Document:

Separation Agreement

  
 Exhibit 10.13

 April 21, 2010 
 Laura
Killmer 
 6122 La Pintura Drive 
 La
Jolla, CA 92037 
 Dear Laura: 
 This
letter sets forth the separation agreement (the “Agreement”) that Ambit Biosciences Corporation (the “Company”) is offering to you to aid in your employment transition. This Agreement will become effective on the “Effective
Date” as defined in section 13 herein. 
 1. Separation. Your last day of work with the Company and your employment
termination date will be April 5, 2010 (the “Separation Date”). 
 2. Accrued Salary And Paid Time Off. On
the Separation Date, the Company will pay you all accrued salary, and all accrued and unused vacation earned through the Separation Date, subject to standard payroll deductions and withholdings. You are entitled to these payments by law. 

3. Severance Payment. Although the Company has no policy or procedure for providing severance benefits, provided that this
Agreement becomes effective, the Company will deliver to you or your attorney, as you direct, the amount of $40,000.00, less any taxes or withholding that may be due and payable, within five (5) business days following the Effective Date.

 4. Stock Options. Under the terms of your stock option agreement and the applicable plan documents, vesting of your
stock options will cease as of the Separation Date. Your right to exercise any vested shares, and all other rights and obligations with respect to your stock options(s), will be as set forth in your stock option agreement, grant notice and
applicable plan documents. 
 5. Option Exercise. The Company shall extend the exercise period for your Options such that
you may exercise any vested Options on or before April 5, 2011. 
 6. Other Compensation or Benefits. You
acknowledge that, except as expressly provided in this Agreement, you will not receive any additional compensation, severance, or benefits after the Separation Date. 
 7. Expense Reimbursements. You agree that, within ten (10) days of the Separation Date, you will submit your final documented expense reimbursement statement reflecting all business expenses
you incurred in accordance with Company policy through the Separation 

 Laura Kilmer 
 April 21, 2010 
 Page Two 

 

 
Date, if any, for which you seek reimbursement. The Company will reimburse you for these expenses pursuant to its regular business practice. 

8. Return of Company Property. By the Separation Date, you agree to return to the Company all Company documents (and all copies
thereof) and other Company property that you have had in your possession at any time, including, but not limited to, Company files, notes, drawings, records, business plans and forecasts, financial information, specifications, computer-recorded
information, tangible property (including, but not limited to, computers), credit cards, entry cards, identification badges, and keys; and, any materials of any kind that contain or embody any proprietary or confidential information of the Company
(and all reproductions thereof). Your timely return of all such Company documents and other property is a condition precedent to your receipt of the severance benefits provided under this Agreement. 

9. Proprietary Information Obligations. You acknowledge your continuing obligations under your Proprietary Information and
Inventions Agreement, a copy of which is attached hereto as Exhibit A. 
 10. Confidentiality. The provisions of this
Agreement will be held in strictest confidence by you and the Company and will not be publicized or disclosed in any manner whatsoever; provided, however, that: (a) you may disclose this Agreement in confidence to your immediate family;
(b) the parties may disclose this Agreement in confidence to their respective attorneys, accountants, auditors, tax preparers, and financial advisors; (c) the Company may disclose this Agreement as necessary to fulfill standard or legally
required corporate reporting or disclosure requirements; and (d) the parties may disclose this Agreement insofar as such disclosure may be necessary to enforce its terms or as otherwise required by law. In particular, and without limitation,
you agree not to disclose the terms of this Agreement to any current or former Company employee. 
 11. No Admissions.
You understand and agree that the promises and payments in consideration of this Agreement shall not be construed to be an admission of any liability or obligation by the Company to you or to any other person, and that the Company makes no such
admission. 
 12. Release of Claims. In exchange for the consideration under this Agreement to which you would not
otherwise be entitled, you hereby generally and completely release the Company and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and
assigns from any and all claims, liabilities and obligations, both known and unknown, 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.
This general release includes, but is not limited to: (a) all claims arising out of or in any way related to your employment with the Company or the termination of that employment; (b) all claims related to your compensation or benefits
from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the 

 Laura Kilmer 
 April 21, 2010 
 Page Three 

 

 
Company; (c) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (d) all tort claims, including claims for fraud,
defamation, emotional distress, and discharge in violation of public policy; and (e) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising
under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”), and the California Fair Employment and Housing Act
(as amended). The release of claims in this Agreement does not extend to those rights which as a matter of law cannot be waived, including but not limited to unwaivable rights the you may have under the California Labor Code. 

13. ADEA Waiver. You acknowledge that you are knowingly and voluntarily waiving and releasing any rights you may have under the
Federal Age Discrimination in Employment Act (the “ADEA”), and that the consideration given for the waiver and release in the preceding paragraphs is in addition to anything of value to which you were already entitled. You
further acknowledge that you have been advised by this writing that: (a) your waiver and release do not apply to any rights or claims that may arise after the execution date of this Agreement; (b) you should consult with an attorney prior
to executing this Agreement; (c) you have twenty-one (21) days to consider this Agreement (although you may choose to voluntarily execute this Agreement earlier); (d) you have seven (7) days following the execution of this
Agreement by the parties to revoke the Agreement; and (e) this Agreement will not be effective until the date upon which the revocation period has expired, provided that you have not earlier revoked the Agreement (the “Effective
Date”). You will not receive any of the benefits provided by this Agreement until after the Effective Date. 

14. Section 1542 Waiver. In granting the release herein, which includes claims which may be unknown to you at present, you
acknowledge that you have read and understand Section 1542 of the California Civil Code: “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the
release, which if known by him must have materially affected his settlement with the debtor.” You hereby expressly waive and relinquish all rights and benefits under that section and any law or legal principle of similar effect in any
jurisdiction with respect to the releases granted herein, including but not limited to the release of unknown and unsuspected claims granted in this Agreement. 
 15. Miscellaneous. This Agreement, including Exhibit A, constitutes the complete, final and exclusive embodiment of the entire agreement between you and the Company with regard to its 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 

 Laura Kilmer 
 April 21, 2010 
 Page Four 

 

 
assigns. 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 so as to be rendered enforceable. This Agreement will be deemed-to have-been-entered-into and will be construed and enforced in-accordance-with the laws of the State of California as applied to contracts made
and to be performed entirely within California. Any ambiguity in this Agreement shall not be construed against either party as the drafter. Any waiver of a breach of this Agreement shall be in writing and shall not be deemed to be a waiver of any
successive breach. This Agreement may be executed in counterparts and facsimile signatures will suffice as original signatures. 
 If this
Agreement is acceptable to you, please sign below and return the original to me. 
 We wish you the best in your future endeavors. 

 

			
	Sincerely,
	
	AMBIT BIOSCIENCES CORPORATION
		
	By:	 	 /s/ Kerry Ann Kelly

		 	Kerry A. Kelly, VP and General Counsel

 I
HAVE READ, UNDERSTAND AND AGREE FULLY TO THE FOREGOING AGREEMENT: 

 

					
	 /s/ Laura Killmer

	 Laura Killmer

	
	 Date: April 27, 20102008 Incentive Compensation Plan

  
 Exhibit 10.14

 AMBIT BIOSCIENCES CORPORATION 

2008 INCENTIVE COMPENSATION PLAN 

The staff of Ambit Biosciences Corporation (the “Company”) may be eligible for a year~end salary bonus. There is no guarantee of an incentive
payout. The program has been developed as a reward for extraordinary individual successes combined with excellent corporate results. 
 The
Incentive Compensation Plan of the Company (the ~Plan~) is designed to: 
  

	•	 	 Provide incentive to exceed Corporate Goals and Individual Goals (each as defined below) 

 

	•	 	 Encourage teamwork 

  

	•	 	 Reward those who significantly impact corporate results 

 PLAN GOVERNANCE 
 The Compensation Committee (the
~Compensation Committee~), appointed by the Board of Directors of the Company (the “Board”), is responsible for administrating the Plan. Their primary responsibilities are to ensure that measurable goals are established and to eventually
determine the degree to which they have been achieved. The Compensation Committee may at any time, and from time to time, amend, suspend or terminate the Plan. 
 ESTABLISHMENT OF GOALS 

Key management employees will work with employees in establishing individual goals, which will include goals relating to each
individual’s department (the “Individual Goals”). Individual Goals must be documented in writing and approved by the department head. Individual Goals are typically set in January of the plan year and scheduled meetings are to be held
on or before June 30th
and September 30th and a final evaluation in
December of the plan year. Individual Goals must be established on or before these meeting dates for employees hired throughout the year. 
 The
Goal Setting Cover Sheet on the last page of this document should be attached to the Individual Goals sheet and used to document meetings discussing Individual Goal achievements throughout the year. 

  

	 Confidential 
	 Page 1 

  
 MINIMUM
ACHIEVEMENT LEVEL 
 70% of both corporate goals (the “Corporate Goals”) and Individual Goals must be
achieved for any awards to take place. For example, if 50% of the Corporate Goals are achieved, no awards will be paid to any employee. If 80% of the Corporate Goals are achieved, but an individual only met 50% of his/her Individual Goals, no award
will be paid to that individual. Corporate Goals will be recommended by senior management and approved by the Compensation Committee. 

TARGET AWARD PERCENTAGE 
 The following table summarizes the “target award percentage” available to each position in the Company. In extraordinary situations, where Corporate Goals and/or Individual Goals are exceeded in
a meaningful way, the Compensation Committee may award beyond the Target Award Percentage. 
  

									
	Position	  	Level(s)	 	  	Target Award
Percentage	 
	 Chief Executive Officer
	  	 	29	  	  	 	40	  
	 President and CSO
	  	 	28	  	  			
	 Vice President*/Senior VP/Executive VP
	  	 	25~27	  	  	 	25/30/32.5	  
	 Director/Senior Director/Exec Director
	  	 	22~24	  	  	 	15/16.5/18	  
	 Group Leader/Head/Assoc Director
	  	 	20~21	  	  	 	12.5	  
	 Senior Research Scientist/Senior Manager
	  	 	17~19	  	  	 	10	  
	 Associate Scientist/Research Scientist/Manager
	  	 	12~16	  	  	 	7.5	  
	 All Other Employees
	  	 	1~11	  	  	 	5	  

 BASIS
FOR AWARDS 
 Awards are based on corporate goals and individual goals at the following ratio:

 

									
	Position	  	Corporate
Goals	 	 	Individual
Goals	 
			
	 CEO/President and CSO
	  	 	100	% 	 	 	0	% 
	 Vice President levels
	  	 	75	% 	 	 	25	% 
	 All Other Employees
	  	 	50	% 	 	 	50	% 

  

	 Confidential 
	 Page 2 

  
 GOAL
ACHIEVEMENT PERCENTAGE 
 The “goal achievement percentage” represents the degree to which the
performance goals have been met. The goal achievement percentage for corporate goals is determined by the Compensation Committee. The goal achievement percentage for department/individual goals is determined by each employee’s supervisor and
department head. 
 ELIGIBILITY AND PARTIAL~YEAR PARTICIPATION

 All regular employees are eligible for awards, provided that they maintain an average grade of “meets expectations” in
their individual performance review, or otherwise be considered to perform their duties in a satisfactory manner, in order to maintain eligibility. 
 An employee becomes eligible to participate in the Plan as of their first day of employment. The award will be calculated by multiplying the full year award amount by the number of days of regular
employment during the plan year divided by 365. Example: An employee hired September 1 will be awarded their full year award amount multiplied by 122 days and divided by 365 days. Employees hired after September 30th of the plan year will not be eligible for an award in that plan
year. Regular employment does not include leave of absences. 
 If a participant~s employment is terminated during a plan year for reason of
death or disability, the award will be determined based on performance as of the end of the plan year. The final award will be calculated by multiplying the full year award amount by the number of days of employment during the performance period
divided by 365. Other terminations will not be eligible for participation in this Plan. 
 CALCULATION OF
AWARD (ILLUSTRATION) 
 The awards are determined by multiplying each employee’s “year~end base
salary” by their “target award percentage” and then by the “percentage of goals achieved”. The award total is then multiplied by the number of days the employee participated in the Plan and divided by 365. The following
table illustrates the calculation of an award for a Research Associate that joined the Company approximately half~way through the Plan year. 
  

																			
	 Year~End

Base Salary Target Award
	  	Corporate
Goals
Achieved	 	 	Individual
Goals
Achieved	 	 	  
 No. of Days

Participated
	 
	  	 	 	(Divided by 365)	 	  	Award	 
					
	GOAL ACHIEVEMENT PERCENTAGE	  				 				 				  			
	     $35,000
	  	2.5%	  	 	80	% 	 	 	—  	  	 	 	152/365	  	  	$	291.51	  
	     $35,000
	  	2.5%	  	 	—  	  	 	 	85	% 	 	 	152/365	  	  	$	309.73	  
		  		  				 				 				  	 	 	 
		  		  				 				 	 	TOTAL	  	  	$	601.24	  
		  		  				 				 				  	 	 	 

  

	 Confidential 
	 Page 3 

  
 CHANGE
IN CONTROL 
 In the event of a Qualified Change in Control of the Company (defined below), each participant
will receive a pro rata share of the annual bonus for the year in which the Qualified Change in Control occurs, calculated on the basis of each participant~s target award for that year and on the assumption that all performance goals have been or
will be achieved at 100%. For this purpose, the pro rata share will be calculated by dividing the number of days employed during the performance period prior to the Qualified Change in Control by 365. The bonus amount so determined will be paid to
participants within 15 days of the Qualified Change in Control. After such Qualified Change in Control, the Plan shall terminate in its entirety. 
 For purposes of the Plan, a~Qualified Change in Control~means (i) the sale or exchange of all or substantially all of the assets of the Company or (ii) a merger or consolidation of the Company
with any other corporation that would result in voting securities of the Company outstanding immediately prior thereto representing (either by remaining outstanding or by being converted into voting securities of the surviving entity) less than
fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such sale, exchange, merger or consolidation; so long as, in each case ((i) and (ii)), the
total consideration received by the Company or the stockholders in such transaction is at least three times greater than the fully~diluted post~money valuation of the Company as of the most recent venture capital financing (determined by multiplying
the applicable price per share in such financing by the fully diluted shares outstanding on an as~converted~to~common stock basis, including all shares subject to outstanding options or warrants or reserved for issuance pursuant to plans adopted by
the Company). 
 ADMINISTRATION 
 Notwithstanding any other provision of this Plan, the Company reserves the right to modify this Plan in any way and at any time, retroactively or prospectively, with or without cause. Nothing in this Plan
shall be deemed an employment contract or provide any rights to continued employment. The Board or the Compensation Committee shall have the power to construe and interpret the Plan and to establish, amend and revoke rules and regulations for its
administration. The Board or the Compensation Committee, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully
effective. 

  

	 Confidential 
	 Page 4 

  
 AMBIT
BIOSCIENCES CORPORATION 
 GOAL SETTING COVER
SHEET 
 Attached are goals developed by the employee and supervisor that are important to his/her position and support
departmental and company goals. The goals should be defined in a manner that permits measurement of results achieved. Include timetables with estimated start and completion dates (if possible). As the year progresses, it may be necessary to
prioritize/revise established goals. 
 Employee Name: 

 
 Hire Date: 

 
 Supervisor Name: 

 
 Date goals established: 

 

							
		 	Date	 	Supervisor Initials	 	Employee Initials        

 Supervisors should meet periodically with their staff and review progress made and current objectives in terms of expected results. Meetings should be scheduled close to the following dates:
June 30th, September 30th, and the final year~end meeting by December 10th. 
 After each meeting, please complete and sign: 
  

													
	 Scheduled Meeting
	  	Actual Meeting Date	 	  	Supervisor
Signature	 	  	Employee
Signature	 
				
	 On or before 6/30
	  				  				  			
				
	 On or before 9/30
	  				  				  			
				
	 On or before 12/10
	  				  				  			
				
	 Comments:
	  				  				  			

  
  

 
  

  

	 Confidential 
	 Page 5

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