Document:

Exhibit 10.20

 

 

December 9, 2011

 

Peter Brandt

 

Re: Offer of Employment

 

Dear Peter

 

On behalf of Epocrates, Inc. (“Epocrates” or the “Company”), I am pleased to offer you the full-time position of Interim President and Chief Executive Officer. The terms and conditions of your new position and employment relationship with the Company are as set forth below:

 

1.             Position and Work Schedule.

 

a.             You will continue to serve as the Interim President and Chief Executive Officer for the Company. You will report directly to the Company’s Board of Directors (the “Board”) and work out of the Company’s Ewing, New Jersey office. This is a full-time position.

 

b.             You agree to the best of your ability and experience that you will at all times conscientiously perform all of the duties and obligations required of you to the satisfaction of the Company. During the term of your employment, you further agree that you will devote your full business time and attention to the business of the Company, the Company will be entitled to all of the benefits and profits arising from or incident to all such work services and advice, you will not render commercial or professional services of any nature to any person or organization, or engage in self-employment, whether or not for compensation, without the prior written consent of the Company, and you will not directly or indirectly engage or participate in any business that is competitive in any manner with the business of the Company. Nothing in this letter agreement will prevent you from accepting speaking or presentation engagements in exchange for honoraria or from serving on boards of charitable organizations, or from owning no more than one percent (1%) of the outstanding equity securities of a corporation whose stock is listed on a national stock exchange.

 

c.             Of course, the Company may change your position, duties, reporting relationship and office location from time to time in its discretion.

 

2.             Start Date. You commenced this new position with the Company on November 16, 2011 (the “Start Date”).

 

3.             Proof of Right to Work. For purposes of federal immigration law, you will be required to provide to the Company documentary proof of your identity and eligibility for employment in the United States. This offer of employment is contingent upon such satisfactory proof.

 

4.             Compensation.

 

Base Salary. Your initial base salary will be payable in semi monthly installments of $12,708.50 pursuant to the Company’s regular payroll policy. Your base salary may be reviewed as part of the Company’s normal salary review process. Any changes to your base salary are at the Company’s sole discretion.

 

5.             Stock Option and Restricted Stock Unit. In connection with the commencement of your employment, the Board granted you an option to purchase 150,000 shares of the Company’s Common Stock (the “Option”) and a restricted stock unit award covering 20,595 shares of the Company’s Common Stock (the “RSU”), each under the Company’s 2010 Equity Incentive Plan (the “Plan”). The Option has an exercise price of $8.74 per share, equal to the fair market value on the date of the grant as determined by the Board.

 

 

The Option and the RSU will be governed by the terms of the Plan and your individual Stock Option Agreement and Restricted Stock Unit Award Agreement with the Company, and shall vest monthly over a period of six-months for so long as you are serving as the Company’s Interim President and Chief Executive Officer. The vested shares subject to the Option will remain exercisable for so long as you are providing continued service with the Company and for three months thereafter, pursuant to the terms of the Plan. The Option will be an incentive stock option to the maximum extent allowed by the tax code. For so long as you are serving as the Company’s Interim President and Chief Executive Officer, you will not be entitled to receive the annual stock option granted to non-employee members of the Board.

 

6.             Benefits. Subject to the terms, conditions and limitations of the benefit plans, you will be eligible to participate in the Company’s standard employee benefits currently consisting of short/long term disability, medical, dental, and vision insurance benefits. Eligibility for participation in these group benefits will become effective the first of the month following your Start Date. Employees do not accrue vacation, sick leave, or other paid time off, and there is no set guideline on how much time off employees will be permitted to take. Instead, under the terms of the Company’s paid time off policy for regular employees, you will be permitted to take a reasonable amount of time off with pay, as permitted by your duties and responsibilities, and as approved in advance by your manager. Further details about benefits are available for your review. Epocrates may modify compensation and benefits from time to time at its discretion.

 

7.             Employee 401(k) Plan. You will be eligible to participate in Epocrates’ 401(K) plan beginning on the first of the month following your Start Date. Employees who choose to participate will have pre-tax dollars deposited into their 401(K) account and the money will be directed to specified investment options. Epocrates does not match funds or make contributions.

 

8.             Confidential Information and Invention Assignment Agreement. Your acceptance of this offer and commencement of employment with the Company is contingent upon the execution, and delivery to an officer of the Company, of the Company’s Confidential Information and Invention Assignment Agreement (the “Confidentiality Agreement”), a copy of which is enclosed for your review and execution, prior to or on your Start Date. You are also required to abide by the Confidentiality Agreement as a condition of your employment. In your work for the Company, you will be expected not to use or disclose any confidential information, including trade secrets or any information protected by privilege, of any former employer, client, 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, or load onto the Company’s systems, any unpublished documents, information or property belonging to any former employer or other person to whom you have an obligation of confidentiality. You hereby represent that you have disclosed to the Company any contract you have signed that may restrict your activities on behalf of the Company and further represent and warrant that your employment by the Company does not and will not breach any agreement you have with any former employer or client, including any Noncompete agreement or any agreement to keep in confidence or refrain from using information acquired by you prior to your employment by Company.

 

9.             Company Policies. As a condition of your employment, you will be expected to abide by the Company’s policies and procedures, and acknowledge in writing that you have read and will comply with the Company’s Employee Handbook.

 

10.           At-Will Employment. Your employment with the Company will be on an “at will” basis, meaning that either you or the Company may terminate your employment at any time, with or without cause, and with or without advance notice. Your employment at-will status can only be modified in a written agreement signed by you and by a duly authorized officer of the Company.

 

 

11.           Change of Control Acceleration. In the event that: (A) the Company consummates a change of control transaction, whereby fifty percent (50%) or more of the voting stock of the Company changes ownership pursuant to such transaction (a “Change of Control”); and (B) within twelve (12) months after the consummation of a Change of Control, your employment with the Company is (a) either terminated by the Company or successor entity without Cause (as defined below) and other than due to your death or disability, or terminated by you for Good Reason (as defined below), and (b) such termination constitutes a Separation from Service; and (C) if, on or within thirty (30) days after the termination date, you sign, date, and deliver to the Company the a general release of all known and unknown claims in the form provided to you by the Company (the “Release”) and you do not subsequently revoke the Release; then you will receive the following as your sole severance benefits: any unvested shares subject to the Option and the RSU as of the employment termination date will become vested, effective as of the employment termination date.

 

For purposes of this letter agreement, “Cause” means any of the following conduct by you: (i) embezzlement, misappropriation of corporate funds, or other material acts of dishonesty; (ii) the conviction, plea of guilty, or nolo contendere to any felony (not involving the operation of a motor vehicle), or of any misdemeanor involving moral turpitude; (iii) engagement in any activity that you know or should know could materially harm the business or reputation of the Company, provided that this subsection (iii) shall not apply to any activity done in a good faith belief by you that the action taken or omission was in the best interest of the Company; (iv) material violation of any statutory, contractual, or common law duty or obligation owed by you to the Company, including, without limitation, the duty of loyalty which causes demonstrable injury to the Company; (v) material breach of the Confidentiality Agreement; or (vi) repeated failure, in the reasonable judgment of the Company, to substantially perform your assigned duties or responsibilities after written notice from the Company describing the failure(s) in reasonable detail and your failure to cure such failure(s) within thirty (30) days of receiving such written notice, provided that written notice only must be provided if the failure(s) are capable of cure.

 

For purposes of this letter agreement, “Good Reason” shall mean one or more of the following conditions that arose upon or following the consummation of the Change of Control without your written consent: (i) a relocation of your assigned office which results in an increase in your one-way commuting distance by more than thirty-five (35) miles; (ii) a material decrease in your base salary (except for salary decreases generally applicable to the Company’s other executive employees); or (iii) a material reduction in the scope of your duties or responsibilities from your duties and responsibilities in effect immediately prior to the Change of Control. Notwithstanding the foregoing, you shall not be deemed to have terminated your employment for “Good Reason” unless (i) such termination occurs within ninety (90) days following the initial existence of one or more of the conditions that constitute Good Reason (as defined herein), (ii) you provide written notice to the Company (or any successor entity) of the existence of the Good Reason condition within thirty (30) days following the initial existence of the condition, and (iii) the Company (or its successor entity) fails to cure such condition within a period of thirty (30) days following such written notice.

 

12.           Parachute Payments. In the event that the benefits provided for in this letter agreement or otherwise payable to you (“Payment”) would constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and, but for this sentence, would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (i) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (ii) the largest portion, up to and including the total, of the Payment, whichever of the foregoing amounts, after taking into account all applicable federal, state and local employment taxes, income taxes and the Excise Tax (all computed at the highest applicable marginal rate), results in the receipt by you, on an after-tax basis, of the greater amount of the Payment, notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. Unless the Company and you otherwise agree in writing, the determination of your Excise Tax liability shall be made in writing by the accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the Change of Control (the “Accountants”). If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the Change of

 

 

Control, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. For purposes of making the calculations required by this Section 12, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. Any good faith determinations of the Accountants made hereunder shall be final, binding, and conclusive upon the Company and you. The Company and you shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 12. To the extent that any elimination in or reduction of payments or benefits is made under this Section 12, the order in which payments and benefits shall be reduced shall be made by the Accountants in a manner that shall provide you with the greatest economic benefit, but if more than one manner of reduction of payments and benefits necessary to arrive at the Reduced Amount yields the greatest economic benefit to you, then the payments and benefits shall be reduced pro rata.

 

13.           Deferred Compensation. Severance payments made pursuant to Section 11, to the extent of payments made from the date of your termination through March 15 of the calendar year following your termination, are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations and thus payable pursuant to the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations. To the extent such payments are made following said March 15, they are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations made upon an involuntary termination from service and payable pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the maximum extent permitted by such provision, with any excess amount being regarded as subject to the distribution requirements of Section 409A(a)(2)(A) of the Code, including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of the Code that payment be delayed until six (6) months after separation from service if you are a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such separation from service. Notwithstanding anything to the contrary set forth herein, if any payments and benefits provided under this Agreement constitute “deferred compensation” within the meaning of Section 409A of the Code and the regulations and other guidance thereunder and any state law of similar effect (collectively “Section 409A”) (i) such payments and benefits shall not commence in connection with your termination of employment unless and until you also have incurred a Separation from Service, unless the Company reasonably determines that such amounts may be provided to you without causing you to incur the adverse personal tax consequences under Section 409A, and (ii) the Release required by Sections 11 and 12 above shall be considered effective only as of the latest permitted effective date for such Release if such Release could become effective in the calendar year following the calendar year in which your employment termination occurs.

 

14.           Complete Agreement. This letter, together with your Confidentiality Agreement, your Option Agreement and your Restricted Stock Unit Award Agreement, forms the complete and exclusive statement of your employment agreement with the Company. The terms in this letter supersede any other agreements or promises made to you by anyone, whether oral or written. Other than those changes expressly reserved to the Company’s discretion in this letter, this letter agreement cannot be changed except in a written agreement signed by you and a duly authorized officer of the Company.

 

This offer and your employment are subject to a satisfactory background check, and you agree to cooperate fully with the Company in completing any requested authorizations for the background check.

 

 

We are all delighted to be able to extend you this offer and look forward to working with you. To indicate your acceptance of the Company’s offer, please sign and date this letter in the space provided below and return it to me, along with a signed and dated copy of the Confidentiality Agreement.

 

 

	
Very   truly yours,
    	
 
    	
 
    
	
Epocrates, Inc.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Matt Kaminer
    	
 
    	
 
    
	
Matthew   Kaminer
    	
 
    	
 
    
	
General Counsel and Secretary
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
UNDERSTOOD,   ACCEPTED AND AGREED:
    	
 
    	
 
    
	
Peter Brandt
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Peter Brandt
    	
 
    	
 
    
	
Signature
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
12/12/11
    	
 
    	
 
    
	
Date
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Start   Date
    	
 
    	
 
    

 

Enclosure:             Confidentiality AgreementExhibit 10.21

 

EPOCRATES, INC. 

 

November 7, 2011

 

Joe Kleine

12 Norwood Lane

Westport, CT 06880

 

Re:                     Separation & Release Agreement 

 

Dear Joe:

 

This letter agreement (this “Agreement”) will confirm our understanding with regard to your termination of employment with Epocrates, Inc. (the “Company”).

 

1.      Separation. Your last day of work with the Company and your employment termination date is November 30, 2011 (the “Separation Date”). Effective as of the Separation Date, you hereby resign all titles and offices you may hold with the Company.

 

2.      Severance. Subject to your compliance with Section 6 and the terms of your Employment Agreement dated January 26, 2001, as amended, you shall be entitled to the following: (i) continuation of your current base salary ($280,000.00 per annum) in accordance with the Company’s regular payroll practices for the 6-month period commencing on your Separation Date (total cash payments of $140,000.00), and (ii) the Company shall pay on your behalf to the appropriate carrier during the 6-month period commencing on your Separation Date 100% of the premiums for continuation of your healthcare coverage pursuant to COBRA, it being understood and agreed you shall be required to elect COBRA continuation coverage. Payments made pursuant to this Section 2 shall fully discharge any obligation of the Company to provide you severance or termination pay and shall be in lieu of any payment to which you would be entitled pursuant to any other severance plans, programs, arrangements, or policies of the Company.

 

3.      Accrued Compensation and Other Compensation or Benefits. Promptly after the Separation Date, you will be paid for your accrued but unpaid base salary through your Separation Date. You will be reimbursed in accordance with Company policy for any expenses that you incurred in the course of performing your duties for the Company prior to the Separation Date; any request for reimbursement for such expenses must be submitted within thirty (30) days of the Separation Date. You will remain entitled to any benefits to which you would otherwise be entitled under the terms and conditions of the Company’s 401(k) Plan. You acknowledge and agree that other than as set forth in Section 2 and this Section 3, you will not receive any additional compensation, severance or other benefits after the Separation Date.

 

4.      Equity Awards. Vesting of your outstanding stock options (the “Options”), will cease on the Separation Date, and your unvested Options shall terminate as of that date. Your

 

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Options, including your rights to exercise any vested Options, are governed by the terms of your operative agreements with the Company and the applicable equity plan(s).

 

5.      Return of Company Property. You agree to return to the Company within ten business days of your ceasing to provide any services to Company all documents (and all copies thereof) and other property of or pertaining to the Company that you have had in your possession at any time, including, but not limited to, Company files, notes, notebooks, correspondence, memoranda, agreements, drawings, records, business plans, forecasts, financial information, specifications, computer-recorded information, tangible property (including, but not limited to, computers, pagers, telephones, credit cards, entry cards, identification badges and keys), and any materials of any kind that contain or embody any proprietary or confidential information or trade secrets of the Company (and all reproductions thereof in whole or in part). You also agree to erase any such proprietary or confidential information of the Company contained in any electronic document or e-mail system in your possession, custody or control. Nothing in this Section 5 shall prohibit you from retaining publicly available documents or benefit or equity plans in which you have participated and documents relating to your compensation and to your indemnification rights.

 

6.      Restrictive Covenants. You reaffirm, and agree to comply with, all of your obligations set forth in your Employment Agreement and agree that such obligations shall remain in full force and effect and such paragraphs are incorporated by reference as if restated herein. You acknowledge and agree that during the Severance Period, you shall not, directly or indirectly: (i) engage in any Competitive Business anywhere in the world (whether as owner, partner, officer, director, employee, consultant, investor, lender or otherwise, except as the holder of not more than 5% of the outstanding stock of a publicly-held company); (ii) solicit, induce or aid others to solicit or induce any employees or consultants of Company (collectively, “Company Employees”) to terminate their employment or consulting services with Company; or (iii) contact or otherwise communicate with any customers of Company engaged in a Competitive Business for purposes of reducing the nature or amount of business that such customers conduct with Company. You acknowledge and agree that the compensation and/or benefits set forth in Section 2 and in Section 3 of this Agreement is sufficient consideration for you non-solicitation and non-compete provisions contained herein. For purposes of this Agreement, “Competitive Business” shall mean any the following entities, including their affiliates: WebMD Health Corp., Practice Fusion, Quantia, WorldOne, Physicians Interactive and Doximity.

 

7.      Nondisparagement. You agree not to disparage the Company and its officers, directors, employees, shareholders and agents, in any manner likely to be harmful to them or their business, business reputations or personal reputations, and the Company agrees to direct its officers and directors not to disparage you in any manner likely to be harmful to you or your business, business reputation or personal reputation; provided that both you and the Company may respond accurately and fully to any request for information to the extent required by legal process.

 

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8.      Release of Claims.

 

(a)           Claims Released. In consideration for, and as a condition to receiving the benefits described in Section 2 and Section 3 to which you are not otherwise entitled, you, for yourself and your representatives, attorneys, heirs, executors, successors and assigns (collectively, the “Releasing Parties”) hereby completely, conclusively, absolutely, unconditionally and irrevocably release Company and each of their respective affiliates, directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns (collectively, the “Released Party”) from any and all claims, liabilities and obligations, both known and unknown liquidated or unliquidated, fixed or contingent, asserted or unasserted, mature or unmatured, foreseen or unforeseen, or otherwise, that arise out of or are in any way related to events, acts, conduct, or omissions occurring at any time prior to and including the date you sign this Agreement. Each Released Party is an intended third-party beneficiary, and this Agreement may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Released Party hereunder. This general release includes, but is not limited to: (1) all claims arising out of or in any way related to your employment with the Company or the termination of that employment; (2) all claims related to your compensation or benefits from the Company, including wages, salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort claims, including, without limitation, claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including, without limitation, claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or local counterparts; or any other federal, state or local civil or human rights law, or any other local, state, or federal law, regulation or ordinance. Each Releasing Party acknowledges that he, she or it may discover facts in addition to or different from those now known or believed to be true with respect to the subject matter of the releases granted herein, but acknowledge that it is his, her or its intention to fully, finally and forever settle, release and discharge any and all claims hereby known or unknown, suspected or unsuspected, which do or do not exist, or heretofore existed, and without regard to the subsequent discovery or existence of such additional or different facts. The Releasing Parties do hereby covenant and agree not to maintain or cause to be maintained against any Released Party any suit, arbitration or action in any arbitration tribunal or in any court or administrative body of the United States or in any state thereof or elsewhere with respect to any matter embraced within this General Release (such covenant and agreement being referred to herein as, the “Covenant Not to Sue”).

 

(b)           Exceptions. Excluded from this release are (i) any claims that cannot be waived by law in a private agreement between employer and employee, (ii) any rights or claims you have under this Agreement for payments and benefits provided under or in accordance with the terms of this Agreement, and (iii) any rights or claims you may have to indemnity for actions 

 

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taken within the scope of your employment with the Company. You waive, however, any right to any monetary recovery or other relief should the Equal Employment Opportunity Commission or any other agency pursue a claim on your behalf.

 

(c)           No Admission. It is understood and agreed that this is a compromise settlement of a disputed claim or claims and that neither this Agreement itself nor the furnishing of the consideration for this Agreement shall be deemed or construed as an admission of liability or wrongdoing of any kind by any Released Party.

 

9.      Representations. You acknowledge and represent that you have not suffered any age or other discrimination, harassment, retaliation, or wrongful treatment by any Released Party that constitutes a tort under applicable law or violates an applicable federal, state or local statute. You also acknowledge and represent that you did not and do not have any rights under nor have you been denied any rights including, but not limited to, rights to a leave or reinstatement from a leave under the Family and Medical Leave Act of 1993 or any similar law of any jurisdiction.

 

10.    Time to Consider; Effectiveness. By signing this Agreement, you hereby acknowledge that: (a) your waiver and release specified in Section 8 hereof do not apply to any rights or claims that may arise after the date you sign this Agreement or with respect to your rights hereunder; (b) you have the right to consult with an attorney prior to signing this Agreement; (c) you have forty-five (45) days to consider this Agreement (although you may choose to sign it earlier); (d) you have seven (7) days after you sign this Agreement to revoke it; and (e) this Agreement will not be effective until the date on which the revocation period has expired, which will be the eighth day after you sign this Agreement, assuming you have returned it to the Company’s Chief Executive Officer by such date. To revoke your signature, you must notify the Company in writing within seven days of the date you signed this Agreement. Such notice must be delivered by 5:00 p.m. of the seventh day and addressed to the Chief Executive Officer of the Company. In the event that you do not sign this Agreement or if you revoke your signature, you will not be entitled to the payments and benefits described in Section 2.

 

11.    Tax Matters.

 

(a)           Withholding. The Company may withhold from any and all amounts payable under this Agreement such federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation.

 

(b)           Section 409A Compliance.

 

(i)            The intent of the parties is that payments and benefits under this Agreement comply with Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. To the extent that any provision hereof is modified in order to comply with Code Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to the Employee and the Company of the applicable provision without violating the provisions of Code Section 409A. In no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be

 

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imposed on the Employee by Code Section 409A or damages for failing to comply with Code Section 409A.

 

(ii)           To the extent that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred compensation” for purposes of Code Section 409A, (A) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by the Employee, (B) any right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

 

(iii)          Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes “nonqualified deferred compensation” for purposes of Code Section 409A be subject to offset by any other amount unless otherwise permitted by Code Section 409A.

 

12.    Miscellaneous. This Agreement and your Employment Agreement constitutes the complete, final and exclusive embodiment of the entire agreement between you and the Company with regard to this subject matter. It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties or representations. This Agreement may not be modified or amended except in a writing signed by both you and a duly authorized officer of the Company. This Agreement will bind the heirs, personal representatives, successors and assigns of both you and the Company, and inure to the benefit of both you and the Company, their heirs, successors and assigns, provided, however, that you may not assign your rights or obligations hereunder. If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the provision in question will be modified by the court so as to be rendered enforceable. In the event of a breach or threatened breach of any provision of this Agreement, you agree that the Company shall be entitled to injunctive or other equitable relief in a court of appropriate jurisdiction to remedy any such breach or threatened breach, and you acknowledge that damages would be inadequate and insufficient. The existence of this right to injunctive and other equitable relief shall not limit any other rights or remedies that the Company may have at law or in equity including, without limitation, the right to monetary, compensatory and punitive damages. This Agreement shall be governed by the laws of the State of New Jersey.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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IF THIS AGREEMENT IS ACCEPTABLE TO YOU, PLEASE SIGN BELOW AND RETURN THE ORIGINAL TO THE COMPANY’S CHIEF EXECUTIVE OFFICER AT THE ADDRESS SET FORTH ABOVE.

 

I wish you good luck in your future endeavors.

 

Sincerely,

 

	
EPOCRATES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Matt Kaminer
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Matt   Kaminer
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
General Counsel
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
AGREED AND VOLUNTARILY EXECUTED:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Joe Kleine 
    	
 
    
	
Joe Kleine 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated:
    	
11/8/11
    	
 
    

 

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