Document:

Letter of Agreement with Dr. Arturo Molina

 Exhibit 10.3 
 

 
 10990 Wilshire Blvd., Suite 1200 
 Los Angeles, CA 90024 
 (310) 943-8040 
 March 16, 2007 
 Arturo Molina, M.D. 
 1260 Cleveland Ave., Unit 205 
 San Diego, CA 92103 
 Dear Dr. Molina: 
 This letter (the “Letter”)
provides the terms of the offer of employment of Cougar Biotechnology, Inc. (“Cougar”) for you to serve as Senior Vice President of Research and Development. Should you accept this position with Cougar: 
  

	 	1.	You shall receive an annualized base salary of $300,000 (the “Base Salary”), subject to legally required withholding and other required deductions, and payable in
accordance with Cougar’s normal payroll practices. Your employment shall commence no later than May 7, 2007 (the “Commencement Date”). 

  

	 	2.	At the sole discretion of the Board of Directors of Cougar, you may receive an additional annual bonus (the “Discretionary Bonus”) in an amount equal to up to 30% of your
Base Salary. The payment of the Discretionary Bonus shall be based upon your performance, as stated in the goals and objectives that you determine for the year, on behalf of Cougar during the relevant year. The Discretionary Bonus shall be payable
on the anniversary of the Commencement Date, either as a lump-sum payment or in installments, as determined by the Board of Directors of Cougar in its sole discretion. 

  

	 	3.	As additional compensation for the services to be rendered by you pursuant to this Agreement, it will be recommended to the Board of Directors that you be granted a stock option
(“Stock Options”) to purchase 160,000 shares of Cougar’s common stock, par value $0.0001 per share (the “Common Stock”) at an exercise price equal to the fair market value of our stock on the grant date. The authority to
grant stock options is that of our Board of Directors, and thus a determination to grant the Stock Options or other options in the future, and the specific terms of any options granted, is subject to the discretion of the Board of Directors. If
granted, the Stock Options shall be governed by Cougar’s 2003 Stock Option Plan and shall vest, if at all, in four equal installments occurring on the first four anniversaries of the Commencement Date. You will be required to enter into a stock
option agreement with Cougar setting forth the terms of the Stock Options. 

	 	4.	You shall be reimbursed for all of your pre-approved out-of-pocket expenses incurred in connection with Cougar’s business. Cougar will provide you, within 10 business days of
your Commencement Date, a bonus in the amount of $108,000 to be used toward your relocation expenses (the “Relocation Payment”); provided, however, that should your employment with Cougar be terminated prior to the third anniversary of the
Commencement Date, you agree to repay a portion of the Relocation Payment within 30 days of the date of termination, in accordance with the following schedule: (a) if your employment terminates prior to the first anniversary of the Commencement
Date, you will be required to repay the entire Relocation Payment; (b) if your employment terminates subsequent to the first anniversary but prior to the second anniversary of the Commencement Date, you will be required to repay $72,000 of the
Relocation Payment; and (c) if your employment terminates subsequent to the second anniversary but prior to the third anniversary of the Commencement Date, you will be required to repay $36,000 of the Relocation Payment. After three consecutive
years of employment, you will have no further obligation to repay all or any portion of the Relocation Payment. 

  

	 	5.	Effective the first day of the month after the Commencement Date, you will be entitled to participate in group medical coverage pursuant to the group policy of Cougar.

  

	 	6.	After 30 days of employment with Cougar, you will be able to participate in Cougar’s life insurance and accidental and dismemberment insurance programs, each of which are
currently paid by Cougar. 

  

	 	7.	After 90 days of employment with Cougar, you will be able to participate in Cougar’s 401(k) plan. Cougar currently matches the first 3% of an employee’s contribution at
100%. Cougar currently further matches the next 2% of an employee’s contribution at 50%. 

  

	 	8.	On the Commencement Date, you will begin accruing vacation time at a rate of three weeks per year of completed continued service, subject to the terms of Cougar’s employee
manual, a copy of which will be provided to you. 

  

	 	9.	Upon the birth or adoption of your dependent child during the term of your employment, Cougar will permit you to perform you regular duties and responsibilities from your home or
other location for a period of three weeks to facilitate such birth or adoption. 

  

	 	10.	On at least an annual basis your performance and compensation will be reviewed by the Company. 

  

	 	11.	 In the event your employment is terminated by Cougar within three (3) months of a Change of Control of Cougar and the exercise price of the Stock Options you
receive from Cougar (as set forth in Paragraph 3) is higher than the per share market value of Common Stock (as identified by any applicable exchange or the OTCBB on which the Common Stock is listed or quoted) on the date of termination, you will be
entitled 

 
to a severance payment equal to six (6) months of your Base Salary, payable over such period in accordance with Cougar’s normal payroll procedures,
provided that, you will be required to enter into a standard release of claims against Cougar in order to obtain such severance payments. For purposes of this provision, “Change of Control” means (i) the acquisition, directly or
indirectly, following the date hereof by any person (as such term is defined in Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended), in one transaction or a series of related transactions, of securities of the Cougar
representing in excess of fifty percent (50%) or more of the combined voting power of Cougar’s then outstanding securities if such person or his, her or its affiliate(s) do not own in excess of 50% of such voting power on the date of this
Letter, or (ii) the future disposition by Cougar (whether direct or indirect, by sale of assets or stock, merger, consolidation or otherwise) of all or substantially all of its business and/or assets in one transaction or series of related
transactions (other than a merger effected exclusively for the purpose of changing the domicile of Cougar). 
  

	 	11.	Your employment shall be on an at-will basis and will be subject to, and you will be required to sign (a) Cougar’s employee manual and (b) a confidentiality,
inventions and non-compete agreement. Please further note that, as set forth in Cougar’s employee manual, the employee benefits provided to you by Cougar, including without limitation the medical coverage, insurance coverage, 401(k)
participation and vacation as set forth above, are subject to change by Cougar, in its sole discretion, at any time and from time to time. 

 The terms of this offer letter shall expire at 5:00 PST on March 21, 2007. If you find the foregoing arrangement acceptable, please kindly so indicate by executing and dating the attached copy of this Letter in
the space provided and returning a copy to me before that time. 
  

	
	Very truly yours,
	
	COUGAR BIOTECHNOLOGY, INC.
	
	 /s/ Alan H. Auerbach

	Alan H. Auerbach
	Chief Executive Officer

 Agreed and accepted on this 16th day of 
 March, 2007, I understand that my 
 employment with Cougar is for an indefinite 
 term and nothing in this offer modifies my 
 at-will employment relationship
with Cougar: 
  

	
	 /s/ Arturo Molina

	 Arturo Molina, M.D.Assumption Agreement  among the Registrant

 Exhibit 10.1 
 ASSUMPTION AGREEMENT 
 AGREEMENT dated as of
                    , 2007 among Moody’s Corporation (the “Company”),
                             (the “Bank”) and JPMorgan Chase Bank, as Administrative Agent
(the “Administrative Agent”). 
 WHEREAS, this Assumption Agreement (the “Agreement”) relates to the Credit Agreement
dated as of September 1, 2004 among the Company, the Borrowing Subsidiaries party thereto, the Lenders party thereto, the Administrative Agent, Citibank, N.A. as Syndication Agent, and The Bank of New York as Documentation Agent (as amended
from time to time, the “Credit Agreement”); 
 WHEREAS, as permitted by Section 2.08(d) of the Credit Agreement, the
Company proposes to increase the aggregate amount of the Facility Commitments; 
 NOW, THEREFORE, the parties hereto agree as follows:

 SECTION 1. Definitions. All capitalized terms not otherwise defined herein have the respective meanings set forth in the Credit
Agreement. 
 SECTION 2. Assumed Commitment. Effective as of the date hereof, the Bank hereby increases its existing Facility
Commitment from $                     to
$                    . 
 SECTION 3. Revolving Loans. The Bank shall make a Revolving Loan to the Company on the date
hereof in accordance with Section 2.06 in an amount equal to such Bank’s pro rata share of the principal amount of all outstanding Revolving Loans on the date hereof after giving effect to the Assumed Commitment.1 
 SECTION 4.
Additional Documentation. The Bank, upon execution of this Agreement, shall deliver to the Administrative Agent, any documentation required to be delivered by the Bank pursuant to Section 2.16(e) of the Credit Agreement. 
 SECTION 5. Representations of the Company. The Company hereby confirms that (a) the increase in the aggregate amount of the Facility
Commitments and the transactions set forth herein have been duly authorized by all necessary corporate action and (b) at the time of and immediately after giving effect to the increase in the aggregate amount of the Facility 
  
  
  
  
  
  

	 1
	 If Loans are outstanding on the effective date of this Agreement. 

  

 Commitments and the transactions set forth herein, (i) the representations and warranties of the Company set forth
in the Credit Agreement are true and correct on and as of the date hereof and (ii) no Default has occurred and is continuing. 
 SECTION
6. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. 
 SECTION
7. Counterparts. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 
  

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered by their
duly authorized officers as of the date first above written. 
  

			
	
	 [BANK]

		
	By:	 	  
		 	Name:
		
		 	Title:
	
	 MOODY’S CORPORATION

		
	By:	 	  
		 	Name:
		
		 	Title:
	
	JPMORGAN CHASE BANK
		
	By:	 	  
		 	Name:
		
		 	Title:

  

 Schedule of Assumed Commitments as Reflected in 
 Separate Assumption Agreements 
 Each Signed by the Applicable Lender 
  

					
	Name of Bank	  	Date of Assumption Agreement	  	Section 2 Assumed Commitment
	 JPMorgan Chase
Bank
	  	March 23, 2007	  	$109,375,000
	 Citibank,
N.A.
	  	March 27, 2007	  	$101,562,500
	 SunTrust
Bank
	  	March 22, 2007	  	  $70,312,500
	 Barclays Bank
PLC
	  	March 27, 2007	  	  $62,500,000
	 The Bank of New
York
	  	March 28, 2007	  	  $60,000,000
	 Bank of America,
N.A.
	  	March 28, 2007	  	  $56,250,000
	 The Northern Trust
Company
	  	March 23, 2007	  	  $40,000,000

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