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  Exhibit 10.18    
    

CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BASED UPON A REQUEST FOR CONFIDENTIAL TREATMENT AND THE NON-PUBLIC INFORMATION WILL BE FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

 
 

  AMENDMENT NO. 1 TO LETTER AGREEMENT    
    

        This Amendment No. 1 ("Amendment No. 1") to the Development Program Letter Agreement is entered into and effective as of
November 26, 2018 ("Amendment No. 1 Effective Date") by and between Aridis Pharmaceuticals, Inc.
("Aridis") and Cystic Fibrosis Foundation Therapeutics, Inc. ("CFFT"). 

        WHEREAS, Aridis and CFFT entered into the Development Program Award Letter Agreement, dated as of December 30, 2016 (the
"Agreement"); 

        WHEREAS, Section 11(f) of the Agreement permits either party to assign its rights under the Agreement to an Affiliate of such
party; 

        WHEREAS, CFFT has assigned the Agreement to its Affiliate, the Cystic Fibrosis Foundation ("CFF"); 

        WHEREAS, Aridis desires to modify the Award amount, Milestones and Milestone Payments set forth in the Agreement; and 

        WHEREAS, CFF is willing to modify the Award amount, Milestones and the Milestone Payments in accordance with the terms and conditions
hereinafter set forth. 

        NOW, THEREFORE, in consideration of the mutual covenants set forth in the Agreement and this Amendment
No. 1 and for other good and valuable consideration, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows: 

	1.
	Assignment of Agreement from CFFT to CFF.    All references to "Cystic Fibrosis Foundation
Therapeutics, Inc." in the Agreement are hereby deleted and replaced with "Cystic Fibrosis Foundation" and all references to "CFFT" in the Agreement are hereby deleted and replaced with "CFF".

	2.
	Amendment to Amount of Award.    The Amount of the Award in the heading on page 1 of the Agreement is
hereby amended by deleting the amount "$2,902,097.00" and inserting in lieu thereof the amount "$7,465,583.00".

	3.
	Amendment to Paragraphs 2(a) and 2(b).    Paragraphs 2(a) and 2(b) of the Agreement are hereby
deleted and restated as follows: 

"(a)
Aridis shall pay to CFF a one-time amount equal to the Cap. Such amount shall be paid in not more than five (5) annual installments, as follows: within ninety (90) days of the end
of the calendar year in which the First Commercial Sale occurs, and within ninety (90) days of the end of each subsequent calendar year until the Cap is paid, Aridis shall pay *% of Net Sales
for that calendar year up to the amount of the Cap (except that in the fifth installment, if any, Aridis shall pay the remaining unpaid portion of the Cap, regardless of the percentage of Net Sales or
fraction of Cap such payment would
represent) 

"(b)
[this section intentionally blank]." 

  

   

 

 	(*)
	Certain
information on this page has been omitted and will be separately filed with the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portion. 

1

 

	4.
	Amendment to Paragraph 12, Definitions.    The definition of "Cap" in Paragraph 12 is hereby
deleted and replaced with the following:  

	•
	"Cap" shall mean * times the Actual Award.

	5.
	Amendment to Paragraph 2(c).    Paragraph 2(c) of the Agreement is hereby deleted and restated
as follows: 

"(c)
In the event Aridis licenses rights to the Product in the Field, sells the Product, or consummates a Change of Control Transaction (collectively a "Disposition Transaction") prior to the First
Commercial Sale, Aridis shall pay to CFF an amount equal to (i) * percent (*%) of the amounts received by Aridis and its shareholders in connection with a Disposition Transaction
(whether paid upfront or in accordance with subsequent milestones and whether paid in cash or property) up to * times the Actual Award (the "Disposition Payment"). The Disposition Payment shall
be made within sixty (60) days after the closing of a Disposition Transaction. The Disposition Payment shall reduce the amounts otherwise due to CFF under Paragraph 2(b)." 

	6.
	Amendment to Paragraph 11.    Paragraph 11(d) to the Agreement is hereby amended by deleting
all references to the address "6931 Arlington Rd. Suite 200" contained therein and inserting in lieu thereof the address "4550 Montgomery Ave. Suite 1100 N".

	7.
	Amendment to Exhibit B (Payment Schedule) of the Agreement.    Exhibit B of the Agreement is
hereby deleted in its entirety and replaced with the Amended and Restated Payment Schedule attached to this Amendment No. 1 as Exhibit B-1.

	8.
	Defined Terms and Agreement Continuing Effect.    Except as provided in this Amendment No. 1, the
terms and conditions of the Agreement shall remain in full force and effect and capitalized terms shall have the same meaning as ascribed to such terms in the Agreement. This Amendment No. 1 is
hereby integrated into and made part of the Agreement. The execution, delivery and effectiveness of this Amendment No. 1 shall not, except as expressly provided herein, operate as a waiver of
any right, power or remedy of the parties to the Agreement, nor constitute a waiver of any provision of the Agreement.

	9.
	Counterparts.    This Amendment No. 1 may be executed in any number of counterparts, each of which
shall be an original instrument and all of which, when taken together, shall constitute one and the same agreement. 

SIGNATURES
IMMEDIATELY FOLLOWING ON NEXT PAGE 

   

   

 

 	(*)
	Certain
information on this page has been omitted and will be separately filed with the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portion. 

2

 

        In
WITNESS WHEREOF, the undersigned have executed this Amendment No. 1 as of the Amendment No. 1 Effective Date written
above. 

 

 
 

											
	 Cystic Fibrosis Foundation	 	 Aridis Pharmaceuticals, Inc.
	
 By:	
 	
/s/ CHRIS GEGELYS

 	
 	
By:	
 	
/s/ VU TRUONG  

 
	 	 	Name:	 	Chris Gegelys	 	 	 	Name:	 	Vu L. Truong
	 	 	Title:	 	 SVP & Chief Legal Officer	 	 	 	Title:	 	 CEO
	
 Cystic Fibrosis Foundation	
 	
 	
 	
 	
 	
 
	
 By:	
 	
/s/ VERA H. TWIGG

 	
 	
 	
 	
 	
 	
 
	 	 	Name:	 	Vera H. Twigg	 	 	 	 	 	 
	 	 	Title:	 	 EVP & CEO	 	 	 	 	 	 
	
 Cystic Fibrosis Foundation Therapeutics, Inc.	
 	
 	
 	
 	
 	
 
	
 By:	
 	
/s/ MARC GINSLY

 	
 	
 	
 	
 	
 	
 
	 	 	Name:	 	Marc Ginsly	 	 	 	 	 	 
	 	 	Title:	 	 EVP & COO	 	 	 	 	 	 

 

 3

 

 
 

EXHIBIT B-1  

 
    Payment Schedule    
    

 

 
 

						
	Milestone

 
	 	Milestone

Payment 	 	Expected

Milestone

Estimated

Completion Date 
	 Payments made prior to Amendment No. 1 Execution Date
	 	

$	*	 	*
	 Completion of 4-week GLP inhalational toxicology studies
	 	

$	*	 	*
	 IND opened
	 	

$	*	 	*
	 Completion of SAD and considered safe to proceed to MAD (DSMB review)
	 	

$	*	 	*
	 Completion of MAD and considered safe to proceed to Ph2a (TDN DSMB review)
	 	

$	*	 	*
	 First CF patient, first dose in Phase 2A clinical study
	 	

$	*	 	*
	 Median CF patient, first dose in Phase 2A clinical study
	 	

$	*	 	*
	 Last CF patient, last visit in Phase 2A clinical study
	 	

$	*	 	*
	 Final integrated clinical and statistical report reviewed and approved by CFFT
	 	

$	*	 	*

 

 	(*)
	Certain
information on this page has been omitted and will be separately filed with the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portion.  

 

         Payments
shall be made by CFF within forty-five (45) days of receipt from Aridis of the corresponding invoice and supporting documentation verifying occurrence of such milestone
and PAG verification. 

4

QuickLinks

Exhibit 10.18

AMENDMENT NO. 1 TO LETTER AGREEMENT

EXHIBIT B-1

Payment Schedulegrts-ex109b_571.htm

 

Exhibit 10.9(b)

 

TRANSITION AND SEPARATION AGREEMENT

 

This Transition and Separation Agreement (the “Agreement”) by and between Jayant Aphale (“Executive”), and Gritstone Oncology, Inc., a Delaware corporation (the “Company”), is made effective as of the date Executive signs this Agreement (the “Effective Date”) with reference to the following facts:

 

A.Executive’s employment with the Company will end effective upon the Termination Date (as defined below).

 

B.Executive and the Company want to end their relationship amicably and also to establish the obligations of the parties including, without limitation, all amounts due and owing to the Executive.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the parties agree as follows:

 

1.Termination Date.  Executive acknowledges and agrees that his status as an employee of the Company shall end effective as of the earliest of (a) March 12, 2019 (the “Planned Termination Date”), (b) the date Executive takes any action that constitutes Cause (as defined in that certain employment agreement entered into between Executive and the Company effective as of September 16, 2018 (the “Employment Agreement”)) or (c) the date Executive voluntarily resigns Executive’s employment with the Company (the earliest such date, the “Termination Date”).  For the avoidance of doubt, in the event the Company terminates Executive’s employment for other than Cause, then Executive shall continue to be paid as though Executive continued employment through the Planned Termination Date and, subject to the terms and conditions of Section 5, shall be entitled to the Separation Payments and Benefits described in Section 5.  

2.Officer Status.  Executive acknowledges and agrees that his status as an officer of the Company, and as a director and/or officer of each of its subsidiaries, shall end effective as of December 7, 2018.   Executive hereby agrees to execute such further document(s) as shall be determined by the Company as necessary or desirable to give effect to the termination of Executive’s status as an officer of the Company and as a director and/or officer of each of its subsidiaries as of such date.  

3.Continued Employment.

(a)Employment Period; Duties.  From the Effective Date through the Termination Date (the “Employment Period”), Executive shall remain employed by the Company as a Special Advisor reporting to the Chief Executive Officer of the Company.  Executive shall provide transition services in Executive’s areas of expertise and work experience and responsibility, and such other duties as shall be assigned by the Chief Executive Officer (“Transition Duties”).  During the Employment Period, unless specifically requested by the Company’s Chief Executive Officer, Executive shall not report to the Company’s offices and shall perform the Transition Duties remotely from a location of Executive’s choosing.  

(b)Salary and Benefits Continuation.  During the Employment Period, Executive will continue to be paid base salary at the rate in effect on the date of this Agreement, accrue paid vacation, be eligible for all employee benefit plans available to senior executives of the Company and continue to vest into outstanding equity awards in accordance with their terms.  All payments made to Executive during the Employment Period will be subject to required withholding taxes and authorized deductions.  

(c)Protection of Information.  Executive agrees that, during the Employment Period and thereafter, Executive will not, except for the purposes of performing the Transition Duties, seek to obtain any confidential or proprietary information or materials of the Company.

 

4.Final Paycheck; Payment of Accrued Wages and Expenses.  As soon as administratively practicable on or after the Termination Date, the Company will pay Executive all accrued but unpaid base salary and all accrued and unused vacation earned through the Termination Date, subject to standard payroll deductions and withholdings.  The Company will also reimburse Executive for all outstanding expenses incurred prior to the Termination Date which are consistent with the Company’s policies in effect from time to time with respect to travel, entertainment and other business expenses, subject to the Company’s requirements with respect to reporting and documenting such expenses.  Executive is entitled to these payments regardless of whether Executive executes this Agreement or a Release of Claims (as defined below).

5.Separation Payments and Benefits.  Without admission of any liability, fact or claim, the Company hereby agrees, subject to the execution of this Agreement and the delivery to the Company of a copy of the General Release of Claims attached hereto as Exhibit A (the “Release of Claims”) signed on or after the Planned Termination Date that becomes effective and irrevocable within thirty days following the Planned Termination Date, and further subject to Executive remaining employed hereunder through the Planned Termination Date and continued compliance with the terms and conditions of the Employee Confidential Information and Inventions Agreement entered into between Executive and the Company (the “Confidentiality Agreement”), to provide Executive the severance benefits set forth below.  For the avoidance of doubt, in the event the Company terminates Executive’s employment for other than Cause before the Planned Termination Date, then Executive shall be deemed to have continued employment through the Planned Termination Date and remain eligible for the Separation Payments and Benefits described in this Section 5, subject to the other terms and conditions set forth in the preceding sentence. Specifically, in the event the terms and conditions of this Section 5 are satisfied, the Company and Executive agree as follows: 

(a)Severance.  The Company shall pay to Executive an amount equal to $374,000, less applicable withholdings and deductions (such aggregate amount, the “Separation Amount”), which constitutes the sum of nine (9) months of Executive’s base salary and Executive’s target bonus.  Such payment will be made on the first regularly scheduled payroll date after the Release of Claims becomes effective and irrevocable.  

(b)Equity Awards.  The unvested portion of the options to purchase Company common stock held by Executive as of the Termination Date shall thereupon terminate.  To the extent unexercised, the vested portion of the options to purchase Company common stock held by Executive as of the Termination Date shall remain exercisable through the three-month anniversary of the Termination Date.  Any vested options not exercised by the three-month anniversary of the Termination Date shall thereupon terminate.

(c)Healthcare Continuation Coverage.  If Executive timely elects to receive continued healthcare coverage pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company shall directly pay, or reimburse Executive for, the COBRA premiums for Executive and Executive’s covered dependents through the earlier of (i) the nine (9)-month anniversary of the Termination Date or (ii) the date on which Executive and/or Executive’s covered dependents, if any, become eligible for healthcare coverage under another employer’s plan(s); provided, that after the Company ceases to directly pay or reimburse premiums pursuant to the preceding, Executive may, if eligible, elect to continue healthcare coverage at Executive’s expense in accordance with the provisions of COBRA.  Executive acknowledges that he shall be solely responsible for all matters relating to Executive’s continuation of coverage pursuant to COBRA, including, without limitation, Executive’s election of such coverage and his timely payment of premiums.

(d)Taxes.  Executive understands and agrees that all payments under this Agreement will be subject to appropriate tax withholding and other deductions.  To the extent any taxes may be payable by Executive for the benefits provided to him by this Agreement beyond those withheld by the Company, Executive agrees to pay them himself and to indemnify and hold the 

 

Company and the other entities released herein harmless for any tax claims or penalties, and associated attorneys’ fees and costs, resulting from any failure by him to make required payments. To the extent that any reimbursements payable pursuant to this Agreement are subject to the provisions of Section 409A of the Code, such reimbursements shall be paid to Executive no later than December 31 of the year following the year in which the expense was incurred, the amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year, and Executive’s right to reimbursement under this Agreement will not be subject to liquidation or exchange for another benefit.

(e)Sole Separation Benefit.  Executive agrees that the payments provided by this Section 5 are not required under the Company’s normal policies and procedures and are provided as a severance solely in connection with this Agreement.  Executive acknowledges and agrees that the payments referenced in this Section 5 constitute adequate and valuable consideration, in and of themselves, for the promises contained in this Agreement.

6.Full Payment.  Executive acknowledges that the payment and arrangements herein shall constitute full and complete satisfaction of any and all amounts properly due and owing to Executive as a result of his employment with the Company and the termination thereof.  Executive further acknowledges that, other than the Confidentiality Agreement and the agreements evidencing the Options (the “Option Agreements”) and as explicitly set forth in Section 12 hereof, this Agreement shall supersede each agreement entered into between Executive and the Company regarding Executive’s employment, including, without limitation, the Employment Agreement , any offer letter, employment agreement, bonus plan or arrangement, severance and/or change in control agreement, and each such agreement shall be deemed terminated and of no further effect as of the Effective Date.

7.Executive’s Release of the Company.  Executive understands that by agreeing to the release provided by this Section 7, Executive is agreeing not to sue, or otherwise file any claim against, the Company or any of its directors, officers, employees, investors or other agents for any reason whatsoever based on anything that has occurred as of the date Executive signs this Agreement.

(a)Released Claims.  On behalf of Executive and Executive’s heirs, assigns, executors, administrators, trusts, spouse and estate, Executive hereby releases and forever discharges the “Releasees” hereunder, consisting of the Company and each of its owners, affiliates, subsidiaries, predecessors, successors, assigns, agents, directors, officers, partners, employees, and insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which Executive now has or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof, including, without limiting the generality of the foregoing, any Claims arising out of, based upon, or relating to Executive’s hire, employment, remuneration or termination by the Releasees, or any of them, Claims arising under federal, state, or local laws relating to employment, Claims of any kind that may be brought in any court or administrative agency, including any Claims arising under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §  2000, et seq.; Americans with Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.; the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701 et seq.; Civil Rights Act of 1866, and Civil Rights Act of 1991; 42 U.S.C. § 1981, et seq.; Equal Pay Act, as amended, 29 U.S.C. § 206(d); regulations of the Office of Federal Contract Compliance, 41 C.F.R. Section 60, et seq.; The Family and Medical Leave Act, as amended, 29 U.S.C. § 2601 et seq.; the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. § 201 et seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; the Worker Adjustment and Retraining Notification Act, as amended, 29 U.S.C.  § 2101 et seq.; the California Fair Employment and Housing Act, as amended, Cal. Lab. Code § 12940 et seq.; the California Equal Pay Law, as amended, Cal. Lab. Code §§ 1197.5(a),199.5; the Moore-Brown-Roberti Family Rights Act of 1991, as amended, Cal. Gov’t Code §§12945.2, 19702.3; California Labor Code §§ 1101, 1102; the California WARN 

 

Act, California Labor Code §§ 1400 et. seq; California Labor Code §§ 1102.5(a),(b); Claims for wages under the California Labor Code and any other federal, state or local laws of similar effect; the employment and civil rights laws of California; Claims for breach of implied or express contract; Claims arising in tort, including, without limitation, Claims of wrongful dismissal or discharge, discrimination, harassment, retaliation, fraud, misrepresentation, defamation, libel, slander, defamation, infliction of emotional distress, violation of public policy, and/or breach of the implied covenant of good faith and fair dealing; and Claims for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees.  

(b)Unreleased Claims.  Notwithstanding the generality of the foregoing, Executive does not release the following claims:

(i)Claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable state law; 

(ii)Claims for workers’ compensation insurance benefits under the terms of any worker’s compensation insurance policy or fund of the Company;

(iii)Claims to continued participation in certain of the Company’s group benefit plans pursuant to the terms and conditions of COBRA;

(iv)Claims to any benefit entitlements vested as the date of Executive’s employment termination, pursuant to written terms of any Company employee benefit plan;

(v)Claims for indemnification under any indemnification agreement, the Company’s Bylaws or any applicable law; and

(vi)Executive’s right to bring to the attention of the Equal Employment Opportunity Commission claims of discrimination; provided, however, that Executive does release Executive’s right to secure any damages for alleged discriminatory treatment.

(c)EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS BEEN ADVISED OF AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

BEING AWARE OF SAID CODE SECTION, EXECUTIVE HEREBY EXPRESSLY WAIVES ANY RIGHTS EXECUTIVE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

8.Non-Disparagement, Non-Solicitation, Transition and Transfer of Company Property.  Executive further agrees that:

(a)Non-Disparagement.  Executive agrees that he shall not disparage, criticize or defame the Company, its affiliates and their respective affiliates, directors, officers, agents, partners, stockholders, employees, products, services, technology or business, either publicly or privately.  The Company agrees that it shall not, and it shall instruct its officers and members of its Board of Directors to not, disparage, criticize or defame Executive, either publicly or privately.  Nothing in this Section 8(a) shall have application to any evidence or testimony required by any court, arbitrator or government agency.

 

(b)Non-Solicitation.  In addition to Executive’s obligations under the Confidentiality Agreement, Executive shall not for a period of one (1) year following Termination Date, either on Executive’s own account or jointly with or as a manager, agent, officer, employee, consultant, partner, joint venturer, owner or stockholder or otherwise on behalf of any other person, firm or corporation, directly or indirectly solicit or attempt to solicit away from the Company any of its officers or employees; provided, however, that a general advertisement to which an employee of the Company responds shall in no event be deemed to result in a breach of this Section 8(b).  

(c)Transition.  Each of the Company and Executive shall use their respective reasonable efforts to cooperate with each other in good faith to facilitate a smooth transition of Executive’s duties to other executive(s) of the Company.  

(d)Transfer of Company Property.  On or before the Termination Date, Executive shall turn over to the Company all files, memoranda, records, and other documents, and any other physical or personal property which are the property of the Company and which he had in his possession, custody or control at the time he signed this Agreement.

9.Executive Representations.  Executive warrants and represents that (a) he has not filed or authorized the filing of any complaints, charges or lawsuits against the Company or any affiliate of the Company with any governmental agency or court, and that if, unbeknownst to Executive, such a complaint, charge or lawsuit has been filed on his behalf, he will immediately cause it to be withdrawn and dismissed, (b) he has reported all hours worked as of the date of this Agreement and has been paid all compensation, wages, bonuses, commissions, and/or benefits to which he may be entitled and no other compensation, wages, bonuses, commissions and/or benefits are due to him, except as provided in this Agreement, (c) he has no known workplace injuries or occupational diseases and has been provided and/or has not been denied any leave requested under the Family and Medical Leave Act or any similar state law, (d) the execution, delivery and performance of this Agreement by Executive does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which Executive is a party or any judgment, order or decree to which Executive is subject, and (e) upon the execution and delivery of this Agreement by the Company and Executive, this Agreement will be a valid and binding obligation of Executive, enforceable in accordance with its terms.  

10.No Assignment by Executive.  Executive warrants and represents that no portion of any of the matters released herein, and no portion of any recovery or settlement to which Executive might be entitled, has been assigned or transferred to any other person, firm or corporation not a party to this Agreement, in any manner, including by way of subrogation or operation of law or otherwise.  If any claim, action, demand or suit should be made or instituted against the Company or any other Releasee because of any actual assignment, subrogation or transfer by Executive, Executive agrees to indemnify and hold harmless the Company and all other Releasees against such claim, action, suit or demand, including necessary expenses of investigation, attorneys’ fees and costs.  In the event of Executive’s death, this Agreement shall inure to the benefit of Executive and Executive’s executors, administrators, heirs, distributees, devisees, and legatees.  None of Executive’s rights or obligations may be assigned or transferred by Executive, other than Executive’s rights to payments hereunder, which may be transferred only upon Executive’s death by will or operation of law.  

11.Governing Law.  This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of California or, where applicable, United States federal law, in each case, without regard to any conflicts of laws provisions or those of any state other than California.

12.Miscellaneous.  This Agreement, collectively with the Confidentiality Agreement, any indemnification agreement between Executive and the Company and the Option Agreements, comprises the entire agreement between the parties with regard to the subject matter hereof and supersedes, in their entirety, any other agreements between Executive and the Company with regard to the subject matter hereof.  The Company and Executive acknowledge that the termination of the Executive’s employment with the 

 

Company is intended to constitute an involuntary separation from service for the purposes of Section 409A of the Code, and the related Department of Treasury regulations.  Executive acknowledges that there are no other agreements, written, oral or implied, and that he may not rely on any prior negotiations, discussions, representations or agreements.  This Agreement may be modified only in writing, and such writing must be signed by both parties and recited that it is intended to modify this Agreement.  This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.  

13.Company Assignment and Successors.  The Company shall assign its rights and obligations under this Agreement to any successor to all or substantially all of the business or the assets of the Company (by merger or otherwise).  This Agreement shall be binding upon and inure to the benefit of the Company and its successors, assigns, personnel and legal representatives.    

14.Maintaining Confidential Information; Whistleblower Protection.  Executive reaffirms his obligations under the Confidentiality Agreement.  Executive acknowledges and agrees that the payments provided in Section 5 above shall be subject to Executive’s continued compliance with Executive’s obligations under the Confidentiality Agreement.  For the avoidance of doubt, nothing in the Confidentiality Agreement or this Agreement will be construed to prohibit Employee from filing a charge with, reporting possible violations to, or participating or cooperating with any governmental agency or entity, including but not limited to the EEOC, the Department of Justice, the Securities and Exchange Commission, Congress, or any agency Inspector General, or making other disclosures that are protected under the whistleblower, anti-discrimination, or anti-retaliation provisions of federal, state or local law or regulation.  Executive does not need the prior authorization of the Company to make any such reports or disclosures, and Executive is not required to notify the Company that Executive has made such reports or disclosures.  Furthermore, in accordance with 18 U.S.C. § 1833, notwithstanding anything to the contrary in the Confidentiality Agreement or this Agreement: (i) Executive shall not be in breach of the Confidentiality Agreement or this Agreement, and shall not be held criminally or civilly liable under any federal or state trade secret law (x) for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (y) for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and (ii) if Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Employee may disclose the trade secret to Executive’s attorney, and may use the trade secret information in the court proceeding, if Executive files any document containing the trade secret under seal, and does not disclose the trade secret, except pursuant to court order.

15.Executive’s Cooperation.  After the Termination Date, Executive shall cooperate with the Company and its affiliates, upon the Company’s reasonable request, with respect to any internal investigation or administrative, regulatory or judicial proceeding involving matters within the scope of Executive’s duties and responsibilities to the Company or its affiliates during his employment with the Company (including, without limitation, Executive being available to the Company upon reasonable notice for interviews and factual investigations, appearing at the Company’s reasonable request to give testimony without requiring service of a subpoena or other legal process, and turning over to the Company all relevant Company documents which are or may have come into Executive’s possession during his employment); provided, however, that any such request by the Company shall not be unduly burdensome or interfere with Executive’s personal schedule or ability to engage in gainful employment.   

(Signature page(s) follow)

 

 

IN WITNESS WHEREOF, the undersigned have caused this Transition and Separation Agreement to be duly executed and delivered as of the date indicated next to their respective signatures below.

 

 

 

DATED: December 7, 2018

/s/ Jayant Aphale_____________________

Jayant Aphale

 

 

GRITSTONE ONCOLOGY, INC.

DATED: December 3, 2018

 

 

By: /s/ Andrew Allen__________________

Name: Andrew Allen

Title:  Chief Executive Officer

 

 

 

 

 

 

 

 

 

EXHIBIT A

 

GENERAL RELEASE OF CLAIMS

 

This General Release of Claims (“Release”) is entered into as of December 7, 2018, between Jayant Aphale (“Executive”) and Gritstone Oncology, Inc., a Delaware corporation (the “Company”) (together referred to herein as the “Parties”), effective eight days after Executive’s signature hereto (the “Effective Date”), unless Executive revokes Executive’s acceptance of this Release as provided in Paragraph 1(c), below.

 

1.Executive’s Release of the Company.  Executive understands that by agreeing to this Release, Executive is agreeing not to sue, or otherwise file any claim against, the Company or any of its directors, officers, employees, investors or other agents for any reason whatsoever based on anything that has occurred as of the date Executive signs this Release.

(a)Released Claims.  On behalf of Executive and Executive’s heirs, assigns, executors, administrators, trusts, spouse and estate, Executive hereby releases and forever discharges the “Releasees” hereunder, consisting of the Company and each of its owners, affiliates, subsidiaries, predecessors, successors, assigns, agents, directors, officers, partners, employees, and insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which Executive now has or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof, including, without limiting the generality of the foregoing, any Claims arising out of, based upon, or relating to Executive’s hire, employment, remuneration or termination by the Releasees, or any of them, Claims arising under federal, state, or local laws relating to employment, Claims of any kind that may be brought in any court or administrative agency, including any Claims arising under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §  2000, et seq.; Americans with Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.; the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701 et seq.; Age Discrimination in Employment Act, as amended, 29 U.S.C. § 621, et seq. (including the Older Workers Benefit Protection Act of 1990); Civil Rights Act of 1866, and Civil Rights Act of 1991; 42 U.S.C. § 1981, et seq.; Equal Pay Act, as amended, 29 U.S.C. § 206(d); regulations of the Office of Federal Contract Compliance, 41 C.F.R. Section 60, et seq.; The Family and Medical Leave Act, as amended, 29 U.S.C. § 2601 et seq.; the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. § 201 et seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; the Worker Adjustment and Retraining Notification Act, as amended, 29 U.S.C.  § 2101 et seq.; the California Fair Employment and Housing Act, as amended, Cal. Lab. Code § 12940 et seq.; the California Equal Pay Law, as amended, Cal. Lab. Code §§ 1197.5(a),199.5; the Moore-Brown-Roberti Family Rights Act of 1991, as amended, Cal. Gov’t Code §§12945.2, 19702.3; California Labor Code §§ 1101, 1102; the California WARN Act, California Labor Code §§ 1400 et. seq; California Labor Code §§ 1102.5(a),(b); Claims for wages under the California Labor Code and any other federal, state or local laws of similar effect; the employment and civil rights laws of California; Claims for breach of implied or express contract; Claims arising in tort, including, without limitation, Claims of wrongful dismissal or discharge, discrimination, harassment, retaliation, fraud, misrepresentation, defamation, libel, slander, defamation, infliction of emotional distress, violation of public policy, and/or breach of the implied covenant of good faith and fair dealing; and Claims for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees.  

(b)Unreleased Claims.  Notwithstanding the generality of the foregoing, Executive does not release the following claims:

(i)Claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable state law; 

 

 

 

 

 

 

 

 

(ii)Claims for workers’ compensation insurance benefits under the terms of any worker’s compensation insurance policy or fund of the Company;

(iii)Claims to continued participation in certain of the Company’s group benefit plans pursuant to the terms and conditions of COBRA;

(iv)Claims to any benefit entitlements vested as the date of Executive’s employment termination, pursuant to written terms of any Company employee benefit plan;

(v)Claims for indemnification under any indemnification agreement, the Company’s Bylaws or any applicable law; and

(vi)Executive’s right to bring to the attention of the Equal Employment Opportunity Commission claims of discrimination; provided, however, that Executive does release Executive’s right to secure any damages for alleged discriminatory treatment.

(c)Acknowledgement.  In accordance with the Older Workers Benefit Protection Act of 1990, Executive has been advised of the following:

(i)Executive should consult with an attorney before signing this Release;

(ii)Executive has been given at least twenty-one (21) days to consider this Agreement;

(iii)Executive has seven (7) days after signing this Agreement to revoke it.  If Executive wishes to revoke this Release, Executive must deliver notice of Executive’s revocation in writing, no later than 5:00 p.m. on the 7th day following Executive’s execution of this Agreement to Sara Oakman, email: soakman@gritstone.com. Executive understands that if he revokes this Agreement, it will be null and void in its entirety, and he will not be entitled to any payments or benefits provided in Section 5 of that certain Transition and Separation Agreement entered into between the Parties as of December 7, 2018 (the “Transition and Separation Agreement”).

(d)EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS BEEN ADVISED OF AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

BEING AWARE OF SAID CODE SECTION, EXECUTIVE HEREBY EXPRESSLY WAIVES ANY RIGHTS EXECUTIVE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

2.Executive Representations.  Executive warrants and represents that (a) he has not filed or authorized the filing of any complaints, charges or lawsuits against the Company or any of its affiliates with any governmental agency or court, and that if, unbeknownst to Executive, such a complaint, charge or lawsuit has been filed on his behalf, he will immediately cause it to be withdrawn and dismissed, (b) he has reported all hours worked as of the date of this Release and has been paid all compensation, wages, bonuses, commissions, and/or benefits to which he may be entitled and no other compensation, wages, bonuses, commissions and/or benefits are due to him, except as provided in Section 5 of the Transition and Separation Agreement, (c) he has no known workplace injuries or occupational diseases and has been provided and/or has not been denied any leave requested under the Family and Medical Leave Act or any 

 

 

 

 

 

 

 

 

similar state law, (d) the execution, delivery and performance of this Release by Executive does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which Executive is a party or any judgment, order or decree to which Executive is subject, and (e) upon the execution and delivery of this Release by the Company and Executive, this Release will be a valid and binding obligation of Executive, enforceable in accordance with its terms.

3.Maintaining Confidential Information.  Executive reaffirms his obligations under the Confidentiality Agreement (within the meaning of the Transition and Separation Agreement).  Executive acknowledges and agrees that the payments provided in Section 5 of the Transition and Separation Agreement shall be subject to Executive’s continued compliance with Executive’s obligations under the Confidentiality Agreement.  For the avoidance of doubt, nothing in the Confidentiality Agreement, the Transition and Separation Agreement or this Release will be construed to prohibit Employee from filing a charge with, reporting possible violations to, or participating or cooperating with any governmental agency or entity, including but not limited to the EEOC, the Department of Justice, the Securities and Exchange Commission, Congress, or any agency Inspector General, or making other disclosures that are protected under the whistleblower, anti-discrimination, or anti-retaliation provisions of federal, state or local law or regulation.  Executive does not need the prior authorization of the Company to make any such reports or disclosures, and Executive is not required to notify the Company that Executive has made such reports or disclosures.  Furthermore, in accordance with 18 U.S.C. § 1833, notwithstanding anything to the contrary in the Confidentiality Agreement, the Transition and Separation Agreement or this Release: (i) Executive shall not be in breach of the Confidentiality Agreement, the Transition and Separation Agreement or this Release, and shall not be held criminally or civilly liable under any federal or state trade secret law (x) for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (y) for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and (ii) if Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Employee may disclose the trade secret to Executive’s attorney, and may use the trade secret information in the court proceeding, if Executive files any document containing the trade secret under seal, and does not disclose the trade secret, except pursuant to court order.

4.Cooperation With the Company.  Executive reaffirms Executive’s obligations to cooperate with the Company pursuant to Section 15 of the Transition and Separation Agreement.  

5.Severability.  The provisions of this Release are severable.  If any provision is held to be invalid or unenforceable, it shall not affect the validity or enforceability of any other provision.

6.Choice of Law.  This Release shall in all respects be governed and construed in accordance with the laws of the State of California, including all matters of construction, validity and performance, without regard to conflicts of law principles.

 

7.Integration Clause.  This Release and the Transition and Separation Agreement, collectively with the Confidentiality Agreement, any indemnification agreement between Executive and the Company and the Option Agreements (as defined in the Transition and Separation Agreement), contain the Parties’ entire agreement with regard to the transition and separation of Executive’s employment, and supersede and replace any prior agreements as to those matters, whether oral or written. This Release may not be changed or modified, in whole or in part, except by an instrument in writing signed by Executive and the Chief Executive Officer of the Company.

8.Execution in Counterparts.  This Release may be executed in counterparts with the same force and effectiveness as though executed in a single document.  Facsimile signatures shall have the same force and effectiveness as original signatures.

9.Intent to be Bound.  The Parties have carefully read this Release in its entirety; fully understand and agree to its terms and provisions; and intend and agree that it is final and binding on all Parties.

 

 

 

 

 

 

 

 

IN WITNESS WHEREOF, and intending to be legally bound, the Parties have executed the foregoing on the dates shown below.

 

EXECUTIVE                                                  GRITSTONE ONCOLOGY, INC.

 

 

 

/s/ Jayant Aphale_____________                   /s/ Andrew Allen____________

Jayant Aphale                                                 By: Andrew Allen  

                                                                        Title: Chief Executive Officer

           

 

Date: December 7, 2018_______                  Date: December 7, 2018_______

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