Document:

EXHIBIT 10.42

 

June 18, 2001

 

Dear Jeff:

 

We are proud to invite you to join our team.

 

Our offer of employment is to join Exelixis, Inc. as Senior Vice
President, Chief Medical Officer reporting to Geoffrey Duyk, M.D., Ph.D.,
Executive Vice President and Chief Scientific Officer.

 

Other terms of employment include:

 

Compensation:  Your
initial bi-monthly salary will be twelve thousand five hundred dollars
($12,500.00).

 

Loan:      We will make available a loan to you in an
amount up to one hundred twenty five thousand ($125,000.00) dollars. The loan
will have a term of four (4) years and bear interest at the lowest rate
available for a loan of this term in effect as of the date of the loan
published under the rules and regulations of the U.S. Treasury (for example,
the rate as of the date of this letter was 5.02%). Interest will accrue and be
payable annually within five (5) days of each anniversary date. The principal
on the loan will be subject to forgiveness as follows: (a) sixty two thousand
five hundred dollars ($62,500) upon your third anniversary of full-time
employment; and (b) sixty two thousand five hundred dollars ($62,500) upon your
fourth anniversary of full-time employment, provided that the loan has not
otherwise been repaid or required to be repaid. All unpaid and unforgiven
portions of the principal will be subject to repayment prior to maturity upon
termination of your employment prior to your fourth anniversary date.
Additionally, the loan will be subject to complete forgiveness prior to the time
of maturity or forgiveness as otherwise specified above in the event that
either: (a) your position is no longer part of the senior management
organization (currently the Senior Staff group) at Exelixis, or (b) Exelixis
eliminates its clinical development group. All forgiven amounts will be subject
to withholding in addition to reported on your Form W-2 in the year of
forgiveness.

 

 

Performance Review:  Your performance will be formally reviewed no
less than annually you will be eligible to receive an incentive bonus of up to
thirty (30%) percent of your annual salary based on achievement of key
milestones.

 

Benefits: 
All full-time employees of Exelixis, Inc. enjoy a generous benefits
package as is outlined on the attached Summary of Benefits.

 

Review:  Your performance will be formally reviewed no
less than annually.

 

Confidentiality:  As
you are aware, it is very important for us to protect our confidential
information and proprietary material. Therefore, as a condition of employment,
you will need to sign the attached Proprietary Information and Inventions
Agreement.

 

Start Date: 
To be determined.

 

Options for Equity:  You will also be eligible to receive a stock
option grant for one hundred twenty five thousand (125,000) shares of Exelixis
stock pursuant to our 2000 Equity Incentive Plan pursuant to the standard form
of stock option agreement at the closing price on your start date, subject to
approval by the Board of Directors. Shares subject to options vest at the rate
of 1/4th after one year of employment and 1/48th every
month thereafter over a total of four years.

 

Termination: 
In the event of termination of your employment by the Company without
cause, the Company will continue to pay you your base salary for a period after
the date of such termination equal to the lesser of (1) six months and (2) the
period until you obtain alternative employment. In addition, you will be
entitled to receive the amount of any declared but unpaid bonus as at the date
of such termination and the Company shall continue to make available to you
such fringe benefits as are required by law.

 

Other: 
This offer expires on Friday, June 22, 2001, unless accepted prior
to this date.  In addition to performing
the duties and responsibilities of your position, you will be expected to
perform other duties and responsibilities that may be assigned to you from time
to time.  No provision of this letter
shall be construed to create an express or implied employment contract for a
specific period of time.  Either you or
the Company may terminate this employment relationship at any time, with or
without cause. This letter shall be governed by the laws of the State of
California. Also, by signing this letter, you are indicating that you are
legally authorized to work in the U.S.

 

You may accept this offer of employment by signing both copies of this
letter and Proprietary Information and Invention Agreements and returning one
of each to me.

 

 

Jeff, we look forward to your coming on board!

 

Sincerely,

 

	
  /s/ Lisa Stemmerich

  	
   

  	
   

  
	
   

  	
   

  
	
  Lisa Stemmerich

  	
   

  
	
  Director, Human Resources

  	
   

  
	
   

  	
   

  
	
  ACCEPTED BY:

  	
   

  
	
   

  	
   

  
	
  /s/ Jeffrey R. Latts

  	
   

  	
  21 June 2001

  	
   

  
	
  Jeffrey R. Latts

  	
  Date

  
					

 

 

	
  Enclosures:

  	
   

  
	
   

  	
   

  
	
  Benefit Summary

  	
  Confidentiality Agreement

  
	
  DE-4 (optional)

  	
  Insider Trading Policy

  
	
  Direct Deposit Form (optional)

  	
  Employee Information Form

  
	
  I-9

  	
  W-4EXHIBIT
10.43

 

February 3, 2000

 

Dear Michael:

 

We are proud to invite you to join our team.

 

Our offer of employment is to join Exelixis
Pharmaceuticals, Inc. as Vice President, Discovery Research reporting to Geoff
Duyk, Chief Scientific Officer.  

 

Other terms of employment include:

 

Compensation: 
Your initial starting annual salary will be
two-hundred twenty-five thousand($225,000) dollars, paid twice a month. You
will receive a sign-on bonus of thirty-thousand ($30,000) dollars net payable
on the first pay date after hire. Should you elect to voluntarily terminate
employment with the Company within twelve (12) months of your hire date, the
sign-on bonus will be entirely re-paid by you to the Company.  This re-payment of the sign-on bonus shall
occur within thirty (30) days of termination

 

Review:  Your performance will be formally reviewed no
less than annually and you will be eligible to receive an incentive bonus of up
to twenty-five percent of your annual salary based on achievement of key
milestones.

 

Loan:   We will make available a loan in an amount
up to three-hundred thousand ($300,000) dollars.  The loan will have a term of four (4) years
and is subject to twenty-five (25) percent forgiveness of principal on each
anniversary of the loan if you have been a full-time employee during the
preceding twelve (12) months.  Forgiven
amounts will be subject to annual withholding and reporting on your Form
W-2.  The interest will accrue annually
and the rate will be the prime rate at the time of the loan plus one (1)
percent.

 

Outstanding principal and interest on the loan will be subject to full
repayment prior to maturity on the earlier of: 
(a) termination of your employment prior to maturity, or (b) the first
business day prior to an anniversary date of the loan if the value of your
vested stock options exceeds one million five hundred thousand ($1,500,000)
dollars on that date.

 

Benefits:  All full-time employees of Exelixis Pharmaceuticals, Inc., enjoy a
generous benefits package which is outlined on the attached Summary of
Benefits.

 

Confidentiality: 
As you are aware, it is very important for us to
protect our confidential information and proprietary material.  Therefore, as a condition of employment, you
will need to sign the attached Proprietary Information and Inventions
Agreement.

 

 

Options for Equity:  You will also be eligible to receive a stock
option for one-hundred ten thousand(110,000) shares of Exelixis stock pursuant
to our standard Stock Plan and subject to approval by the Board of Directors.
Options vest over 4 years, at the rate of 25% per year of employment. 

 

Termination:  In the event of termination of your
employment by the Company without Cause, the Company will continue to pay you
your base salary for a period after the date of such termination equal to the
lesser of (1) six months and (2) the period until you obtain alternative
employment. In addition, you will be entitled to receive the amount of any
declared but unpaid bonus as at the date of such termination and the Company shall
continue to make available to you such fringe benefits as are required by law. 

 

You will be eligible to participate in the Company’s Early
Exercise/Stock Purchase Plan which will provide you with the opportunity to
receive a subsidized loan from Exelixis allowing you to complete an early
purchase of your stock options granted to you upon commencing employment with
the Company.  This loan will be subject
to minimal interest as required by IRS regulations and accrue on an annual
basis.  The loan will become payable upon
the earlier of four years from issuance or upon the sale of vested shares. 

 

Other:   In addition to performing the duties and
responsibilities of your position, you will be expected to perform other duties
and responsibilities that may be assigned to you from time to time.  No provision of this letter shall be
construed to create an express or implied employment contract for a specific
period of time.  Either you or the
Company may terminate this employment relationship at any time, with or without
cause.  This letter shall be governed by
the laws of the State of California. 
Also, by signing this letter, you are indicating that you are legally
authorized to work in the U.S.

 

Vacation:  You will be accrue vacation days at a rate of
fifteen (15) days per year. 

 

You may accept this offer of employment by signing both copies of this
letter and Proprietary Information and Invention Agreements and returning one
of each to me.

 

Mike, we look forward to your coming on board!

 

Sincerely,

 

	
  /s/ Mary Jansen

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Mary Jansen

  	
   

  	
   

  
	
  Senior Manager, Human Resources

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCEPTED BY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Michael Morrissey

  	
   

  	
  2-3-2000

  	
   

  
	
  Michael Morrissey

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
  Enclosures:

  	
  Benefit Summary

  
	
   

  	
  Proprietary Information and Inventions Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]