Document:

Document

Exhibit 10.18

December 2, 2021

Vicki L. Goodman, M.D.

Dear Vicki:

We are proud to invite you to join our team.

Our offer of employment is to join Exelixis, Inc. (the “Company”). Your title will be that of Executive Vice President, Product Development and Medical Affairs and Chief Medical Officer, in our Development Administration department reporting to Michael Morrissey, President and Chief Executive Officer. Your primary work location will be in reasonable proximity to your home in Pennsylvania at a final location to be determined by Exelixis, with your input. You will be required to travel to corporate headquarters in Alameda, California or elsewhere in person to be agreed to by you and Dr. Morrissey as part of your responsibilities leading the joint development and medical affairs activities on both the east and west coasts. Other terms of employment include:

Base Salary:  Your base salary will be twenty-five thousand dollars ($25,000.00) per pay period. We are on a bi-weekly pay schedule. This equates to a base compensation of six hundred and fifty thousand dollars ($650,000.00) on an annual basis (“Base Salary”).  This is an exempt position. 

Sign-on Bonus:  You will receive a sign-on bonus as follows: (i) in the event you leave your current employer and are ineligible to receive a 2021 bonus from them, you will receive a sign-on bonus of five hundred thousand dollars ($500,000.00), minus all applicable taxes and withholding, payable on the first pay date following your hire date. Should you elect to voluntarily terminate employment with the Company, other than a “Constructive Termination” (defined in the Company’s Change in Control and Severance Benefit Plan), within twelve (12) months of your Start Date (defined below), twenty-five percent of the net sign-on bonus actually received by you must be re-paid by you to the Company within 14 days after your last day of employment.  By way of example, if you actually receive a net amount of $300,000 from the payment of the $500,000 sign-on bonus after applicable taxes and withholdings are deducted, the repayment amount would be $75,000 which is twenty-five percent of the net amount actually received; or, (ii) in the event you leave your current company and are eligible to receive a 2021 bonus from them, you will receive a sign-on bonus of two hundred and fifty thousand dollars ($250,000.00), minus all applicable taxes and withholding, payable on the first pay date following your hire date. Should you elect to voluntarily terminate employment with the Company, other than a “Constructive Termination”, within twelve (12) months of your Start Date (defined below), twenty-five percent of the net sign-on bonus actually received by you must be re-paid by you to the Company within 14 days after your last day of employment.

Annual Incentive Award:  Your initial target bonus shall be 50% of your annual Base Salary. Bonus payouts are awarded at the discretion of the Board and paid in accordance with the company’s standard payout cycle for bonuses in the calendar year immediately following the end of the applicable bonus period; provided that you are employed by the company on the date that the bonus is paid. If your start date is on or before September 30th, your bonus for 2021, if any, will be prorated for your partial year of employment in 2021. If your start date is on or after October 1st, you will not be eligible for a bonus for 2021. 

Vicki L. Goodman, M.D.
December 2, 2021
Page Two

Long-Term Equity Incentive Award:  As an inducement that we understand is material to your entering into employment with Exelixis, you will be eligible to elect to receive an equity award (referred to as the “Equity Award”), subject to approval by the Board of Directors in the form of either (i) a stock option to purchase two hundred and fifty thousand (250,000) shares of Exelixis common stock  and a restricted stock unit (“RSU”) award for eighty-two thousand eight hundred and ninety-five (82,895) shares of Exelixis common stock (referred to as “Alternative 1”); or (ii) a RSU award for two hundred and seven thousand eight hundred and ninety-five (207,895) shares of Exelixis common stock (referred to as “Alternative 2”).

The standard vesting schedule for our stock options is 1⁄4 following the one year anniversary of your hire date and 1/48th of the original number of shares subject to the stock option every month thereafter over a total of four years, provided that vesting ceases upon termination of your employment.  The standard vesting schedule for our RSU awards is 1⁄4 on the first established RSU vesting date following the one year anniversary of your hire date and 1/4th of the original number of shares subject to the RSU award every year thereafter over a total of four years until fully-vested, provided that vesting ceases upon termination of your employment.  The grant date for your Equity Award will be your hire date.

Please select the form in which you prefer to receive the Equity Award by selecting one of the alternatives below at the time you accept this offer of employment by returning the signed copies of this letter as provided below:

I hereby prefer to receive the Equity Award as follows (select one):

☐    Alternative 1; or
X    Alternative 2

All compensation shall be subject to the customary withholding tax and other employment taxes and deductions as required by law.

By signing and returning this letter as provided below, you acknowledge that you understand that, after 5:00p.m., Pacific Time on the last business day prior to your Start Date, you may not withdraw or change your designated Equity Award preference.

Additional Long-Term Equity Incentive Award: You will be eligible to receive an additional equity award (referred to as the “Additional Equity Award”), subject to approval by the Board in the form of a RSU award for forty-two thousand one hundred and five (42,105) shares of Company common stock , with 26,315 shares subject to the RSU award vesting on your hire date, 7,895 shares subject to the RSU award vesting on February 15, 2023, and the remaining 7,895 shares subject to the RSU award on February 15, 2024, provided that in all cases vesting ceases upon termination of your employment with the Company. The grant date for your Additional Equity Award will be your hire date.

Change in Control and Severance Benefits: You will be eligible to participate in the Company’s Change in Control and Severance Benefit Plan (CIC Plan) as Executive Participant – EVP/SVP. A copy of the CIC Plan along with a Participation Notice notifying you of the terms and conditions of your participation will be provided. A signed copy of the Participation Notice must be returned to the Company.

Vicki L. Goodman, M.D.
December 2, 2021
Page Three

Additional Severance:  In addition to and independent of the benefits outlined under the Company’s CIC Plan, if, outside of a Change in Control event, you are required at any time to relocate full time to a new location that is not in reasonable proximity, within 35 miles, of your home in Pennsylvania, and you decline such relocation and resign your position, you will be eligible to receive a severance payment equal to twelve (12) months of your then current salary and twelve (12) months of your then current bonus target within thirty (30) days of your termination date. In order to receive this severance, you must first sign and not revoke a full and complete release of claims. Severance under this provision is not affected by Paragraph 7(d) of the CIC Plan or any other provision of the CIC Plan.  

Clawback Policy: Notwithstanding any other provisions in this offer, all forms of compensation you are eligible to receive, except Base Salary, shall be subject to recoupment pursuant to the Company’s Policy for Recoupment of Variable Compensation (“Clawback Policy”) or any other clawback policy the Company is required to adopt pursuant to applicable law or regulation. As a condition of your employment, you will need to acknowledge your receipt and understanding of the Clawback Policy.

Employee Benefits:  All full-time employees of the Company enjoy a generous benefits package, which is outlined on the Summary of Benefits.

Performance Review:  Focal reviews will take place annually. If eligible for a performance review increase, the merit increase will typically be effective in March.  

Start Date:  To be determined.

Confidentiality and Company Policies:  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 Company’s Employee Proprietary Information and Inventions Agreement.  This confirms that you have previously disclosed to the Company that you are bound by a two-year non-solicitation agreement with your former employer which the company believes will not prevent you from performing your duties to the Company.  You will also be required to abide by the Company’s policies and procedures, including the Corporate Code of Conduct.

Reference Verification:  This offer is contingent upon verification of your references.

Background Check:  This offer is contingent upon successfully passing your background check.

Other:  This offer expires on Friday, December 3, 2021 unless accepted by you 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 or express an 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.

Employment Authorization:  Our offer of employment is at will and contingent upon your ability to document your employment authorization in the United States.  If you are unable to document your right to work within the United States within three days of your date of hire, your employment will be terminated.  

Vicki L. Goodman, M.D.
December 2, 2021
Page Four

You may accept this offer of employment by signing this letter via DocuSign.  If you are unable to sign this letter via DocuSign, you may request a hard-copy letter from Human Resources to be mailed to you.

Vicki, we are delighted to extend to you this offer of employment and we look forward to your coming on board.

Sincerely,

/s/ Laura Dillard

Laura Dillard
Executive Vice President, Human Resources

ACCEPTED BY:

/s/ Vicki Goodman                        12/2/2021    
Vicki L. Goodman, M.D.                        DateDocument

 Exhibit 10.42
Confidential                                                                                                               
Execution Version

THIRD AMENDMENT TO SUPPLY AGREEMENT
This Third Amendment to the Supply Agreement (the “Amendment”) is entered into as of 10 December, 2021 (the “Amendment Effective Date”) by and between Exelixis, Inc., a Delaware company having an address at 1851 Harbor Bay Parkway, Alameda CA 94502, USA (“Exelixis”) and Ipsen Pharma SAS, a French corporation having an address at 65 Quai Georges Gorse, 92100 Boulogne-Billancourt, France (“Licensee”).  Exelixis and Licensee may be referred to herein individually as a “Party” or collectively as the “Parties”. 
Recitals
Whereas, Exelixis and Licensee are parties to that certain Collaboration and License Agreement dated February 29, 2016, as amended by Amendment No. 1 dated effective December 20, 2016, Amendment No. 2 dated effective September 14, 2017, and Amendment No. 3 dated effective October 26, 2017 (together, the “License Agreement”), pursuant to which the Parties have been collaborating on the development and commercialization of cabozantinib; and
Whereas, Exelixis and Licensee are parties to that certain Supply Agreement dated February 29, 2016, as amended by that certain Side Letter between the Parties dated August 26, 2016, Amendment No. 1 dated effective October 26, 2017, a second Side Letter dated effective December 7, 2017, subsequently extended on April 6, 2018, and Amendment No. 2 dated effective May 17, 2019 (together, the “Supply Agreement”), pursuant to which Exelixis has been manufacturing and supplying cabozantinib to Licensee for development and commercial use under the License Agreement; and
Whereas, the Parties desire to enter into this Amendment to amend the Supply Agreement to reflect updates to the supply process, in particular to outline the ongoing process for the delivery of the Finished Product, all on the terms and conditions set forth below.
Now, Therefore, in consideration of the foregoing premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
1.Product Supply
1.1Section 2.3(c) is deleted in its entirety and replaced with the following:
“(c)    Delivery and Shipping Terms. Purchase Orders submitted for quantities of Product that are in accordance with Section 2.3(a) and/or Section 2.3(b) as applicable will be binding on both Parties after acceptance in writing by Exelixis; provided, however, that should Exelixis neither reject a Purchase Order nor provide written confirmation of acceptance within twenty (20) business days of receipt, Exelixis shall be deemed to have accepted the Purchase Order effectively. The Purchase Order will specify a single delivery date for such order to be delivered.  Except as provided below, Exelixis shall deliver all Finished Product Delivery at Place (Paris Airport) (“DAP” Incoterms 2020).  For Finished Product supplied by Rottendorf Pharma Inc., such Finished Product shall be delivered Ex Works (Rottendorf Pharma Inc.’s facility in Ennigerloh, Germany) (“EXW” Incoterms 2020) and Licensee shall be responsible for removing such Product from such facility within twenty (20) days after the Rottendorf Pharma Qualified Person releases such Product.  For Purchase Orders placed for commercialization 
1

 Exhibit 10.42
Confidential                                                                                                               
Execution Version

in Canada; Exelixis shall deliver Delivery at Place (“DAP” Incoterms 2020) to the warehouse in Canada, as notified by Licensee.  Licensee shall deliver all Reworked Product to Third Party Subcontractor; Delivery Duty Paid (“DDP” Incoterms 2020). Exelixis shall deliver all Reworked Product from their Third Party subcontractor Ex-Works (“EXW” Incoterms 2020).  Exept as provided in the next sentence, Exelixis shall be responsible for obtaining all licenses or other authorizations for the exportation of such shipments and shall supply Licensee with the documentation required for filing or claiming credit or deduction for any applicable taxes and/or duties.  For Finished Product supplied by Rottendorf Pharma Inc., Exelixis shall be responsible for providing Licensee with the packing slip and commercial invoice.  For all shipments, Licensee shall be responsible for obtaining all freight, handling, insurance, and shipping expenses, and shall be the importer of record and responsible for all duties and taxes for such shipments, and shall be responsible for obtaining all distribution licenses for the Products.”
2.General Provisions
2.1Effect of Amendment.  Except as expressly modified herein, all terms and conditions set forth in the Supply Agreement, as in effect on the Amendment Effective Date, shall remain in full force and effect. 
2.2Entire Agreement.  The Supply Agreement as modified by this Amendment, and together with the License Agreement, is both a final expression of the Parties’ agreement and a complete and exclusive statement with respect to its subject matter.  They supersede all prior and contemporaneous agreements and communications, whether written or oral, of the Parties regarding this subject matter.
2.3Severability.  If, for any reason, any part of this Amendment is adjudicated invalid, unenforceable, or illegal by a court of competent jurisdiction, such adjudication shall not, to the extent feasible, affect or impair, in whole or in part, the validity, enforceability, or legality of any remaining portions of this Amendment.  All remaining portions shall remain in full force and effect as if the original Amendment had been executed without the invalidated, unenforceable, or illegal part.
2.4Counterparts; Electronic or Facsimile Signatures.  This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.  This Amendment may be executed and delivered electronically or by facsimile and upon such delivery such electronic or facsimile signature will be deemed to have the same effect as if the original signature had been delivered to the other Party. 
 {Signature Page Follows}
2

    In Witness Whereof, the Parties hereto have caused this Amendment to be executed and entered into by their duly authorized representatives as of the Amendment Effective Date.

						
	Exelixis, Inc.

By:  /s/ Michael M. Morrissey
Name:  Michael M. Morrissey, Ph.D.
Title:  President and CEO
	Ipsen Pharma S.A.S

By:  /s/ Roman Stephens
Name:  Ronan Stephens
Title:  SVP of Supply Chain

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