Document:

ttph-ex103_113.htm

Exhibit 10.3

		
	

	
Tetraphase Pharmaceuticals, Inc.

480 Arsenal Street, Suite 110

Watertown, MA 02472

 

 

VIA HAND DELIVERY

July 31, 2019

Guy Macdonald

8 Gracewood Park

Cambridge, MA 02138 

 

Dear Guy:

As we discussed, your employment with Tetraphase Pharmaceuticals, Inc. (the “Company”) will end effective July 31, 2019 (the “Separation Date”).  As we also discussed, you will be eligible to receive the severance benefits described in paragraph 1 below if you sign and return this letter agreement to me by September 15, 2019 (but no earlier than the Separation Date) and do not revoke your agreement (as described below).  By signing and returning this letter agreement and not revoking your acceptance, you will be entering into a binding agreement with the Company and will be agreeing to the terms and conditions set forth in the numbered paragraphs below, including the release of claims set forth in paragraph 2.  Therefore, you are advised to consult with an attorney before signing this letter agreement and you have been given at least forty-five (45) days to do so.  If you sign this letter agreement, you may change your mind and revoke your agreement during the seven (7) day period after you have signed it (the “Revocation Period”) by notifying me in writing.  If you do not so revoke, this letter agreement will become a binding agreement between you and the Company upon the expiration of the Revocation Period.

Although your receipt of the severance benefits is expressly conditioned on you entering into this letter agreement, the following will apply regardless of whether or not you timely sign and return this letter agreement:  

	
 
	
•
	
As of the Separation Date, all salary payments from the Company will cease and any benefits you had as of the Separation Date under Company-provided benefit plans, programs, or practices will terminate, except as required by federal or state law.

	
 
	
•
	
You will receive on the Separation Date payment for your final wages and any unused vacation time accrued through the Separation Date.  

	
 
	
•
	
You may, if eligible and at your own cost, elect to continue receiving group medical insurance pursuant to the “COBRA” law.  Please consult the COBRA materials to be provided under separate cover for details regarding these benefits.

	
 
	
•
	
You are obligated to keep confidential and not to use or disclose any and all non-public information concerning the Company that you acquired during the course of your employment with the Company, including any non-public information concerning the Company’s business affairs, business prospects, and financial condition, except as otherwise permitted by paragraph 9 below.  Further, you remain subject to your continuing confidentiality and non-solicitation obligations to the Company as set forth in 

1

 

	
 
		
the Non-Solicitation, Non-Disclosure and Developments Agreement you previously executed for the benefit of the Company, which remain in full force and effect.

	
 
	
•
	
You must return to the Company on the Separation Date all Company property.

	
 
	
•
	
You will have three (3) months following the Separation Date to exercise any stock options under the Company’s 2103 Stock Incentive Plan that were vested as of the Separation Date.  After that three (3) month period, your stock options will expire and you will no longer have any rights with respect thereto. 

If you elect to timely sign and return this letter agreement and do not revoke your acceptance within the Revocation Period, the following terms and conditions will also apply:

	
 
	
1.
	
Severance Benefits –The Company will provide you with the following severance benefits (the “severance benefits”):

	
 
	
a.
	
Severance Pay.  The Company will pay to you $580,000, less all applicable taxes and withholdings, as severance pay (an amount equivalent to 52 weeks of your current base salary).  This severance pay will be paid in installments in accordance with the Company’s regular payroll practices, but in no event shall payments begin earlier   than the Company’s first payroll date following expiration of the Revocation Period.

 

	
 
	
b.
	
COBRA Benefits.  Should you timely elect and be eligible to continue receiving group health insurance pursuant to the “COBRA” law, the Company will, until the earlier of (x) the date that is 52 weeks following the Separation Date, and (y) the date on which you obtain alternative coverage (as applicable, the “COBRA Contribution Period”), continue to pay the share of the premiums for such coverage to the same extent it was paying such premiums on your behalf immediately prior to the Separation Date.  The remaining balance of any premium costs during the COBRA Contribution Period, and all premium costs thereafter, shall be paid by you on a monthly basis for as long as, and to the extent that, you remain eligible for COBRA continuation.  You agree that, should you obtain alternative medical and/or dental insurance coverage prior to the date that is 52 weeks following the Separation Date, you will so inform the Company in writing within five (5) business days of obtaining such coverage.

 

You will not be eligible for, nor shall you have a right to receive, any payments or benefits from the Company following the Separation Date other than as set forth in this paragraph.

 

	
 
	
2.
	
Release of Claims – In consideration of the severance benefits, which you acknowledge you would not otherwise be entitled to receive, you hereby fully, forever, irrevocably and unconditionally release, remise and discharge the Company, its affiliates, subsidiaries, parent companies, predecessors, and successors, and all of their respective past and present officers, directors, stockholders, partners, members, employees, agents, representatives, plan administrators, attorneys, insurers and fiduciaries (each in their individual and corporate capacities) (collectively, the “Released Parties”) from any and all claims, charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature that you ever had or now have against any or all of the Released Parties, whether known or 

- 2 -

 

 

	
 
		
unknown, including, but not limited to, any and all claims arising out of or relating to your employment with and/or separation from the Company, including, but not limited to, all claims under Title VII of the Civil Rights Act, the Americans With Disabilities Act, the Age Discrimination in Employment Act, the Genetic Information Nondiscrimination Act, the Family and Medical Leave Act, the Worker Adjustment and Retraining Notification Act, the Rehabilitation Act, Executive Order 11246, Executive Order 11141, the Fair Credit Reporting Act, and the Employee Retirement Income Security Act, all as amended; all claims arising out of the Massachusetts Fair Employment Practices Act, Mass. Gen. Laws ch. 151B, § 1 et seq., the Massachusetts Wage Act, Mass. Gen. Laws ch. 149, § 148 et seq. (Massachusetts law regarding payment of wages and overtime), the Massachusetts Civil Rights Act, Mass. Gen. Laws ch. 12, §§ 11H and 11I, the Massachusetts Equal Rights Act, Mass. Gen. Laws. ch. 93, § 102 and Mass. Gen. Laws ch. 214, § 1C, the Massachusetts Labor and Industries Act, Mass. Gen. Laws ch. 149, § 1 et seq., Mass. Gen. Laws ch. 214, § 1B (Massachusetts right of privacy law), the Massachusetts Maternity Leave Act, Mass. Gen. Laws ch. 149, § 105D, and the Massachusetts Small Necessities Leave Act, Mass. Gen. Laws ch. 149, § 52D, all as amended; all common law claims including, but not limited to, actions in defamation, intentional infliction of emotional distress, misrepresentation, fraud, wrongful discharge, and breach of contract; all claims to any non-vested ownership interest in the Company, contractual or otherwise; all state and federal whistleblower claims to the maximum extent permitted by law; and any claim or damage arising out of your employment with and/or separation from the Company (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above; provided, however, that this release of claims does not prevent you from filing a charge with, cooperating with, or participating in any investigation or proceeding before, the Equal Employment Opportunity Commission or a state fair employment practices agency (except that you acknowledge that you may not recover any monetary benefits in connection with any such charge, investigation, or proceeding, and you further waive any rights or claims to any payment, benefit, attorneys’ fees or other remedial relief in connection with any such charge, investigation or proceeding).

	
 
	
3.
	
 Continuing Obligations – You acknowledge and reaffirm your confidentiality and non-disclosure obligations discussed on page 1 of this letter agreement, as well as the obligations set forth in the Non-Solicitation, Non-Disclosure and Developments Agreement, which survive your separation from employment with the Company.

	
 
	
4.
	
Non-Disparagement – You understand and agree that, to the extent permitted by law and except as otherwise permitted by paragraph 9 below, you will not, in public or private, make any false, disparaging, derogatory or defamatory statements, online (including, without limitation, on any social media, networking, or employer review site) or otherwise, to any person or entity, including, but not limited to, any media outlet, industry group, financial institution or current or former employee, board member, consultant, client or customer of the Company, regarding the Company or any of the other Released Parties, or regarding the Company’s business affairs, business prospects, or financial condition. 

	
 
	
5.
	
Company Affiliation – You agree that, following the Separation Date, you will represent yourself as a member of the Company’s Board of Directors.

	
 
	
6.
	
Return of Company Property – You confirm that you have returned to the Company all keys, files, records (and copies thereof), equipment (including, but not limited to, computer hardware, software, printers, flash drives and other storage devices, wireless handheld devices, cellular phones, tablets, etc.), Company identification, and any other Company owned property in your possession or control, and that you have left intact all, and have otherwise not destroyed, deleted, 

- 3 -

 

 

	
 
		
or made inaccessible to the Company, any electronic Company documents, including, but not limited to, those that you developed or helped to develop during your employment, and that you have not (a) retained any copies in any form or media; (b) maintained access to any copies in any form, media, or location; (c) stored any copies in any physical or electronic locations that are not readily accessible or not known to the Company or that remain accessible to you; or (d) sent, given, or made accessible any copies to any persons or entities that the Company has not authorized to receive such electronic or hard copies. You further confirm that you have cancelled all accounts for your benefit, if any, in the Company’s name, including but not limited to, credit cards, telephone charge cards, cellular phone accounts, and computer accounts.

 

	
 
	
7.
	
Business Expenses and Final Compensation – You acknowledge that you have been reimbursed by the Company for all business expenses incurred in conjunction with the performance of your employment and that no other reimbursements are owed to you.  You further acknowledge that you have received payment in full for all services rendered in conjunction with your employment by the Company, including payment for all wages, bonuses, commissions, and accrued, unused vacation time, and that no other compensation is owed to you except as provided herein.

 

	
 
	
8.
	
Confidentiality – You understand and agree that, to the extent permitted by law and except as otherwise permitted by paragraph 9 below, the terms and contents of this letter agreement, and the contents of the negotiations and discussions resulting in this letter agreement, shall be maintained as confidential by you and your agents and representatives and shall not be disclosed except as otherwise agreed to in writing by the Company.

	
 
	
9.
	
Scope of Disclosure Restrictions – Nothing in this letter agreement prohibits you from communicating with government agencies about possible violations of federal, state, or local laws or otherwise providing information to government agencies, filing a complaint with government agencies, or participating in government agency investigations or proceedings.  You are not required to notify the Company of any such communications; provided, however, that nothing herein authorizes the disclosure of information you obtained through a communication that was subject to the attorney-client privilege.  Further, notwithstanding your confidentiality and nondisclosure obligations, you are hereby advised as follows pursuant to the Defend Trade Secrets Act: “An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.”

	
 
	
10.
	
Cooperation – You agree that, to the extent permitted by law, you shall cooperate fully with the Company in the investigation, defense or prosecution of any claims or actions which already have been brought, are currently pending, or which may be brought in the future against the Company by a third party or by or on behalf of the Company against any third party, whether before a state or federal court, any state or federal government agency, or a mediator or arbitrator.  Your full cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with the Company’s counsel, at reasonable times and locations designated by the Company, to investigate or prepare the Company’s claims or defenses, to prepare for trial or discovery or an administrative hearing, mediation, arbitration or other proceeding and to act as a 

- 4 -

 

 

	
 
		
witness when requested by the Company.  You further agree that, to the extent permitted by law, you will notify the Company promptly in the event that you are served with a subpoena (other than a subpoena issued by a government agency), or in the event that you are asked to provide a third party (other than a government agency) with information concerning any actual or potential complaint or claim against the Company.

 

	
 
	
11.
	
Amendment and Waiver – This letter agreement shall be binding upon the parties and may not be modified in any manner, except by an instrument in writing of concurrent or subsequent date signed by duly authorized representatives of the parties hereto.  This letter agreement is binding upon and shall inure to the benefit of the parties and their respective agents, assigns, heirs, executors, successors and administrators.  No delay or omission by the Company in exercising any right under this letter agreement shall operate as a waiver of that or any other right.  A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar to or waiver of any right on any other occasion.

	
 
	
12.
	
Validity – Should any provision of this letter agreement be declared or be determined by any court of competent jurisdiction to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed not to be a part of this letter agreement.

	
 
	
13.
	
Nature of Agreement – You understand and agree that this letter agreement is a severance agreement and does not constitute an admission of liability or wrongdoing on the part of the Company.  

	
 
	
14.
	
Eligibility for Severance Program - Attached to this letter agreement as Attachment A is a description of (i) any class, unit or group of individuals covered by the program of severance benefits which the Company has offered to you, and any applicable time limits regarding such severance benefit program; and (ii) the job title and ages of all individuals eligible or selected for such severance benefit program, and the ages of all individuals in the same job classification or organizational unit who are not eligible or who were not selected for such severance benefit program.

 

	
 
	
15.
	
Acknowledgments – You acknowledge that you have been given at least forty-five (45) days to consider this letter agreement and Attachment A, and that the Company is hereby advising you to consult with an attorney of your own choosing prior to signing this letter agreement.  You understand that you may revoke this letter agreement for a period of seven (7) days after you sign this letter agreement by notifying me in writing, and the letter agreement shall not be effective or enforceable until the expiration of this seven (7) day revocation period.  You understand and agree that by entering into this letter agreement, you are waiving any and all rights or claims you might have under the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, and that you have received consideration beyond that to which you were previously entitled.

	
 
	
16.
	
Voluntary Assent – You affirm that no other promises or agreements of any kind have been made to or with you by any person or entity whatsoever to cause you to sign this letter agreement, and that you fully understand the meaning and intent of this letter agreement.  You further state and represent that you have carefully read this letter agreement, understand the contents herein, freely and voluntarily assent to all of the terms and conditions hereof, and sign your name of your own free act.

- 5 -

 

 

	
 
	
17.
	
Applicable Law – This letter agreement shall be interpreted and construed by the laws of the Commonwealth of Massachusetts, without regard to conflict of laws provisions.  You hereby irrevocably submit to and acknowledge and recognize the jurisdiction of the courts of the Commonwealth of Massachusetts, or if appropriate, a federal court located in the Commonwealth of Massachusetts (which courts, for purposes of this letter agreement, are the only courts of competent jurisdiction), over any suit, action or other proceeding arising out of, under or in connection with this letter agreement or the subject matter hereof.

	
 
	
18.
	
Entire Agreement – This letter agreement, including Attachment A, contains and constitutes the entire understanding and agreement between the parties hereto with respect to your severance benefits and the settlement of claims against the Company and cancels all previous oral and written negotiations, agreements, and commitments in connection therewith.  

	
 
	
19.
	
Tax Acknowledgement – In connection with the severance benefits provided to you pursuant to this letter agreement, the Company shall withhold and remit to the tax authorities the amounts required under applicable law, and you shall be responsible for all applicable taxes with respect to such severance benefits under applicable law.  You acknowledge that you are not relying upon the advice or representation of the Company with respect to the tax treatment of any of the severance benefits set forth in paragraph 1 of this letter agreement.

If you have any questions about the matters covered in this letter agreement, please call me at (617) 715-3591.  

Very truly yours,

By: __________________________________

	
 
	

	
Paul Fanning

	
 
	

	
Senior Vice President, Human Resources

I hereby agree to the terms and conditions set forth above.  I have been given at least forty-five (45) days to consider this letter agreement, and I have chosen to execute this on the date below.  I intend that this letter agreement will become a binding agreement between me and the Company if I do not revoke my acceptance in seven (7) days.

 

		
	
_____________________________

Guy Macdonald
	
_________________________

Date

To be returned in a timely manner as set forth on the first page of this letter agreement. 

 

- 6 -

 

		
	

	
Tetraphase Pharmaceuticals, Inc.

480 Arsenal Street, Suite 110

Watertown, MA 02472

 

 

ATTACHMENT A

 

OLDER WORKERS BENEFIT PROTECTION ACT

NOTICE TO EMPLOYEES

The Company has taken a strategic decision to concentrate it’s time, resources and capital on our marketed product Xerava.  Tetraphase believes the best opportunity for success is to restructure the organization with a complete focus on growing Xerava revenue.  As a result of this restructuring, your employment with the Company is being terminated and you have been selected to receive an offer of severance benefits in exchange for signing a release and waiver of claims.  Employees were selected for termination based on the Company’s decision to eliminate and/or restructure certain positions/roles and reduce the number of employees in others.  Employees were selected for termination based on necessity of position, future business needs and skill sets.  In connection with the severance program, you are being provided with information as to: (i) any class, unit or group of individuals terminated and covered by such program, any eligibility factors for such termination and, therefore, eligibility for such program, and any time limits applicable to such program; and (ii) the job title and ages of all individuals terminated and, therefore, eligible or selected for the program, and the job titles and ages of all individuals in the same job classification or organizational unit who are not being terminated and, therefore, are not eligible or selected for the program.

 

The Company determined that all employees in the classes, units or departments in the chart below would be eligible for the severance program.  All persons who are being terminated in connection with this restructuring have been selected for the program and their job titles and ages have been indicated in the chart below.  The job titles and ages of individuals who were not selected for the program are also indicated in the below chart.

 

Employees who were selected and are age forty and over shall have forty-five (45) days to consider the Company’s severance offer and may revoke their agreement to participate in the severance program within seven (7) days of their execution of such an agreement.  Employees who were selected and are under age forty shall have at least seven (7) days to consider the Company’s severance offer and do not have a right of revocation.

 

			
	
Class/Unit/

Department
	
Job Title and Ages

of Employees Selected
	
Job Title and Ages of

Employees Not Selected

	
CMC/Analytical

 

 

 

 

 
	
Associate Director, Analytical Chemistry (62)

Research Scientist II (54)

Scientist II, Analytical Chemistry (41)
	
Research Scientist II (52)

Scientist II, Analytical Chemistry (52)

Vice President, CMC (47)

 

 

1

 

			
	
Manufacturing
	
VP, Manufacturing (56)

Director, Chemical Development (43)

Scientist I, Chemical Development 

(32)

Director, CMC (50, 54)

Principal Scientist, CMC (46)

 
	
Associate Director, Sterile Manufacturing (30)

 

	
Preclinical R&D Management

 
	
Chief Scientific Officer (53)
	
 

	
Biology and Project Management
	
Project Manager I, CMC (30)

 
	
Director, Project Management, CMC (44)

Project Manager II, CMC (28)

Research Scientist I, Biology (32)

Research Scientist I, Pharmacology (34)

	
Medicinal Chemistry
	
Senior VP, Medicinal Chemistry (54)

Director, Chemistry (44)

 
	
 

	
Clinical
	
Associate Director, Data Sciences (35)

Clinical Trial Associate II (31)

Manager, Trial Master File (60)

Senior Clinical Data Manager (35)

Senior Clinical Project Manager (41)

 
	
Chief Medical Officer (47)

Senior Clinical Project Manager

(47)

	
Finance & Accounting
	
Senior Accountant, (29)

 

 
	
SVP, Finance, (54)

Senior Director, Controller (44)

Assistant Controller, (42)

Senior Manager, Accounting (52)

Manager, Accounting, (53)

Senior Accounts Payable Coordinator, (29)

Staff Accountant II, (26)

Senior Manager, Financial Planning & Analysis, (30)

 

 

	
HR and Operations
	
Senior Director, Human Resources, (43)

 
	
Operations Assistant, (24)

Buyer/Supply Chain Associate, (28)

HR/Corporate Communications Specialist, (28)

Systems Administrator, (45)

Senior Director, IT, (46)

Senior Director, Operations, (42)

SVP, Human Resources, (61)

 

- 2 -

 

 

			
	
Executive Staff and Program Management
	
Chief Executive Officer, (60)

Associate Director, Program Management, (32)

Executive Assistant, (57)

Executive Director, IR and Corp Comm, (47)
	
VP, Program & Alliance Management, (50)

Administrative Assistant, Commercial Ops, (33)

 

Note – Terminations to occur from June 12 through August 1.

- 3 -ttph-ex104_112.htm

Exhibit 10.4

CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT (the “Agreement”), made this __ of August, 2019 is entered into by Tetraphase Pharmaceuticals, Inc., a Delaware corporation with its principal place of business at 480 Arsenal Way, Watertown, MA 02462 (the “Company”), and Guy Macdonald (the “Consultant”).

INTRODUCTION

The Company desires to retain the services of the Consultant and the Consultant desires to perform certain services for the Company.  In consideration of the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties hereto, the parties agree as follows:

1.Services.  Effective August 1, 2019, the Consultant agrees to perform such consulting, advisory and related services to and for the Company as may be reasonably requested from time to time by the Company, including, but not limited to, the services specified on Schedule A to this Agreement.  The Consultant shall, at the reasonable request of the Company, perform such services at such locations as the Company may designate. The Consultant shall not subcontract or delegate any of its obligations hereunder to any third party.

2.Term.  This Agreement shall commence on the date hereof and shall continue until December 15, 2019 (such period, as it may be extended, being referred to as the “Consultation Period”), unless sooner terminated in accordance with the provisions of Section 4.

3.Compensation.

3.1Consulting Fees.  The consultant shall submit to the Company monthly statement, in a form satisfactory to the Company, of services performed for the Company in the previous month. The Company shall pay to the Consultant consulting fees of $500.00 per/hour of services actually performed and invoiced with 30 days after receipt of a monthly statement. 

3.2Reimbursement of Expenses.  The Company shall reimburse the Consultant for all reasonable and necessary expenses incurred or paid by the Consultant in connection with, or related to, the performance of his services under this Agreement.  The Consultant shall submit to the Company itemized monthly statements, in a form satisfactory to the Company, of such expenses incurred in the previous month.  The Company shall pay to the Consultant amounts shown on each such statement within 30 days after receipt thereof. 

3.3Acceleration of Restricted Stock Units.  On December 15, 2019, the Company shall accelerate  the vesting of  any and all then unvested restricted stock units (“RSUs”) and earned but unvested performance restricted stock units (“PRSUs”) held by the Consultant (and deliver to the Consultant one share of Common Stock for each RSU and PRSU that has become vested, subject to the sale of such Common Stock in accordance with Schedule A to the respective RSU Agreement(s) and PRSU Agreement(s) (Automatic Sales Instructions) 

 

entered into by the Consultant in connection with the execution of the RSU Agreements for such RSUs and the PRSU Agreements for such PRSUs; provided, that (1) the Consultant is serving as a consultant to the Company hereunder as of such date and (2) the Consultant has not revoked or breached that certain separation agreement entered between the Consultant and the Company (the “Separation Agreement”) .  Notwithstanding the foregoing, in the event the Company terminates the Consultation Period in accordance with the provisions of Section 4 prior to December 15, 2019 without cause and the Consultant has not revoked or breached the Separation Agreement, then on December 15, 2019, the Company shall accelerate  the vesting of  any and all then unvested RSUs and earned but unvested PRSUs held by the Consultant (and deliver to the Consultant one share of Common Stock for each RSU and each PRSU that has become vested, subject to the sale of such Common Stock in accordance with Schedule A to the RSU Agreement(s) and PRSU Agreement(s) (Automatic Sales Instructions) entered into by the Consultant in connection with the execution of the  RSU Agreements for such RSUs and the PRSU Agreements for such PRSUs.  

3.4No Other Benefits.  The Consultant shall not be entitled to any benefits, coverages or privileges, including, without limitation, social security, unemployment, medical or pension payments, made available to employees of the Company. 

4.Termination.  Either party may, without prejudice to any right or remedy it may have due to any failure of the other party to perform its obligations under this Agreement, terminate the Consultation Period upon 30 days’ prior written notice to the other party.  In the event of such termination, the Consultant shall be entitled to payment for services performed and expenses paid or incurred prior to the effective date of termination, subject to the limitation on reimbursement of expenses set forth in Section 3.2.  Such payments shall constitute full settlement of any and all claims of Consultant related to the services performed hereunder.  Notwithstanding the foregoing, the Company may terminate the Consultation Period, effective immediately upon receipt of written notice, if the Consultant breaches or threatens to breach any provision of Section 6.

5.Cooperation.  The Consultant shall use his best efforts in the performance of his obligations under this Agreement.  The Company shall provide such access to its information and property as may be reasonably required in order to permit the Consultant to perform his obligations hereunder.  The Consultant shall cooperate with the Company’s personnel, shall not interfere with the conduct of the Company’s business and shall observe all rules, regulations and security requirements of the Company concerning the safety of persons and property.

6.Inventions and Proprietary Information.

6.1Inventions.

(a)All inventions, discoveries, computer programs, data, technology, designs, innovations and improvements (whether or not patentable and whether or not copyrightable) which are made, conceived, reduced to practice, created, written, designed or developed by the Consultant, solely or jointly with others and whether during normal business hours or otherwise, (i) during the Consultation Period if related to the business of the Company or (ii) after the Consultation Period if resulting or directly derived from Proprietary Information 

2

 

(as defined below) (collectively, “Inventions”), shall be the sole property of the Company.  The Consultant hereby assigns to the Company all Inventions and any and all related patents, copyrights, trademarks, trade names, and other industrial and intellectual property rights and applications therefor, in the United States and elsewhere and appoints any officer of the Company as his duly authorized attorney to execute, file, prosecute and protect the same before any government agency, court or authority.  Upon the request of the Company and at the Company’s expense, the Consultant shall execute such further assignments, documents and other instruments as may be necessary or desirable to fully and completely assign all Inventions to the Company and to assist the Company in applying for, obtaining and enforcing patents or copyrights or other rights in the United States and in any foreign country with respect to any Invention.  The Consultant also hereby waives all claims to moral rights in any Inventions.

(b)The Consultant shall promptly disclose to the Company all Inventions and will maintain adequate and current written records (in the form of notes, sketches, drawings and as may be specified by the Company) to document the conception and/or first actual reduction to practice of any Invention.  Such written records shall be available to and remain the sole property of the Company at all times.

(c)The Consultant hereby waives all claims to moral rights in any Inventions to the extent that the Consultant can do so under applicable law.  To the extent such moral rights cannot be assigned under applicable law and to the extent the following is allowed by the laws in the various countries where moral rights exist, the Consultant hereby waives irrevocably and unconditionally in favor of Company such moral rights and consents to any action of Company that would violate such moral rights in the absence of such consent.  the Consultant agrees to confirm any such waivers and consents from time to time as requested by Company.

6.2Proprietary Information.

(a)The Consultant acknowledges that his relationship with the Company is one of high trust and confidence and that in the course of his service to the Company he will have access to and contact with Proprietary Information.  The Consultant agrees that he will not, during the Consultation Period or at any time thereafter, disclose to others, or use for his benefit or the benefit of others, any Proprietary Information or Invention.

(b)For purposes of this Agreement, Proprietary Information shall mean, by way of illustration and not limitation, all information (whether or not patentable and whether or not copyrightable) owned, possessed or used by the Company, including, without limitation, any Invention, formula, vendor information, customer information, apparatus, equipment, trade secret, process, research, report, technical data, know-how, computer program, software, software documentation, hardware design, technology, marketing or business plan, forecast, unpublished financial statement, budget, license, price, cost and employee list that is communicated to, learned of, developed or otherwise acquired by the Consultant in the course of his service as a consultant to the Company.

(c)The Consultant’s obligations under this Section 6.2 shall not apply to any information that (i) is or becomes known to the general public under circumstances 

3

 

involving no breach by the Consultant or others of the terms of this Section 6.2, (ii) is generally disclosed to third parties by the Company without restriction on such third parties, or (iii) is approved for release by written authorization of an authorized representative of the Company.

(d)Upon termination of this Agreement or at any other time upon request by the Company, the Consultant shall promptly deliver to the Company all records, files, memoranda, notes, designs, data, reports, price lists, customer lists, drawings, plans, computer programs, software, software documentation, sketches, laboratory and research notebooks and other documents (and all copies or reproductions of such materials) relating to the business of the Company.

(e)The Consultant represents that his retention as a consultant with the Company and his performance under this Agreement does not, and shall not, breach any agreement that obligates him to keep in confidence any trade secrets or confidential or proprietary information of his or of any other party or to refrain from competing, directly or indirectly, with the business of any other party.  The Consultant shall not disclose to the Company any trade secrets or confidential or proprietary information of any other party.

(f)The Consultant acknowledges that the Company from time to time may have agreements with other persons or with the United States Government, or agencies thereof, that impose obligations or restrictions on the Company regarding inventions made during the course of work under such agreements or regarding the confidential nature of such work.  The Consultant agrees to be bound by all such obligations and restrictions that are known to him and to take all action necessary to discharge the obligations of the Company under such agreements.

6.3Remedies.  The Consultant acknowledges that any breach of the provisions of this Section 6 shall result in serious and irreparable injury to the Company for which the Company cannot be adequately compensated by monetary damages alone.  The Consultant agrees, therefore, that, in addition to any other remedy it may have, the Company shall be entitled to enforce the specific performance of this Agreement by the Consultant and to seek both temporary and permanent injunctive relief (to the extent permitted by law) without the necessity of proving actual damages.

7.Independent Contractor Status.  The Consultant shall perform all services under this Agreement as an “independent contractor” and not as an employee of the Company.  

8.Insider Trading.  The parties acknowledge that the United States securities laws generally prohibit any person who has received from an issuer material non-public information from purchasing or selling securities of such issuer on the basis of such information or from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities. 

9.Notices.  All notices required or permitted under this Agreement shall be in writing and shall be deemed effective upon personal delivery or upon deposit in the United States Post Office, by registered or certified mail, postage prepaid, addressed to the other party at 

4

 

the address shown above, or at such other address or addresses as either party shall designate to the other in accordance with this Section 9.

10.Pronouns.  Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns and pronouns shall include the plural, and vice versa.

11.Entire Agreement.  This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement.

12.Amendment.  This Agreement may be amended or modified only by a written instrument executed by both the Company and the Consultant.

13.Governing Law.  This Agreement shall be construed, interpreted and enforced in accordance with the laws of the Commonwealth of Massachusetts.

14.Successors and Assigns.  This Agreement shall be binding upon, and inure to the benefit of, both parties and their respective successors and assigns, including any corporation with which, or into which, the Company may be merged or which may succeed to its assets or business, provided, however, that the obligations of the Consultant are personal and shall not be assigned by him.

 

15.Miscellaneous.

15.1No delay or omission by the Company in exercising any right under this Agreement shall operate as a waiver of that or any other right.  A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion.

15.2The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any section of this Agreement.

15.3In the event that any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

 

 

 

 

 

5

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year set forth above.

TETRAPHASE PHARMACEUTICALS, INC.

By:____________________________

Title:___________________________

 

CONSULTANT

_______________________________
Guy Macdonald

6

 

SCHEDULE A

Services

Consulting services to, including but not limited to, the services set forth below and any other services mutually agreed to by the parties; provided that such services shall not exceed, on average, more than 8 hours per week or 20 hours in any given calendar month.  

 

	
 
	
1.
	
Provide mentoring support to new CEO

	
 
	
2.
	
Provide expert advice on business development and other activities

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00298-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00298-of-00352.parquet"}]]