Document:

omed-ex109e_116.htm

 

Exhibit 10.9(E)

 

 

ONCOMED LETTERHEAD

 

 

 

December 5, 2018

 

Austin Gurney, Ph.D.

### ###### ##

### #########, ## #####

 

Dear Austin:

 

This letter confirms the offer made to you by OncoMed Pharmaceuticals, Inc. (the “Company”) in conjunction with your continued employment and separation from the Company as of December 21, 2018, or such earlier date as either you or the Company terminates your employment (the “Separation Date”).  If you sign and return this letter to us by December 12, 2018, it shall become a binding agreement between you and the Company (the “Agreement”), and you will become eligible for the payments and benefits of Paragraphs 2, 3 and 4 of this Agreement.  If you do not timely sign and return this Agreement, your employment shall terminate effective December 13, 2018, and you shall receive only those payments and benefits set forth in Paragraph 1.

	
1.
	
Accrued Wages and Expenses.  You shall receive, regardless of whether you sign this Agreement, the following payments and benefits.  All payments made pursuant to this Paragraph 1 shall be reduced by the amount of applicable taxes and other authorized withholding.

	
 
	
a)
	
On or before the Separation Date, you will receive payment in an amount equal to all wages owed to you through the Separation Date, including accrued, unused paid time off (“PTO”).  

	
 
	
b)
	
Please promptly submit all unreimbursed business expenses incurred through the Separation Date to Accounts Payable at AP@oncomed.com, so that the Company may reimburse you.

2.Retention Period. 

	
 
	
a)
	
During the period beginning December 5, 2018 and ending on the Separation Date (the “Retention Period”), you will continue to be an employee of the Company and to receive your base salary or wages at the 

800 Chesapeake Drive   Redwood City, CA 94063   Phone: 650-995-8200   Fax: 650-298-8600   www.oncomed.com

 

	
 
		
level in effect as of December 5, 2018, PTO accrual, and all your other Company benefits that are in effect as of December 5, 2018.

	
 
	
b)
	
During the Retention Period, your employment will be terminable on an at-will basis, without Cause (as defined herein) or notice, by either you or the Company, subject to the terms of this Paragraph 2.  

	
 
	
i)
	
In the event that your employment is terminated during the Retention Period by the Company other than for Cause, you will receive all salary or wages owed to you as of the Separation Date and, provided you execute and allow to become effective the General Release of Claims (the “General Release”) attached as Exhibit A hereto no earlier than the final date of your employment, the Separation Benefits set forth in Paragraph 4, below.

	
 
	
ii)
	
In the event that your employment is terminated by the Company for Cause during the Retention Period, you will receive all salary or wages owed to you as of the Separation Date, but will not be eligible for the Separation Benefits set forth in Paragraph 4, below.  “Cause” for purposes of this Agreement shall mean and refer to your failure or refusal to reasonably discharge your employment duties; your violation of the PIIA (defined in Paragraph 7); or your engaging in any act of commercial bribery, any criminal act, or your perpetration of fraud.

3.Retention Bonus.  Unless you terminate your employment prior to December 21, 2018, you will receive a retention bonus of $79,000.00 as set forth in the Retention Bonus Agreement between you and the Company, dated January 25, 2018, in accordance with the terms of such agreement and the timing therein, if you execute and allow to become effective the General Release no earlier than the final date of your employment, or if you otherwise comply with all of your obligations thereunder.

	
4.
	
Separation Benefits.  In consideration for your signing this Agreement, you will receive (a) unless you terminate your employment prior to December 21, 2018, an amount equal to $75,316.00 representing your pro-rated annual discretionary bonus for the 2018 fiscal year, less applicable taxes and other authorized withholding, and (b) the benefits set forth in Paragraph 4 of the Amended and Restated Change in Control and Severance Agreement between you and the Company, dated October 14, 2015 (in lieu of the benefits set forth in Paragraph 3 of such agreement), in accordance with the terms of such agreement and the timing therein (the “Separation Benefits”), in each case provided that you execute and allow to become effective the General Release no earlier than the final date of your employment.

 

 

	
5.
	
Benefits Coverage.  If you are enrolled in Company-sponsored healthcare coverage, such coverage will terminate as of December 31, 2018.  Thereafter, provided that you are eligible, you may continue healthcare coverage pursuant to COBRA at your own expense, except as provided in Paragraph 4 of this Agreement.  All other Company-sponsored benefits will terminate effective as of the Separation Date.

	
6.
	
Return of Company Property.  On or before the Separation Date, you shall return to the Company all Company documents, files and property in your possession, including but not limited to all keys, computer equipment, credit cards, original and copies of documents or data, and all office equipment.  Your receipt of the benefits of Paragraphs 2 and 4 of this Agreement is contingent upon your compliance with this Paragraph 6.

	
7.
	
Maintaining Confidential Information.  You will not disclose any confidential information you acquired while an employee of the Company to any other person or use such information in any manner that is detrimental to the Company’s interests.  By your signature, you confirm your continuing obligations toward the Company under the Proprietary Information and Inventions Assignment Agreement (“PIIA”) signed by you in conjunction with your employment. Notwithstanding the foregoing, or anything contained in the PIIA, you acknowledge that you will not be held criminally or civilly liable for (a) the disclosure of confidential or proprietary information that is made in confidence to a government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (b) the disclosure of confidential or proprietary information that is made in a complaint or other document filed in a lawsuit or other proceeding under seal or pursuant to court order.

	
8.
	
Cooperation With the Company.  You will cooperate fully with the Company in its defense of or other participation in any administrative, judicial or other proceeding arising from any investigation, charge, complaint or other action which has been or may be filed.

	
9.
	
General Release of the Company.  You understand that by agreeing to this release you are agreeing not to sue, or otherwise file any claim against, the Company or any of its directors, officers, managers, employees or agents for any reason whatsoever based on anything that has occurred as of the date you sign this agreement.

	
 
	
a)
	
On behalf of yourself and your heirs and assigns, you hereby release and forever discharge the “Releasees” hereunder, consisting of the Company, and each of its directors, officers, managers, employees, agents (including but not limited to Execustaff HR, Inc.) and insurers, and all persons acting by, 
	
 

 

 

	
 
		
through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which you now have or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof, including, without limiting the generality of the foregoing, any Claims arising out of, based upon, or relating to your recruitment, hire, employment, remuneration or separation from employment by the Releasees, including any Claims arising under Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1866; the Equal Pay Act; the Americans with Disabilities Act; the Fair Labor Standards Act; the Employee Retirement Income Security Act; the Family Medical Leave Act; the Worker Adjustment and Retraining Notification Act; the California Fair Employment and Housing Act; the California Family Rights Act; the California Reductions, Mass Terminations and Layoffs  law; the California Labor Code; the California Occupational Safety and Health Act; Section 17200 of the California Business and Professions Code; Claims arising under any other local, state or federal law governing employment; Claims for breach of contract; Claims arising in tort, including, without limitation, Claims of wrongful dismissal or discharge, discrimination, harassment, retaliation, fraud, misrepresentation, defamation, libel, infliction of emotional distress, violation of public policy, and/or breach of the implied covenant of good faith and fair dealing; and Claims for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees.
	
 

	
 
	
b)
	
Notwithstanding the generality of the foregoing, you do not release (i) your rights under this agreement; (ii) Claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable state law; (iii) Claims to continued participation in certain of the Company's group benefit plans pursuant to the terms and conditions of the federal law known as COBRA or applicable state law; (iv) your  right to bring to the attention of the Equal Employment Opportunity Commission or California Department of Fair Employment and Housing claims of 
	
 

 

 

	
 
		
discrimination, harassment, retaliation or interference with leave rights; provided, however, that you do release your right to secure any damages for all such alleged treatment; (v) your right to communicate directly with, cooperate with, or provide information to, any federal, state or local government regulator; and (vi) any other Claims that cannot be released as a matter of law.
	
 

	
 
	
c)
	
YOU ACKNOWLEDGE THAT YOU ARE FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:
	
 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

BEING AWARE OF SAID CODE SECTION, YOU HEREBY EXPRESSLY WAIVE ANY RIGHTS YOU MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

8.Severability.  The provisions of this agreement are severable.  If any provision is held to be invalid or unenforceable, it shall not affect the validity or enforceability of any other provision.

9.Voluntary and Knowing Agreement.  You represent that you have thoroughly read and considered all aspects of this agreement, that you understand all its provisions and that you are voluntarily entering into said agreement.

10.Entire Agreement; Amendment.  This agreement sets forth the entire agreement between you and the Company and supersedes any and all prior oral or written agreements or understanding between you and the Company concerning the subject matter.  This agreement may not be altered, amended or modified, except by a further written document signed by you and the Company.

 

 

 

 

If the above accurately reflects your understanding, please date and sign the enclosed copy of this letter in the places indicated below and return that copy to Cindy Hernandez, HR Manager at Execustaff HR, Inc., at chernandez@execustaffhr.com no later than December 12, 2018.

 

Respectfully,

 

	
 
	
/s/ John Lewicki
	

John Lewicki, Ph.D.

President and CEO

 

 

Accepted and agreed:

 

 

/s/ Austin Gurney12/05/2018

Austin GurneyDATE

 

 

 

 

EXHIBIT A

GENERAL RELEASE OF CLAIMS

This General Release of Claims (“Release”) is entered into as of this ___ day of _________________, 201__, between you, and OncoMed Pharmaceuticals, Inc. (the “Company”) (collectively referred to herein as the “Parties”), effective on the 8th day after your signature (the “Effective Date”), unless you revoke your acceptance as provided in Paragraph 1(d), below.

1.General Release of the Company.  You understand that by agreeing to this release you are agreeing not to sue, or otherwise file any claim against, the Company or any of its employees or other agents for any reason whatsoever based on anything that has occurred as of the date you sign this agreement.

	
 
	
a.
	
On behalf of yourself and your heirs and assigns, you hereby release and forever discharge the “Releasees” hereunder, consisting of the Company, and each of its directors, officers, managers, employees, agents (including but not limited to Execustaff HR, Inc.) and insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which you now have or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof, including, without limiting the generality of the foregoing, any Claims arising out of, based upon, or relating to your recruitment, hire, employment, remuneration or separation from employment by the Releasees, including any Claims arising under Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1866; the Age Discrimination in Employment Act (“ADEA”); the Equal Pay Act; the Americans with Disabilities Act; the Fair Labor Standards Act; the Employee Retirement Income Security Act; the Family Medical Leave Act; the Worker Adjustment and Retraining Notification Act; the California Fair Employment and Housing Act; the California Family Rights Act; the California Reductions, Mass Terminations and Layoffs  law; the California Labor Code; the California Occupational Safety and Health Act; Section 17200 of the California Business and Professions Code; Claims arising under any other local, state or federal law governing employment; Claims for breach of contract; Claims arising in tort, including, without limitation, Claims of wrongful dismissal or discharge, discrimination, harassment, retaliation, fraud, misrepresentation, defamation, libel, infliction of emotional distress, violation of public policy, and/or breach of the implied covenant of good faith and fair dealing; and Claims for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees.

	
 
	
b.
	
Notwithstanding the generality of the foregoing, you do not release (i) your rights under this agreement; (ii) Claims for unemployment compensation or any state 

A-1

 

	
 
		
disability insurance benefits pursuant to the terms of applicable state law; (iii) Claims to continued participation in certain of the Company's group benefit plans pursuant to the terms and conditions of the federal law known as COBRA or applicable state law; (iv) your  right to bring to the attention of the Equal Employment Opportunity Commission or California Department of Fair Employment and Housing claims of discrimination, harassment, retaliation or interference with leave rights; provided, however, that you do release your right to secure any damages for all such alleged treatment; (v) your right to communicate directly with, cooperate with, or provide information to, any federal, state or local government regulator, including; and (vi) any other Claims that cannot be released as a matter of law.

	
 
	
c.
	
YOU ACKNOWLEDGE THAT YOU ARE FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

BEING AWARE OF SAID CODE SECTION, YOU HEREBY EXPRESSLY WAIVE ANY RIGHTS YOU MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

	
 
	
d.
	
In accordance with the Older Workers Benefit Protection Act of 1990, you should be aware of the following:

	
 
	
i)
	
You have the right to consult with an attorney before signing this agreement;

	
 
	
ii)
	
You have at least forty-five (45) days, from December 5, 2018 (through January 19, 2019), to consider this agreement;

	
 
	
iii)
	
You have seven (7) days after signing this agreement to revoke this agreement, and this agreement will not be effective, and you will not receive any of the separation benefits, until that revocation period has expired; and

	
 
	
iv)
	
The job titles and ages of all individuals eligible or selected for the separation package and the ages of all individuals in the same job classification or organizational unit who are not eligible for the separation package are listed on the form attached as Appendix 1.

If you wish to revoke your acceptance of this Agreement, you must deliver written notice stating your intent to revoke by email to Cindy Hernandez, HR Manager at 

A-2

 

Execustaff HR, Inc., at chernandez@execustaffhr.com, on or before 5:00 p.m. Pacific Time on the seventh (7th) day after the date on which you sign this Agreement.  

2.Choice of Law.  This Release shall in all respects be governed and construed in accordance with the laws of the State of California, including all matters of construction, validity and performance, without regard to conflicts of law principles.

 

3.Integration Clause.  This Release, together with the letter agreement dated December 5, 2018, contains our entire agreement with regard to the separation of your employment, and supersedes and replace any prior agreements as to those matters, whether oral or written. This Release may not be changed or modified, in whole or in part, except by an instrument in writing signed by you and the Chief Executive Officer of the Company or his/her successor.

 

4.Execution in Counterparts.  This Release may be executed in counterparts with the same force and effectiveness as though executed in a single document.  Facsimile and pdf signatures shall have the same force and effectiveness as original signatures.

 

The Parties have carefully read this Release in its entirety; fully understand and agree to its terms and provisions; and intend and agree that it is final and binding on all Parties.

 

IN WITNESS WHEREOF, and intending to be legally bound, the Parties have executed the foregoing on the dates shown below.

 

 

EMPLOYEEONCOMED PHARMACEUTICALS, INC.

 

 

NAMEBy:

Title:

 

 

DateDate

 

A-3

 

APPENDIX A

 

DISCLOSURE CONCERNING SEVERANCE OFFER

 

CLASS, UNIT OR GROUP COVERED BY SEVERANCE OFFER

 

All employees of OncoMed Pharmaceuticals, Inc. (the “Company”) who were included in the layoff announced internally to the Company’s employees on December 5, 2018 are covered by this severance offer.

 

ELIGIBILITY FACTORS FOR THE PROGRAM

 

Employees who are covered by the severance offer are eligible to receive the benefits of the offer if they:

 

	
 
	
•
	
Are provided with a Release Agreement (the “Agreement”) to which this Disclosure is Appendix A;

 

	
 
	
•
	
Timely sign and deliver the Agreement to the Company; 

 

	
 
	
•
	
Do not revoke the Agreement, as permitted by the Agreement; and

 

	
 
	
•
	
Comply with the terms and conditions of the Agreement. 

 

TIME LIMITS APPLICABLE TO THE PROGRAM

 

The following time limits apply to the program:

 

	
 
	
•
	
Employees age 40 and over must sign and deliver the Agreement no later than the forty-fifth (45th) day after that employee’s receipt of the Agreement.

 

	
 
	
•
	
Employees age 40 and over may revoke their acceptance of the Agreement for a period of seven (7) days after signing it.

 

JOB TITLES AND AGES OF EMPLOYEES SELECTED FOR AND NOT SELECTED FOR THE PROGRAM:

 

				
	
Job Title
	
Department
	
Age
	
Selected or Not Selected

	
Senior Director
	
Bioinfomatics
	
55
	
Selected

	
Accounting Manager
	
Finance
	
60
	
Selected

	
Senior Patent Counsel
	
Legal
	
47
	
Selected

	
Long Term Intern
	
Manufacturing
	
28
	
Selected

	
Director
	
Manufacturing
	
43
	
Selected

	
Scientist
	
Manufacturing
	
44
	
Selected

	
Associate Director
	
Manufacturing
	
53
	
Selected

A-4

 

				
	
Senior Scientist
	
Manufacturing
	
38
	
Selected

	
Associate Director
	
Manufacturing
	
58
	
Selected

	
Senior Scientist
	
Manufacturing
	
36
	
Selected

	
Associate Director
	
Research
	
59
	
Selected

	
Senior Scientist
	
Research
	
38
	
Selected

	
Associate Scientist
	
Research
	
37
	
Selected

	
Senior Vice President, Chief Scientific Officer
	
Research
	
55
	
Selected

	
Scientist
	
Research
	
55
	
Selected

	
Scientist
	
Research
	
61
	
Selected

	
Senior Scientist
	
Research
	
33
	
Selected

	
Associate Director
	
Research
	
42
	
Selected

	
Senior Director
	
Research
	
55
	
Selected

	
Scientist
	
Research
	
33
	
Selected

	
Associate Director
	
Research
	
58
	
Selected

	
Associate Scientist
	
Research
	
51
	
Selected

	
Director
	
TransMed
	
49
	
Selected

	
Senior Scientist
	
TransMed
	
37
	
Selected

	
Associate Director
	
TransMed
	
43
	
Selected

	
Senior Director
	
TransMed
	
47
	
Selected

	
Associate Director
	
TransMed
	
47
	
Selected

	
Research Associate
	
TransMed
	
27
	
Selected

	
Associate Director
	
TransMed
	
44
	
Selected

	
Senior Vice President
	
TransMed
	
52
	
Selected

	
Scientist
	
TransMed
	
38
	
Selected

	
Associate Director
	
TransMed
	
48
	
Selected

	
Animal Care Technician
	
Vivarium
	
27
	
Not Selected

	
Research Associate
	
Vivarium
	
55
	
Selected

	
CEO & President
	
Administration
	
67
	
Not Selected

	
Executive Assistant
	
Administration
	
61
	
Not Selected

	
IT Network Administrator
	
Bioinfomatics
	
58
	
Not Selected

	
Vice President
	
Clinical
	
41
	
Not Selected

	
Director
	
Clinical
	
51
	
Not Selected

	
Senior Vice President
	
Clinical
	
60
	
Not Selected

A-5

 

				
	
Facility Manager
	
Facilities
	
40
	
Not Selected

	
Senior Accountant
	
Finance
	
50
	
Not Selected

	
Associate Director
	
Finance
	
42
	
Not Selected

	
Vice President
	
Finance
	
59
	
Not Selected

	
Senior Corporate Counsel
	
Legal
	
33
	
Not Selected

	
Senior Vice President, General Counsel
	
Legal
	
49
	
Not Selected

	
Senior Manager
	
Manufacturing
	
43
	
Not Selected

	
Executive Director
	
Manufacturing
	
48
	
Not Selected

	
Regulatory Affairs Manager
	
Regulatory
	
35
	
Not Selected

	
Executive Director
	
Regulatory
	
49
	
Not Selected

	
Senior Vice President
	
Regulatory
	
56
	
Not Selected

	
Long Term Intern
	
Research
	
21
	
Not Selected

	
Short Term Intern
	
TransMed
	
23
	
Not Selected

	
Senior Scientist
	
TransMed
	
34
	
Not Selected

	
Associate Director
	
Vivarium
	
46
	
Not Selected

 

 

A-6omed-ex1017_79.htm

 

 

Exhibit 10.17

 

 

ONCOMED LETTERHEAD

 

October 17, 2018

John Lewicki

### ####### ###

### #####, ## #####

 

Re:Amended and Restated Change in Control and Severance Agreement

 

Dear John:

You and OncoMed Pharmaceuticals, Inc. (the “Company”) are parties to an Amended and Restated Change in Control and Severance Agreement dated October 14, 2015 (the “Change in Control Agreement”), which sets forth, among other things, the terms and conditions of certain severance benefits payable to you in the event of a qualifying termination of your employment.  This letter (this “Agreement”) amends and restates the Change in Control Agreement to provide you with additional benefits in the event of certain terminations of your employment.  This Agreement supersedes the Change in Control Agreement and any other agreement or policy to which the Company is a party with respect to the cessation of your employment with the Company.  

1.Definitions.  For purposes of the Agreement, the following terms shall have their respective meanings set forth below:

 

(a)“Cause” shall mean any of the following:  (i) your intentional unauthorized use or disclosure of the Company’s confidential information or trade secrets, which use or disclosure causes material harm to the Company, (ii) your material breach of any agreement between you and the Company, (iii) your material failure to comply with the Company’s written policies or rules, (iv) your conviction of, or plea of “guilty” or “no contest” to, a felony under the laws of the United States or any state thereof, or (v) your gross negligence or willful misconduct in the performance of duties to the Company that is not cured within thirty (30) days after you are provided with written notice thereof. 

 

(b)“Change in Control” shall mean any of the following types of transactions:    (i) the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of more than fifty percent (50%) of the voting stock of the Company; (ii) a merger or consolidation in which the Company is a party; or (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company (each, a “Transaction”), wherein the stockholders of the Company immediately before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as their ownership of shares of the Company’s voting stock immediately before the Transaction, direct or 

 

 

indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the Company or the successor entity, or, in the case of a Transaction described in (iii), the corporation or other entity to which the assets of the Company were transferred, as the case may be.

  

Notwithstanding the foregoing, a transaction shall not constitute a Change in Control if:  (i) its sole purpose is to change the state of the Company’s incorporation; (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction; (iii) it constitutes the Company’s initial public offering of its securities; or (iv) it is a transaction effected primarily for the purpose of financing the Company with cash (as determined by the Board in its discretion).

 

(c)“Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(d)“Covered Termination” shall mean either (i) an involuntary termination of your employment by the Company other than for Cause, or (ii) your voluntary termination of employment with the Company for Good Reason, provided that the termination constitutes a Separation from Service.

 

(e)“Good Reason” shall mean your resignation due to any of the following events which occurs without your written consent, provided that the requirements regarding advance notice and an opportunity to cure set forth below are satisfied:  (i) a material diminution of your title, authority, responsibilities, duties, base pay or bonus, (ii) a material change in the geographic location at which you must perform services for the Company of at least 35 miles, (iii) a material reduction in the right to participate in the benefit programs in which you were previously participating, (iv) a material breach by the Company of an employment agreement between you and the Company or (v) a failure of the Company to have a successor assume its obligations under an employment agreement between you and the Company (each of (i), (ii), (iii), (iv) and (v) a “Good Reason Condition”).  In order for you to resign for Good Reason, you must provide written notice to the Company of the existence of the Good Reason Condition within 90 days of the initial existence of such Good Reason Condition.  Upon receipt of such notice of the Good Reason Condition, the Company will be provided with a period of 30 days during which it may remedy the Good Reason Condition and not be required to provide for the payments and benefits described herein as a result of such proposed resignation due to the Good Reason Condition specified in the notice.  If the Good Reason Condition is not remedied within the period specified in the preceding sentence, you may resign based on the Good Reason Condition specified in the notice of termination effective no later than 180 days following the initial existence of such Good Reason Condition.

   

(f)“Separation from Service” shall mean your termination of employment or service which constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h).

 

2.Acceleration of Vesting Upon a Change in Control.   In the event of a Change in Control which occurs prior to your termination of employment with the Company, you shall become vested (immediately prior to the Change in Control) with respect to twenty-five percent 

 

 

(25%) of the unvested portion of any options to purchase the Company’s common stock that you then hold and/or the immediate lapsing of restrictions with respect to twenty-five percent (25%) of any Company restricted stock or other equity-based awards that you then hold.  Such options, restricted stock and other equity-based awards shall then continue to vest, up to 100%, in accordance with the vesting schedule applicable to such award prior to the Change in Control without regard to the acceleration provided by the preceding sentence.

 

3.Termination Prior to a Change in Control or More than 18 Months Following a Change in Control.  If there is a Covered Termination which occurs prior to a Change in Control or more than eighteen (18) months following a Change in Control, and you execute and do not revoke a Release as described in Section 5 below, then you shall be entitled to:

 

(a)severance payments of twelve (12) months of your then-current annual base salary (commencing as of the termination date), which payments shall be paid in accordance with the Company’s normal payroll procedures, except that any payments that would otherwise have been made before the first normal payroll payment date falling on or after the date on which the Release becomes irrevocable (the “First Payment Date”) shall be made on the First Payment Date;

 

(b)an amount equal to twelve (12) months of your then-current target annual bonus for the fiscal year during which the Covered Termination occurs, which payment shall be paid in cash in a lump sum as soon as practicable following the First Payment Date; and 

 

(c)if you elect to receive continued healthcare coverage, including group medical, dental and vision plan coverage, pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company shall directly pay, or reimburse you for, the premium for you and your covered dependents through the earlier of (i) the twelve (12) month anniversary of the date of your termination of employment and (ii) the date you and your covered dependents, if any, become eligible for healthcare coverage under another employer’s plan(s).  Notwithstanding the foregoing, (i) if any plan pursuant to which such benefits are provided is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Section 409A of the Code under Treasury Regulation Section 1.409A-1(a)(5), or (ii) the Company is otherwise unable to continue to cover you under its group health plans without penalty under applicable law (including without limitation, Section 2716 of the Public Health Service Act), then, in either case, an amount equal to each remaining Company subsidy shall thereafter be paid to you in substantially equal monthly installments. After the Company ceases to pay premiums pursuant to this subsection (c), you may, if eligible, elect to continue healthcare coverage at your expense in accordance with the provisions of COBRA.

 

4.Termination Within 18 Months After a Change in Control.  If there is a Covered Termination which occurs within eighteen (18) months after a Change in Control, and you execute and do not revoke a Release as described in Section 5 below, then the Company shall provide you with the following benefits:  

 

 

 

(a)severance payments of twenty-four (24) months of your then-current annual base salary (commencing as of the termination date), which payments shall be paid in accordance with the Company’s normal payroll procedures, except that any payments that would otherwise have been made before the First Payment Date shall be made on the First Payment Date;

 

(b)an amount equal to twenty-four (24) months of your then-current target annual bonus for the fiscal year during which the Covered Termination occurs, which shall be paid in cash in a lump sum as soon as practicable following the First Payment Date;

 

(c)if you elect to receive continued healthcare coverage, including group medical, dental and vision plan coverage, pursuant to COBRA, the Company shall directly pay, or reimburse you for, the premium for you and your covered dependents through the earlier of (i) the twenty-four (24) month anniversary of the date of your termination of employment and (ii) the date you and your covered dependents, if any, become eligible for healthcare coverage under another employer’s plan(s).  Notwithstanding the foregoing, (i) if any plan pursuant to which such benefits are provided is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Section 409A of the Code under Treasury Regulation Section 1.409A-1(a)(5), or (ii) the Company is otherwise unable to continue to cover you under its group health plans without penalty under applicable law (including without limitation, Section 2716 of the Public Health Service Act), then, in either case, an amount equal to each remaining Company subsidy shall thereafter be paid to you in substantially equal monthly installments. After the Company ceases to pay premiums pursuant to this subsection (c), you may, if eligible, elect to continue healthcare coverage at your expense in accordance with the provisions of COBRA. 

 

(d)immediate vesting of all of the unvested shares subject to your outstanding options to purchase the Company’s common stock and the immediate lapsing of any restrictions on any Company restricted stock or other equity-based awards that you hold as of the date of such Covered Termination (the acceleration of vesting of stock options and restricted stock described in this section shall be effective as of the date of the Covered Termination).

  

5.Release.  As a condition to your receipt of any benefits described in Section 3 or Section 4, you will be required to execute a release of all claims arising out of your employment with the Company or the termination thereof, in a form reasonably acceptable to the Company (the “Release”) within fifty (50) days following your termination date and not revoke such Release within any period permitted under applicable law.  Such Release shall specifically relate to all of your rights and claims in existence at the time of such execution but shall exclude any continuing obligations the Company may have to you following the date of termination under this Agreement or any other agreement providing for obligations to survive your termination of employment.

 

6.Section 409A.  Notwithstanding any provision to the contrary in this Agreement, if you are deemed at the time of your Separation from Service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of any portion of the benefits to which you are entitled under this Agreement is required in order to 

 

 

avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of your benefits shall not be provided to you prior to the earlier of (a) the expiration of the six-month period measured from the date of your Separation from Service or (b) the date of your death.  Upon the expiration of the applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Section 6 shall be paid in a lump sum to you, and any remaining payments due under the Agreement shall be paid as otherwise provided herein.  For purposes of Section 409A of the Code (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), your right to receive the installment payments payable pursuant to Section 3 or Section 4 (the “Installment Payments”) shall be treated as a right to receive a series of separate payments and, accordingly, each Installment Payment shall at all times be considered a separate and distinct payment. 

 

7.Withholding.  Any amounts payable pursuant to this Agreement shall be subject to any federal, state, local, or other income or employment taxes that the Company is required to withhold pursuant to any law or government regulation or ruling.

 

8.Binding Agreement.

  

(a)The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  Unless expressly provided otherwise, “Company” as used herein shall mean the Company as defined in this Agreement and any successor to its business and/or assets.

 

(b)This Agreement shall inure to the benefit of and be enforceable by you and your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If you should die while any amount would still be payable to you hereunder had you continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to your devisee, legatee or other designee or, if there is no such designee, to your estate.

 

9.Entire Agreement.  This Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and supersedes all prior agreements, arrangements and understandings of the parties hereto with respect to the subject matter contained herein, including, without limitation, any prior change in control agreements, including the Change in Control Agreement.

      

10.At-Will Employment.  Nothing contained in this Agreement shall (a) confer upon you any right to continue in the employ of the Company, (b) constitute any contract or agreement of employment, or (c) interfere in any way with the at-will nature of your employment with the Company.

 

11.Miscellaneous.  No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by 

 

 

you and such officer as may be specifically designated by the Board.  No waiver by either party hereto at any time of any breach by the other party hereto of or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California without regard to its conflicts of law principles.  The section headings contained in this Agreement are for convenience only, and shall not affect the interpretation of this Agreement.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

 

(Signature Page Follows)

 

 

If this letter sets forth our agreement on the subject matter hereof, kindly sign and return to the Company the enclosed copy of this letter, which shall then constitute our agreement on this subject.

Sincerely,

 

ONCOMED PHARMACEUTICALS, INC.

 

 

 

BY:/s/ Perry Karsen

Perry Karsen

Executive Chairman of the Board

 

Agreed and accepted this 17th day of October, 2018.

 

 

/s/ John Lewicki

John Lewicki, Ph.D.

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