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Exhibit 10.20    
  

        Sangamo BioSciences, Inc.

Point Richmond Tech Center

501 Canal Blvd., Suite A100

Richmond, CA 94804

510-970-6000    •    510-236-8951 (FAX) 

September 12,
2001 

Carl
O. Pabo, Ph.D.

15 Ricker Terrace

Apt. 2

Newton, MA 02458 

Dear
Carl; 

        This
will constitute the employment agreement between you and Sangamo BioSciences, Inc. (the "Company") following your acceptance of our offer dated September 4, 2001. 

	1.
	You
will serve as Senior Vice President and Chief Scientific Officer and will report directly to me as President and Chief Executive Officer. You will commence employment in such
position on October 1, 2001, and your employment shall continue until terminated by you or the Company. 
	2.
	Your
base salary will be at the annual rate of $280,000 and will be paid in accordance with the Company's payroll practices, subject to all the applicable withholdings. 
	3.
	You
will receive on your first day of full-time employment a signing bonus of $100,000. 
	4.
	You
will be eligible for an annual bonus of up to 33 percent of your base salary amount. The amount of the bonus will be determined by the Board of Directors based on our bonus
plan as amended from time to time. 
	5.
	The
Board of Directors has granted you a stock option for 400,000 shares of the Company's common stock under our 2000 Stock Option Plan. The effective date of the option will be
determined at a later date. The option will have an exercise price per share equal to the fair market value per share of the Company's common stock on the grant date as determined by the Board of
Directors. The option will be an incentive stock option under federal tax laws, to the maximum extent allowable of $100,000 vesting per y ear, and the balance will be a non-statutory
option. The option will have a maximum term of ten (10) years, subject to earlier termination upon cessation of employment. The option will become exercisable for 25 percent of the
option shares upon your completion of one year of employment from the start of your employment with the Company and will become exercisable for the balance of the option shares in a series of 36
successive equal monthly installments, upon your completion of each of the next 36 months of employment with the Company following the first anniversary of the employment date. The remaining
terms of your option will be governed by the provisions of the Company's 2000 Stock Option Plan. 
	6.
	No
additional vesting will occur after your termination of employment, except that you will be entitled to the special protection provided by the attached addendum to your standard
form option agreement. This addendum in general provides for automatic acceleration of one-year of vesting of your options if your employment is involuntarily terminated (except for
misconduct) within the first year of employment. 
	7.
	You
will be eligible to participate in group insurance plans, group health and dental plans, and long-term disability programs, a Section 125 medical and dependent
care pre-tax deduction plan, a 401(k) retirement plan, an Employee Stock purchase Plan and other executive perquisites which 

are
made available to the Company's executives and for which you qualify. You will accrue paid vacation benefits at the rate of 15 days per year and paid sick days at 10 days per year. 

	8.
	Upon
relocation to the San Francisco Bay Area, the Company will loan you $250,000, with principal payable in 4 years from the date of the loan with interest at 6% per annum
payable on each anniversary date of the loan. Twenty-five (25%) of the principal and accrued interest on the loan will be forgiven on each anniversary date of the loan so long as you are a
full time employee of the Company at such time. 
	9.
	The
Company will reimburse you for your actual relocation expenses from Boston to the San Francisco Bay Area. 
	10.
	The
Company will pay for up to 8 round trips back to Boston/East Coast over the twelve months from the date of this agreement. 
	11.
	The
Company and our Board of Directors will make every effort to assist Elaine Bearer, M.D., Ph.D. in her search for a suitable position in the Bay Area. 
	12.
	At
the time you commence employment with the Company, you will be required to execute the Company's standard Proprietary Information and Inventions Agreement, a copy of which will be
furnished to you prior to your start date. 
	13.
	Consistent
with the other officers of the Company, your employment with the Company is not for any specified period of time. As a result, either you or the Company are free to
terminate your employment relationship at any time for any reason, with or without cause. In addition your employment relationship will immediately terminate upon your death or disability. At the time
your employment terminates, the Company will only be required to pay you (i) any unpaid base salary for services rendered through the date of such termination, and (ii) In addition, if
you are terminated from employment without cause, you will be entitled to your salary and benefits for one year beyond the date of termination and (iii) the dollar value of all accrued and
unused vacation benefits based upon the level of base salary in effect for you at the time of your termination. Of course, if applicable the life or disability insurance proceeds would be available. 
	14.
	Verification
of your citizenship or right to work in the United States is required, and you will need to provide proof of this on your first day of employment. 
	15.
	This
agreement shall be governed in all respects by California law applicable to agreements executed in California. 
	16.
	Arbitration:
Any and all disputes between you and the Company which arise under the terms of this letter agreement shall be resolved through final and binding arbitration, including
(without limitation) any disputes relating to this letter agreement, your employment by the Company or the termination of that employment, any claims for breach of contract or breach of the covenant
of good faith and fair dealing, and any claims of discrimination or other claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, The Americans with
Disabilities Act, the California Employment and Housing Act or any other federal, state or local law or regulation now in existence or hereinafter enacted and as amended from time to time concerning
in any way the subject of your employment with the Company or the termination of that employment. The only claims not covered by this paragraph 16 are claims for benefits under the workers'
compensation or unemployment issuance laws, which are to be resolved pursuant to those laws. Binding arbitration shall be conducted in San Francisco City and County, California, in accordance with the
rules and regulations of the American Arbitration Association. Each party shall split the cost of the arbitration filing and hearing fees, and the cost of the arbitrator; each party shall bear his and
its own attorney fees, that is, the arbitrator shall not have the authority to award attorney fees unless a statutory section at issue in the dispute authorizes the award of attorney fees to the
prevailing party, in which case the arbitrator shall have the authority to make such award as permitted by the statute in question. The arbitration shall be instead of any civil litigation, and you
hereby waive your right to a jury trial as to such claims. The arbitrator's decision shall be final and binding to the fullest extent permitted by law and enforceable by any court having jurisdiction
thereof. 

We
are delighted that you have agreed to join Sangamo. We believe that you bring the skills and expertise to help us to continue to build our Company into a leadership position. We look forward to
working with you in developing the full potential of our Company. 

To
indicate your acceptance of the foregoing terms of your employment, please sign the duplicate original of this letter and return it to me. 

	Sincerely yours,	 	 
	

/s/ Edward O. Lanphier, II
 Edward O. Lanphier, II

President and CEO	
 	

 

ACCEPTANCE  

        I hereby accept and agree to the terms of the foregoing employment agreement with Sangamo BioSciences, Inc. 

	/s/ Carl O. Pabo
 Carl O. Pabo, Ph.D.	 	 
	

Dated:    10/1/01	
 	

 

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Exhibit 10.20<PAGE>

                                                                     Exhibit 4.1

                      SECOND AMENDMENT TO RIGHTS AGREEMENT

      This Second Amendment to the Rights Agreement between Pennzoil-Quaker
State Company (formerly Pennzoil Products Company), a Delaware corporation (the
"Company"), and Mellon Investor Services LLC (formerly The Chase Manhattan
Bank), as Rights Agent (the "Rights Agent"), dated December 18, 1998 (the
"Rights Agreement") is hereby adopted as of March 25, 2002.

      WHEREAS, the Company and the Rights Agent entered into the Rights
Agreement specifying the terms of the Rights (as defined therein);

      WHEREAS, the Company desires to amend the Rights Agreement in accordance
with Section 27 of the Rights Agreement;

      WHEREAS, the Company proposes to enter into an Agreement and Plan of
Merger, dated as of March 25, 2002 (the "Merger Agreement"), by and among Shell
Oil Company, a Delaware corporation ("Parent"), Shell ND Company, a Delaware
corporation and a wholly owned subsidiary of Parent ("Merger Sub"), and the
Company;

      WHEREAS, the Board of Directors of the Company has determined it advisable
and in the best interest of its stockholders to amend the Rights Agreement to
enable the Company to enter into the Merger Agreement and consummate the
transactions contemplated thereby without causing Parent or any of its
subsidiaries to become an "Acquiring Person" (as defined in the Rights
Agreement).

      NOW, THEREFORE, in consideration of the premises and mutual agreements set
forth herein and in the Rights Agreement, the parties hereby agree as follows:

      Section 1. DEFINITIONS. Capitalized terms used and not otherwise defined
herein shall have the meaning assigned to such terms in the Rights Agreement.

      Section 2. AMENDMENTS TO RIGHTS AGREEMENT. The Rights Agreement is hereby
amended as set forth in this Section 2.

      (a)   The definition of "Acquiring Person" in Section 1 of the Rights
            Agreement is amended to add the following sentence at the end
            thereof:

      "Notwithstanding anything in this Agreement to the contrary, none of
      Parent, Merger Sub or any Affiliate or Associate of either of them shall
      be deemed to be an Acquiring Person, either individually or collectively,
      solely by virtue of (i) the execution and delivery of the Merger
      Agreement, (ii) the conversion of shares of Common Stock into the right to
      receive the Merger Consideration (as such term is defined in the Merger
      Agreement) in accordance with Article II of the Merger Agreement or (iii)
      the consummation of the Merger (as such term is defined in the Merger
      Agreement) or any other transaction contemplated by the Merger Agreement."

<PAGE>

      (b)   The definition of "Flip-In Event" in Section 1 of the Rights
            Agreement is amended to add the following sentence at the end
            thereof:

      "Notwithstanding anything in this Agreement to the contrary, none of (i)
      the announcement of the Merger (as such term is defined in the Merger
      Agreement), (ii) the execution of the Merger Agreement or (iii) the
      consummation of the Merger or of the other transactions contemplated by
      the Merger Agreement shall be a Flip-In Event."

      (c)   The definition of "Distribution Date" in Section 1 of the Rights
            Agreement is amended to add the following sentence at the end
            thereof:

      "Notwithstanding anything in this Agreement to the contrary, a
      Distribution Date shall not be deemed to have occurred solely as the
      result of (i) the execution and delivery of the Merger Agreement, (ii) the
      conversion of shares of Common Stock into the right to receive the Merger
      Consideration (as such term is defined in the Merger Agreement) in
      accordance with Article II of the Merger Agreement or (iii) the
      consummation of the Merger (as such term is defined in the Merger
      Agreement) or any other transaction contemplated by the Merger Agreement."

      (d)   The definition of "Expiration Date" in Section 1 of the Rights
            Agreement is amended to replace the words "and (iv)" with ", (iv)"
            and to add at the end thereof the words "and (v) the Effective Time
            of the Merger (as such term is defined in the Merger Agreement)".

      (e)   The following definition shall be added to Section 1 of the Rights
            Agreement:

      "'Merger Agreement' shall mean the Agreement and Plan of Merger dated as
      of March 25, 2002 by and among Shell Oil Company, a Delaware corporation
      ("Parent"), Shell ND Company, a Delaware corporation and a wholly owned
      subsidiary of Parent ("Merger Sub"), and the Company."

      (f)   Section 13(d) of the Rights Agreement is amended to add "(A)" after
            the word "applicable" and the following at the end of the first
            sentence thereof: "or (B) solely as the result of (i) the execution
            and delivery of the Merger Agreement, (ii) the conversion of shares
            of Common Stock into the right to receive the Merger Consideration
            (as such term is defined in the Merger Agreement) in accordance with
            Article II of the Merger Agreement or (iii) the consummation of the
            Merger (as such term is defined in the Merger Agreement) or any
            other transaction contemplated by the Merger Agreement".

Section 3.        MISCELLANEOUS.

      (a)   The term "Agreement" as used in the Rights Agreement shall be deemed
            to refer to the Rights Agreement as amended hereby.

      (b)   The foregoing amendment shall be effective as of the date first
            above written, and, except as set forth herein, the Rights Agreement
            shall remain in full force and effect and shall be otherwise
            unaffected hereby.

                                      -2-
<PAGE>

      (c)   This Amendment may be executed in two or more counterparts, each of
            which shall be deemed to be an original, but all for which together
            shall constitute one and the same instrument.

      (d)   This Amendment shall be deemed to be a contract made under the laws
            of the State of Delaware and for all purposes shall be governed by
            and construed in accordance with the laws of such State applicable
            to contracts to be made and performed entirely within such State.

                                      -3-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of the day and year first above written.

                                PENNZOIL-QUAKER STATE COMPANY

                                By:    /s/ LINDA F. CONDIT
                                       ---------------------------------
                                Name:  Linda F. Condit
                                Title: Vice President and Corporate Secretary

                                MELLON INVESTOR SERVICES LLC

                                By:    /s/ BARBARA J. ROBBINS
                                       ---------------------------------
                                Name:  Barbara J. Robbins
                                Title: Vice President

                                      -4-

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