Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

  Exhibit 10.18    
    

[EPOCRATES LOGO]

October 18,
2006 

Richard
H. Van Hoesen 

Dear
Rick, 

        On
behalf of Epocrates, Inc. ("Epocrates" or the "Company"), I am pleased to offer you the position of Chief Financial Officer, and Senior Vice President of Finance. The terms and
conditions of your new position and employment relationship with the Company are as set forth below: 

1.    Position and Work Schedule; Initial Part-Time Employment Arrangement.

        a.     You
will become the Chief Financial Officer, and Senior Vice President of Finance. You will report directly to the Chairman and CEO and work out of the Company's
corporate headquarters in San Mateo, California. After an initial period of part-time employment described below, your position will be full-time. 

        b.     You
agree to the best of your ability and experience that you will at all times conscientiously perform all of the duties and obligations required of you to the
satisfaction of the Company. During the term of your full-time employment, you further agree that you will devote your full business time and attention to the business of the Company, the
Company will be entitled to all of the benefits and profits arising from or incident to all such work services and advice, you will not render commercial or professional services of any nature to any
person or organization, or engage in self-employment, whether or not for compensation, without the prior written consent of the Company, and you will not directly or indirectly engage or
participate in any business that is competitive in any manner with the business of the Company. Nothing in this letter agreement will prevent you from accepting speaking or presentation engagements in
exchange for honoraria or from serving on boards of charitable organizations, o owning no more than one percent (1%) of the outstanding equity securities of a corporation whose stock is listed on a
national stock exchange. 

        c.     As
discussed, initially you will work as a part-time employee of the Company, which will transition to a full-time position on the schedule
discussed below. As a part-time employee, you will be expected to provide services within a time commitment averaging approximately twenty to thirty percent (20-30%) of that of
a full-time professional employee. 

2.    Start Date.    Subject to fulfillment of any conditions imposed by this letter
agreement, you will commence your part-time employment with the Company on October 19, 2006 (the "Start Date"), and your full-time position will become effective as of
November 13, 2006. 

3.    Proof of Right to Work.    For purposes of federal immigration law, you will
be required to provide to the Company documentary proof of your identity and eligibility for employment in the United States. This offer of employment is contingent upon such satisfactory proof. 

4.    Compensation.

        a.     Base Salary.    During your part-time employment period, you will receive a
weekly base salary of $1,500 paid on the Company's regular payroll schedule. Once you commence full-time employment, your base salary will be paid in semi-monthly installments
of $10,416.67 pursuant to the Company's regular payroll policy, which equates to an annual base salary of $250,000. Because your position is classified as exempt, you will not be eligible for overtime
premiums or additional compensation at any time. Your base salary may be reviewed annually as part of the Company's normal salary review process. Any changes to your base salary are at the Company's
sole discretion. 

        b.     Bonus Compensation.    You will be eligible to participate in the 2006 Executive Bonus
Plan (the "Bonus Plan"), pursuant to the terms and conditions of the Bonus Plan. Your target bonus will be 35% of your 2006 earnings, and the actual bonus paid will be based upon the Company's
performance 

(as
determined by the Company) against the Bonus Plan. You must remain employed during the entire year to earn and be eligible to receive a bonus under the Bonus Plan. Whether a bonus has been earned
under the Bonus Plan, and the amount of any earned bonus, will be determined by the Company and approved by the Board of Directors within its sole discretion. 

5.    Stock Option.    In connection with the commencement of your
full-time employment, the Company will recommend that the Board of Directors (the "Board") grant you an option to purchase three hundred fifty thousand, nine hundred seventy eight
(350,978) shares of the Company's Common Stock ("Shares") under the Company's Stock Plan (the "Plan") with an exercise price equal to the fair market value on the date of the grant as determined by
the Board (the "Option"), The Option will be subject to the terms of the Plan and your individual Stock Option Agreement with the Company, which shall include the following vesting schedule for the
Shares: 1/4th of the Shares shall vest on the first annual anniversary of the Start Date, and 1/48th of the Shares shall vest monthly thereafter over the next three years. Vesting will,
of course, depend on your continued service with the Company, as defined by the Plan. The Option will be an incentive stock option to the maximum extent allowed by the tax code. 

Notwithstanding
the foregoing vesting schedule, the Shares (and the shares subject to any future option grants) will be subject to the Acceleration (defined below) if the Company consummates a change
of control merger or acquisition transaction (not including any initial public offering of the Company's securities) whereby the holders of the Company's outstanding voting stock immediately prior to
such transaction own, immediately after the closing of the qualifying transaction, securities representing less than fifty percent (50%) of the voting stock of the Company or other entity surviving
such transaction, and your employment is either (i) terminated by the Company or a successor entity without Cause (as defined in Paragraph 11 of this letter) within twelve
(12) months after such transaction, or (ii) terminated by you due to your resignation for Good Reason (defined below) within twelve (12) months after such transaction, if the Good
Reason upon which your resignation is based occurs subsequent to and as a result of such transaction. Good Reason shall mean any of the following which occurs without your written consent:
(a) a relocation of your assigned office more than thirty-five (35) miles; (b) a material decrease in your base salary (except for salary decreases generally
applicable to the Company's other executive employees); or (c) a material reduction in the scope of your duties or responsibilities. In order to be eligible to receive the Acceleration, you
must first sign, date, and deliver to the Company a general release of all known and unknown claims in the form provided to you by the Company and allow it to become effective. For purposes of this
letter, the "Acceleration" shall mean additional vesting of the Shares (and the shares subject to any future option grants) such that all unvested
Shares subject to the Option (and the shares subject to any future option grants) shall become fully vested and immediately exercisable. 

6.    Benefits.    Once you commence full-time employment, and subject
to the terms, conditions and limitations of the benefit plans, you will be eligible to participate in the Company's
standard employee benefits currently consisting of short/long term disability, medical, dental, and vision insurance benefits. Eligibility for participation in these group benefits will become
effective the first of the month following your commencement of full-time employment. Subject to the terms of the Company's vacation policy and practice, once you commence
full-time employment you will accrue vacation at the annual rate of fifteen (15) days during your first twelve (12) months of employment, and at the rate of twenty
(20) days per year thereafter. Further details about benefits are available for your review. You will not be eligible to participate in the Company's standard employee benefits during your
part-time employment period, and you will not accrue vacation or other paid time off. Epocrates may modify compensation and benefits from time to time at its discretion. 

7.    Employee 401(k) Plan.    You will be eligible to participate in Epocrates'
401(K) plan in accordance with the terms of the 401(k) plan. Employees who choose to participate will have pre-tax dollars deposited into their 401(K) account and the money will be
directed to specified investment options. Epocrates does not match funds or make contributions. 

8.    Confidential Information and Invention Assignment Agreement.    Your
acceptance of this offer and commencement of employment with the Company is contingent upon the execution, and delivery to an officer of the Company, of the Company's Confidential Information and
Invention Assignment Agreement (the "Confidentiality Agreement"), a copy of which is enclosed for your review and execution, prior to or on your Start Date. You are also required to abide by the
Confidentiality Agreement as a condition of your employment. In your work for the Company, you will be expected not to use or disclose any confidential information, including trade secrets, of any
former employer or other person to whom you have an obligation of confidentiality. Rather, you may use only that information generally known and used by persons with training and experience comparable
to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company, or developed by you on behalf of the
Company. You agree that you will not bring onto Company premises any unpublished documents or property belonging to any former employer or other person to whom you have an obligation of
confidentiality. You represent further that you have disclosed to the Company any contract you have signed that may restrict your activities on behalf of the Company. 

9.    Company Policies.    As a condition of your employment, you will be expected
to abide by the Company policies and procedures, and acknowledge in writing that you have read and will comply with the Company's Employee Handbook. 

10.    At-Will Employment.    At all times, your employment with the
Company will be on an "at will" basis, meaning that either you or the Company may terminate your employment at any time,
with or without cause, and with or without advance notice. Your employment at-will status can only be modified in a written agreement signed by you and by an officer of the Company. 

11.    Severance:    In the event that, after you commence full-time
employment, either the Company terminates your employment without Cause, or you resign your employment for Good Reason (as defined in Section 5), and if you first sign, date, and deliver to the
Company a general release of all known and unknown claims in the form provided to you by the Company and allow this release to become effective, then you will receive, as your sole severance benefits:
(i) severance pay equal to nine (9) months of your base salary in effect as of the termination date, less required deductions and withholdings, paid in the form of salary continuation on
the Company's standard payroll dates (beginning with the first payroll date following the effective date of the required release of claims); (ii) payment of annual bonus, if any, at "plan,"
such payment to be pro-rated based on the employment termination date and subject to required deductions and withholdings; and (iii) provided that you timely elect continued group
health insurance coverage through COBRA, the Company will pay your COBRA premiums sufficient to continue your group health insurance coverage at the same level in effect as of your termination date
for nine (9) months after your termination or until you become eligible for group health insurance coverage through a new employer, whichever occurs first. For purposes of this letter,
"Cause" means any of the following conduct by you: (i) embezzlement, misappropriation of corporate funds, or other material acts of dishonesty;
commission or conviction of any felony, or of any misdemeanor involving moral turpitude, or entry of a plea of guilty or nolo contendere to any felony or misdemeanor; (iii) engagement in any
activity that you know or should know could materially harm the business or reputation of the Company; (iv) material failure to adhere to the Company's corporate codes, policies or procedures
as in effect from time to time; (v) material violation of any statutory, contractual, or common law duty or obligation to the Company, including, without limitation, the duty of loyalty;
(vi) material breach of the Confidentiality Agreement; or (vii) repeated failure, in the reasonable judgment of the Board, to substantially perform your assigned duties or
responsibilities after written notice from the Board describing the failure(s) in reasonable detail and your failure to cure such failure(s) within thirty (30) days of receiving such written
notice. 

12.    Complete Agreement.    This letter, together with your Confidentiality
Agreement, forms the complete and exclusive statement of your employment agreement with the Company. The terms in this letter supersede any other agreements or promises made to you by anyone, whether
oral or written. Other than those changes expressly reserved to the Company's discretion in this letter, this letter 

agreement
cannot be changed except in a written agreement signed by you and a duly authorized officer of the Company. 

        We
are all delighted to be able to extend you this offer and look forward to working with you. To indicate your acceptance of the Company's offer, please sign and date this letter in the
space provided below and return it to me, along with a signed and dated copy of the Confidentiality Agreement. 

        This
offer is valid until October 20, 2006. 

Very
truly yours,

Epocrates, Inc.

/s/
JOHN S. OWENS 

John
S. Owens 

Vice
President

Human Resources 

UNDERSTOOD, ACCEPTED AND AGREED:  

Richard H. Van Hoesen 

 

 

			
	/s/ RICHARD H. VAN HOESEN

  Signature	 	 
	10/19/06

  Date	 	 
	10/19/06

  Start Date	 	 

 

 

 

 [Epocrates Letterhead]

March 11,
2008 

Richard
H. Van Hoesen
 [Address]

	Re:
	 Modification of Employment Terms

Dear
Rick: 

As
we have discussed, this letter agreement confirms an amendment (the "Amendment") to the terms of your employment offer letter with
Epocrates, Inc. (the "Company") dated October 18, 2006 (the "Offer Letter"). The Amendment
will become effective only as of the effective date of the initial public offering of the Company's common stock (the "IPO"), and if the IPO does not
occur, this Amendment will not become effective. 

The
Amendment is as follows:

         1.     The following language in quotations shall be deleted from the eighth, ninth and tenth lines of Section 11 of the Offer
Letter: "paid in
the form of salary continuation on the Company's standard payroll dates (beginning with the first payroll date following the effective date of the required release of claims)." 

         2.     The following will become Section 13 of the Offer Letter. 

        13.    Parachute Payments.    In the event that the benefits provided
for in this letter agreement or otherwise payable to you ("Payment") would constitute "parachute payments" within the meaning of Section 280G of
the Internal Revenue Code of 1986, as amended (the "Code") and, but for this sentence, would be subject to the excise tax imposed by Section 4999
of the Code (the "Excise Tax"), then such Payment shall be equal to the Reduced Amount. The "Reduced
Amount" shall be either (i) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (ii) the largest
portion, up to and including the total, of the Payment, whichever of the foregoing amounts, after taking into account all applicable federal, state and local employment taxes, income taxes and the
Excise Tax (all computed at the highest applicable marginal rate), results in the receipt by you, on an after-tax basis, of the greater amount of the Payment, notwithstanding that all or
some portion of the Payment may be subject to the Excise Tax. Unless the Company and you otherwise agree in writing, the determination of your Excise Tax liability shall be made in writing by the
accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the Change of Control (the
"Accountants"). If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the
Change of Control, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. For purposes of making the calculations required by this
Section 13, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of
Sections 280G and 4999 of the Code. Any good faith determinations of the Accountants made hereunder shall be final, binding, and conclusive upon the Company and you. The Company and you shall
furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the
Accountants may reasonably incur in connection with any calculations contemplated by this Section 13. To the extent that any elimination in or reduction of payments or benefits is made under
this Section 13, the determination as to the order in which payments and benefits shall be reduced shall be made by you (subject, however, to the Company's approval if made on or after the date
on which the event that triggers the payments or benefits occurs). 

1

 

         3.     The following will become Section 14 of the Offer Letter. 

        14.    Form and Timing of Severance Payments.    The nine
(9) months of base salary severance pay provided for in Section 11 shall be paid in the form of salary continuation on the Company's standard payroll dates (beginning with the first
payroll date following the effective date of your required release of claims); provided, however, that if you are a "specified employee" within the
meaning of Section 409A(a)(2)(B)(i) of the Code at the time of your separation from service with the Company, then in accordance with Section 409A(a)(2)(B)(i) of the Code, the Company's
payment of such severance amounts, and the additional prorated bonus severance amount provided in Section 11(ii), will be delayed until six (6) months after your separation from service
as follows: (i) all amounts that would have been paid to you during the 6-month period following your separation from service (if such amounts were not subject to
Section 409A(a)(2)(B)(i) of the Code) shall be delayed and paid to you on the Company's first normal payroll date following such 6-month period (including the entire amount of the
prorated annual bonus payment to be paid as a severance benefit pursuant to Section 11(ii)), with no interest paid on account of such delay, and (ii) the remaining amount of the base
salary severance payments shall be paid to you in substantially equal installments on the Company's normal payroll dates over the following three (3) months. 

Except
as modified herein, all other terms of the Offer Letter shall remain in full force and effect. 

This
Amendment, together with the Offer Letter, constitutes the entire agreement between you and the Company regarding the terms of your employment, effective as of the first business day of the IPO.
It supersedes any prior statements, representations or promises made to you concerning the subjects contained in this letter agreement and the Offer Letter, and only can be modified in a writing
signed by you and a duly authorized director or officer of Epocrates. 

Please
sign below if these terms are acceptable to you. 

 Understood and Agreed:  

 

 

			
	/s/ John Owens

  John Owens

Vice President

Human Resources

Epocrates, Inc.	 	/s/ Richard H. Van Hoesen

  Richard H. Van Hoesen

Chief Financial Officer

Senior Vice President, Finance

Epocrates, Inc.
	
 4/15/08

  Date	
 	
4/15/08

  Date

 

 2

 

 
    [ePOCRATES Letterhead]    
    

December 23,
2008 

Richard
H. Van Hoesen  

	Re:
	Amendment to October 18, 2006 Offer Letter Agreement

Dear
Rick: 

        This
letter agreement confirms an amendment (the "Amendment") to the terms of your offer letter agreement dated October 18, 2006
(the "Offer Letter") with Epocrates, Inc. (the "Company"). This Amendment is effective as of
December 23, 2008. 

        1.    Bonus
Compensation.    Section 4(b) (Bonus Compensation) of the Offer Letter is hereby amended by adding the following new sentence to the end of this
Section 4(b): 

        Any
earned bonus is to be paid in the following calendar year. 

        2.    Severance Terms.    Section 11
(Severance) of the Offer Letter is hereby amended by adding the following two new paragraphs at the end of Section 11: 

        Notwithstanding
anything to the contrary set forth herein, any payments and benefits provided under this Agreement that constitute "deferred compensation" within the meaning of
Section 409A of the Code and the regulations and other guidance thereunder and any state law of similar effect (collectively
"Section 409A") shall not commence in connection with your termination of employment unless and until you also have incurred a "separation from
service" (as such term is defined in Treasury Regulations Section 1.409A-1(h) ("Separation From Service")), unless the Company
reasonably determines that such amounts may be provided to you without causing you to incur the adverse personal tax consequences under Section 409A. In addition, the fully executed and
effective general release of all known and unknown claims discussed in this Section 11 (the "Release") must be provided by you to the Company
within the applicable time period set forth in the Release but in no event later than sixty (60) days following your termination of employment. Any bonus compensation paid pursuant to this
Section 11 shall be paid in a lump sum, and shall be paid within ten (10) business days following the effective date of the Release. 

        It
is intended that (i) each installment of any benefits payable under this Section 11 be regarded as a separate "payment" for purposes of Treasury Regulations
Section 1.409A-2(b)(2)(i), (ii) all payments of any such benefits under this Section 11 satisfy, to the greatest extent possible, the exemptions from the application
of Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4) and 1.409A-1(b)(9)(iii), and (iii) any such benefits consisting of COBRA
premiums also satisfy, to the greatest extent possible, the exemption from the application of Section 409A provided under Treasury Regulations Section 1.409A-1(b)(9)(v).
However, if the Company becomes a publicly held corporation and determines that any such benefits payable under the Agreement constitute "deferred compensation" under Section 409A and you are a
"specified employee" of the Company, as such term is defined in Section 409A(a)(2)(B)(i), then, solely to the extent necessary to avoid the imposition of the adverse personal tax consequences
under Section 409A, the timing of such benefit payments will be delayed until six (6) months after your Separation From Service as follows: (i) all amounts that would have been
paid to you during the 6-month period following your Separation From Service (if such amounts were not subject to Section 409A(a)(2)(B)(i) of the Code) shall be delayed and paid to
you on the Company's first normal payroll date following such 6-month period (including the entire amount of the prorated annual bonus payment to be paid as a severance benefit pursuant to
Section 11), with no interest paid on account of such delay, and (ii) the remaining amount of the base salary severance payments shall be paid to you in substantially equal installments
on the Company's normal payroll dates over the following three (3) months. 

1

 

        Except
as modified herein, all other terms of the Offer Letter shall remain in full force and effect. This Amendment only can be modified in a writing signed by you and a duly authorized
director or officer of Epocrates. 

        Please
sign below to indicate your agreement to the Amendment. 

 

 

			
	Understood and Agreed:	 	 
	
 /s/ John Owens

  John Owens

Vice President, Human Resources

Epocrates, Inc.	
 	
/s/ Richard H. Van Hoesen

  Richard H. Van Hoesen

Chief Financial Officer

Senior Vice President, Finance

Epocrates, Inc.
	
 12/23/08

  Date	
 	
12/30/2008

  Date

 

 2

QuickLinks

Exhibit 10.18

[ePOCRATES Letterhead]QuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

  Exhibit 10.19    
    

 
    [ePOCRATES Letterhead]    
    

February 25,
2009 

Ms. Rosemary
A. Crane 

Dear
Rose, 

        On
behalf of Epocrates, Inc. ("Epocrates" or the "Company"), I am pleased to offer you the position of Chief Executive Officer ("CEO") under the terms and conditions stated
herein. 

        1.    Position.    

        a.    Title, Reporting Relationship, Office Location, Board
Service.    You will be the Company's full-time CEO. You will report directly to the Company's Board of Directors (the
"Board). You will continue to hold your position as a member of the Board. You hereby agree to resign as a member of the Board, if requested by the
Company, effective on the date on which your employment with the Company terminates or at such earlier date as specified by the Company. 

        b.    Performance, Outside Activities.    You agree to the best of
your ability and experience that you will at all times conscientiously perform all of the duties and obligations required of you to the reasonable satisfaction of the Board. During the term of your
employment, you further agree that you will devote all of your business time and attention to the business of the Company, the Company will be entitled to all of the benefits and profits arising from
or incident to all such work services and advice, you will not render commercial or professional services of any nature to any person or organization, whether or not for compensation, without the
prior written consent of the Board, and you will not directly or indirectly engage or participate in any activity or business that is competitive in any manner with the business of the Company.
Nothing in this letter agreement will prevent you from accepting speaking or presentation engagements in exchange for honoraria or from serving on boards of charitable organizations, 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. 

        2.    Start Date.    Subject to fulfillment of any conditions imposed
by this letter agreement, your role as Interim CEO will end and you will commence this new position with the Company upon the date you sign this letter (the "Start
Date"). 

        3.    Proof of Right to Work.    For purposes of federal immigration
law, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States. 

        4.    Compensation.    

        a.    Base Salary.    Your initial monthly base salary will be
twenty-eight thousand, three hundred thirty-three dollars and thirty-three cents ($28,333.33), less payroll deductions and required withholdings, and payable in semi-monthly installments
on the Company's regular payroll schedule. This equates to an annual base salary of three hundred forty thousand dollars ($340,000). 

        b.    Incentive Compensation.    You will be eligible to participate
in the management bonus program with a target bonus of fifty percent (50%) of your base salary. Such bonuses, if any, are awarded at the sole discretion of the Board, based on its assessment of your
performance and the Company's performance. You must remain employed through the end of the year in order to earn and be eligible to receive a bonus, and no pro rata or partial bonuses will be
provided. No bonuses are earned until the Board confirms such bonuses in writing. The Board shall have the sole discretion to change or eliminate the annual bonus program at any time, and to determine
the amount of bonus earned by you. 

        c.    Living Allowance.    Acknowledging your intent to retain your
residence in the Philadelphia area and travel frequently to the Company's headquarters, the Company will also provide you with 

 

a
living allowance of five thousand dollars ($5,000) per month to be used to cover your housing costs in the San Francisco Bay Area. 

        d.    Annual Review.    Your base salary and incentive compensation
may be reviewed annually by the Board. 

        e.    Discretion To Modify.    The Board may modify your compensation
from time to time in its discretion. 

        5.    Stock Option.    In connection with the commencement of your
employment, the Company will recommend that the Board of Directors (the "Board") grant you an option to purchase nine hundred thirty-five
thousand seven hundred ninety- four (935,794) shares of the Company's Common Stock ("Shares") under the Company's 1999 Stock Option Plan (the
"Plan") with a per share exercise price equal to nine dollars fifty-two cents ($9.52) (the
"Option"). The Option will be subject to the terms of the Plan and your individual Stock Option Agreement with the Company, which shall include the
following vesting schedule for the Shares: 1/4th of the Shares shall vest on the first annual anniversary of the Start Date, and 1/48th of the Shares shall vest monthly thereafter over
the next three years. Vesting will, of course, depend on your continued employment with the Company. The Option will be an incentive stock option to the maximum extent allowed by the tax code. 

Notwithstanding
the foregoing vesting schedule, the Shares (and the shares subject to any future option grants) will be subject to the Acceleration (defined below) if the Company consummates a change
of control transaction whereby the holders of the Company's outstanding voting stock immediately prior to such transaction own, immediately after the closing of the transaction, securities
representing less than fifty percent (50%) of the voting stock of the Company or other entity surviving such transaction (a "Change of Control"), and
your employment is either (i) terminated by the Company or a successor entity without Cause (as defined in Paragraph 12(b) of this letter) within twelve (12) months after a Change
of Control, or (ii) terminated by you within twelve (12) months after a Change of Control because the Change of Control resulted, without your consent, (A) in a relocation of your
assigned office more than thirty-five (35) miles from its location immediately prior to the Change of Control, (B) a material decrease in your base salary (except for salary
decreases generally applicable to the Company's other executive employees), or (C) a material reduction in the scope of your duties or responsibilities from your duties and responsibilities in
effect immediately prior to the Change of Control. In order to be eligible to receive the Acceleration, you must first sign, date, and deliver to the
Company a general release of all known and unknown claims in the form provided to you by the Company and allow it to become effective. For purposes of this letter, the
"Acceleration" shall mean additional vesting of the Shares (and the shares subject to any future option grants) such that all unvested Shares subject to
the Option (and the shares subject to any future option grants) shall become fully vested and immediately exercisable. 

        6.    Benefits, Vacation Accrual.    Subject to the terms, conditions
and limitations of the benefit plans, you will be eligible to participate in the Company's standard employee benefits currently consisting of short/long term disability, medical, dental, and vision
insurance benefits. Eligibility for participation in these group benefits will become effective the first of the month following the Start Date. Epocrates has no formal policy regarding accrual of
paid time off for its exempt employees. As a result, you will not accrue or vest in vacation pay, sick leave, or other paid time off, and there is no set guideline on how much time off you will be
permitted to take. Instead, you may take a reasonable amount of time off with pay, as permitted by your duties and responsibilities. Further details about benefits are available for your review.
Epocrates may modify benefits from time to time at its discretion. 

        7.    Employee 401(k) Plan.    You will be eligible to participate in
the Epocrates 401(k) plan beginning on the first of the month following the Start Date. Employees who chose to participate will have pre-tax dollars deposited into their 401(k) account and
the money will be directed to specified investment options. Epocrates does not match funds. 

2

 

        8.    Confidential Information and Invention Assignment
Agreement.    Your acceptance of this offer and commencement of employment with the Company is contingent upon the execution, and delivery to
the Board, of the Company's Confidential Information and Invention Assignment Agreement (the "Confidentiality Agreement"), a copy of which is enclosed
for your review and execution, prior to or on your Start Date. You are also required to abide by the Confidentiality Agreement as a condition of your employment. In your work for the Company, you must
refrain from any unauthorized use or disclosure of any confidential information or property of any former employer or other third party. You may use only that information generally known and used by
persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the
Company, or developed by you on behalf of the Company. You agree that you will not bring onto Company premises any unpublished documents or property belonging to any former employer or other person to
whom you have an obligation of confidentiality. You represent further that you have disclosed to the Company any contract you have signed that may restrict your activities on behalf of the Company,
and you hereby agree to not enter into any contractual commitments or undertake any other obligations that would restrict, or create any conflict of interest, with your activities on behalf of the
Company. 

        9.    Company Policies.    As a condition of your employment, you will
be expected to abide by the Company's policies and procedures, and acknowledge in writing that you have read and will comply with the Company's Employee Handbook. 

        10.    At-Will Employment.    Your employment with the
Company will be on an "at will" basis, meaning that either you or the Company may terminate your employment at any time, with or without cause or advance notice. Your employment at-will
status can only be modified in a written agreement approved by the Board and signed by you and by an officer of the Company. The Company may change the other terms and conditions of your employment
from time to time in its discretion. 

        11.    Severance.    

        a.    Severance Benefits.    In the event that the Company terminates
your employment without Cause, and if you first sign, date, and deliver to the Company a separation agreement that includes a general release of all known and unknown claims in the form provided to
you by the Company, and allow this separation agreement to become effective, then you will receive, as your sole severance benefits: (i) severance pay equal to twelve (12) months of your
base salary in effect as of the termination date, less required deductions and withholdings, paid in the form of salary continuation on the Company's standard payroll dates (beginning with the first
payroll date following the effective date of the required separation agreement); (ii) provided that you timely elect continued group health insurance coverage through COBRA, the Company will
pay your COBRA premiums sufficient to continue your group health insurance coverage at the same level in effect as of your termination date for twelve (12) months after your termination or
until you become eligible for group health insurance coverage through a new employer, whichever occurs first; and (iii) accelerated vesting of the Shares subject to the Option equal to the  lesser
of either (A) the number of unvested Shares that would have vested if your employment had continued for twelve (12) months after
your termination date, or (B) all remaining unvested Shares. 

        b.    Definition of Cause.    For purposes of this letter,
"Cause" means any of the following conduct by you: (i) embezzlement, misappropriation of corporate funds, or other material acts of dishonesty;
(ii) commission or conviction of any felony, or of any misdemeanor involving moral turpitude, or entry of a plea of guilty or nolo contendere to any felony or misdemeanor involving moral
turpitude; (iii) engagement in any activity that you know or should know could materially harm the business or reputation of the Company; (iv) material failure to adhere to the Company's
corporate codes, policies or procedures as in effect from time to time and your failure to cure such violations within thirty (30) days; (v) material violation of any statutory,
contractual, or common 

3

 

law
duty or obligation to the Company, including, without limitation, the duty of loyalty; (vi) material breach of the Confidentiality Agreement; or (vii) repeated failure, in the
reasonable judgment of the Board, to substantially perform your assigned duties or responsibilities after written notice from the Board describing the failure(s) in reasonable detail and your failure
to cure such failure(s) within thirty
(30) days of receiving such written notice, provided that written notice only must be provided if the failure(s) are capable of cure. 

        c.    Deferred Compensation.    In the event that the Company
determines that any payments hereunder (including but not limited to the Severance Benefits under Section 12(a), fail to satisfy the distribution requirement of Section 409A(a)(2)(A) of
the Internal Revenue Code of 1986, as amended (the "Code") as a result of Section 409A(a)(2)(B)(i) of the Code, then the payment of such benefits
shall not be made pursuant to the payment schedules provided herein and instead the payment of such benefits shall be delayed or otherwise restructured to the minimum extent necessary so that such
benefits are not subject to the provisions of Section 409A(a)(1) of the Code, which may include, without limitation, deferring the payment of such benefits for six (6) months after your
date of termination; provided, however, that nothing in this paragraph shall require the payment of benefits to you earlier than they would otherwise be
payable hereunder. 

        12.    Parachute Payments.    In the event that the benefits provided
for in this letter agreement or otherwise payable to you ("Payment") would constitute "parachute payments" within the meaning of Section 280G of
the Code and, but for this sentence, would be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then such Payment
shall be equal to the Reduced Amount. The "Reduced Amount" shall be either (i) the largest portion of the Payment that would result in no portion
of the Payment being subject to the Excise Tax, or (ii) the largest portion, up to and including the total, of the Payment, whichever of the foregoing amounts, after taking into account all
applicable federal, state and local employment taxes, income taxes and the Excise Tax (all computed at the highest applicable marginal rate), results in the receipt by you, on an after-tax
basis, of the greater amount of the Payment, notwithstanding that all or some portion of the Payment may be subject to the Excise Tax, Unless the Company and you otherwise agree in writing, the
determination of your Excise Tax liability shall be made in writing by the accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the Change of
Control (the "Accountants"). If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group
effecting the Change of Control, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. For purposes of making the calculations required by
this Section 12, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application
of Sections 280G and 4999 of the Code. Any good faith determinations of the Accountants made hereunder shall be final, binding, and conclusive upon the Company and you. The Company and you
shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company shall bear all costs the
Accountants may reasonably incur in connection with any calculations contemplated by this Section 12. To the extent that any elimination in or reduction of payments or benefits is made under
this Section 12, the determination as to the order in which payments and benefits shall be reduced shall be made by you (subject, however, to the Company's approval if made on or after the date
on which the event that triggers the payments or benefits occurs). 

        13.    Complete Agreement.    This letter, together with your
Confidentiality Agreement, forms the complete, final and exclusive statement of your agreement with the Company with regard to the subject matters contained herein. It is entered into without reliance
on any promise or representation other than those expressly contained herein, and it supersedes and replaces any previous promises, representations or agreements. Other than those changes expressly
reserved to the Company's discretion in this letter, this letter agreement cannot be changed except in a written agreement 

4

 

approved
by the Board and signed by you and a duly authorized officer of the Company. Each party has carefully read this letter, has been afforded the opportunity to be advised of its meaning and
consequences by your or its respective attorneys, and signs the same of your or its own free will. This letter agreement can be signed in counterparts, and facsimile signatures shall be deemed
equivalent to original signatures. 

        We
are delighted to be able to extend you this offer and look forward to working with you. To indicate your acceptance of the Company's offer, please sign and date this letter in the
space provided below and return it to me, along with a signed and dated copy of the Confidentiality Agreement. This offer is valid until March 5, 2009. 

Very
truly yours,

Epocrates, Inc. 

/s/
Gilbert H. Kliman 

Gilbert
H. Kliman, M.D.

Chairman, Compensation Committee

of the Board of Directors

ACCEPTED
AND AGREED: 

 

 

			
	Rosemary A. Crane	 	 
	
 /s/ Rosemary A. Crane

  Signature	
 	

 
	
 2/25/09

  Date

	
 	

 

 

 Enclosure:    Confidential
Information and Invention Assignment Agreement 

5

QuickLinks

Exhibit 10.19

[ePOCRATES Letterhead]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]