Document:

EX-10.1

 Exhibit 10.1 

INTERNATIONAL STEM CELL CORPORATION 

PROMISSORY NOTE 

FOR VALUE RECEIVED, and subject to the terms and conditions set forth herein, International Stem Cell Corporation, a Delaware
corporation (the “Borrower”), hereby unconditionally promises to pay to the order of Andrey Semechkin or his assigns (the “Noteholder”), the principal amount of two-hundred and sixty-two thousand Dollars ($262,000)
(the “Loan”), together with all accrued interest thereon, as provided in this Promissory Note (the “Note”). 
 1.
Final Payment Date; Optional Prepayments. 
 1.1 Final Payment Date. The aggregate unpaid principal amount of the Loan and all
accrued and unpaid interest shall be due and payable on May 15, 2015 (the “Maturity Date”). 
 1.2 Optional
Prepayment. The Borrower may prepay the Loan in whole or in part at any time or from time to time without penalty or premium by paying the principal amount to be prepaid together with accrued interest thereon to the date of prepayment. No
prepaid amount may be reborrowed. 
 2. Interest. 

2.1 Interest Rate. The outstanding principal amount of the Loan made hereunder shall bear interest at the annual rate of Forty-Five
One-Hundredths Percent (0.45%) from the date the Loan was made until the Loan is paid in full, whether at maturity, by prepayment or otherwise. 

2.2 Interest Payment Dates. Interest shall be payable on maturity, or earlier with respect to any prepayment. 

2.3 Computation of Interest. All computations of interest shall be made on the basis of a year of 360 days and the actual number of
days elapsed. Interest shall accrue on the Loan on the day on which such Loan is made, and shall not accrue on the Loan (or any portion thereof) for the day on which it is paid. 

2.4 Interest Rate Limitation. If at any time and for any reason whatsoever, the interest rate payable on the Loan shall exceed the
maximum rate of interest permitted to be charged by the Noteholder to the Borrower under applicable law, such interest rate shall be reduced automatically to the maximum rate of interest permitted to be charged under applicable law, and that portion
of any sum paid attributable to that portion of such interest rate that exceeds the maximum rate of interest permitted by applicable law shall be deemed a voluntary prepayment of principal. 

3. Payment Mechanics. All payments of principal and interest shall be made in lawful money of the United States of America by check or by wire transfer
of immediately available funds to the Noteholder’s account at a bank specified by the Noteholder in writing to the Borrower from time to time. 

 4. Governing Law. This Note and any claim, controversy, dispute or cause of action based upon, arising out
of or relating to this Note, and the transactions contemplated hereby, shall be governed by the laws of the State of California. 
 IN WITNESS WHEREOF, the
Borrower has executed this Note as of May 6, 2015. 
  

			
	INTERNATIONAL STEM CELL CORPORATION
		
	By		 /s/ Andrey Semechkin

	Name:		Andrey Semechkin
	Title:		CEO and Co-Chairman

  
 2BIOS-EX10.6-2015.03.31 10-Q Stiver

April 2, 2015

Brian Stiver
10765 Beach House Ave.
Las Vegas, NV  89166

Re:    Amendment to Offer Letter

This letter will confirm our discussions regarding the amendments to your offer letter.  This letter contemplates certain changes to the offer letter originally given to you on March 11, 2009.  

Your bi-weekly salary will be increased to $11,538.47, subject to applicable taxes and other withholdings.  This salary increase will be effective March 15, 2015

In the event of the termination of your employment by the Company (or any successor) other than for “Cause,” as defined in the attached Severance Agreement (attached as Exhibit A), upon execution of the Company’s standard Separation and Release Agreement, you will be entitled to receive severance payments in accordance with the terms of the attached Severance Agreement.

You acknowledge that your employment with the Company is “at will,” meaning that both you and the Company may terminate the employment relationship at any time and for any reason, with or without advance notice.  No Company representative has the authority to enter into any agreement with you to the contrary, with the exception of the Company’s Senior Vice President, Human Resources, who may only do so in a writing signed by both you and the Senior Vice President, Human Resources.

We look forward to your continued success.  Please feel free to contact me to discuss any questions you may have regarding these terms.

Sincerely,

Rick Smith
President and Chief Executive Officer
914-460-1636
rsmith@bioscrip.com

I accept the amendment as stated.

/s/ Brian Stiver                4-28-2015

Brian Stiver                    Date signed

SEVERANCE AGREEMENT 
(Exhibit A to Amendment to Offer Letter of Brian Stiver)

This will confirm our agreement that, following the signing of your offer letter amendment with BioScrip, Inc. (together with its subsidiaries, the “Company”), if you are terminated by the Company (or any successor) other than for “Cause” (as defined below), upon execution of the Company’s standard Separation and Release Agreement, you will be entitled to receive severance payments equal to twelve (12) months of salary at your then-current base salary level, less applicable taxes and other lawful withholdings (the “Severance Pay”), which shall be payable in accordance with the Company’s normal payroll schedule and practices in equal installments during the twelve-month period following the effective date of the Separation and Release Agreement (the “Severance Period”).  

Notwithstanding the foregoing, such payroll continuation payments shall cease in the event that you become reemployed by the Company at any time during the Severance Period.  In addition, if during the Severance Period you accept new employment or any other arrangement pursuant to which you receive remuneration from any other person or entity in exchange for providing services (“Engagement”), then any remaining severance payments otherwise payable will be reduced by the amount of such remuneration earned by you during the same time period.  Under no circumstances will the Company have an obligation to make any severance payments after the conclusion of the Severance Period.  As a condition of receiving the Severance Pay, you agree to notify the Company in writing of your acceptance of any Engagement during the Severance Period within seven (7) days of such acceptance and to provide the Company upon request with all documentation needed to confirm the amounts of all remuneration earned by you during the Severance Period.

For purposes of this letter agreement, “Cause” shall mean any of the following: (a) your gross negligence or intentional misconduct in connection with the performance of your job duties, (b) your conviction of or plea of guilty or nolo contendere of any felony or crime involving moral turpitude, (c) your violation of the Company’s substance abuse policy, (d) your breach of any material provision of this or any other material agreement between you and the Company, or (e) your violation of any rule or regulation of any government agency, or self-regulatory body, applicable to the Company’s business.

Except as expressly provided herein, upon separation from employment with the Company for any reason, whether voluntarily or involuntarily, you shall be entitled only to your base salary earned through the Termination Date and any accrued, but unpaid business expenses owed pursuant to Company policy, and you shall not be entitled to any further base salary or any applicable bonus, benefits, or other compensation for that year or any future year, except as may be provided in an applicable benefit plan or program.

This letter agreement constitutes the entire understanding of the parties with respect to the subject matter hereof.  This agreement shall be construed in accordance with, and its interpretation shall otherwise be governed by, the laws of the State of New York, where the Company is headquartered, without giving effect to principles of conflicts of law.

Kindly signify your agreement to the foregoing by signing below and forwarding an executed copy for our files.
    
By:     /s/ Rick Smith            

Rick Smith
President and Chief Executive Officer

Agreed and Accepted
on this 28  day of April , 2015

/s/ Brian Stiver
______________________________
Brian StiverEX 10.1 2015 President's Incentive Plan

Exhibit 10.1

FHLBank San Francisco
2015 PRESIDENT’S INCENTIVE PLAN

PLAN PURPOSE
To optimize individual and Bank performance in accomplishing Board-approved goals and objectives.

PLAN OBJECTIVES
To motivate the Bank President to exceed individual and Bank goals that support the Bank’s mission and strategic plan.  To attract and retain an outstanding executive by providing a competitive total compensation program, including an annual incentive award opportunity.

ELIGIBILITY
The 2015 participant is the Bank President.

The Bank President must be employed by the Bank through January 1, 2016 to be eligible for an incentive award under the 2015 plan.  A Bank President hired, promoted, or who takes a leave of absence during the plan year is eligible to participate on a pro-rata basis.  A Bank President hired or promoted on or after October 1st may be eligible to participate during the current plan year at the discretion of the Board.      

INCENTIVE GOALS AND MEASURES

Incentive Goals
For the Bank President there are individual and Bank goals, which are weighted.  The individual goal(s) support the Bank-wide goals (See 2015 Short-Term Incentive Plan Goals and Measures) and objectives.  

The three Bank goals for 2015 are:

		
	1.
	2015 Risk Management Goal:  Continue to enhance and advance the function and approaches to the Bank’s risk management.

		
	2.
	2015 Franchise Enhancement Goal: Position the Bank and the FHLBank System to remain an integral component of the changing housing and financial services markets.  Continue to meet the Bank's mission objectives within these markets as they are currently structured, but also influence and adapt to structural changes in those markets.

		
	3.
	2015 Community Investment Goal:  Support and promote the Bank’s Affordable Housing Program and Community Investment Programs.      

Incentive Goal Achievement Measures
The plan levels of goal achievement are as follows:

	
		
	Achievement Level
	Measure Definition

	Far Exceeds
	The most optimistic achievement level that far exceeds expected performance.

	Exceeds
	An optimistic achievement level that exceeds expected performance.

	Meets
	Performance that is expected under the Bank's Plan.

	Threshold
	Minimum level of performance that must be achieved for awards to be paid.

Actual achievement of Bank goals is subject to adjustment for changes resulting from changes in financial strategies or policies, any significant change in Bank membership, as well as other factors determined by the Board.  Impacts of OTTI credit charges are excluded from the achievement levels and measurement of performance for the Adjusted Return on Capital Spread component of the Franchise Enhancement Goal. Impacts of dividend benchmark variances to plan are also excluded from the measurement of Adjusted Return on Capital Spread performance.  

January 2015

AWARD DETERMINATION AND OPPORTUNITY
Any award will be based on success in achieving the individual and Bank goals, and on the overall performance. At yearend, accomplishments will be assessed and a percentage of achievement will be determined for each goal and any award determination shall be approved by the Board.

	
			
	Percentage of Goal Achievement Scale
	Aggregate Goal Achievement
	Award Range (Percentage of 2015 Base Salary)

	0% - 150%
	150% = Far Exceeds
	50%

	 
	125% = Exceeds
	48%

	 
	100% = Meets
	40%

	 
	75% = Threshold
	20%

For each goal, the percentage of achievement will be multiplied by the applicable weights.  Each weighted achievement will then be added to determine the total weighted achievement.  The basis for any award opportunity for the participant is total weighted achievement.  Total weighted achievement from Threshold achievement level (75-99%) is below the Meets achievement level and, therefore, results in an award less than one granted for achieving the Meets achievement level.  Total weighted achievement below the Threshold achievement level normally will not result in an incentive award.  The Board of Directors has full discretion to modify any and all goals, achievement levels, and incentive payments to account for matters not specifically addressed in the plan, subject to review by the Federal Housing Finance Agency, as required.  Incentive compensation reductions may be made, but are not limited to the following circumstances: (i) if errors or omissions result in material revisions to the Bank’s financial results, information submitted to a regulatory or a reporting agency, or information used to determine incentive compensation payouts; (ii) if information submitted to a regulatory or a reporting agency is untimely; or, (iii) if the Bank does not make appropriate progress in the timely remediation of examination, monitoring, or other supervisory findings and matters requiring attention.

APPROVAL OF INCENTIVE AWARDS
The amount of the incentive award, if any, under this plan shall be approved by the Board of Directors, including any award for achievement below Threshold.  Awards will be considered by the Board of Directors at the January 2016 Board meeting, or as soon thereafter as reasonably practicable.

TIMING OF PAYMENT OF FINAL INCENTIVE AWARDS
Payment of the incentive award, if any, will be paid in the taxable year immediately following the end of the performance period and no later than 60 days after the date that the Board of Directors’ approval of such award becomes effective.

PLAN ADMINISTRATION AND IMPLEMENTATION
The Board of Directors oversees the administration and interpretation of the plan.

The plan is intended to be exempt from Section 409A of the Internal Revenue Code and the provisions of the plan shall be construed and interpreted consistent with such intent.  

	
			
	2015 President and CEO Goal Weights

	 
	Corporate Goal Weights
	Goal Weight (includes individual goals)

	Individual
	N/A
	10.0%

	Risk Management
	30.0%
	27.0%

	Franchise Enhancement
	50.0%
	45.0%

	Community Investment
	20.0%
	18.0%

	Total
	100.0%
	100.0%

All compensation and incentive plans are subject to review and revision at the Bank’s discretion.  Such plans are reviewed regularly to ensure they are competitive and equitable.  Executive Officer compensation and benefit programs are subject to Federal Housing Finance Agency review and oversight, and payments made under such programs may not become effective until after the Agency’s non-objection under applicable laws and regulations in effect from time to time.

January 2015

2015 Short-Term Incentive Plan Goals and Measures
	
									
	Goal
	Goal Component
	Goal Weight
	Goal Component Weight
	Goal Measures

	1)  RISK MANAGEMENT
	 
	30%
	 
	In the event of a Significant Deficiency or Material Weakness in internal control over financial reporting, a significant operations loss, or a significant noncompliance with Bank policy as described in the Bank’s Risk Management Policy, the Board of Directors will assess the impact and appropriate adjustment to the Risk Management goal achievement level, if any. 

	

	A) Enhance Business
Value of Risk Assessment Processes

	 
	50%
	75%:
	Evaluate the maturity of the Bank's risk assessment processes.

	100%, 125%, or 150% achievement level is attained by implementing one, two or three changes, respectively, that enhance the business value of the risk assessment processes.

	 
	B) Corporate Data Protection Initiative

	 
	50%
	75%:
	Program steering committee and governance established.

	100%:
	75% achievement, plus technical solution is fully implemented.

	125%:
	100% achievement, plus 50% of business unit targeted activities completed.

	150%:
	100% achievement, plus 75% of business unit targeted activities completed.

	2)  FRANCHISE ENHANCEMENT
	 
	50%
	 
	 

	 
	A) Financial Performance
	 
	35%
	Adjusted Return on Capital Spread

	 
	75%
	100%
	125%
	150%

	 
	3.50%
	3.75%
	4.00%
	4.25%

	Achievement level targets and measured performance exclude OTTI credit charges.

	 
	B) Technology
	 
	25%
	75%:
	Complete the 3 carryover 2014 strategic initiatives (Back Office, CRM, & CI Portal).

	100%:
	75% achievement, plus complete 3 of the 2015 strategic initiatives.

	125%:
	75% achievement, plus complete 4 of the 2015 strategic initiatives.

	150%:
	75% achievement, plus complete 5 of the 2015 strategic initiatives.

	 
	C) Member Business
	 
	10%
	 
	Advances and Letters of Credit (LC) Volume
Average Outstanding Daily Balance ($Bils)

	 
	75%
	100%
	125%
	150%

	 
	$[*]
	$[*]
	$[*]
	$[*]

	[*].

	10%
	 
	Mortgage Partnership Finance (MPF)
(# of PFIs Approved)

	 
	75%
	100%
	125%
	150%

	 
	3
	4
	5
	6

	10%
	 
	Member Visits (% of Members)

	 
	75%
	100%
	125%
	150%

	 
	35%
	40%
	45%
	50%

	10%
	 
	Recruitment (# of Members)

	 
	75%
	100%
	125%
	150%

	 
	6
	8
	10
	12

	3)  COMMUNITY
INVESTMENT
	 
	20%
	 
	 

	 
	A) CIP/ACE/HPA
Advances, Letters of Credit & AHEAD (# of Members)
	 
	50%
	(# of Members)

	 
	75%
	100%
	125%
	150%

	 
	33
	36
	39
	42

	 
	B) CICA Volume ($Mils)
	 
	50%
	New CICA Advances and Letters of Credit (LC) ($Mils)

	 
	75%
	100%
	125%
	150%

	 
	$800
	$900
	$1,000
	$1,100

[*]  Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portion.

January 2015

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