Document:

arav-ex106_6.htm

Exhibit 10.6

 

AGREEMENT

THIS AGREEMENT (the “Agreement”) dated as of April 8, 2020, is between Aravive, Inc., a Delaware corporation (the “Company”), and Robert Hoffman, a non-employee director of the Company (the “Participant”). Capitalized terms used herein without definition shall have the meaning ascribed such terms in the 2014 Equity Incentive Plan and the 2019 Equity Incentive Plan (the “Plans”).

WHEREAS, the Participant is the holder of the Options set forth on the annexed Schedule A  issued under the Company’s 2014 Equity Incentive Plan and the 2019 Equity Incentive Plan (herein, together, the “Options”, and individually, any “Option”); and

WHEREAS, the Company and the Participant desire to amend all of the Options held by the Participant to provide that, to the extent vested, such Options shall remain outstanding and exercisable following the Participant’s resignation as a director (the “Resignation Date”) until the earlier of (a) the one year anniversary of the Resignation Date, and (b) the end of the Term as set forth in the written agreement between the Company and Participant evidencing the terms of the Options (the “Award Agreements”) .

WHEREAS, the Company and the Participant desire to amend the Option included in Schedule A to purchase 7,500 shares of common stock of the Company granted to the Participant on September 12, 2019 under the 2019 Equity Incentive Plan and the Option included in Schedule A to purchase 7,500 shares of common stock of the Company issued January 3, 2019 under the 2014 Equity Incentive Plan to provide that, vesting of each such Option shall be accelerated such that each of the Options shall be fully vested on the Resignation Date.

NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter set forth and for other good and valuable consideration, receipt and sufficiency of which is hereby acknowledged, the parties hereto have agreed, and do hereby agree, as follows:

1. Option Exercise Extension. Effective as of the date hereof, notwithstanding anything to the contrary set forth in the Plans or any Award Agreement, immediately upon the Participant’s resignation as a director, any Option which is vested at the time of such resignation (including the Option to purchase 7,500 shares of common stock of the Company issued September 12, 2019 under the 2019 Equity Incentive Plan and the Option to purchase 7,500 shares of common stock of the Company issued January 3, 2019 under the 2014 Equity Incentive Plan) shall remain exercisable (in accordance with the requirements of the respective Plans), until the earlier of (a) the one year anniversary of the Resignation Date, and (b) the end of the applicable Term as set forth in the applicable Award Agreements. This Section 1 shall amend any term to the contrary contained in the Plans and any Award Agreement of the Participant under the Plans outstanding on the date hereof. 

2. Acceleration of Vesting. Effective as of the date hereof, notwithstanding anything to the contrary in the Plans or any Award Agreement, immediately upon  the Participant’s resignation as a director, vesting of the Option to purchase 7,500 shares of common stock of the Company granted to Participant on September 12, 2019 under the 2019 Equity Incentive Plan and 7,500 shares of common stock of the Company granted to Participant on January 3, 2019 under the 2014 Equity Incentive Plan shall be accelerated such that the Option shall be fully vested on the Resignation Date. This Section 2 shall amend any term to the contrary contained in the 2019 Equity Incentive Plan and any Award Agreement of the Participant under the 2019 Equity Incentive Plan outstanding on the date hereof. 

3. Non-Disparagement. Participant agrees not to disparage the Company or the Company’s officers, directors, employees, shareholders (in their capacities as shareholders of the Company),, parents, subsidiaries, affiliates, and agents (in their capacities as agents of the Company), in any manner likely to be harmful to them or their business, business reputation, or personal reputation and Participant is not aware 

 

 

of any basis for any legal claims against the Company, its officers, directors, employees, shareholders (in their capacities as shareholders of the Company), parents, subsidiaries, affiliates, or agents (in their capacities as agents of the Company) relating to such matters. The Company agrees, and agrees to direct its officers and directors not to disparage Participant in any manner likely to be harmful to Participant’s business, business reputation or personal reputation and the Company and its officers and directors are not aware of any basis for any legal claims against Participant relating to such matters..  Notwithstanding the foregoing, both Participant and the Company and its officers, directors, employees, shareholders, parents, subsidiaries, affiliates, and agents may respond accurately and fully to any question, inquiry, or request for information when required by legal process or in connection with a government investigation. In addition, nothing in this provision or this Agreement is intended to prohibit or restrain Participant in any manner from making disclosures that are protected under the whistleblower provisions of federal or law or regulation.

4. Treatment of Confidential Information and Trading of Common Stock. Participant acknowledges and agrees that Participant has a fiduciary duty and obligation to maintain the confidentiality of any confidential information of the Company disclosed to Participant or learned by Participant as a director of the Company or otherwise.  Participant acknowledges that Participant may not trade in the Company’s common stock while Participant is in possession of material non-public information or while Participant is subject to any blackouts contained in the Company’s insider trading policy

5. Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware (other than its laws respecting choice of law).

6. Indemnification Agreement. The Company hereby acknowledges and affirms its obligations pursuant to that certain indemnification agreement between the Company and Participant effective as of October 15, 2018 (the “Indemnification Agreement”). 

7. Entire Agreement. This Agreement, the Indemnification Agreement and the Options constitute constitutes the entire obligation of the parties hereto with respect to the subject matter hereof and shall supersede any prior expressions of intent or understanding with respect to this matter.

8. Amendment. Any amendment to this Agreement shall be in writing and signed by the Company and the Participant.

9. Waiver; Cumulative Rights. The failure or delay of either party to require performance by the other party of any provision hereof shall not affect its right to require performance of such provision unless and until such performance has been waived in writing. Each and every right hereunder is cumulative and may be exercised in part or in whole from time to time.

10. Counterparts. This Agreement may be signed in two counterparts, each of which shall be an original, but both of which shall constitute but one and the same instrument.

11. Headings. The headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

12. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon each successor and assign of the Company. All obligations imposed on the Participant, and all rights granted to the Company hereunder, shall be binding upon the Participant’s heirs, legal representatives and successors.

 

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and the Participant has hereunto set his or her hand, all as of the day and year first above written.

 

	
 
	
 
	
 

	
ARAVIVE, INC.

	
 
	
 

	
By:
	
 
	
 /s/ Vinay Shah          

	
 
	
 
	
Vinay Shah

	
 
	
 
	
Chief Financial Officer

	
 

	
PARTICIPANT:

	
 
	
 

	
By:
	
 
	
 /s/    Robert E. Hoffman       

	
 
	
 
	
Robert E. Hoffman

 

 

 

 

Schedule A

 

	
Name
	
 
	
Grant

Number
	
 
	
Grant

Date
	
 
	
Plan/Type
	
 
	
Grant

Shares
	
 
	
Price
	
 
	
Exercised/

Released
	
 
	
Vested
	
 
	
Unvested
	
 
	
Outstanding/

Unreleased
	
 
	
Exercisable/

Releasable

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Hoffman, Robert
	
 
	
AR000076
	
 
	
01/03/2019
	
 
	
2014/NQ
	
 
	
4,688
	
 
	
$3.61
	
 
	
0
	
 
	
4,688
	
 
	
0
	
 
	
4,688
	
 
	
4,688

	
 
	
 
	
AR000081
	
 
	
01/03/2019
	
 
	
2014/NQ
	
 
	
7,500
	
 
	
$3.61
	
 
	
0
	
 
	
3,541
	
 
	
3,959
	
 
	
7,500
	
 
	
3,541

	
 
	
 
	
AR000091
	
 
	
09/12/2019
	
 
	
2019/NQ
	
 
	
7,500
	
 
	
$5.77
	
 
	
0
	
 
	
3,750
	
 
	
3,750
	
 
	
7,500
	
 
	
3,750

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
19,688
	
 
	
 
	
 
	
0
	
 
	
11,979
	
 
	
7,709
	
 
	
19,688
	
 
	
11,979arav-ex107_73.htm

Exhibit 10.7

 

River Oaks Tower

3730 Kirby Drive, Suite 1200

Houston, Texas 77098

 

 

	
Gail McIntyre

	
(via email: ####)

 

April 8, 2020

 

Dear Gail:

Aravive, Inc. (the “Company”) is pleased to enter into this amendment (“Amendment”) to your Offer Letter, dated March 26, 2020 (the “Offer Letter”), and hereby agrees to amend the Offer Letter as follows:

	
 
	
1.
	
The first sentence of Section 1(a) is hereby deleted and replaced with the following:

“Commencing April 8, 2020, you will be employed as Chief Executive Officer (“CEO”) of the Company and you will report directly to the Company’s Board of Directors.”

2.The third sentence of Section 1(b) is hereby deleted and replaced with the following:

“Nothing in this letter agreement will prevent you from accepting speaking or presentation engagements or from serving with the prior approval of the Company on up to two (2)  boards of charitable organizations or public or private corporations that are not competitive in any manner with the business of the Company, or from owning no more than one percent (1%) of the outstanding equity securities of a corporation whose stock is listed on a national stock exchange; provided, however, that you may not accept payment for any speaking or presentation engagements without the prior written approval of the Company.”

	
 
	
3.
	
3.The first sentence of the first paragraph of Section 3 is hereby deleted and replaced with the following:

“Commencing April 8, 2020, the Company will pay you a salary at the rate of Four Hundred Fifteen Thousand Dollars ($415,000) per year, less required deductions and withholdings, payable in accordance with the Company’s standard payroll schedule.”

	
 
	
4.
	
The third sentence of the second paragraph of Section 3 is hereby deleted and replaced with the following:

“For fiscal year 2020 your target bonus will be equal to 45% of your annual base salary (“Target Bonus”).”

 

 

 

	
 
	
4.
	
Clause (i) of Section 6(a) is hereby deleted and replaced with the following:

“(i) Salary and Bonus Continuation.  The Company will continue to pay your base salary for a period of twelve months (12) months after your Separation, less required deductions and withholdings (“Salary Continuation”). The Salary Continuation will be paid at the base salary rate in effect at the time of your Separation and in accordance with the Company’s standard payroll procedures. The Salary Continuation payments will commence within thirty (30) days after the Release Deadline and, once they commence, will be retroactive to the date of your Separation. After the nine-month anniversary of your Separation, the Salary Continuation payments will end immediately should you commence new employment in a comparable position or substantial self-employment and you agree to inform the Company immediately in such event. You will be entitled to receive a pro-rated portion of the discretionary year-end Target Bonus contingent upon a determination by the Board of Directors regarding which corporate goals of the Company have been met and that the other executive officers of the Company have been paid their year-end target bonuses. The determination of the Company’s Board of Directors with respect to your bonus will be final and binding.”

	
 
	
5.
	
The first sentence of Section 13 is hereby deleted and replaced with the following:

“ To ensure rapid and economical resolution of any disputes which may arise under this Agreement, you and the Company agree that any and all claims, disputes or controversies of any nature whatsoever arising from or regarding the interpretation, performance, negotiation, execution, enforcement or breach of this Agreement, your employment with the Company, or the termination of your employment from the Company, including but not limited to statutory claims, shall be resolved pursuant to the Federal Arbitration Act, 9 U.S.C. § 1-16, to the fullest extent permitted by law, by confidential, final and binding arbitration conducted before a single arbitrator with JAMS, Inc. (“JAMS”) in Harris County, Texas, in accordance with JAMS’ then-applicable arbitration rules, which will be provided to you upon request and which can be found at:  http://www.jamsadr.com/rules-clauses/ .”             

	
 
	
6.
	
All other terms of the Offer Letter shall remain in full force and effect. The Offer Letter, as amended by this Amendment, constitutes the entire agreement between the parties with respect to the subject matter thereof.

	
 
	
7.
	
If any of the provisions of this Amendment are held to be invalid or unenforceable, the remaining provisions will nevertheless continue to be valid and enforceable.

	
 
	
8.
	
This Amendment is made and shall be construed and performed under the laws of the State of Texas without regard to its choice or conflict of law principles and the parties agree to the State of Texas as the exclusive venue for any disputes arising hereunder.

 

 

Very truly yours,

Aravive, Inc.

 

	
By:
	
 /s/ Vinay Shah

	
Name:
	
Vinay Shah

	
Title:
	
Chief Financial Officer

 

I have read and accept this amended employment offer:

 

	
 /s/ Gail McIntyre

	
Signature

Printed Name:  Gail McIntyre

Dated:  April 8, 2020

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