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, on this 12th day of May, 2015 (the “Issuance Date”), 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 million two-hundred and sixty-two thousand Dollars ($2,262,000) (the “Loan”), together
with all accrued interest thereon, as provided in this Promissory Note (the “Note”). 
 1. Previous Loan. On May 6, 2015
Noteholder was issued a Promissory Note in the principal amount of $262,000 by the Borrower (the “Original Note”). On May 12, 2015 Noteholder provided additional $2,000,000 of funds to the Borrower and surrendered the Original
Note, in return for which the Noteholder was issued this Note. 
 2. Final Payment Date; Optional Prepayments. 

2.1 Final Payment Date. The aggregate unpaid principal amount of the Loan and all accrued and unpaid interest shall be due and payable
August 10, 2015 (the “Maturity Date”). 
 2.2 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. 

3. Interest. 
 3.1 Interest Rate.
The outstanding principal amount of the Loan made hereunder shall bear interest at the annual rate of One-Half of One Percent (0.50%) from the date the Loan was made until the Loan is paid in full, whether at maturity, by prepayment or otherwise.

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

3.3 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. 

3.4 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. 

4. 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. 
 5.
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 the Issuance Date written above. 

 

									
	NOTEHOLDER	 		 	INTERNATIONAL STEM CELL CORPORATION
					
	By	  	 /s/ ANDREY SEMECHKIN
	 		 	By:	 	 /s/ SOFYA BAKALOVA

		  	Andrey Semechkin	 		 	Name:	 	Sofya Bakalova
		  		 		 	Title:	 	VP, Legal Affairs and Operations

  
 2Exhibit 10.1

 

 

 

Leone Patterson

 

Dear Leone:

 

I am pleased to offer you the role of Chief Financial Officer of diaDexus, Inc. (the “Company”), effective March 16, 2015 (the “Start Date”).  This offer letter (the “Letter”) sets forth the terms of your employment with the Company.  

 

Role. As Chief Financial Officer, you will have the duties and responsibilities customarily assigned to such position and such other duties and responsibilities as the Interim Chief Executive Officer of the Company (the “ICEO”) reasonably determines from time to time.  Your primary work location will be the Company’s headquarters in South San Francisco.  You will be allowed to work from home at the discretion of the ICEO.    

 

Base Salary.  As of the Start Date, your initial annual base salary will be $325,000 (the “Base Salary”), less applicable payroll deductions and tax withholdings, payable on the Company’s normal payroll schedule.     

 

Cash Incentive Bonus.  You are eligible to earn an annual cash incentive bonus, with the target amount of such bonus equal to 35% of your base salary.  Whether or not you earn any bonus will depend on the actual achievement by you and the Company of individual and corporate performance goals, as determined by the Board, and is subject to your continued employment through the date the bonus is paid.  In any event, any earned bonus will be paid not later than March 15 of the year following the year in which your right to such amount became vested.

 

Option Grant.  We will recommend that the Board or the Compensation Committee of the Board grant you a nonstatutory stock option to purchase 700,000 shares of the Company’s common stock (the “Option”), under the terms of the Company’s current equity incentive plan (the “Plan”). The Option will be subject to vesting based on your continued service, with 1/4 of the total number of shares becoming vested on the first anniversary of the earliest of your Start Date or the commencement of any consulting agreement with the Company which terminates effective as of your Start Date, and 1/48 of the total number of shares vesting each month thereafter (i.e., the Option would fully vest over four years).    

 

Employee Benefits.  During your employment with the Company, you will be eligible to participate in the health insurance and other employee benefit plans made available to employees or other officers of the Company under the terms of such plans, as they are in effect from time to time by the Company.

 

Expense Reimbursement.  As an officer, you are authorized to incur ordinary and necessary business expenses in the course of your duties, or as may be approved in advance by the ICEO.  

 

 

Any reimbursements will be paid to you within 30 days after the date you submit receipts for the expenses, provided you submit those receipts within 60 days after you incur the expense.  If any reimbursements payable to you are subject to the provisions of Section 409A of the Code, any such reimbursements will be paid no later than December 31 of the year following the year in which the expense was incurred, the amount of expenses reimbursed in one year will not affect the amount eligible for reimbursement in any subsequent year, and the right to reimbursement will not be subject to liquidation or exchange for another benefit.  

 

At-Will Employment.  Your employment with the Company is on an “at-will” basis, meaning that either the Company or you may terminate your employment at any time, with or without cause or advance notice.  

 

Severance Benefits.  Consistent with your position as Chief Financial Officer, the Compensation Committee has designated you as a Tier 2 participant in the Company’s Key Employee Severance Benefit Plan, which provides for severance in certain circumstances, including severance on an involuntary termination of employment.  We are providing a copy of the Key Employee Severance Benefit Plan with this Letter.  To accept your designation as a Participant in the Key Employee Severance Benefit Plan, you must sign and return the Participation Notice within 30 days after you receive it.  Capitalized terms used in this paragraph but not defined in this Letter have the meaning set forth in the Key Employee Severance Benefit Plan.  

 

Proprietary Information.  As a condition of your employment with the Company, you must sign and abide by the Company’s Proprietary Information and Inventions Assignment Agreement (the “Proprietary Information Agreement”), a copy of which is attached.  

 

Obligations.  While employed with the Company, you agree to devote your entire business time, attention and energies to the business and interests of the Company.  By accepting employment, you agree to abide by the rules, regulations, instructions, personnel practices and policies of the Company and any changes therein which may be adopted from time to time by the Company.

Section 409A. It is intended that all of the benefits and payments under this Letter satisfy, to the greatest extent possible, the exemptions from the application of Code Section 409A provided under Treasury Regulations 1.409A‐1(b)(4), 1.409A‐1(b)(5) and 1.409A‐1(b)(9), and this Letter will be construed to the greatest extent possible as consistent with those provisions.  If not so exempt, this Letter (and any definitions hereunder) will be construed in a manner that complies with Section 409A, and incorporates by reference all required definitions and payment terms.  For purposes of Code Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A‐2(b)(2)(iii)), your right to receive any installment payments under this Letter (whether severance payments, reimbursements or otherwise) will be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder will at all times be considered a separate and distinct payment.  

This Letter (including the attachments) sets forth the complete and exclusive agreement between you and the Company with regard to your employment with the Company and supersedes any prior representations or agreements about this matter, whether written or verbal.  This Letter may not be modified or amended except by a written agreement signed by you and a member of the 

 

 

Board.  This Letter is governed by California law.  As required by law, this offer of employment is subject to the satisfactory proof of your right to work in the United States.  

 

Let me again express how pleased we are to extend this offer to you, and how much we look forward to working with you.  Please review this Letter carefully and let me know if you have any questions.  If this Letter is acceptable to you, please sign it below.

 

 

Very truly yours,

/s/ Lori R. Rafield

Lori R. Rafield 

Interim Chief Executive Officer

diaDexus, Inc.

 

 

	
	
Accepted and agreed:

	
 

	
 

	
/s/ Leone Patterson

	
Leone Patterson

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