 	Its:

 

TRUSTEE’S
CERTIFICATE OF

AUTHENTICATION

This
is one of the Securities of the 

series
designated therein described

in
the within-mentioned Indenture.

 

	CITIBANK, N.A.,	 
	 	as Trustee	 
	 	 	 
	By:	 	 
	 	Authorized Signature	 
	 	 	 
	OR	 
	 	 	 
	WELLS FARGO BANK, N.A.,	 
	 	as Authenticating Agent for the Trustee	 
	 	 	 
	By:	 	 
	 	Authorized Signature	 

 

 

    	 	15	 

     

    

 

[Reverse
of Note]

 

 

WELLS
FARGO & COMPANY

 

MEDIUM-TERM
NOTE, SERIES S

 

Due
Nine Months or More From Date of Issue

 

Principal
at Risk Securities Linked to the Lowest Performing of the Russell 2000® Index

and
the iShares® MSCI EAFE ETF due March 17, 2020

 

This
Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued
and to be issued in one or more series under an indenture dated as of February 21, 2017, as amended or supplemented from
time to time (herein called the “Indenture”), between the Company and Citibank, N.A., as Trustee (herein called
the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of the series of the Securities designated as Medium-Term Notes,
Series S, of the Company. The amount payable on the Securities of this series may be determined by reference to the performance
of one or more equity-, commodity- or currency-based indices, exchange traded funds, securities, commodities, currencies, statistical
measures of economic or financial performance, or a basket comprised of two or more of the foregoing, or any other market measure
or may bear interest at a fixed rate or a floating rate. The Securities of this series may mature at different times, be redeemable
at different times or not at all, be repayable at the option of the Holder at different times or not at all and be denominated
in different currencies.

The
Securities are issuable only in registered form without coupons and will be either (a) book-entry securities represented
by one or more Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated securities
issued to and registered in the names of, the beneficial owners or their nominees.

The
Company agrees, to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of
interest against a Holder of this Security.

Modification
and Waivers 

The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding
of all series to be affected, acting together as a class. The Indenture also contains provisions permitting the Holders of a majority
in principal amount of the Securities of all series at the time Outstanding affected by certain provisions of the Indenture, acting
together as a class, on

    	 	16	 

     

    

behalf
of the Holders of all Securities of such series, to waive compliance by the Company with those provisions of the Indenture. Certain
past defaults under the Indenture and their consequences may be waived under the Indenture by the Holders of a majority in principal
amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series. Solely
for the purpose of determining whether any consent, waiver, notice or other action or Act to be taken or given by the Holders
of Securities pursuant to the Indenture has been given or taken by the Holders of Outstanding Securities in the requisite aggregate
principal amount, the principal amount of this Security will be deemed to be equal to the amount set forth on the face hereof
as the “Face Amount” hereof. Any such consent or waiver by the Holder of this Security shall be conclusive
and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Security.

Defeasance

Section 403
and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating
to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants, upon
compliance by the Company with certain conditions set forth therein, shall not apply to this Security. The remaining provisions
of Section 401 of the Indenture shall apply to this Security.

Authorized
Denominations

This
Security is issuable only in registered form without coupons in denominations of $1,000 or any amount in excess thereof which
is an integral multiple of $1,000.

Registration
of Transfer

Upon
due presentment for registration of transfer of this Security at the office or agency of the Company in the City of Minneapolis,
Minnesota, a new Security or Securities of this series, with the same terms as this Security, in authorized denominations for
an equal aggregate Face Amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject
to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental
charge imposed in connection therewith.

This
Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the Company that
it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing
agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed within 90 days
after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines
that this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or (z)
an Event of Default with respect to the Securities represented hereby has occurred and is continuing. If this Security is exchangeable
pursuant to the preceding sentence, it shall be exchangeable for definitive Securities in registered form, having the same date
of issuance, Stated Maturity Date and other terms and of authorized denominations aggregating a like amount.

    	 	17	 

     

    

This
Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary
to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary
or a nominee of such successor. Except as provided above, owners of beneficial interests in this Global Security will not be entitled
to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under
the Indenture.

Prior
to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this
Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

Obligation
of the Company Absolute

No
reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the Maturity Payment Amount or the Call Price, as applicable, at the times,
place and rate, and in the coin or currency, herein prescribed, except as otherwise provided in this Security.

No
Personal Recourse

No
recourse shall be had for the payment of the Maturity Payment Amount or the Call Price, as applicable, or for any claim based
hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against
any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or any successor corporation,
whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise,
all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived
and released.

Defined
Terms

All
terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless
otherwise defined in this Security.

Governing
Law

This
Security shall be governed by and construed in accordance with the law of the State of New York, without regard to principles
of conflicts of laws.

    	 	18	 

     

    

ABBREVIATIONS

 

 

The
following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written
out in full according to applicable laws or regulations:

 

	TEN COM	--	as tenants in common
	 	 	 
	TEN ENT	--	as tenants by the entireties
	 	 	 
	JT TEN	--	as joint tenants with right
	 	 	of survivorship and not
	 	 	as tenants in common

 

	UNIF GIFT MIN ACT --	 	 Custodian 	 
	 	(Cust)	 	(Minor)

 

	Under Uniform Gifts to Minors Act	 
	 	 
	 	 
	(State)	 

 

Additional abbreviations
may also be used though not in the above list.

 

FOR VALUE RECEIVED,
the undersigned hereby sell(s) and transfer(s) unto

 

	Please Insert Social Security or	 
	Other Identifying Number of Assignee
	 	 
	 	 

 

 

	 
	 
	 

(Please
print or type name and address including postal zip code of Assignee)

 

    	 	19	 

     

    

 

the
within Security of WELLS FARGO & COMPANY and does hereby irrevocably constitute and appoint __________________ attorney to
transfer the said Security on the books of the Company, with full power of substitution in the premises.

 

 

Dated:
_________________________

  

	 	 
	 	 
	 	 
	 	 

 

 

NOTICE:
The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular,
without alteration or enlargement or any change whatever.

 

    	 	20rare-ex101_6.htm

Exhibit 10.1

 

 

August 2, 2018

 

 

Wladimir Hogenhuis, M.D.

 

 

Re: Offer of Employment

 

Dear Vlad,

 

On behalf of Ultragenyx Pharmaceutical Inc. (the “Company”), I am pleased to offer you the position of Chief Operations Officer, on the following terms, commencing on September 28 2018. The Company’s Board of Directors (the “Board”) and I are excited about the important contributions you can make by joining the Ultragenyx executive team and are confident that you will play a key role in our company's growth and success.  

 

You will be a regular, full-time, exempt employee of the Company.  

 

In your role as Chief Operations Officer, you will report directly to me and be a member of the Executive Leadership Team (XLT).  In this role, you will lead the global, day-to-day business operations of the company, while assuring a cohesive, collaborative and collegial working environment across the entire executive leadership (XLT) team. You will provide leadership oversight to the Chief Commercial Officer, the Chief Technical Operations Officer and the Chief Business Officer, as well as be a cohesive business partner to each of the other corporate officers reporting to the Chief Executive Officer, including the Chief Medical Officer, the Chief Financial Officer, the Chief Quality Officer (who is also EVP, Translational Sciences), and the General Counsel. It is expected that you will be involved across numerous global activities of the XLT, including investor relations, public communications and company strategy development.  

 

Compensation

 

The Company will pay you an initial base salary at a gross annual rate of $515,000, less payroll deductions and withholdings, on a bi-weekly basis. If your Hire Date is on or after January 1 and before October 1 of the calendar year, you will be eligible to be considered for a salary merit increase during the next calendar year’s Annual Performance Review process.  If your Hire Date is after September 30 of the calendar year, you will not be eligible to be considered for a salary merit increase until the second Annual Performance Review process that follows your Hire Date.  The Annual Performance Review process generally takes place in the first quarter of the calendar year.  Salary merit increases, if any, will be awarded at the Company’s discretion on the basis of your performance, and will be prorated based on the number of months that you actually worked during the previous calendar year if your Hire Date is on or before September 30.  The 

www.ultragenyx.com                              Turning good science into great medicine                                          1                                   

Board or the Compensation Committee of the Board shall review your Base Salary at least annually.  

Sign-On Bonus 

In addition, the company will provide you with a one-time sign-on bonus in the amount of $200,000, less any applicable withholdings, to be paid within 30 days following your start date.  In the event that your employment is ended for any reason other than a layoff due to reduction in staff or reorganization within 24 months of your Hire Date, termination without Cause, or Constructive Termination (as defined below), you agree to repay the Company the full amount of the sign-on bonus no later than the effective date of your termination.  If you do not repay the full amount of the sign-on bonus within the specified time, you also agree to pay all costs reasonably incurred by Ultragenyx in connection with the collection of this amount, including reasonable attorney’s fees.

Annual Bonus Program

You will also be eligible to participate in Ultragenyx’s discretionary annual bonus program.  The current target bonus opportunity for your position is 50% of your annual base salary.  However, the actual amount of such bonus, if any, will be determined by the Company in its sole discretion based on the Company’s achievement of the financial and other goals established for the year and the Company’s assessment of your job performance for the year. You must commence your employment by September 30 in order to be eligible for a bonus for the calendar year during which you were hired. If you join the Company between January 1 and September 30, you will be eligible for a pro-rated bonus for that calendar year. When bonuses are awarded, they typically are paid on or around March 15 of the following year.  To encourage continued tenure with the Company and satisfactory or better performance after the end of the bonus performance year and through the bonus payment date, to be eligible for a bonus payment, you must remain an active employee of the Company through bonus payment date, and maintain satisfactory or better job performance through the bonus payment date.

 

New Hire Equity Awards

Subject to approval by the Board, under the Company’s 2014 Incentive Plan (the “Plan”), the Company shall grant you an option to purchase 75,000 shares (the “Option”) of the Company’s Common Stock at fair market value as determined by the Compensation Committee as of the date of grant.  The Option will be subject to the terms and conditions of the Plan and your grant agreement.  Your grant agreement will include a four-year vesting schedule, under which 25 percent of your shares will vest on the first (1st) anniversary of the date of grant, and thereafter 1/48th of the Option shall vest and become exercisable each month until your Option is fully vested, in each case subject to your continued employment by the Company (or its subsidiaries).

Subject to the approval of the Compensation Committee, you will also receive a grant of 15,000 restricted stock units (the “RSUs”) pursuant to the Plan.  The RSUs will vest annually over a four-year period from the date of grant (i.e., 25% of the RSUs shall vest and become exercisable on each anniversary of the date of grant during the four-year period), in each case subject to your continued employment by the Company (or its consolidated subsidiaries).  The RSUs shall be governed by the Company’s standard form of restricted stock unit agreement and the Plan. 

www.ultragenyx.com                                                                                                                                                 2

Annual Equity Grant Program

You may also be considered for the Company’s discretionary annual equity grant program based on the Company’s assessment of your job performance. If your Hire date is on or after January 1 and before October 1, you will be eligible for a grant in the calendar year that follows, with the amount of such equity grant, if any, being determined by the Company in its sole discretion and prorated if your Hire Date is after January 1.

 

Change of Control

Notwithstanding the foregoing, in the event that (i) the Company consummates a Covered Transaction (as defined in the Plan), (ii) on the date such Covered Transaction is consummated you are employed by the Company (or its subsidiaries) and (iii) within 18 months after the date such Covered Transaction is consummated your employment by the Company (or its successor or subsidiaries) is terminated without Cause (as defined below) or you resign such employment due to a Constructive Termination (as defined below), then provided such termination constitutes a “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder(a “Separation from Service”), in addition to the severance benefits set forth below, the vesting of any equity-based compensation awards granted to you in connection with your employment shall accelerate with respect to 100% of the then-unvested shares then subject to such awards.  

Relocation

Provided that you move and relocate within 12 months of your Relocation Date (and if no Relocation Date is specified in the attached Domestic Relocation Summary, your Hire Date is your Relocation Date), you will be eligible for relocation assistance for you and your household. All portions of your core relocation benefits must be used within 12 months of your Relocation Date.  You will work directly with The MI Group, the Company’s third-party relocation vendor.  Please refer to the Domestic Relocation Summary for more details. You will be responsible for any taxable expenses related to relocation benefits, including temporary housing.  As required by applicable tax laws and government regulations, any taxable amounts for expenses related to relocation benefits will be included in your wage statement for the first pay period after your Relocation Date.  In the event that your employment is ended for any reason other than a layoff due to reduction in staff or reorganization within twelve (12) months after your Relocation Date, termination without Cause, or Constructive Termination (as defined below), you agree to reimburse the Company for the full amount of your relocation assistance benefits no later than the effective date of your termination.  If you do not reimburse this amount within the specified time, you also agree to pay all costs reasonably incurred by Ultragenyx in connection with the collection of such refund, including reasonable attorney’s fees.

 

Benefits

You will be eligible to participate in all of the employee benefits and benefit plans that the Company generally makes available to its full-time regular employees, subject to the terms and conditions of such benefits and benefit plans.  At this time, these include medical, dental and vision insurance coverage. Coverage for these benefits begin on your Hire Date and upon 

www.ultragenyx.com                                                                                                                                                 3

completion of your enrollment in the plans. Detailed information about the benefits presently available will be provided to you on your first day of employment.  

The health plan options will include 4 medical plans (2-HMO, a PPO, and a HDHP), a dental and vision plan, life/AD&D insurance, disability and voluntary insurance as well as a 401k retirement plan, with a company match of 3%.  The Company will cover 90% of the benefit costs for employees and 75% of the benefits costs for eligible dependents.  Based on conditions and situations over time, the Company may change specific benefits and plans from time to time, but our intent is to provide an excellent health benefit program to our employees.

 

Your will accrue vacation time at the rate of four weeks (160 hours) per year, up to an accrual cap of 240 hours, under the terms of the Company’s PTO policy.  You will also be eligible for 5 paid sick days.

 

“At Will” Employment

 

Employment at Ultragenyx is on an “at-will” basis, meaning that you are free to end your employment at any time, with or without advance notice and for any reason or no reason at all, and that Ultragenyx likewise may end your employment, at any time, with or without advance notice and for any reason or no reason at all.  The use and definitions of the terms “Cause,” and “Constructive Termination” are for purposes of determining eligibility for and repayment of benefits identified in this offer letter, and do not alter the at-will nature of the employment relationship.  In addition, your job duties, title, responsibilities, reporting structure, compensation and benefits, as well as the Company’s personnel policies and procedures, may be changed at any time, with or without notice, in the sole discretion of the Company.  No manager or employee of the Company (other than the CEO) has any authority to enter into any agreement for employment for any specified period of time or to make any agreement for employment other than an at-will employment relationship, and then only if the Company’s CEO does so in a written agreement that is signed by both you and the CEO. 

 

 

Severance  

 

If, at any time, your employment with the Company or its successor is terminated without Cause, or you resign your employment due to a Constructive Termination, then provided such termination constitutes a Separation from Service, the Company shall: (i) extend the exercise period applicable to the Option (and to any other options to purchase the Company’s Common Stock you then hold) such that you will have until the date that is twelve (12) months after the date of your Separation from Service to exercise any of the vested shares (determined as of the date of your Separation from Service) subject to the Option (but in no event will the exercise period be extended until later than the date of expiration of the term of the Option as set forth in the agreement evidencing such Option); and (ii) the Company shall pay you, as severance, the equivalent of one (1) year of your Base Salary in effect as of the date of your Separation from Service, subject to standard payroll deductions and withholdings (the “Severance Amount”).  The Severance Amount will be paid in installments in the form of continuation of your Base Salary payments, paid on the Company’s regular payroll dates, commencing on the Company’s 

www.ultragenyx.com                                                                                                                                                 4

first regular payroll date that follows the 60th day after such Separation from Service.  The first regular payroll date that follows the 60th day after such Separation from Service shall be for all accrued Base Salary for the 60-day period plus the period from the 60th day until the regular payroll date; the remainder of the Base Salary continuation payments shall thereafter be made on the Company’s regular payroll dates.  

 

Notwithstanding anything herein to the contrary, the receipt of any of the severance or acceleration benefits described in this letter will be subject to and conditioned upon: (i) your signing a separation agreement and release of claims in a form reasonably satisfactory to the Company (the “Separation Agreement”) and such Separation Agreement becoming effective and irrevocable as specified therein no later than sixty (60) days following your Separation from Service; and (ii) your continued compliance with the terms of this letter, the Separation Agreement, the enclosed Confidential Information and Invention Assignment Agreement (including without limitation, your not using or disclosing any confidential or proprietary information of the Company), and any other agreement entered into between you and the Company.  No severance benefits of any kind will be paid or provided, and no acceleration of vesting shall be effective, until the Separation Agreement becomes effective.  You shall also resign from all positions and terminate any relationships as an employee, advisor, officer or director with the Company and any of its affiliates, each effective on the date of termination.

 

Additionally, and for the avoidance of doubt, in the event that the Company terminates your employment for Cause, or you resign your employment for any reason other than due to a Constructive Termination, or your employment terminates upon your death or disability, you will no longer vest in the Option or the RSUs (or any other equity) and you will not be entitled to any severance benefits described herein. 

 

For purposes of this offer letter, “Cause” means any of the following: (i) willful engagement in conduct that is materially injurious to the Company, or otherwise in breach of your fiduciary duties to the Company, after notice from the Board and a reasonable opportunity to cure of no less than thirty (30) days (if reasonably curable); (ii) conviction of, or plea of guilty or no contest to, any felony; (iii) any act of fraud or embezzlement by you with respect to your obligations or otherwise relating to the business of the Company; (iv) your willful refusal to implement or follow a lawful policy or directive (including without limitation, your failure to cooperate in any Company investigation) after notice from the Board and a reasonable opportunity to cure of no less than thirty (30) days (if reasonably curable); (v) your material breach of any agreement entered into between you and the Company ; or (vi) your unauthorized use or disclosure of confidential information or trade secrets of the Company or its affiliates.

For the purposes of this letter, “Constructive Termination” means the occurrence of any of the following events without your written consent: (i) a material reduction or change in your job duties, responsibilities and requirements from your job duties, responsibilities and requirements immediately prior to such reduction or change, taking into account the differences in job title and duties that are normally occasioned by reason of an acquisition of one company by another; (ii) a material reduction of your Base Salary (other than an equal, across-the-board reduction in the compensation of all similarly-situated employees of the Company or the 

www.ultragenyx.com                                                                                                                                                 5

surviving entity that is approved by the Board); or (iii) a requirement that you relocate to a principal office that increases your one-way commute by more than 50 miles relative to your immediately preceding principal office.  Notwithstanding the foregoing, none of the foregoing events or conditions will constitute Constructive Termination unless: (x) you provide the Company with written objection (or notice) to the event or condition within 30 days following the occurrence thereof, (y) the Company does not reverse or otherwise cure the event or condition within 30 days of receiving that written objection, and (z) you resign your employment within 30 days following the expiration of that cure period.

Notwithstanding any other provision herein or any other plan, arrangement or agreement to the contrary, if any of the payments or benefits provided or to be provided by the Company or its affiliates to you or for your benefit pursuant to the terms of this Offer Letter or otherwise (“Covered Payments”) constitute parachute payments (“Parachute Payments”) within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and would, but for this paragraph be subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”), then the Covered Payments shall be either (i) reduced to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax (that amount, the “Reduced Amount”) or (ii) payable in full if your receipt on an after-tax basis of the full amount of payments and benefits (after taking into account the applicable federal, state, local and foreign income, employment and excise taxes (including the Excise Tax)) would result in you receiving an amount greater than the Reduced Amount.

Any reduction pursuant to the preceding paragraph shall be made in a manner consistent with the requirements of Section 409A of the Code and the following: (i) the Covered Payments which do not constitute nonqualified deferred compensation subject to Section 409A of the Code shall be reduced first; and (ii) all other Covered Payments shall then be reduced as follows: (A) cash payments shall be reduced before non-cash payments; and (B) payments to be made on a later payment date shall be reduced before payments to be made on an earlier payment date.

Any such required determination shall be made in writing in good faith by an independent accounting firm selected by the Company (the “Accountants”), which shall provide detailed supporting calculations to the Company and you as reasonably requested by the Company or you. The Company and you shall provide the Accountants with such information and documents as the Accountants may reasonably request in order to make a determination. For purposes of making the calculations and determinations required herein, the Accountants may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G and Section 4999 of the Code. The Accountants’ determinations shall be final and binding on the Company and you.  The Company shall be responsible for all fees and expenses incurred by the Accountants in connection with the calculations required herein.

Compliance with Section 409A

 

It is intended that all of the severance benefits and other payments payable under this letter satisfy, to the greatest extent possible, the exemptions from the application of Code Section 

www.ultragenyx.com                                                                                                                                                 6

409A provided under Treasury Regulations 1.409A‐1(b)(4), 1.409A‐1(b)(5) and 1.409A‐1(b)(9), and this letter agreement will be construed to the greatest extent possible as consistent with those provisions, and to the extent not so exempt, this letter (and any definitions hereunder) will be construed in a manner that complies with Section 409A.  Any payment by the Company under this letter agreement that is subject to Section 409A and that is contingent on a termination of employment is contingent on a “separation from service” within the meaning of Section 409A.  Each such payment shall be considered to be a separate payment for purposes of Section 409A.  Notwithstanding any provision to the contrary in this letter, if you are deemed by the Company at the time of your Separation from Service to be a “specified employee” for purposes of Code Section 409A(a)(2)(B)(i), and if any of the payments upon Separation from Service set forth herein and/or under any other agreement with the Company are deemed to be “deferred compensation”, then to the extent delayed commencement of any portion of such payments is required in order to avoid a prohibited distribution under Code Section 409A(a)(2)(B)(i) and the related adverse taxation under Section 409A, such payments shall not be provided to you prior to the earliest of (i) the expiration of the six-month period measured from the date of your Separation from Service with the Company, (ii) the date of your death, or (iii) such earlier date as permitted under Section 409A without the imposition of adverse taxation.  Upon the first business day following the expiration of such applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this paragraph shall be paid in a lump sum to you, and any remaining payments due shall be paid as otherwise provided herein or in the applicable agreement.  No interest shall be due on any amounts so deferred.

 

Compliance with Company Policies 

 

As an employee of the Company, you will be expected to comply with the Company’s personnel and other policies, and acknowledge in writing that you have read the Company’s Employee Handbook, a copy of which you will receive during your new employee orientation. 

 

 

Full-time Services to the Company

The Company requires that, as a full-time employee, you devote your full business time, attention, skills and efforts to the tasks and duties of your position as assigned by the Company.  However, the Company will not preclude you from providing services to others, so long as such services would not be to the benefit of a competitor of the Company and will not otherwise interfere with your ability to satisfactorily fulfill your job responsibilities to the Company.  If you wish to perform services (for any or no form of compensation) to any other person or business entity while employed by the Company, please contact me and discuss your plans in advance of providing such services for review and evaluation of its impact on your work at the Company and so that no problem later arises that could have been avoided from the outset.

 

Conditions  

 

This offer, and any employment pursuant to this offer, is conditioned upon the following: 

 

www.ultragenyx.com                                                                                                                                                 7

	
•
	
You accepting and returning a signed original of this offer letter and the accompanying Mutual Agreement to Arbitrate Claims and Confidential Information and Inventions Assignment Agreement without modifications; 

 

	
•
	
The completion of an I-9 form within the legally required time period, which requires that you provide a specified document(s) proving  your identity and legal authorization to work in the United States of America;  

 

	
•
	
Your consent to, and results satisfactory to the Company of, reference and background checks. 

 

You are encouraged to discuss any of the attached documents with your own advisor to the extent you desire.

 

No Conflicting Obligations

 

In your work for the Company, you will be expected not to use or disclose any confidential information, including trade secrets, of any former employer or 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 employer or other person to whom you have an obligation of confidentiality. By signing this letter or electronically accepting its terms and conditions, you  are representing that you have disclosed to the Company any contract you have signed that may restrict your activities on behalf of the Company, and that you are under no obligations or commitments, whether contractual or otherwise, that are inconsistent with your obligations under this offer letter and resulting agreement, and that you have returned all property and confidential information belonging to any prior employer.

 

Entire Agreement

 

This offer letter, together with the accompanying Agreement for Protection of Company Information and Mutual Agreement to Arbitrate Claims, forms the complete and exclusive statement of your employment agreement with the Company.  It supersedes any other agreements or promises made to you by anyone, whether oral or written.  Changes in your employment terms, other than those changes expressly reserved to the Company’s discretion in this letter, require a written modification signed by an officer of the Company.

Please sign and date this letter, and return them to Bee Nguyen by August 6, 2018 if you wish to accept employment at the Company under the terms described above.  This offer will expire if we have not received your signed offer letter by that time.  If you accept our offer, but would like a different start date from the one in the first paragraph above, please contact me as soon as possible.

www.ultragenyx.com                                                                                                                                                 8

We look forward to working with you on developing treatment for many rare genetic diseases and hope you find your employment at Ultragenyx Pharmaceutical Inc. a rewarding experience. If you have any questions regarding this offer letter, please feel free to contact me at (415) 483-8800.

 

Warm Regards,

 

 

/s/ Emil Kakkis

 

Emil D. Kakkis, M.D., Ph.D.

Chief Executive Officer

 

I accept and agree to employment with Ultragenyx on the terms and conditions above:

 

 

Signature: __/s/ Wladimir Hogenhuis______________   Dated: __August 3rd________, 2018

 

www.ultragenyx.com                                                                                                                                                 9

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