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Exhibit 4.2  

        OWENS-ILLINOIS GROUP, INC.

OWENS-BROCKWAY GLASS CONTAINER INC.

OI GENERAL FTS INC.

OI PLASTIC PRODUCTS FTS INC.

UNITED GLASS LIMITED

UNITED GLASS GROUP LIMITED

OWENS-ILLINOIS (AUSTRALIA) PTY LIMITED

ACI OPERATIONS PTY LIMITED

OI ITALIA S.R.L.

AZIENDE VETRARIE INDUSTRIALI RICCIARDI S.P.A.  

 THIRD AMENDMENT

TO SECURED CREDIT AGREEMENT

DATED AS OF SEPTEMBER 27, 2002  

        This THIRD AMENDMENT TO SECURED CREDIT AGREEMENT (this
"Amendment") is dated as of September 27, 2002 and entered into by and among OWENS-ILLINOIS
GROUP, INC., a Delaware corporation ("Company"), OWENS-BROCKWAY GLASS
CONTAINER INC., a Delaware corporation ("Owens Brockway"), OI GENERAL
FTS INC., a Delaware corporation ("O-I General FTS"), OI PLASTIC PRODUCTS
FTS INC., a Delaware corporation ("O-I Plastic"), UNITED GLASS
LIMITED, a corporation organized under the laws of England and Wales, UNITED GLASS GROUP LIMITED, a corporation organized under
the laws of England and Wales, OWENS-ILLINOIS (AUSTRALIA) PTY LIMITED, a limited liability company organized under the laws of Australia,  ACI OPERATIONS PTY
LIMITED, a limited liability company organized under the laws of Australia, OI ITALIA
S.R.L., a limited liability company organized under the laws of Italy, AZIENDE VETRARIE INDUSTRIALI RICCIARDI S.P.A., a joint
stock company organized under the laws of Italy, OWENS-ILLINOIS GENERAL, INC., a Delaware corporation, as Borrowers' Agent (in such capacity
"Borrowers' Agent"), THE LENDERS LISTED ON THE SIGNATURE PAGES HEREOF (each individually a
"Lender" and collectively, "Lenders") and DEUTSCHE BANK TRUST COMPANY AMERICAS
(f/k/a BANKERS TRUST COMPANY), as Administrative Agent (in such capacity, "Administrative Agent") and Collateral Agent (in such
capacity, "Collateral Agent") for the Lenders and is made with reference to that certain Secured Credit Agreement dated as of April 23, 2001, as
amended by that certain First Amendment to Secured Credit Agreement and Consent dated as of December 31, 2001, as further amended by that certain Second Amendment to Secured Credit Agreement
dated as of April 19, 2002 (as so amended,
the "Credit Agreement"), by and among the foregoing parties. Capitalized terms used herein without definition shall have the same meanings herein as set
forth in the Credit Agreement. 

 
 

RECITALS    
  

        WHEREAS, Borrowers have requested that the definition of "Consolidated Net Worth" be amended to exclude the effects of the decline in the
market value of the pension assets of Holdings and its Subsidiaries for purposes of calculating a certain financial covenant in the Credit Agreement; 

        WHEREAS, Owens Brockway intends to issue certain senior secured notes (the "New Senior
Notes"), constituting New Senior Debt and may in the future issue other indebtedness resulting in Net Debt Securities Proceeds other than from Receivables Sale Indebtedness
(such other Indebtedness, "Other Future Indebtedness"); 

        WHEREAS, Borrowers desire to agree that, upon the issuance of the New Senior Notes and any Other Future Indebtedness, and the application
of the Net Debt Securities Proceeds arising therefrom 

 

to repay the Term Loans in full, Borrowers shall not elect to establish the Existing Senior Notes Redemption Sublimit with respect to the first $400 million of such remaining proceeds and to
apply an amount equal to such first remaining proceeds to ratably reduce the Revolving Loan Commitments and to prepay the Separated Funded Loans. 

        NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree
as follows: 

SECTION 1. AMENDMENTS TO DEFINITIONS  

        A.    Additional Definition.    Subsection 1.1 of the Credit Agreement is hereby amended by adding the following
definition to be included in the appropriate alphabetical order: 

        "'Unfunded Accumulated Benefit Obligations' means, as at any date of determination, the amount by which the accumulated benefit obligation
of any Pension Plan of Holdings and its Subsidiaries and ERISA Affiliates exceeds the fair value of plan assets of such Pension Plan, calculated in accordance with GAAP and FASB 87." 

        B.    Modified Definition.    Subsection 1.1 of the Credit Agreement is hereby amended by modifying the following
existing definition: 

        1.    "Consolidated
Net Worth" is hereby amended and restated in its entirety, as follows: 

        "'Consolidated Net Worth' means, as at any date of determination, the sum of the capital stock and additional paid-in capital
plus retained earnings (or minus accumulated deficits) of Holdings and its Subsidiaries on a consolidated basis determined in conformity with GAAP;  provided that no adjustment shall be made in
Consolidated Net Worth for changes to other comprehensive income (loss) resulting from (i) the
effects of foreign currency translations required or permitted by FASB 52 or (ii) the effects of adjustments relating to Unfunded Accumulated Benefit Obligations required or permitted by FASB
87, in each case for periods subsequent to December 31, 2000; provided further that no adjustment shall be made in Consolidated Net Worth for the
effects of the 2002 Additional Asbestos Reserve." 

SECTION 2. COMMITMENT REDUCTIONS AND PREPAYMENTS WITH PROCEEDS OF NEW SENIOR NOTES AND OTHER FUTURE INDEBTEDNESS.  

        In consideration of the amendments set forth in Section 1, above, Company and each of the Borrowers agree, and the undersigned Lenders executing and
delivering this Amendment (which constitute Requisite Lenders) agree, that upon the issuance of the New Senior Notes and Other Future Indebtedness (x) Borrowers shall prepay the Term Loans as
required by subsection 2.4A (ii)(e)(1) of the Credit Agreement, (y) Borrowers shall not establish any Existing Senior Notes Redemption Sublimit in respect of the first $400 million of
Net Debt Securities Proceeds of the New Senior Notes and Other Future Indebtedness remaining after prepaying the Term Loans (the "Remaining Proceeds Application Amount") and (z) notwithstanding
any provision of subsection 2.4A to the contrary (including, without limitation, subsections 2.4A(ii)(e) and 2.4A(iii)) an amount equal to the Remaining Proceeds
Application Amount shall be applied ratably to reduce the Revolving Loan Commitments (based upon the commitment amount thereof and not on the amount of outstanding Loans thereunder) and to prepay the
Separated Funded Loans (based upon the principal amount of Separated Funded Loans outstanding). Application of Net Debt Securities Proceeds made in accordance with the provisions of this
Section 2 of this Amendment shall be deemed application of such proceeds as required by subsection 2.4A(ii)(e). 

2

 

SECTION 3. CONDITIONS TO EFFECTIVENESS  

        This Amendment shall become effective only upon the satisfaction of all of the following conditions precedent (the date of satisfaction of such conditions being
referred to herein as the "Third Amendment Effective Date"): 

        A.    On
or before the Third Amendment Effective Date, Company and each of the Borrowers shall deliver to Administrative Agent such number of originally executed copies of the
following as Administrative Agent may request, each, unless otherwise noted, dated the Third Amendment Effective Date: 

	(i)
	Signature
and incumbency certificates of its officers executing this Amendment; and

	(ii)
	Executed
copies of this Amendment. 

        B.    On
or before the Third Amendment Effective Date, all corporate and other proceedings taken or to be taken in connection with the transactions contemplated hereby and all
documents incidental thereto not previously found acceptable by Administrative Agent, acting on behalf of Lenders, and its counsel shall be satisfactory in form and substance to Administrative Agent
and such counsel, and Administrative Agent and such counsel shall have received all such counterpart originals or certified copies of such documents as Administrative Agent may reasonably request. 

        C.    Administrative
Agent and Collateral Agent shall have received a written acknowledgement from each of the Subsidiary Guarantors providing that it has reviewed the terms
and provisions of the Credit Agreement and this Amendment and consents to the amendment of the Credit Agreement effected pursuant to this Amendment, that the Subsidiary Guaranty and each Collateral
Document executed by such Subsidiary Guarantor shall continue in full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited by
the execution or
effectiveness of this Amendment and such other matters as Administrative Agent may reasonably request, all in a form satisfactory to Administrative Agent. 

SECTION 4. COMPANY'S REPRESENTATIONS AND WARRANTIES  

        In order to induce Lenders to enter into this Amendment and to amend the Credit Agreement in the manner provided herein, Company and each of the Borrowers
represents and warrants to each Lender that the following statements are true, correct and complete: 

        4.1    Corporate Power and Authority.    Company and each Borrower has all requisite corporate power and authority to
enter into this Amendment and to carry out the transactions contemplated by, and perform its obligations under, the Credit Agreement as amended by this Amendment (the "Amended
Agreement"). 

        4.2    Authorization of Agreements.    The execution and delivery of this Amendment and the performance of the Amended
Agreement have been duly authorized by all necessary corporate action on the part of Company and each Borrower. 

        4.3    No Conflict.    The execution and delivery by Company and each Borrower of this Amendment and the performance
by each Loan Party of the Amended Agreement do not and will not (i) violate any provision of any law or any governmental rule or regulation applicable to Company or any of its Subsidiaries, the
Certificate or Articles of Incorporation or Bylaws of Company or any of its Subsidiaries or any order, judgment or decree of any court or other agency of government binding on Company or any of its
Subsidiaries, (ii) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any Contractual Obligation of Company or any of its
Subsidiaries, (iii) result in or require the creation or imposition of any Lien upon any of the properties or assets of Company or any of its Subsidiaries (other than Liens in favor of the
Collateral Agent), or (iv) require any approval of stockholders or any approval or consent of any Person under any 

3

 

Contractual Obligation of Company or any of its Subsidiaries, other than those approvals and consents which have been obtained. 

        4.4    Governmental Consents.    The execution and delivery by Company and each Borrower of this Amendment and the
performance by Company and each Borrower of the Amended Agreement do not and will not require any registration with, consent or approval of, or notice to, or other action to, with or by, any federal,
state or other governmental authority or regulatory body, except for filings, consents or notices that have been or will be made or obtained during the period in which they are required to be obtained
or made. 

        4.5    Binding Obligation.    This Amendment and the Amended Agreement have been duly executed and delivered by
Company and each Borrower and are the legally valid and binding obligations of Company and each Borrower, enforceable against Company and each Borrower in accordance with their respective terms,
except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors' rights generally or by equitable principles relating to
enforceability. 

        4.6    Incorporation of Representations and Warranties From Credit Agreement. The representations and warranties contained in
Section 4 of the Credit Agreement are and will be true, correct and complete in all material respects on and as of the Third Amendment Effective Date to the same extent as though made on and as
of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case they were true, correct and complete in all material respects on and as of
such earlier date. 

        4.7    Absence of Default.    No event has occurred and is continuing or will result from the consummation of the
transactions contemplated by this Amendment that would constitute an Event of Default or a Potential Event of Default. 

SECTION 5. MISCELLANEOUS  

        5.1    Reference to and Effect on the Credit Agreement and the Other Loan Documents.    

        (i)    On
and after the Third Amendment Effective Date, each reference in the Credit Agreement to "this Agreement", "hereunder", "hereof", "herein" or words of like import
referring to the Credit Agreement, and each reference in the other Loan Documents to the "Credit Agreement", "thereunder", "thereof" or words of like import referring to the Credit Agreement shall
mean and be a reference to the Amended Agreement. 

        (ii)    Except
as specifically amended by this Amendment, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and
confirmed. 

        (iii)    The
execution, delivery and performance of this Amendment shall not, except as expressly provided herein, constitute a waiver of any provision of, or operate as a
waiver of any right, power or remedy of Administrative Agent, Collateral Agent or any other Agent or any Lender under, the Credit Agreement or any of the other Loan Documents. 

        5.2    Fees and Expenses.    Company acknowledges that all costs, fees and expenses as described in subsection 10.3 of
the Credit Agreement incurred by Administrative Agent and its counsel with respect to this Amendment and the documents and transactions contemplated hereby shall be for the account of the Domestic
Borrowers. 

        5.3    Headings.    Section and subsection headings in this Amendment are included herein for convenience of reference
only and shall not constitute a part of this Amendment for any other purpose or be given any substantive effect. 

4

 

        5.4    Applicable Law.    THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY,
AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE NEW YORK (INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF
NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. 

        5.5    Counterparts; Effectiveness.    This Amendment may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. This Amendment shall
become effective upon the execution of a counterpart hereof by Company, each Borrower and Requisite Lenders and receipt by Company and Administrative Agent of written or telephonic notification of
such execution and authorization of delivery thereof and satisfaction of the conditions set forth in Section 3. Delivery of an executed counterpart of a signature page of this Amendment by
telecopy shall be effective as delivery of a manually executed counterpart of this Amendment. 

[Remainder
of page intentionally left blank] 

5

 

        IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective officers thereunto
duly authorized as of the date first written above. 

	COMPANY:	 	OWENS-ILLINOIS GROUP, INC.
	

 	
 	
By:	

/s/  JAMES W. BAEHREN      
 Name: James W. Baehren

Title: Vice President
	
BORROWERS:	
 	

OWENS-BROCKWAY GLASS CONTAINER INC.
	

 	
 	
By:	

/s/  JAMES W. BAEHREN      
 Name: James W. Baehren

Title: Vice President
	
 	
 	

OI GENERAL FTS INC.
	

 	
 	
By:	

/s/  JAMES W. BAEHREN      
 Name: James W. Baehren

Title: Vice President
	
 	
 	

OI PLASTIC PRODUCTS FTS INC.
	

 	
 	
By:	

/s/  JAMES W. BAEHREN      
 Name: James W. Baehren

Title: Vice President

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

6

 

	 	 	UNITED GLASS LIMITED
	

 	
 	
By:	

/s/  JAMES W. BAEHREN      
 Name: James W. Baehren

Title: By Power of Attorney
	
 	
 	

UNITED GLASS GROUP LIMITED
	

 	
 	
By:	

/s/  JAMES W. BAEHREN      
 Name: James W. Baehren

Title: By Power of Attorney
	
 	
 	

OWENS-ILLINOIS (AUSTRALIA) PTY LIMITED
	

 	
 	
By:	

/s/  JAMES W. BAEHREN      
 Name: James W. Baehren

Title: By Power of Attorney
	
 	
 	

ACI OPERATIONS PTY LIMITED
	

 	
 	
By:	

/s/  JAMES W. BAEHREN      
 Name: James W. Baehren

Title: By Power of Attorney
	
 	
 	

OI ITALIA S.R.L.
	

 	
 	
By:	

/s/  JAMES W. BAEHREN      
 Name: James W. Baehren

Title: By Power of Attorney
	
 	
 	

AZIENDE VETRARIE INDUSTRIALI RICCIARDI S.P.A.
	

 	
 	
By:	

/s/  JAMES W. BAEHREN      
 Name: James W. Baehren

Title: By Power of Attorney

7

 

	
 	
 	

OWENS-ILLINOIS GENERAL INC.
	

 	
 	
By:	

/s/  JAMES W. BAEHREN      
 Name: James W. Baehren

Title: Vice President
	
 	
 	

DEUTSCHE BANK TRUST COMPANY AMERICAS

(f/k/a BANKERS TRUST COMPANY)

Individually and as Administrative Agent and

Collateral Agent
	

 	
 	
By:	

/s/  MARY JO JOLLY      
 Name: Mary Jo Jolly

Title: Assistant Vice President

8

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EXHIBIT 10.29    
  

June 17,
2002 

Alain
Rolland

22 Driftoak Circle

The Woodlands, TX 77381 

Dear
Alain: 

        On
behalf of the Vical Management Team, I am pleased to confirm our offer and your acceptance of full-time employment with Vical. We are delighted that you have decided to
join us in the position of Vice-President Development, effective Thursday, August 1, 2002. 

        This
letter sets forth the basic terms and conditions of your employment with Vical ("the Company.") By signing this letter, you will be agreeing to these terms: 

	1.
	Duties and Scope of Employment.

        (a)  Position. The Company agrees to employ you as Vice-President Development. This position is an officer level
position and reports to the Chief Scientific Officer. Your initial responsibilities will include management of the following functions: Project Planning and Management, Quality Control, Assay
Development, Formulation and Pharmacology/ Toxicology. As with all positions, responsibilities may change based on the needs of the company. 

        (b)  Obligations. During the term of your employment, you will devote your full business efforts and time to the Company and
its subsidiaries (if any). You will not render services to any other person or entity without the express prior approval of the Chief Scientific Officer. During your employment, you will not engage,
directly or indirectly, in any other business activity (whether or not pursued for pecuniary
advantage) that is or may be competitive with the Company; provided that you may own less than one percent of the outstanding securities of any publicly-traded corporation. 

        2.    Compensation. 

        (a)  Salary. During your employment, the Company agrees to pay you as compensation for your services a base salary at the
annual rate of $235,000 or at such higher rate as the Company may determine from time to time. Such salary will be payable in accordance with the Company's standard payroll procedures. (The annual
compensation specified in this Section 2(a), together with any increases in such compensation that the Company may grant from time to time, is referred to in this Agreement as "Base
Compensation.") 

        (b)  Bonus. You will be eligible for a performance-based annual cash bonus, at the discretion of the Board of Directors,
targeted at 10% to 30% of the base compensation actually paid to you each year. Bonuses are generally proposed in February of each year for the previous year and, if approved by the Board of
Directors, are paid out in March. 

        3.    Employee Benefits. 

        (a)  Company Benefits. During the term of your employment, you will be eligible to participate in the employee benefit plans
maintained by the Company, subject in each case to the generally applicable terms and conditions of the plan in question and to the determinations of any person or committee administering such plan.
The benefits may be changed from time to time by the Company. Current employee benefits are described in the enclosed benefit summary. 

        (b)  Vacation You will be entitled to four weeks of vacation for the first three years of employment and five weeks of
vacation for each subsequent year, provided, however, that you remain employed by the Company. Vacation accrues at the rate of 13.33 hours per month during the first three years of employment
and 16.67 hours per month in each subsequent year. 

        4.    Business Expenses. During your employment, you will be authorized to incur necessary and reasonable travel, entertainment
and other business expenses in connection with your duties hereunder. The Company will reimburse you for such expenses upon presentation of an itemized account and appropriate supporting
documentation, all in accordance with the Company's generally applicable policies. 

        5.    Stock Option. The Company will grant to you a stock option (such option to be an incentive stock option to the extent
permitted by law) to purchase from the Company 60,000 shares of the Company's common stock (the "Shares"). The exercise price of your stock option will be equal to the fair market value on the date of
the grant. Your stock option will be granted pursuant to the Stock Incentive Plan of Vical Incorporated and will be subject to the terms and conditions of the Plan and the Company's form of stock
option agreement, the summary of which is enclosed. Your stock options vest (become exercisable) over a four-year period as follows, subject to your continued employment with the Company: 

	On the first anniversary of your employment with Vical:	 	15,000 options vest
	At the end of the first quarter after your first year of employment and continuing for 11 quarters:	 	3,750 options vest

          6.      Proprietary Information and Inventions Agreement. You will be required to sign and abide by the terms of the Company's
Employee's Proprietary Information and Inventions Agreement, a copy of which is enclosed. 

          7.      Immigration Documentation. Please be advised that your employment is contingent on your ability to prove your identity
and eligibility to work in the United States. You must comply with the Immigration and Naturalization Service's employment verification requirements. Please review the attached sample I-9
form. Documents which establish identity and employment eligibility must be presented to Vical within three days of commencing employment. 

          8.      Term and Termination of Employment. 

          (a)    "At Will" Employment. Your employment with the Company is "at will" and not for a specified term and may be terminated
by you or the Company at any time for any reason, with or without cause. Except as expressly provided in subsection (c) below, upon a termination of your employment, you will only be entitled
to the compensation, benefits and reimbursements described in Section 2, 3 and 4 for the period preceding the effective date of the termination. 

          (b)  Definitions. For all purposes under this Agreement, 

            (i)  "Good
Reason" shall mean (A) a significant demotion, or (B) a more than 25 percent reduction in Base Compensation 

          (ii)  "Cause"
shall mean (A) your sustained inadequate performance of your job duties, other than a failure resulting from complete or partial incapacity due to
verifiable physical or verifiable mental illness or impairment, (B) gross misconduct or fraud or (C) conviction of, or a plea of "guilty" or "no contest" to, a felony. 

        (iii)  "Disability"
shall mean that you, at the time your employment is terminated, have performed substantially none of your duties under this Agreement for a period of not
less than three consecutive months as the result of your verifiable incapacity due to physical or mental illness. 

          (c)    Salary Continuation. Subject to subsection (d) below, the Company will continue to pay your Base Compensation (at
the annual rate then in effect) for up to six months following the 

termination of your employment if, prior to the fourth annual anniversary of the commencement of your employment: 

            (i)  the
Company terminates your employment without your consent for any reason other than Cause or Disability; or 

          (ii)  you
voluntarily resign your employment for Good Reason. 

        The payments under this subsection (c) will cease in the event of your death. In order to receive your salary continuation, you will be required to sign a
release in a form acceptable to the Company, of any and all claims that you may have against the Company. 

        (d)  Mitigation. The payments under subsection (c) above shall be reduced on a
dollar-for-dollar basis by any other compensation earned by you for personal services performed as an employee or independent contractor during the six-month period
following the termination of your employment, including (without limitation) deferred compensation. You will apply your best efforts to seek and obtain other employment or consulting engagements,
whether on a full- or part-time basis, during such six-month period in order to mitigate the Company's obligations under subsection (c) above. At reasonable
intervals, you will report to the Company with respect to such efforts and any compensation earned during such six-month period. 

        9.    Dispute Resolution. You and the Company ("the parties ") agree that any dispute arising out of or related to your
employment shall be resolved as provided in the Dispute Resolution Procedures attached hereto as Exhibit A. 

        10.  Relocation & Housing. The Company agrees to cover the costs associated with the relocation of you and your family
according to the terms outlined in Exhibit B. 

        Please
note that this Agreement supersedes any prior agreements, representations or promises of any kind, whether written, oral, express or implied between the parties hereto with
respect to the subject matters herein, and it, together with your stock option agreement and Employee's Proprietary Information and Inventions Agreement, constitutes the full, complete and exclusive
agreement between you and the Company with respect to the subject matters herein. This Agreement cannot be changed unless in writing, signed by you and an authorized officer of the Company. If any
term of this Agreement is held to be invalid, void or unenforceable, the remainder of this Agreement shall remain in full force and effect and shall in no way be affected, and the parties will use
their best efforts to find an alternative way to achieve the same result. 

        This
offer letter may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. This
Agreement is governed by California law without regard to its choice of law provisions. 

        To
indicate your acceptance of this offer of employment, please sign below and return one signed copy to me no later than June 21, 2002. 

	 	 	Sincerely,
	

 	
 	
VICAL INCORPORATED
	

 	
 	

By	
 	

/s/ DAVID C. KASLOW
 David C. Kaslow

Chief Scientific Officer
	

ACCEPTED AND AGREED

This 21st day of June, 2002:	
 	

 	
 	

 
	

/s/  ALAIN ROLLAND      
 Alain Rolland

	
 	

 	
 	

 

 
 

EXHIBIT A    
  

 
  Dispute Resolution Procedure    
  

        To ensure the rapid and economical resolution of disputes that may arise in connection with your employment with the Company, you and the Company agree that any
and all disputes, claims, or causes of action, in law or equity, arising from or relating to the enforcement, breach, performance, or interpretation of this Agreement, your employment, or the
termination of your employment ("Arbitrable Claims"), shall be submitted to confidential mediation in San Diego, California conducted by a mutually agreeable mediator from Judicial Arbitration and
Mediation Services ("JAMS") or its successor, and the cost of JAMS' mediation fees shall be paid by the Company. In the event mediation is unsuccessful in resolving the Arbitrable Claims, the
Arbitrable Claims shall be resolved, to the fullest extent permitted by law, by final, binding and confidential arbitration in San Diego, California conducted by JAMS or its successor, under the then
applicable rules of JAMS. 

        You acknowledge that by agreeing to this arbitration procedure, both you and the Company waive the right to resolve any such dispute through a trial by jury or
judge or by administrative proceeding. The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such
relief as would otherwise be permitted by law; and (b) issue a written arbitration decision including the arbitrator's essential findings and conclusions and a statement of the award. The
arbitrator shall be authorized to award any or all remedies that you or the Company would be entitled to seek in a court of law. The Company shall pay all JAMS' arbitration fees in excess of those
which would be required if the dispute were decided in a court of law. Nothing in this Agreement is intended to prevent either you or the Company from obtaining injunctive relief in court to prevent
irreparable harm pending the conclusion of any such mediation or arbitration. Notwithstanding the foregoing, you and the Company each have the right to resolve any issue or dispute involving
confidential, proprietary or trade secret information, or intellectual property rights, by Court action instead of arbitration. 

 
 

EXHIBIT B    
  

 
  RELOCATION BENEFITS    
  

        House Hunting: Vical will pay travel, hotel and related expenses for one house hunting trip for you and your
spouse. This trip will be for a period of up to 5 days. 

        Movement of Household Goods: Vical will pay for the shipment of normal household goods. This includes packing, crating, van
transportation, unpacking, insurance coverage (replacement value) and storage charges for up to 90 days. Expenses are limited to those associated with one pick-up and delivery and
one access to storage. Vical will pay for the shipment of two automobiles, alternatively, the Company will pay for the shipment of one automobile and will pay the costs associated with driving a
vehicle to San Diego by the most direct route. 

        Relocation of Family: Vical will pay coach airline fares for you and your family at the time of your move to San Diego. Vical will pay for
a reasonable number of trips for you to fly to Houston from San Diego after you have started employment with the company and prior to your family's move. 

        Temporary Housing: Vical will pay for temporary housing for you and your family. Vical will pay the expenses associated with a rental
property for you and your entire family for a period not to exceed 90 days. These expenses are limited to the following: rental of a furnished apartment or, alternatively, rental of an
apartment and appropriate furniture for the apartment, and payment of utility expenses (water, electricity and gas). Vical will pay for a rental car for a period of 30 days to allow time for
your personal vehicle to be shipped to San Diego. 

        Closing Costs: Vical will pay for the following costs associated with the sale of your home and the purchase of a new home in San Diego:
The company will reimburse you for the real estate commission, up to 6% of the sale price, and reasonable closing costs associated with the sale of your home in The Woodlands. Vical will reimburse
reasonable closing costs, including up to two points on a new loan, incurred in connection with the purchase of a new home in the San Diego area. 

        Mortgage Assistance: Vical will provide you with a forgivable loan in the amount of $100,000 to assist you in the purchase of a home in
San Diego. This loan will be forgiven over a period of three years. You will be responsible for taxes on the forgiven principal and on the imputed interest on this loan
each year. Vical must be named as the holder of a second deed of trust in the amount of $100,000 on the property purchased by you and/or your spouse in the San Diego area. You will be required to sign
a promissory note prior to payment of this forgivable loan to you. In addition, Vical will pay you $1,000 each month for a period of 24 months. This mortgage differential payment is considered
regular income and will be taxed as such. 

        Home Purchase: Vical will buy your current home, through a third party, should you be unable to sell your home prior to your date of
employment with the company, August 1, 2002. The guidelines set forth by this third party and Vical must be followed. 

        Lump Sum Payment: Vical will provide one month's salary, grossed up for state and federal income taxes, to pay for the costs of relocation
not covered by this policy. 

        Administration: "Relocation Coordinates" will coordinate your move to San Diego. 

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EXHIBIT 10.29

EXHIBIT A

Dispute Resolution Procedure

EXHIBIT B

RELOCATION BENEFITS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]