Document:

EX-4.3

 Exhibit 4.3 

NATIONAL FUEL GAS COMPANY 

OFFICER’S CERTIFICATE 

Establishing Notes 
 D. P.
Bauer, the Treasurer of National Fuel Gas Company, a New Jersey corporation (the “Company”), pursuant to the authority granted in the Board Resolutions of the Company adopted on
                , 20    , and Sections 102, 201 and 301 of the Indenture defined herein, does hereby certify to The Bank of New York Mellon (formerly
known as The Bank of New York), as Trustee (the “Trustee”) under the Indenture of the Company (For Unsecured Debt Securities) dated as of October 1, 1999 (the “Indenture”), that: 

 

	1.	The Securities of the          series to be issued under the Indenture shall be designated “        % Notes due
                    ” (the “Notes of the          Series”); the Notes of the
         Series shall be in substantially the form set forth in Exhibit A hereto. All capitalized terms used in this certificate which are not defined herein shall have the meanings set forth in the Indenture.

  

	2.	The Notes of the          Series shall be initially authenticated and delivered in the aggregate principal amount of $         (the
“Initial Notes of the          Series”); provided, however, that the Company may, without consent of the Holders of the Initial Notes of the          Series,
create and issue additional Notes of the          Series ranking equally with, and otherwise identical in all respects to, the Initial Notes of the          Series
(except for the date from which interest first accrues thereon and the first interest payment date therefor), which additional Notes of the          Series shall form a single series with the Initial Notes of
the          Series. 

  

	3.	The Notes of the          Series shall mature, and the principal thereof shall be due and payable, together with all accrued and unpaid interest thereon, on
                , 20    . 

  

	4.	The Notes of the          Series shall be issued in the denominations of $                 and
integral multiples of $                 in excess thereof. 

  

	5.	The Notes of the          Series shall bear interest as provided in the form thereof set forth in Exhibit A. 

 

	6.	The principal of and premium if any, and interest on the Notes of the          Series shall be payable at, and registration of transfers and exchanges in respect of the Notes of
the          Series may be effected at, the office or agency of the Company in The City of New York; provided, however, that payment of interest may be made at the option of the Company by check mailed to the
address of the persons entitled thereto [or, in certain circumstances described in the form of Notes of the          Series hereto attached as Exhibit A, by wire transfer to an account designated by the person
entitled thereto]. Notices and demands to or upon the Company in respect of the Notes of the          Series and the Indenture may be served at the office or agency of the Company in The City of New York. The
Corporate Trust Office of the Trustee shall initially be the agency of the Company for such payment, registration and registration of transfers and exchanges and service of notices and demands and the Company hereby appoints the Trustee as its agent
for all such purposes; provided, however, that the Company reserves the right to change, by one or more Officer’s Certificates, any such office or agency and such agent. The Trustee shall initially be the Security Registrar and the Paying Agent
for the Notes of the          Series. 

  

	7.	[Redemption provisions, if any, will be inserted here]. 

  

	8.	[Extension of interest payment provisions, if any, will be inserted here]. 

  

	9.	[Change of control provisions, if any, will be inserted here]. 

  

	10.	The Notes of the         Series shall be issued initially in global form registered in the name of Cede & Co. (as nominee for The Depository Trust Company, New York, New
York). 

  

	11.	Beneficial interests in the Notes of the         Series issued as Global Notes may not be exchanged in whole or in part for individual certificated Notes of the
        Series in definitive form, and no transfer of a Global Note 

  

	 	of the          Series in whole or in part may be registered in the name of any Person other than the Depository or its nominee, except that if (A) the Depository has
notified the Company that it is unwilling or unable to continue as Depository for the Global Notes of the          Series, (B) the Depository has ceased to be a clearing agency registered under the
Exchange Act and, in either case, a successor depository for such Global Notes of the          Series has not been appointed within 90 days of (i) that notice or (ii) the Company becoming aware that
the Depository is no longer registered, (C) an Event of Default occurred and is continuing, and the Depository requests the issuance of certificated Notes of the          Series in definitive form or
(D) the Company determines not to have the Notes of the          Series represented by Global Notes, the Company shall execute, and the Trustee, upon receipt of a Company Order for the authentication and
delivery of the definitive Notes of the          Series, shall authenticate and deliver, Notes of the          Series in definitive certificated form in an aggregate
principal amount equal to the principal amount of the Global Notes of the          Series representing such Notes of the          Series in exchange for such Global
Notes of the          Series, such definitive Notes of the          Series to be registered in the names provided by the Depository. 

 

	12.	No service charge shall be made for the registration of transfer or exchange of the Notes of the          Series; provided, however, that the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in connection with the exchange or transfer. 

  

	13.	The Trustee, the Security Registrar and the Company shall have no responsibility under the Indenture for transfers of beneficial interests in the Notes of the          Series, for
any depository records of beneficial interests or for any transactions between the Depository and beneficial owners. 

  

	14.	If the Company shall make any deposit of money and/or Eligible Obligations with respect to any Notes of the          Series, or any portion of the principal amount thereof, as
contemplated by Section 701 of the Indenture, the Company shall not deliver an Officer’s Certificate described in clause (z) in the first paragraph of said Section 701 unless the Company shall also deliver to the Trustee,
together with such Officer’s Certificate, either: 

 (A) an instrument wherein the Company,
notwithstanding the satisfaction and discharge of its indebtedness in respect of the Notes of the          Series, shall assume the obligation (which shall be absolute and unconditional) to irrevocably deposit
with the Trustee or Paying Agent such additional sums of money, if any, or additional Eligible Obligations (meeting the requirements of Section 701), if any, or any combination thereof, at such time or times, as shall be necessary, together
with the money and/or Eligible Obligations theretofore so deposited, to pay when due the principal of and premium, if any, and interest, if any, due and to become due on such Notes of the          Series or
portions thereof, all in accordance with and subject to the provisions of said Section 701; provided, however, that such instrument may state that the obligation of the Company to make additional deposits as aforesaid shall be subject to the
delivery to the Company by the Trustee of a notice asserting the deficiency accompanied by an opinion of an independent public accountant of nationally recognized standing, selected by the Company and acceptable to the Trustee, showing the
calculation thereof; or 
 (B) an Opinion of Counsel to the effect that, as a result of (i) the receipt by the Company
from, or the publication by, the Internal Revenue Service of a ruling or (ii) a change in law occurring after the date of this certificate, the Holders of such Notes of the          Series, or portions of
the principal amount thereof, will not recognize income, gain or loss for United States federal income tax purposes as a result of the satisfaction and discharge of the Company’s indebtedness in respect thereof and will be subject to United
States federal income tax on the same amounts, at the same times and in the same manner as if such satisfaction and discharge had not been effected. 
  

	15.	The Notes of the          Series shall have such other terms and provisions as are provided in the form thereof set forth in Exhibit A hereto. 

 

	16.	All conditions precedent, if any, provided for in the Indenture (including any covenants compliance with which constitutes a condition precedent), relating to the authentication and delivery of the Notes of the
         Series requested in the accompanying Company Order No.          have been complied with. 

  
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	17.	The undersigned has read all of the covenants and conditions contained in the Indenture, and the definitions in the Indenture relating thereto, relating to the Company’s issuance of the Notes of the
         Series and the Trustee’s authentication and delivery of the Notes of the          Series, and in respect of compliance with which this certificate is made.

  

	18.	The statements contained in this certificate are based upon the familiarity of the undersigned with the Indenture, the documents accompanying this certificate, and upon discussions by the undersigned with officers,
employees and counsel of the Company familiar with the matters set forth herein. 

  

	19.	In the opinion of the undersigned, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenants and conditions have been complied with.

  

	20.	In the opinion of the undersigned, such conditions and covenants have been complied with. 

 IN
WITNESS WHEREOF, I have executed this Officer’s Certificate this          day of                 ,
20    . 
  

	
	  
 D. P. Bauer

Treasurer

  
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 EXHIBIT A 

[depositary legend] 

[Unless this Certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation
(“DTC”), to the Company or its agent for registration of transfer, exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of
DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein.] 
 [FORM OF FACE OF NOTE] 

NATIONAL FUEL GAS COMPANY 

% NOTES DUE 
  

			
	NO.                     	  	CUSIP NO.:         
		
	ORIGINAL ISSUE DATE:                     	  	PRINCIPAL AMOUNT:         
		
	ORIGINAL INTEREST ACCRUAL DATE:                     	  	INTEREST RATE:         
		
	MATURITY DATE:                     	  	
		
	INTEREST PAYMENT DATES:                     	  	
		
	REDEEMABLE AT OPTION OF THE COMPANY:                     	  	YES        NO
		
	REDEEMABLE AT OPTION OF THE HOLDER:                     	  	YES        NO

 (See the Reverse of this Note for redemption provisions) 

NATIONAL FUEL GAS COMPANY, a corporation duly organized and existing under the laws of the State of New Jersey (herein referred to as the
“Company”, which term includes any successor Person under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to
                 or registered assigns, the principal sum of                  on the
Maturity Date specified above, and to pay interest thereon at the Interest Rate specified above, [semi-annually] [quarterly] on the Interest Payment Dates specified above of each year and on the Maturity Date, from the Original Interest Accrual Date
specified above or from the most recent Interest Payment Date to which interest has been paid, unless the Company shall default in the payment of interest due on such Interest Payment Date, in which case interest shall be payable from the next
preceding Interest Payment Date to which interest has been paid, or, if no interest has been paid on this Security, from the Original Interest Accrual Date. In the event that the Maturity Date [or any date fixed for redemption] is not a Business
Day, then payment of principal and interest payable on such date shall be made on the next succeeding day which is a Business Day (and without any interest or other payment in respect of such delay) with the same force and effect as if made on such
Maturity Date [or date fixed for redemption]. In the event that any Interest Payment Date is not a Business Day, then payment of interest payable on such date will be made on the next succeeding day which is a Business Day (and without any interest
or other payment in respect of such delay) with the same force and effect as if made on such Interest Payment Date. The Initial Interest Payment Date shall be
                , 20    , and the payment on that date shall include all interest accrued from the Original Interest Accrual Date. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on
the Regular Record Date for such interest, which shall be (a) the Business Day immediately preceding such Interest Payment Date so long as Securities of this series remain in book-entry only form or (b) the
         calendar day prior to such Interest Payment Date if Securities of this series do not remain in book-entry only form; provided, however, 

  
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that interest payable at Maturity shall be paid to the Person to whom principal shall be paid. [Subject to extension of interest payment provisions,] [A]ny such interest not so punctually paid or
duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice of which shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. 

Payment of the principal of and premium, if any, and interest on this Security shall be made at the office or agency of the Company maintained
for that purpose in The City of New York, the State of New York in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that [(a)] at the option
of the Company, interest on this Security may be paid by check mailed to the address of the person entitled thereto, as such address shall appear on the Security Register or by wire transfer to an account designated by the person entitled thereto[,
and (b) upon the written request of a Holder of not less than $                 million in aggregate principal amount of Securities of this series delivered to the
Company and the Paying Agent at least ten days prior to any Interest Payment Date, payment of interest on such Securities to such Holder on such Interest Payment Date shall be made by wire transfer of immediately available funds to an account
maintained within the continental United States specified by such Holder or, if such Holder maintains an account with the entity acting as Paying Agent, by deposit into such account]. 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

 

			
	NATIONAL FUEL GAS COMPANY
	
	By:
                                         
                       

  
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 [FORM OF CERTIFICATE OF AUTHENTICATION] 

CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

Dated: 
  

	
	THE BANK OF NEW YORK MELLON, as Trustee
	
	By:
                                         
                           
	Authorized Signatory

  
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 [FORM OF REVERSE OF NOTE] 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be
issued in one or more series under an Indenture (For Unsecured Debt Securities), dated as of October 1, 1999 (herein, together with any amendments or supplements thereto, called the “Indenture”, which term shall have the meaning
assigned to it in such instrument), between the Company and The Bank of New York Mellon, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), and reference is hereby made to the
Indenture, including the Board Resolutions and Officer’s Certificate filed with the Trustee on                 , 20     creating the series
designated on the face hereof, for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to
be, authenticated and delivered. This Security is one of the series designated on the face hereof. The acceptance of this Security shall be deemed to constitute the consent and agreement by the Holder hereof to all terms and provisions of the
Indenture. 
 [Redemption provisions, if any, will be inserted] 

[Change of control provisions, if any, will be inserted] 

The Indenture contains provisions for defeasance at any time of the entire indebtedness of the Company in respect of this Security, or any
portion of the principal amount thereof, upon compliance with certain conditions set forth in the Indenture, including the Officer’s Certificate described above. 

If an Event of Default with respect to Securities shall occur and be continuing, the principal of the Securities may be declared due and
payable in the manner and with the effect provided in the Indenture. 
 The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of
the Holders of a majority in principal amount of the Securities at the time Outstanding of all series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of
each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any
such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu
hereof, whether or not notation of such consent or waiver is made upon this Security. 
 As provided in and subject to the provisions of the
Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless (a) such Holder shall have
previously given the Trustee written notice of a continuing Event of Default with respect to the Securities of this series, (b) the Holders of a majority in aggregate principal amount of the Securities of all series at the time Outstanding in
respect of which an Event of Default shall have occurred and be continuing shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee, (c) such Holder shall have
offered the Trustee reasonable indemnity, (d) the Trustee shall have failed to institute any such proceeding for 60 days after receipt of such notice, request and offer of indemnity, and (e) the Trustee shall not have received from the
Holders of a majority in aggregate principal amount of Securities of all series at the time Outstanding in respect of which an Event of Default shall have occurred and be continuing a direction inconsistent with such request. The foregoing shall not
apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof and premium, if any, or [,subject to the extension of interest payment provisions,] interest hereon on or after the respective due
dates expressed herein. 
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair
the obligation of the Company, which is absolute and unconditional, to pay the principal of and premium, if any, and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

[Extension of interest payment provisions, if any, will be inserted here]. 

  
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 The Securities are issuable only in registered form without coupons in denominations of
$                 and integral multiples of $                 in excess thereof. As
provided in the Indenture and subject to certain limitations therein set forth, Securities are transferable to a transferee or transferees, as designated by the Holder surrendering the same for such registration of transfer, and exchangeable for a
like aggregate principal amount of Securities and of like tenor and of authorized denominations, as requested by the Holder surrendering the same. 

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith. 
 The Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name this Security is registered as the absolute owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary. 
 All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

  
 - 8 -cbio-ex1011_464.htm

Exhibit 10.11

 

	

	
 
	
 
	
CATALYST BIOSCIENCES, INC.

260 Littlefield Avenue

South San Francisco, CA 94080

P  650.871.0761

W  catalystbiosciences.com

NASDAQ: CBIO

 

 

	
 
	
Nassim Usman, Ph.D. 

	
 
	
Chief Executive Officer

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
14 April 2016

 

Howard Levy, M.D., Ph.D., M.M.M.

65 Van Dyke Road

Hopewell, New Jersey 08525

Dear Dr. Levy:

I am pleased to confirm our offer to you to serve as Chief Medical Officer of Catalyst Bio, Inc. (the "Company"). In this role, you will report directly to Nassim Usman, President and Chief Executive Officer. We look forward to your joining us on or before 18 April 2016.

While employed by the Company, you agree to perform your duties faithfully and to the best of your abilities and to devote your full business efforts and time to the Company. Except upon the prior written consent of the Board of Directors, you will not, during your employment with the Company, (i) accept any other employment, or (ii) engage, directly or indirectly, in any other business activity (whether or not pursued for pecuniary advantage) that might interfere with your duties and responsibilities as Chief Medical Officer or create a conflict of interest with the Company. This consent will not be unduly withheld. Notwithstanding the foregoing, the Company acknowledges and approves of the continuation of your current advisory activities to Hillhurst Biopharmaceuticals and ZZ Biotech, so long as such activities do not interfere with your duties and responsibilities to the Company.

Your initial base compensation will be $31,250 per month ($375,000, annualized), paid periodically in accordance with normal Company payroll practices and subject to the usual, required withholding. You will be eligible for a review of your salary in January, 2017. You will also have the opportunity to earn an annual performance-based bonus up to 35% of your annual salary (pro-rated for 2016 based on your date of hire). Any annual bonus that is earned will be paid no later than March 15th of the year following the year to which the bonus relates.

 

 

	
Exceptional Science, Essential Medicines.

	
 

	
 

 

 

It is anticipated that you will work primarily from your home in Hopewell, NJ, with occasional travel to the Company's offices and for other business meetings as required.

During your employment with the Company, you will be eligible to participate in the Company's employee benefit plans including, but not limited to, Life, Disability, Medical, Dental and Vision Insurance, 401(k), Section 125 Flexible Spending Accounts. The Company reserves the right to cancel or change the benefit plans and programs it offers to its employees at any time.

As a full-time employee, you will be eligible for paid time off benefits, which include sick leave and vacation time, in accordance with the Company's policies for similarly situated employees.

Subject to the approval of the Board of Directors or Compensation Committee of the Board of Directors of Catalyst Biosciences, Inc., you will receive stock options to purchase 100,000 shares of common stock of Catalyst Biosciences, Inc. The exercise price of your stock options will be equal to the closing price of the common stock on the grant date of the options, which will be the later of (i) your start date and (ii) the date on which the Board of Directors or Compensation Committee of the Board of Directors approves of the grant of such stock options. Your options will vest over four years, with 25% vesting on the one-year anniversary of your start date, and 1/48 of the total number of shares vesting monthly thereafter. Your option will be granted as an "inducement option" outside of the Company's 2015 Stock Incentive Plan pursuant to Nasdaq rules and regulations, but will have terms and conditions similar to options granted pursuant to the Catalyst Biosciences, Inc. 2015 Stock Incentive Plan, as will be set forth in the applicable stock option agreement.

In the event your employment with us is terminated for any reason other than death or Disability (as defined in the 2015 Stock Incentive Plan), you will have three months following the termination of employment to exercise the vested portion of your initial option grant. In the event your employment with us is terminated due to your death or Disability, the vested portion of your initial option grant may be exercised within the one-year period following the termination of your employment. In no event may your initial option grant be exercised after the expiration of its ten-year term. As a condition of accepting this offer of employment, you will be required to complete, sign and return the Company's standard form of confidential information and/or inventions assignment agreement, if you have not already done so.

You should be aware that your employment with the Company is for no specified period and constitutes "at will" employment. As a result, you are free to terminate your employment at any time, for any reason or for no reason. Similarly, the Company is free to terminate your employment at any time, for any reason or for no reason. The at-will employment policy can only be changed by a written document approved by the Board and signed on behalf of the Board.

Should your employment with the Company be terminated without Cause or as a result of Constructive Termination in each case after the one year anniversary of your Start Date and before a Change of Control (each as defined below), (i) you shall be eligible to receive severance payments, equal to the rate of base salary which you were receiving at the time of such termination, during the period from the date of your termination until the date that is six (6) months after the effective date of the termination (the "Severance Period"), which payments shall be paid during the Severance Period (or applicable shorter period) in accordance with the 

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Company's standard payroll practice following the effective date of the release described below and which shall be subject to applicable withholding taxes, and (ii) accelerated vesting as of the time of such termination with respect to the unvested options held by you that would have vested during the Severance Period.

Should your employment with the Company be terminated without Cause or as a result of Constructive Termination in each case after a Change of Control, (i) you shall be eligible to receive severance payments, equal to the rate of base salary which you were receiving at the time of such termination, during the period from the date of your termination until the date that is nine (9) months after the effective date of the termination (the "Post-COC Severance Period"), which payments shall be paid during the Post-COC Severance Period (or applicable shorter period) in accordance with the Company's standard payroll practice following the effective date of the release described below and which shall be subject to applicable withholding taxes, and (ii) 100% percent of any unvested options held by you will vest as of the time of such termination.

Any severance benefits under this Agreement are conditioned upon (a) your execution of a release of claims in a form provided by the Company, and any severance payments shall commence on the 60th day following your separation, so long as you have signed a release that has become irrevocable during such period, with the initial payment including payments that otherwise would have been made during the sixty day period, and (b) your agreement not to compete with the Company, or its successors or assigns, during the period in which you are receiving these severance payments. If you engage in any business activity competitive with the Company or its successors or assigns during this period, all severance payments shall cease immediately.

Notwithstanding anything to the contrary in this offer letter, any cash severance payment due to you under this offer letter or otherwise will not be paid during the six (6) month period following your termination of employment unless the Company determines, in its good faith judgment, that paying such amounts at the time or times indicated above would not cause you to incur an additional tax under Section 409A of the Internal Revenue Code and any temporary or final treasury regulations and internal revenue service guidance thereunder ("Section 409A"). If the payment of any amounts are delayed as a result of the previous sentence, any cash severance payments due to you pursuant to this offer letter or otherwise during the first six (6) months after your termination will accrue during such six month period and will become payable in a lump sum payment on the date six (6) months and one (1) day following the date of your termination. Thereafter, payments will resume in accordance with the applicable schedule set forth in this offer letter. You agree to work in good faith with the Company to consider amendments to this offer letter which are necessary or appropriate to avoid imposition of any additional tax or income recognition under Section 409A prior to the actual payment to you of payments or benefits under this offer letter. Notwithstanding the foregoing, this offer letter will be deemed amended, without any consent required from you, to the extent necessary to avoid imposition of any additional tax or income recognition pursuant to Section 409A prior to actual payments to you under this offer letter. You and the Company agree to cooperate with each other and to take reasonably necessary steps in this regard.

This Agreement is intended to comply with the requirements of Section 409A, including the exceptions thereto, and shall be construed and administered in accordance with such intent. 

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Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement in connection with a termination of employment shall only be made if such termination of employment constitutes a "separation from service" under Section 409A. To the extent that reimbursements or other in-kind benefits under this Agreement constitute "nonqualified deferred compensation" for purposes of Section 409A, (i) such expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred, (ii) no right to such reimbursement or in-kind benefits shall be subject to liquidation or exchange for another benefit, and (iii) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Company, any Company affiliates, or their respective employees, officers, directors, agents and representatives (including, without limitation, legal counsel) be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by you on account of non-compliance with Section 409A. 

"Cause" shall mean (i) your failure to perform your assigned duties or responsibilities as an employee of the Company after notice thereof from the Company describing your failure to perform such duties or responsibilities, (ii) your engaging in any act of dishonesty, fraud or misrepresentation, (iii) your violation of any federal or state law or regulation applicable to the Company's business, (iv) your breach of any confidentiality agreement or invention assignment agreement between you and the Company, or (v) your being convicted of or entering a plea of nolo contendere to, any crime or committing any act of moral turpitude.

"Constructive Termination" shall be deemed to occur if, without your written consent, within 90 days following any of the conditions below, you terminate your employment in accordance with this provision: (A) the Company's material breach of this Agreement resulting from the failure of the Company to require any successor to the Company upon a Change of Control to assume the Company's obligations under this offer letter, (B) a material reduction or other adverse change in your job duties, reporting relationships, responsibilities and requirements inconsistent with your position with the Company and prior duties, reporting relationships, responsibilities and requirements, provided that neither a mere change in title alone nor reassignment following a Change of Control to a position that is substantially similar to the position held prior to the Change of Control in terms of job duties, responsibilities or requirements shall constitute a material reduction in job responsibilities, or (C) the request by the Company or its successor to relocate the principal place for performance of your Company duties to a location more than thirty (30) miles from your then-current principal business location; provided that (i) you have provided written notice of your intent to terminate employment on the basis of a Constructive Termination within sixty (60) days after the Constructive Termination condition first occurs, and (ii) the 

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Company fails to correct the Constructive Termination within thirty (30) days after receipt of your written notice.

In the event that the severance and other payments or benefits provided for in this offer letter or otherwise payable to you (i) constitute "parachute payments" within the meaning, of Section 280G of the Code, and (ii) but for this paragraph would be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then your benefits under this offer letter shall be either

A. delivered in full, or

B. delivered as to such lesser extent which would result in no portion of such benefits being subject to the Excise Tax,

whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by you on an after tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code. If a reduction is requiredand no parachute payments constitute nonqualified deferred compensation under Section 409A, you shall be able to select which payments and/or benefits are reduced and the order of reduction. If a reduction is required and any parachute payments constitute nonqualified deferred compensation under Section 409A, the reduction shall occur in the following order: (i) options whose exercise price exceeds the fair market value of the optioned equity, (ii) Full Credit Payments (as defined below) that are payable in cash, (iii) non-cash Full Credit Payments that are taxable, (iv) non-cash Full Credit Payments that are not taxable (v) Partial Credit Payments (as defined below) and (vi) non-cash employee welfare benefits. In each case, reductions shall be made in reverse chronological order such that the payment or benefit owed on the latest date following the occurrence of the event triggering the excise tax will be the first payment or benefit to be reduced (with reductions made pro-rata in the event payments or benefits are owed at the same time). The term "Full Credit Payment" means a payment or benefit that if reduced in value by one dollar reduces the amount of the parachute payment (as defined in Section 280G of the Code) by one dollar. "Partial Credit Payment" means any payment or benefit that is not a Full Credit Payment.

You understand and agree that by accepting this offer of employment, you represent to the Company that your performance will not breach any other agreement to which you are a party and that you have not, and will not during the term of your employment with the Company, enter into any oral or written agreement in conflict with any of the provisions of this letter or the Company's policies. You are not to bring with you to the Company, or use or disclose to any person associated with the Company, any confidential or proprietary information belonging to any former employer or other person or entity with respect to which you owe an obligation of confidentiality under any agreement or otherwise. The Company does not need and will not use such information. Also, we expect you to abide by any obligations to refrain from soliciting any person employed by or otherwise associated with any former employer.

This offer letter and the confidential information and/or inventions assignment agreement between you and the Company that you will be required to execute upon commencement of your employment hereunder, if you have not already done so, represent the entire agreement and understanding between you and the Company concerning your employment relationship with the 

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Company, and supersede in their entirety any and all prior agreements and understandings concerning your employment relationship with the Company, whether written or oral. Except as specifically provided in this offer letter, this offer letter can only be amended in a writing approved by the Board and signed by you and a duly authorized officer of the Company. Any waiver of a right under this offer letter must be in writing. The Company will require any successor to all or substantially all of its assets or businesses to assume this Agreement and perform the Company's obligations hereunder. This offer letter will be governed by California law.

For purposes of federal immigration laws, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided within three (3) business days of the effective date of your employment, or your employment relation hip with the Company may be terminated.

Please sign below to indicate your acceptance and agreement to the terms set forth in this offer letter and return the signed offer letter to me no later than 18 April 2016.

I am pleased to welcome you to the Company, and I look forward to your participation in the Company's future success. Please call me at (650) 266-8674 if you have any questions.

 

 

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