Document:

Exhibit 10.1

  

TAKUNG
ART CO., LTD

 

Executive Employment
Agreement

 

This EXECUTIVE EMPLOYMENT AGREEMENT (the "Agreement"),
entered into as of August 6, 2019, by and between Takung Art Co., Ltd., a Delaware corporation (the "Company") and Fang
Mu (the "Executive"). The Company and Executive are collectively referred to herein as the "Parties." This
Agreement automatically shall supersede any agreement between the Company and Executive concerning Executive's employment by the
Company.

 

RECITALS

A.           The
Company desires to employ the Executive as its Chief Executive Officer (CEO), and to assure itself of the services of the Executive
for the Initial Period and Extended Period (each as defined below).

 

B.           The
Executive desires to be employed by the Company as its CEO for the Initial Period and Extended Period and upon the terms and conditions
of this Agreement.

 

C.       Executive
agrees to use her best efforts, and apply her skill and experience, to the proper performance of her duties hereunder and to the
business and affairs of the Company. Executive agrees to serve the Company faithfully, diligently and to the best of her ability.

 

AGREEMENT

 

ACCORDINGLY, the Parties agree as follows:

 

1.           Term
of Employment.  The Company shall employ the Executive to render services to the Company in the position and with
the duties and responsibilities described in Section 2 for a period of three (3) months starting from the date of this Agreement
(the “Initial Period”), which period shall be automatically extended for an additional fifteen (15) months (the
"Extended Period "), unless the Company provides notice to the Executive of its election not to extend the period
prior to the expiration of the Initial Period, or unless the Initial Period or Extended Period, as applicable, is terminated sooner
in accordance with Sections 4 or 5 below or extended upon mutual agreement of the Parties.

 

2.           Position,
Duties, Responsibilities.

 

2.1           Position.  The
Executive shall render services to the Company in the position of CEO and shall perform all services appropriate to such position.
The Executive's principal place of employment shall be at any location mutually acceptable to the board of directors of the Company
and the Executive.  The Executive shall devote her best efforts to the performance of her duties.  The Executive
shall report to the board of directors of the Company.

  

2.2           Execution
of Other Employment Agreements.  The Executive shall upon request of the Company execute an employment agreement
with any direct or indirect subsidiary of the Company (in each case, a "Subsidiary Employment Agreements") in
accordance with Hong Kong laws and regulations, in the form substantially identical to this Agreement except for adjustments or
alterations required to comply with the relevant laws and regulations of the Hong Kong.

 

3.           Compensation
and Holiday.  In consideration of the services to be rendered under this Agreement, the Executive shall be entitled
to the following:

 

3.1           Base
Salary.  The Company shall pay the Executive a "Base Salary" of 30,000 HKD per month, subject to
adjustment in accordance with Section 3.2 below.  The Base Salary shall be paid in accordance with the Company's regularly
established payroll practices.

 

     

     

    

 

3.2           Salary
Adjustment.  The Executive's Base Salary will be reviewed from time to time in accordance with the established procedures
of the Company for adjusting salaries for similarly situated employees and may be adjusted in the sole discretion of the Company.

 

3.3           Benefits.  The
Executive shall be eligible to participate in the benefits made generally available by the Company to similarly-situated executives,
in accordance with the benefit plans established by the Company (including the Company’s Equity Incentive Plan), and as may
be amended from time to time in the Company's sole discretion. Nothing contained in this Article shall affect or in any way limit
Executive's rights as an executive employee of the Company to participate in any profit sharing plan, supplemental compensation
arrangements or any other fringe benefits offered by the Company to its employees as set forth in the Company's employee handbook,
and compensation received by Executive hereunder shall be in addition to the foregoing except that the severance benefits set forth
in this Agreement shall be exclusive.

 

3.4           Bonus.  The
Executive shall not be entitled to any bonus unless otherwise approved by the board of directors of the Company in its sole discretion.

 

3.5           Holidays.  The
Executive shall be entitled, in addition to applicable statutory public holidays, to take Twenty (20) working days as paid
holidays in each full calendar year.  If the Executive's employment commences or terminates part way through a calendar
year, her entitlement to holidays will be assessed on a pro-rata basis in accordance with the Company's holiday policy, as it may
change from time to time.

  

4.           Termination
By Company.

 

4.1           Termination for
Cause.  For purposes of this Agreement, "For Cause" shall mean the occurrence of any of the following,
subject only to any statutory requirement of any applicable law: (i) the failure of the Executive to properly carry out her duties
after notice by the Company of the failure to do so and a reasonable opportunity for the Executive to correct the same within a
reasonable period specified by the Company; (ii) any breach by the Executive of one or more provisions of any written agreement
with, or written policies of, the Company or her fiduciary duties to the Company likely to cause material harm to the Company and
its affiliates, at the Company's reasonable discretion, or (iii) any theft, fraud, dishonesty or serious misconduct by the Executive
involving her duties or the property, business, reputation or affairs of the Company and its affiliates.  The Company
may terminate the Executive's employment For Cause at any time, without any advance notice or payment in lieu of notice.  The
Company shall pay to the Executive all compensation prescribed under Section 3 hereof to which the Executive is entitled up through
the date of termination, subject to any other rights or remedies of the Company under law, and thereafter all obligations of the
Company under this Agreement shall cease.

  

4.2           By Disability.  In
the event Executive shall, by reason of illness or other incapacity, become unable to perform the services agreed upon herein ("Disability"
or "Disabled"), the Company shall continue to compensate Executive for six (6) months commencing from the date of such
Disability at her base monthly salary less any amounts actually received by Executive from the disability insurance policies carried
by the Company for the benefit of Executive pursuant to Section 3. "Disability" shall mean if, as a result of Executive's
incapacity due to physical or mental illness, Executive shall have been absent from the full-time performance of Executive's duties
with the Company for three (3) consecutive months, and within thirty (30) days after written notice of termination is given Executive
shall not have returned to the full-time performance of Executive's duties. The determination of Disability will be established
by the Company’s benefit provider. The determination of such benefit provider shall be made in writing to the Company and
Executive and shall be final and conclusive for purposes of this Agreement.

 

4.3           Other
Termination by Company.  In addition to Sections 4.1 through 4.2, the Company may at any time terminate the employment
of the Executive without cause: (i) at any time during the Initial Period, in which case the Executive will not be eligible to
receive any severance; or (ii) by giving one (1) month written notice to the Executive during the Extended Period, in which case
the Executive will be eligible to receive an amount equal to three (3) months of the then-current Base Salary of the Executive
payable in the form of salary continuation (the “Severance”). The Executive's eligibility for Severance is conditioned
on the Executive having first signed a Termination Certificate in the form attached as Exhibit A.  The Executive
shall not be entitled to any Severance payments if the Executive's employment is terminated For Cause, by death or by Disability
(as provided above) or if the Executive's employment is terminated by the Executive for any reason other than Good Reason, as defined
below.

 

     

     

    

 

5.           Termination
By Executive.

 

5.1           Termination
by Executive other than for Good Reason.  The Executive may terminate employment with the Company at any time for
any reason or no reason at all, upon three (3) months' advance written notice.  During such notice period the Executive
shall continue to diligently perform all of the Executive's duties hereunder.  The Company shall have the option, in
its sole discretion, to make the Executive's termination effective at any time prior to the end of such notice period as long as
the Company pays the Executive all compensation under Section 3 hereof to which the Executive is entitled up through the actual
termination date.  Thereafter all obligations of the Company shall cease.  Unless the Executive terminates
her employment for Good Reason, as provided in Section 5.2, no Severance or other separation benefits shall be paid to the Executive.

 

5.2           Termination
for Good Reason.  The Executive's termination shall be for Good Reason (as defined below)
if the Executive provides written notice to the Company of the Good Reason within ten (10) days of the event constituting Good
Reason and provides the Company with a period of ten (10) days to cure the Good Reason and the Company fails to cure the Good Reason
within that period.  For purposes of this Agreement, "Good Reason" shall mean, without the Executive’s
express written consent, the occurrence of any of the following circumstances: (a) The assignment to Executive of any duties inconsistent
with Executive’s status as an executive officer of the Company or a substantial adverse alteration in the nature or status
of Executive’s responsibilities from those in effect upon the date hereof; (b) A reduction by the Company by more than twenty
percent (20%) in Executive’s Base Salary as in effect on the date hereof; (c) The failure by the Company, without Executive’s
consent, to pay to Executive any portion of Executive’s compensation due hereunder more than twice in any 12 month period
except pursuant to an across-the-board compensation deferral similarly affecting all executives of the Company; (d) The failure
by the Company to continue to provide Executive with benefits or arrangements (including, without limitation, income tax services,
car allowances, and other fringe benefits) at least as favorable to those enjoyed by Executive upon the start of employment hereunder,
the taking of any action by the Company which would directly or indirectly materially reduce any of such benefits or deprive Executive
of any material fringe benefit enjoyed by Executive upon the start of employment hereunder. Executive’s continued employment
shall not constitute consent to, or a waiver of rights with respect to, any circumstance constituting Good Reason hereunder. Upon
occurrence of any of the foregoing events which Executive believes constitutes "Good Reason," Executive must notify the
Company in writing within ten (10) days and give the Company ten (10) days to cure or correct the alleged action or failure. After
the expiration of twenty (20) days, Executive may quit for "Good Reason" by giving written notice within an additional
fourteen (14) days.

 

6.           Termination
Obligations.

 

The Executive agrees that on or before termination
of employment, she will promptly return to the Company all documents and materials of any nature pertaining to her work with the
Company, including all originals and copies of all or any part of any Proprietary Information or Inventions (as defined below)
along with any and all equipment and other tangible and intangible property of the Company.  The Executive agrees not
to retain any documents or materials or copies thereof containing any Proprietary Information or Inventions.

 

The Executive further agrees that:  (i) all
representations, warranties, and obligations under Articles 6, 7, 8, 9, 10, 11, 12, 14.1, 14.2, 14.3 and 14.4 contained in this
Agreement shall survive the termination of the Initial Period and Extended Period, as applicable; (ii) the Executive's representations,
warranties and obligations under Articles 6, 7, 8, 9, 10, 11, 12, 14.1, 14.2, 14.3 and 14.4 shall also survive the expiration of
this Agreement; and (iii) following any termination of the Initial Period or Extended Period, as applicable, the Executive
shall fully cooperate with the Company in all matters relating to her continuing obligations under this Agreement, including but
not limited to the winding up of pending work on behalf of the Company, the orderly transfer of work to the other employees of
the Company, and the defense of any action brought by any third party against the Company that relates in any way to the Executive's
acts or omissions while employed by the Company.  The Executive also agrees to sign and deliver the Termination Certificate
attached hereto as Exhibit A prior to his termination of employment with the Company.

 

     

     

    

 

7.           Post-Termination
Activity.

 

7.1           No
Use of Proprietary Information.  The Executive acknowledges that the pursuit of the activities forbidden by this
subsection would necessarily involve the use or disclosure of Proprietary Information in breach of this Agreement, but that proof
of such a breach would be extremely difficult.  To forestall such disclosure, use, and breach, and in consideration of
the employment under this Agreement, the Executive also agrees that while employed by the Company, and for a period of six (6)
months after termination of the Executive's employment, the Executive shall not, directly or indirectly:

 

(i)           divert
or attempt to divert from the Company or any Affiliate ("Affiliate" shall mean any person or entity that directly,
or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with such entity).  For
the purposes of this definition "control" means the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract
or otherwise, and includes (a) ownership directly or indirectly of 50% or more of the shares in issue or other equity interests
of such person, (b) possession directly or indirectly of 50% or more of the voting power of such person or (c) the power directly
or indirectly to appoint a majority of the members of the board of directors or similar governing body of such person, and the
terms "controlling" and "controlled" have meanings correlative to the foregoing) any business
of any kind in which it is engaged, including, without limitation, soliciting business from or performing services for, any persons,
company or other entity which at any time during the Executive's employment by the Company is a client, supplier, or customer of
the Company or prospective client, supplier, or customer of the Company if such business or services are of the same general character
as those engaged in or performed by the Company; 

 

(ii)           solicit
or otherwise induce any person to terminate her employment or consulting relationship with the Company or any Affiliate; or

 

(iii)         
engage, invest or assist in any business activity that directly or indirectly competes with any business plan of the Company or
any Affiliate.

 

In addition, because the Executive acknowledges
the difficulty of establishing when any intellectual property, invention, or proprietary information is first conceived or developed
by the Executive, or whether it results from access to Proprietary Information or the Company equipment, supplies, facilities,
or data, the Executive agrees that any intellectual property, invention, or proprietary information shall be reported to the Company
and, unless proven otherwise to the reasonable satisfaction of the Company, shall be presumed to be an Invention (as defined below)
for the purpose of this Agreement and shall be subject to all terms and conditions hereof, if reduced to practice by the Executive
or with the aid of the Executive within six (6) months after termination of the Initial Period or Extended Period, as applicable.

 

7.2           No
Competition.  Notwithstanding Section 7.1 above, while employed by the Company and for a period of six (6) months
after the termination of the Executive's employment with the Company for any reason whatsoever, the Executive shall not, directly
or indirectly, as an executive, employer, employee, consultant, agent, principal, partner, manager, stockholder, officer, director,
or in any other individual or representative capacity, engage, aid, counsel or participate in any business within Hong Kong and
the People’s Republic of China that is competitive with the business of the Company or any Affiliate.  Notwithstanding
the foregoing, the Executive may own less than one percent (1%) of any class of stock or security of any corporation listed on
an internationally recognized securities exchange which competes with the Company.

 

     

     

    

 

7.3           Enforceability.  The
covenants of this Article 7 are several and separate, and the unenforceability of any specific covenant shall not affect the provisions
of any other covenant.  If any provision of this Article 7 relating to the time period or geographic area of the
restrictive covenants shall be declared by a court of competent jurisdiction to exceed the maximum time period or geographic area,
as applicable, that such court deems reasonable and enforceable, then this Agreement shall automatically be considered to have
been amended and revised to reflect the maximum time period or geographic area that such court deems enforceable.

 

7.4           Independent
Covenants.  All of the covenants in this Article 7 shall be construed as an agreement independent of any other
provision in this Agreement, and the existence of any claim or cause of action of the Executive against the Company or any of its
Affiliates, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company
of such covenants.

 

8.           Proprietary
Information.

 

The Executive agrees during her employment
with the Company and within three (3) years thereafter, to hold in strictest confidence and trust, and not to use or disclose to
any person, firm or corporation any Proprietary Information without the prior written consent of the Company, except as necessary
in carrying out her duties as an employee of the Company for the benefit of the Company.  "Proprietary Information"
means any information of a proprietary, confidential or secret nature that may be disclosed to the Executive that relates to the
business of the Company or of any parent, subsidiary, Affiliate, customer or supplier of the Company or any other party with whom
the Company agrees to hold information of such party in confidence ("Relevant Parties").  Such Proprietary
Information includes, but is not limited to, Inventions (as defined below), research, product plans, products, services, business
strategies, personnel information, customer lists, customers, markets, technical information, forecasts, marketing, finances or
other business information of the Company and its Affiliates.  This information shall remain confidential whether it
was disclosed to the Executive either directly or indirectly in writing, orally or by drawings or observation.  The Executive
understands that Proprietary Information does not include any of the foregoing items which has become publicly known and made generally
available through no wrongful act of the Executive or others who were under confidentiality obligations as to the items involved.

 

9.           Former
Employer Information.

 

The Executive agrees that she will not,
during her employment with the Company, improperly use or disclose any proprietary information or trade secrets, or bring onto
the premises of the Company any unpublished document or proprietary information belonging to any former or concurrent employer
or other person or entity (excluding any direct or indirect subsidiary of the Company).

  

10.           Third
Party Information.

 

The Executive recognizes that the Company
has received and in the future will receive confidential or proprietary information from third parties.  The Executive
agrees to hold all such confidential or proprietary information in the strictest confidence and trust, and not to disclose it to
any person, firm or corporation or to use it except as necessary in carrying out her work for the Company consistent with the Company's
agreement with such third party.

 

11.           No
Conflict.

 

The Executive represents and warrants that
the Executive's execution of this Agreement, her employment with the Company, and the performance of her proposed duties under
this Agreement shall not violate any obligations she may have to any former employer or other party, including any obligations
with respect to proprietary or confidential information or intellectual property rights of such party or require the consent or
approval of any third party.

 

     

     

    

 

12.           Inventions.

 

12.1           Inventions
Retained and Licensed.  The Executive has attached, as Exhibit B, a list describing all inventions,
original works of authorship, developments, improvements, and trade secrets which were made by the Executive prior to the Executive's
employment with the Company ("Prior Inventions"), which belong to the Executive, and which relate to the Company's
actual and/or proposed business, products or research and development.  If, in the course of her employment with the
Company, the Executive incorporates into a Company product, process or machine a Prior Invention owned by the Executive or in which
the Executive has an interest, the Company is hereby granted and shall have a non-exclusive, royalty-free, irrevocable, perpetual,
worldwide license to make, have made, modify, use and sell such Prior Invention as part of or in connection with such product,
process or machine.

 

12.2           Assignment
of Inventions.  The Executive agrees that she will promptly make full written disclosure to the Company, will hold
in trust for the sole right and benefit of the Company, and hereby irrevocably assigns to the Company, or its designee, all the
Executive's right, title, and interest in and to any and all inventions, original works of authorship, developments, concepts,
improvements, designs, drawings, discoveries, ideas, formulas, processes, compositions of matter, software, databases, mask works,
computer programs (including all source codes) and related documentation, algorithms, engineering and reverse engineering, technology,
hardware configuration information, logos, trade names, trademarks, patents, patent applications, copyrights, trade secrets or
know-how, which the Executive may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed
or reduced to practice ("Inventions"), while the Executive is employed by the Company.  The Executive
further acknowledges that all original works of authorship which are made by the Executive (solely or jointly with others) within
the scope of and during her employment with the Company and which are protectable by copyright are "works made for hire,"
as that term is defined in the United States Copyright Act and that the Company will be considered the author and owner of such
works.  The Executive understands and agrees that the decision whether or not to commercialize or market any Invention
developed by the Executive solely or jointly with others is within the Company's sole discretion and for the Company's sole benefit
and that no royalty will be due to the Executive as a result of the Company's efforts to commercialize or market any such Invention.

 

12.3           Waiver
of Moral Rights.  To the utmost extent legally permitted, the Executive also hereby forever waives and agrees never
to assert any and all Moral Rights (as defined below) she may have in or with respect to any Invention, even after termination
of her work on behalf of the Company.  "Moral Rights" mean any rights to claim authorship of an Invention
to object to or prevent the modification of any Invention, or to withdraw from circulation or control the publication or distribution
of any Invention, and any similar right, existing under judicial or statutory law of any country in the world, or under any treaty,
regardless of whether or not such right is denominated or generally referred to as a "moral right."

 

12.4           Maintenance
of Records.  The Executive agrees to keep and maintain adequate and current written records of all Inventions made
by the Executive (solely or jointly with others) during the Executive's employment with the Company.  The records will
be in the form of notes, sketches, drawings, and any other format that may be specified by the Company.  The records
will be provided to, and remain the sole property of, the Company at all times.

 

12.5           Patent
and Copyright Registrations.  The Executive agrees to assist the Company, or its designee, at the Company's expense,
in every proper way, to secure the Company's rights in the Inventions and any copyrights, patents, mask work rights, trade secret
rights or other intellectual property rights relating thereto in any and all countries.  The Executive will disclose
to the Company all pertinent information and data which the Company deems necessary for the execution of all applications, specifications,
oaths, assignments and execute all instruments necessary to apply for and obtain such rights and in order to assign and convey
to the Company, its successors, assigns, and nominees, the sole and exclusive right, title and interest in and to such Inventions,
and any copyrights, patents, mask work rights, or other intellectual property rights relating thereto.  The Executive
further agrees that the Executive's obligation to execute or cause to be executed, when it is in the Executive’s power to
do so, any such instrument or papers shall continue after the termination of this Agreement.  If the Company is unable,
because of the Executive's mental or physical incapacity or for any other reason, to secure her signature to apply for or to pursue
any application for any patents or copyright registrations covering the Inventions assigned to the Company as above, then the Executive
hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as her agent and attorney in
fact, to act for and in the Executive's behalf and stead to execute and file any such applications and to do all other lawfully
permitted acts to further the prosecution and issuance of letters, patent or copyright registrations thereon with the same legal
force and effect as if executed by the Executive.

 

     

     

    

 

13.           Alternative
Dispute Resolution.

 

Except with respect to any proceeding brought under Section
7 hereof, the Company and Executive mutually agree that any controversy or claim arising out of or relating to this Agreement or
the breach thereof, or any other dispute between the parties, shall be submitted to mediation before a mutually agreeable mediator,
which cost is to be borne equally by the parties hereto. In the event the Parties fail to agree on a mediator, or mediation is
unsuccessful in resolving the claim or controversy within one (1) month after the commencement of mediation, such claim or controversy
shall be resolved by arbitration in Hong Kong. Any dispute, controversy, difference or claim arising out of or relating to this
Agreement, including the existence, validity, interpretation, performance, breach or termination thereof or any dispute regarding
non-contractual obligations arising out of or relating to it shall be referred to and finally resolved by arbitration administered
by the Hong Kong International Arbitration Centre (HKIAC) under the UNCITRAL Arbitration Rules in force when the Notice of Arbitration
is submitted , as modified by the HKIAC Procedures for the Administration of International Arbitration. The law of this arbitration
clause shall be Hong Kong law. The seat of arbitration shall be in Hong Kong. The number of arbitrators shall be one. The arbitration
proceedings shall be conducted in English.

 

14.           Miscellaneous.

 

14.1           Continuing
Obligations.  The obligations in this Agreement will continue in the event that the Executive is hired, renders services
to or for the benefit of or is otherwise retained at any time by any present or future Affiliates of the Company.  Any
reference to the Company in this Agreement will include such Affiliates.  Upon the expiration or termination for
any reason whatsoever of this Agreement, the Executive shall forthwith resign from any employment of office with an Affiliate of
the Company unless the board of directors of the Company requests otherwise.

 

14.2           Notification.  The
Executive hereby authorizes the Company to notify her actual or future employers of the terms of this Agreement and her responsibilities
hereunder.

 

14.3           Name and
Likeness Rights.  The Executive hereby authorizes the Company to use, reuse, and to grant others the right to use
and reuse, her name, photograph, likeness (including caricature), voice, and biographical information, and any reproduction or
simulation thereof, in any media now known or hereafter developed (including but not limited to film, video and digital or other
electronic media), both during and after her employment, for whatever purposes the Company deems necessary.

 

14.4           Injunctive
Relief. The Executive understands that in the event of a breach or threatened breach of this Agreement by him,
the Company may suffer irreparable harm and will therefore be entitled to injunctive relief to enforce this Agreement.

 

14.5           Entire
Agreement.  This Agreement, including the exhibits attached hereto, is intended to be the final, complete, and exclusive
statement regarding their subject matter, except for other agreements specifically referenced herein.  Unless otherwise
specifically provided for herein, this Agreement supersedes all other prior and contemporaneous agreements and statements pertaining
to this subject matter, and may not be contradicted by evidence of any prior or contemporaneous statements or agreements.  To
the extent that the practices, policies, or procedures of the Company, now or in the future, apply to the Executive and are inconsistent
with the terms of this Agreement, the provisions of this Agreement shall control.

 

     

     

    

 

14.7           Amendments,
Renewals and Waivers.  This Agreement may not be modified, amended, renewed or terminated except by an instrument
in writing, signed by the Executive and by a duly authorized representative of the Company other than the Executive.  No
failure to exercise and no delay in exercising any right, remedy, or power under this Agreement shall operate as a waiver thereof,
nor shall any single or partial exercise of any right, remedy, or power under this Agreement preclude any other or further exercise
thereof, or the exercise of any other right, remedy, or power provided herein or by law or in equity.

 

14.8           Assignment;
Successors and Assigns.  The Executive agrees that she will not assign, sell, transfer, delegate or otherwise dispose
of, whether voluntarily or involuntarily, or by operation of law, any rights or obligations under this Agreement, nor shall the
Executive's rights be subject to encumbrance or the claims of creditors.  Any purported assignment, transfer, or delegation
shall be null and void.  Nothing in this Agreement shall prevent the consolidation of the Company with, or its merger
into, any other corporation, or the sale by the Company of all or substantially all of its properties or assets, or the assignment
by the Company of this Agreement and the performance of its obligations hereunder to any successor in interest.  In the
event of a change in ownership or control of the Company, the terms of this Agreement will remain in effect and shall be binding
upon any successor in interest.  Notwithstanding and subject to the foregoing, this Agreement shall be binding upon
and shall inure to the benefit of the parties and their respective heirs, legal representatives, successors, and permitted assigns,
and shall not benefit any person or entity other than those enumerated above.

 

14.9      Indemnification. The
Company shall indemnify the Executive, to the maximum extent permitted by applicable law, against all costs, charges and expenses
incurred or sustained by the Executive in connection with any action, suit or proceeding to which he may be made a party by reason
of being an officer, director or employee of the Company or of any subsidiary or affiliate of the Company or any other corporation
for which the Executive serves in good faith as an officer, director, or employee.  The Company will cover Executive under
its directors’ and officers’ liability insurance in the same amount and to the same extent as the Company covers its
other officers and directors.

 

14.10           Notices.  All
notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given
or made as of the date delivered or mailed if delivered personally or by nationally recognized courier or mailed by registered
mail (postage prepaid, return receipt requested) or by telecopy to the parties at the following addresses (or at such other address
for a party as shall be specified by like notice, except that notices of changes of address shall be effective upon receipt):

  

	To:	Company
	Contact Address:	Takung Art Co., Ltd
	 	Room 1105 Wing On Plaza, 62 Mody Road, Tsim Sha Tsui, Kowloon, Hong Kong
	Attention:	Jehn Ming Lim, Chief Financial Officer
	 	 
	To:	Executive
	Contact Address:	c/o Takung Art Co., Ltd
	 	Room 1105 Wing On Plaza, 62 Mody Road, Tsim Sha Tsui, Kowloon, Hong Kong
	Attention:	Fang Mu

 

14.11           Waiver
of Immunity.  To the extent that any Party (including its assignees of any such rights or obligations hereunder)
may be entitled, in any jurisdiction, to claim for itself (or himself or herself) or its revenues or assets or properties, immunity
from service of process, suit, the jurisdiction of any court, an interlocutory order or injunction or the enforcement of the same
against its property in such court, attachment prior to judgment, attachment in aid of execution of an arbitral award or judgment
(interlocutory or final) or any other legal process, and to the extent that, in any such jurisdiction there may be attributed such
immunity (whether claimed or not), such Party hereby irrevocably waives such immunity.

 

     

     

    

 

14.12           Severability;
Enforcement.  If any provision of this Agreement, or its application to any person, place, or circumstance, is held
by an arbitrator or a court of competent jurisdiction to be invalid, unenforceable, or void, such provision shall be enforced (by
blue-penciling or otherwise) to the maximum extent permissible under applicable law, and the remainder of this Agreement and such
provision as applied to other persons, places, and circumstances shall remain in full force and effect.

 

14.13           Governing
Law.  This Agreement shall in all respects be construed and enforced in accordance with and governed by the laws
of the State of Delaware, without regard to principles of conflict of laws.

 

14.14           Interpretation.  This
Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party.  Sections
and section headings contained in this Agreement are for reference purposes only, and shall not affect in any manner the meaning
or interpretation of this Agreement.  Whenever the context requires, references to the singular shall include the plural
and the plural the singular.  References to one gender include both genders.

  

14.15           Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be deemed an original of this Agreement, but all of
which together shall constitute one and the same instrument.

 

     

     

    

  

EXECUTIVE ACKNOWLEDGEMENT.  The
Executive acknowledges (i) that she has consulted with or has had the opportunity to consult with independent counsel of her own
choice concerning this Agreement and has been advised to do so by the Company, and (ii) that she has read and understands the Agreement,
is fully aware of its legal effect, and has entered into it freely based on her own judgment.  The Executive hereby agrees
that her obligations set forth in Sections 7, 8, and 9 hereof and the definitions of Proprietary Information and Inventions contained
therein shall be equally applicable to Proprietary Information and Inventions relating to any work performed by the Executive for
the Company prior to the execution of this Agreement.

 

The parties have duly executed this Agreement
as of the date first written above.

 

	 	EXECUTIVE:
	 	 	 	 
	 	 	 	 
	 	 /s/ Fang Mu	 
	 	Name: Fang Mu
	 	 	 	 
	 	 	 	 
	 	COMPANY:
	 	 	 	 
	 	Takung Art Co., Ltd
	 	 	 	 
	 	 	 	 
	 	By:	 /s/ Jehn Ming Lim	 
	 	Name: Jehn Ming Lim
	 	Title:   Chief Financial Officer 

  

     

     

    

  

EXHIBIT A

 

TERMINATION CERTIFICATE

 

This is to certify that I have returned all property of Takung
Art Co., Ltd. (the "Company") and the Relevant Parties, including, without limitation, all books, manuals, records,
models, drawings, reports, notes, contracts, lists, blueprints, and other documents and materials, electronic data recorded or
retrieved by any means, Proprietary Information, and equipment furnished to or prepared by me in the course of or incident to my
employment with the Company, and that I did not make or distribute any copies of the foregoing.

 

I further certify that I have reviewed the Executive Employment
Agreement (the "Agreement") signed by me and that I have complied with and will continue to comply with all of
its terms, including, without limitation, (i) the reporting of any Inventions or any improvement, rights, or claims related
to the foregoing, conceived or developed by me and covered by the Agreement; (ii) the preservation as confidential of all
Proprietary Information pertaining to the Company and the Relevant Parties; (iii) not participating in any business competitive
with the business of the Company; (iv) not acting as the legal representative or an executive officer of any other company
within and outside Hong Kong, and (v) the reporting of any remuneration paid to me due to any employment or self-employment during
the severance period, if any.  This certificate in no way limits my responsibilities or liabilities to the Company or
the Company's rights under the Agreement.

 

On termination of my employment with the Company, I will be
employed by [name of new employer] in the [division name] division and I will be working in connection
with the following projects:

 

[generally describe the projects]

 

	 
	 
	 
	 

 

	Date:	 	 	 
	 	 	 	Print Executive's Name
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	Executive's Signature

  

     

     

    

  

EXHIBIT B

 

LIST OF PRIOR INVENTIONS

AND ORIGINAL WORKS OF AUTHORSHIP

 

 

Title                   Date              Identifying
Number or Brief Description

 

 

 

______X_____                               No
inventions or improvements

____________                                Additional
Sheets Attached

 

Signature of Executive:   /s/   Fang
Mu                                    

Printed Name of Executive:    Fang Mu                                     

Date:   August 6, 2019cbay-ex101_57.htm

Exhibit 10.1 

 

	

	
 
	
CymaBay Therapeutics

7575 Gateway Blvd.

Suite 110

Newark, CA  94560

www.cymabay.com

510-293-8800 office

510-293-9090 fax

	
 
	
 
	
 

 

June 18, 2019

 

Janet Dorling

[address redacted]

 

 

Dear Janet:

CymaBay Therapeutics, Inc. (the “Company”) is pleased to offer you employment as Chief Commercial Officer on the following terms, effective as of the date upon which you commence employment with the Company:

1.Position, Duties and Responsibilities.  Subject to the terms set forth herein, the Company agrees to employ you in the position of Chief Commercial Officer.  You will report to the Company’s Chief Executive Officer (“CEO”) and will perform such duties as are assigned to you by the CEO.  You will devote your full business time and attention to the business affairs of the Company, except for reasonable vacations and periods of illness or incapacity permitted by the Company’s general employment policies. The employment relationship between you and the Company shall also be governed by the general employment policies and practices of the Company, including those relating to protection of confidential information and assignment of inventions, except that when the terms of this letter agreement differ from, or are in conflict with, the Company’s general employment policies or practices, this letter agreement shall control.  Subject to the other terms of this letter agreement, the Company may change your position, duties, reporting relationship and work location from time to time in its discretion.

2.Background Check.  Employment at the Company is conditioned upon passing a background check.  Waivers necessary to authorize this process will be sent to you by email from Advanced Reporting.  Please sign and return the waiver forms electronically according to the instructions you will receive from them. 

3.Compensation and Employee Benefits.

3.1Base Salary.  Your base salary will be four hundred thousand dollars ($400,000) on an annualized basis, less payroll deductions and required withholdings, paid according to the Company’s regular payroll schedule and procedures. Subject to the other terms of this letter agreement, your base salary may be modified by the Company in its sole discretion. 

 

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3.2Sign-On/Retention Bonus.  To help induce you to accept employment with the Company, the Company will pay you fifteen thousand dollars ($15,000) as a sign-on/retention bonus (the “Sign-On Bonus”).  This Sign-On Bonus will be subject to required payroll deductions and withholdings and will be paid to you within thirty (30) days after you commence employment.  This Sign-On Bonus is not earned until you complete one year of employment with the Company.  Therefore, if you resign your employment for any reason prior to the first anniversary of your employment commencement date, you agree to repay to the Company the full gross amount of the Sign-On Bonus within thirty (30) days after your employment termination, and the Company agrees to make corresponding adjustments to whatever W-2 and other tax forms as may be implicated.

3.3Discretionary Bonus.  You will be eligible to participate in the Company’s annual bonus program pursuant to the terms of that program and you will be eligible to receive a bonus of up to forty percent (40%) of your annual base salary. Your actual bonus, if any, will be determined by the Company’s Board of Directors (the “Board”), or the Compensation subcommittee thereof, in its sole discretion, based upon its evaluation of your performance, the Company’s performance, and any other considerations it deems relevant. For your initial year of employment, your bonus will be pro-rated for the time elapsed in the bonus period for which you were employed by the Company.  You must be employed through the bonus payment date to be eligible for, and to earn, any such bonus.  Bonuses are typically paid within sixty (60) days after the end of the calendar year.  Any bonus payment will be subject to payroll deductions and required withholdings.

3.4Employee Benefits.  You will be entitled to all employee benefits, including vacation accrual of twenty (20) days per year and health and disability benefits for which you are eligible under the terms and conditions of the standard Company benefit plans that may be in effect from time to time and provided by the Company to its senior executive-level employees generally. Currently, such benefits include twelve (12) paid holiday days, as well as paid sick leave of up to five (5) days per year. Notwithstanding the foregoing, the Company reserves the right to adopt, amend or discontinue any employee benefit plan or policy, including changes required by applicable law.

3.5Stock Options.  Subject to the approval of the Board, or the Board’s Compensation Committee, pursuant to the Company’s equity incentive plan you will be granted a stock option covering three hundred forty-one thousand (341,000) shares of Company common stock at a per share exercise price equal to the per share fair market value of the Company’s common stock on the grant date.  The term of such stock option will be ten (10) years, subject to earlier expiration in the event of the termination of your service with the Company.  Such stock option will vest and be exercisable as to twenty-five percent (25%) of the shares covered by the option on the first year anniversary of your employment commencement date and the remaining seventy-five percent (75%) of the shares covered by the option will vest in thirty-six (36) equal monthly installments with the first monthly installment vesting one month following the first year anniversary of your employment commencement date, as long as you remain in continuous service with the Company.  Notwithstanding the foregoing, a portion of the shares subject to your outstanding option may vest on an accelerated basis pursuant to Articles 8 or 9.  Except as provided herein, such stock option will be subject to the provisions of the equity incentive plan of the Company under which the options are granted and the applicable form of stock option agreement thereunder (the “Plan Documents”).

 

Page 3

 

4.Other Activities During Employment.

4.1Activities.  Except with the prior written consent of the CEO, you will not, during your employment with the Company, undertake or engage in any other employment, occupation or business enterprise, other than ones in which you are a passive investor. You may engage in civic and not-for-profit activities so long as such activities do not interfere with the performance of your job duties for the Company.

4.2Investments and Interests.  Except as permitted by the first sentence of Section 4.1 and by Section 4.3, during your employment you agree not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known by you to be adverse or antagonistic to the Company, or its business or prospects, financial or otherwise.

4.3Noncompetition.  During the term of your employment by the Company, except on behalf of the Company, you will not directly or indirectly, whether as an officer, director, stockholder, partner, proprietor, associate, representative, consultant, or in any capacity whatsoever engage in, become financially interested in, be employed by or have any business connection with any other person, corporation, firm, partnership or other entity whatsoever that competes with the Company anywhere in the world, in any line of business engaged in (or planned to be engaged in) by the Company; provided, however, that anything above to the contrary notwithstanding, you may own, as a passive investor, securities of any entity, so long as your direct holdings in any one such corporation do not in the aggregate constitute more than one percent (1%) of the voting stock of such corporation.

5.Company Policies; Confidential Information and Inventions Agreement.  As a condition of your employment, you are required to execute the Company’s Employee Agreement on Confidential Information and Inventions, a copy of which is attached as Exhibit A.  You further acknowledge your obligation to abide by the Company’s rules, policies and procedures.

6.Immigration.  The Immigration Reform and Control Act of 1986 requires that every person present proof to the Company of their identity and eligibility and/or authorization to accept employment with the Company.  In order to comply with this law, and before you can become a Company employee, you must provide appropriate documentation to prove both your identity and legal eligibility to be employed at the Company.  Please be sure to bring this documentation with you to your employee orientation.  If you are working in the United States on a VISA, you will need to provide copies of this documentation at your employee orientation.  Failure to do so may result in over withholding of taxes. 

7.Your Representations and Warranties.

7.1No Breach of Contract.  You represent and warrant that the execution and delivery of this letter agreement by you and the performance of your obligations hereunder will not conflict with or breach any agreement, order or decree to which you are a party or by which you are bound. You warrant that you are subject to no employment agreement or restrictive covenant preventing full performance of your duties under this letter agreement.

7.2No Conflict of Interest.  You warrant that you are not, to the best of your knowledge and belief, involved in any situation that might create, or appear to create, a conflict of interest with your loyalty to or duties for the Company.

 

Page 4

 

7.3Notification of Materials or Documents from Other Employers.  You further warrant that you have not brought and will not bring to the Company or use in the performance of your responsibilities at the Company any materials or documents of a former employer that are not generally available to the public, unless you have obtained express written authorization from the former employer for their possession and use.

7.4Notification of Other Post-Employment Obligations.  You also understand that, as part of your employment with the Company, you are not to breach any obligation of confidentiality that you have to former employers, and you agree to honor all such obligations to former employers during your employment with the Company.

8.Termination of Employment.

8.1At-Will Employment Relationship.  Your employment with the Company shall be at-will. Either you or the Company may terminate the employment relationship at any time, with or without Cause, and with or without advance notice.

8.2Termination for Cause.

(a)Subject to the terms of this Article 8 and to the terms of Article 9, if the Company terminates your employment at any time for Cause (as defined below), your salary shall cease on the date of termination and you shall not be entitled to severance pay, COBRA premium payments, pay in lieu of notice or any other such compensation other than payment of accrued salary and vacation and such other benefits as expressly required by applicable law or the terms of applicable benefit plans. Subject to the terms of this Article 8 and to the terms of Article 9, the continued vesting of any equity awards held by you shall cease on your employment termination date, and your right to exercise vested equity awards shall be governed by the Plan Documents.

(b)Definition of Cause.  For purposes of this letter agreement, “Cause” means the occurrence of any one or more of the following: (i) your conviction of, or plea of no contest, with respect to any felony or any crime involving fraud, dishonesty or moral turpitude; (ii) your participation in a fraud or act of dishonesty that results in material harm to the Company; (iii) your intentional material violation of any contract or agreement between you and the Company, including but not limited to this letter agreement or your Employee Agreement on Confidential Information and Inventions, or your violation of any statutory duty that you owe to the Company, but only if you do not correct any such violation within thirty (30) days after written notice thereof has been provided to you (if such notice is reasonably practicable); or (iv) your gross negligence or willful neglect of your job duties, as determined by the Board in good faith, but only if you do not correct such violation within thirty (30) days after written notice thereof has been provided to you (if such notice is reasonably practicable).

8.3Severance Benefits for Termination Without Cause or Resignation for Good Reason.

(a)If the Company terminates your employment without Cause and other than as a result of your death or disability, or if you resign your employment for Good Reason (defined below), and provided such termination constitutes a “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “Separation from Service”), you will be eligible to receive the severance benefits described in this Section 8.3. 

 

Page 5

 

(b)You will be eligible to receive, subject to payroll deductions and required withholdings and net of any amounts earned by you pursuant to any employment or consulting arrangements obtained by you following such termination (other than the activities described in the last sentence of Section 4.1), continuation for twelve (12) months of the greater of your base salary: (i) in effect as of such termination date; or (ii) as set forth in Section 3.1.  In addition, you will be eligible to receive your annual discretionary bonus amount at the higher of that (a) in effect as of such termination date; or (b) as set forth in Section 3.3, in either case determined as if all performance targets have been satisfied, pro-rated for the number of months elapsed in the year in which your employment terminates, but in no event will you receive a bonus pro-rated for less than nine (9) months.  You agree to notify the Company promptly of any amount earned by you from other employment or a consulting engagement while you are receiving severance payments under this letter agreement.  

(c)If you timely elect and remain eligible for continued coverage of your group health insurance under COBRA, the Company will pay your premiums for COBRA coverage for up to twelve (12) months following your Separation from Service, provided that such payments shall cease if you obtain full-time employment, or cease to be eligible for COBRA, within such period. You agree to notify the Company promptly if you obtain full-time employment while the Company is paying your COBRA premiums under this letter agreement. On the 60th day following your Separation from Service, the Company will make the first payment under this clause equal to the aggregate amount of payments that the Company would have paid through such date had such payments commenced on the Separation from Service through such 60th day, with the balance of the payments paid thereafter on the schedule described above. If you become eligible for coverage under another employer's group health plan or otherwise cease to be eligible for COBRA during the period provided in this clause, you must immediately notify the Company of such event, and all payments and obligations under this clause will cease.

(d)You will receive acceleration of vesting of all of your then-outstanding and then-unvested equity award grants as of the date of termination as to the number of shares that would have vested in their vesting schedules as if you had been in service for an additional twelve (12) months as of your Separation from Service.  

(e)Your receipt of any severance benefits under this Section 8.3 is contingent upon your signing and making effective within sixty (60) days after the termination date, a full, general release of all claims against the Company in a form acceptable to the Company containing the language set forth in the Release Agreement attached as Exhibit B on or after the termination date. The base salary and bonus severance will be paid in substantially equal installments over the twelve (12) month period following your Separation in Service according to the Company’s payroll procedures; provided, however, that no payments will be made to you prior to the 60th day following your Separation from Service. On the first payroll pay day following the 60th day after your Separation from Service, the Company will pay you the cash severance amounts you would have received on or prior to such date in a lump sum in compliance with Code Section 409A and the effectiveness of the release, with the balance of the cash payments being made as originally scheduled.

 

Page 6

 

(f)Definition of Good Reason.  For purposes of this letter agreement, “Good Reason” shall mean any one of the following events that occurs without your consent: (i) the material reduction in your responsibilities, authorities or functions as an employee of the Company (but not merely a change in reporting relationships); (ii) a material reduction in your level of compensation (including base salary, fringe benefits and target bonus under any corporate-performance based bonus or incentive programs); (iii) a material change of your place of employment that results in an increase to your round trip commute of more than twenty (20) miles; or (iv) the Company’s material breach of this letter agreement. Notwithstanding the foregoing, you must provide written notice to the CEO of the Company within thirty (30) days after the date on which such event first occurs, and allow the Company thirty (30) days thereafter (the “Cure Period”) during which the Company may attempt to rescind or correct the matter giving rise to Good Reason. If the Company does not rescind or correct the conduct giving rise to Good Reason to your reasonable satisfaction by the expiration of the Cure Period, your employment will then terminate with Good Reason as of such thirtieth day.

8.4Voluntary or Mutual Termination.  You may voluntarily terminate your employment with the Company at any time without Good Reason. If you terminate without Good Reason or if your employment terminates as a result of your death or disability, your salary shall cease on the date of termination and you shall not be entitled to severance, pay in lieu of notice or any other such compensation other than payment of accrued salary and vacation and such other benefits as expressly required in such event by applicable law or the terms of applicable benefit plans.  The continued vesting of any compensatory equity awards held by you shall cease on the termination date, and your right to exercise vested awards (or be issued shares under such vested awards) shall be governed by the terms of the Company’s applicable compensatory equity plans and the corresponding award agreements.

8.5Application of Section 409A.  If the Company (or, if applicable, the successor entity thereto) determines that the severance payments and benefits provided for in this letter agreement (the “Agreement Payments”) constitute “deferred compensation” under Section 409A of the Internal Revenue Code (together, with any state law of similar effect, “Section 409A”) and you are a “specified employee” of the Company or any successor entity thereto, as such term is defined in Section 409A(a)(2)(B)(i) (a “Specified Employee”), then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the Agreement Payments shall be delayed as follows: on the earliest to occur of (i) the date that is six months and one day after the termination date or (ii) the date of your death (such earliest date, the “Delayed Initial Payment Date”), the Company (or the successor entity thereto, as applicable) shall (A) pay to you a lump sum amount equal to the sum of the Agreement Payments that you would otherwise have received through the Delayed Initial Payment Date if the commencement of the payment of the Agreement Payments had not been delayed pursuant to this Section 8.5 and (B) commence paying the balance of the Agreement Payments in accordance with the applicable payment schedules set forth in this letter agreement.  For the avoidance of doubt, it is intended that (1) each installment of the Agreement Payments provided in this letter agreement is a separate “payment” for purposes of Section 409A, (2) all Agreement Payments satisfy, to the greatest extent possible, the exemptions from the application of Section 409A provided under of Treasury Regulation 1.409A-1(b)(4) and 1.409A-1(b)(9)(iii), and (3) the Agreement Payments consisting of COBRA premiums also satisfy, to the greatest extent possible, the exemptions from the application of Section 409A provided under Treasury Regulation 1.409A-1(b)(9)(v).

 

Page 7

 

 

9.Change in Control.

9.1Definitions.

(a)“Change in Control” shall mean an Ownership Change Event (as defined below) or a series of related Ownership Change Events (collectively, a “Transaction”) wherein the stockholders of the Company immediately before the Transaction do not retain direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding securities of the Company or, in the case of a Transaction described in Section 9.1(b)(iii), the corporation or other business entity to which the assets of the Company were transferred (the “Transferee”), as the case may be. For purposes of the preceding sentence, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities that own the Company or the Transferee, as the case may be, either directly or through one or more subsidiary corporations or other business entities.

(b)An “Ownership Change Event” shall be deemed to have occurred if any of the following occurs with respect to the Company: (i) the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of more than fifty percent (50%) of the voting stock of the Company; (ii) a merger or consolidation in which the Company is a party; or (iii) the sale, exchange or transfer of all or substantially all of the assets of the Company.

9.2Severance.  On the consummation of any Change in Control any remaining unvested portion of your equity awards will be accelerated such that fifty percent (50%) of your outstanding and then-unvested equity awards become fully vested and exercisable as of the date of the Change in Control (the “Acceleration”). If on or within twelve (12) months following a Change in Control, the Company or a successor corporation terminates your employment without Cause and other than as a result of your death or disability, or you resign for Good Reason (a “Change in Control Termination”), and provided that such termination constitutes a Separation from Service, then subject to your obligations below, and in lieu of any severance benefits set forth in Section 8.3 herein, you will be entitled to receive (collectively, the “Change in Control Severance Benefits”):

(a)Subject to payroll deductions and required withholdings and net of any amounts earned by you pursuant to any employment or consulting arrangements obtained by you following such termination (other than the activities described in the last sentence of Section 4.1), continuation for twelve (12) months of the greater of your base salary: (i) in effect as of such termination date; or (ii) as set forth in Section 3.1; or (iii) in effect on the date prior to the Change in Control.  In addition, you will be eligible to receive one hundred and twenty-five percent (125%) of your annual discretionary bonus amount at the higher of that (a) in effect as of such termination date; (b) as set forth in Section 3.3; or (c) in effect on the date prior to the Change in Control, in any case determined as if all performance targets have been satisfied. 

(b)You will receive acceleration of vesting of all of your then-outstanding and then-unvested equity awards as of the date of termination such that the remaining fifty percent (50%) of your unvested equity awards following the Acceleration become fully vested and exercisable. 

 

Page 8

 

(c)If you timely elect and remain eligible for continued coverage of your group health insurance under COBRA, the Company will pay your premiums for COBRA coverage for up to fifteen (15) months following your Separation from Service, provided that such payments shall cease if you obtain full-time employment, or cease to be eligible for COBRA, within such period. You agree to notify the Company promptly if you obtain full-time employment while the Company is paying your COBRA premiums under this letter agreement. On the 60th day following your Separation from Service, the Company will make the first payment under this clause equal to the aggregate amount of payments that the Company would have paid through such date had such payments commenced on the Separation from Service through such 60th day, with the balance of the payments paid thereafter on the schedule described above. If you become eligible for coverage under another employer's group health plan or otherwise cease to be eligible for COBRA during the period provided in this clause, you must immediately notify the Company of such event, and all payments and obligations under this clause will cease.  

(d)As a precondition of receiving the Change in Control Severance Benefits, you must first sign and make effective on or after the termination date a full, general release of claims against the Company in a form acceptable to the Company containing the language set forth in the Release Agreement attached as Exhibit B.

9.3Parachute Payments.

(a)If any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to you or for your benefit, whether under this letter agreement or otherwise (a “Payment”), would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) (together with any interest or penalties imposed with respect to such excise tax, the “Excise Tax”), then you will be entitled to receive from the Company an additional payment (the “Gross-Up Payment”) in an amount equal to (i) all Excise Taxes (including any interest or penalties imposed with respect to such taxes) on the Payment (the “First Reimbursement Payment”), (ii) all federal, state and local income taxes and employment taxes on the First Reimbursement Payment, and (iii) all Excise Taxes (including any interest or penalties imposed with respect to such taxes) on the First Reimbursement Payment. 

(b)All determinations required to be made under this Section 8.3 including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by the nationally recognized certified public tax accounting firm used by the Company or, if such firm declines to serve, such other nationally recognized certified public tax accounting firm as you may designate (the “Accounting Firm”). The Accounting Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good-faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Accounting Firm shall provide its calculations, together with detailed supporting documentation, to the Company and you within thirty (30) calendar days after the date on which your right to a Payment is triggered (if requested at that time by the Company or you) and/or at such other times as requested by the Company or you. If the Accounting Firm determines that no Excise Tax is payable with respect to a Payment, it shall furnish the Company and you with an opinion reasonably acceptable to you that no Excise Tax will be imposed with respect to such Payment.  If the Accounting Firm determines that an Excise Tax is payable with respect to a Payment, it shall furnish to the Company and you an 

 

Page 9

 

opinion reasonably acceptable to you of the amount of Excise Tax payable with respect to the Payments and the amount of Gross-Up Payment due to you. The Company will pay the Gross-Up Payment to you within thirty (30) days of the date the Company receives the Accounting Firm’s opinion, but in no event later than the end of your tax year following your tax year in which you pay the Excise Tax. The Company shall bear all reasonable expenses with respect to the determinations by the Accounting Firm required to be made hereunder. Any determination by the Accounting Firm shall be binding upon the Company and you.

10.General Provisions.

10.1Dispute Resolution.  To aid in the rapid and economical resolution of any disputes that may arise under this letter agreement, the parties agree that any and all claims, disputes or controversies of any nature whatsoever arising from or regarding the interpretation, performance, negotiation, execution, enforcement or breach of this letter agreement, or your relationship with the Company, including statutory claims, shall be resolved by confidential, final and binding arbitration conducted before a single arbitrator with Judicial Arbitration and Mediation Services, Inc. (“JAMS”) in San Francisco, California, in accordance with JAMS’ then-applicable employment arbitration rules (which may be reviewed at www.jamsadr.com/rules-employment-arbitration/). The parties acknowledge that by agreeing to this arbitration procedure, they waive the right to resolve any such dispute through a trial by jury, judge or administrative proceeding. The parties will have the right to be represented by legal counsel at any arbitration proceeding. The arbitrator shall:  (i) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be available under applicable law in a court proceeding; and (ii) issue a written statement signed by the arbitrator regarding the disposition of each claim and the relief, if any, awarded as to each claim, the reasons for the award, and the arbitrator’s essential findings and conclusions on which the award is based. The Company shall bear all JAMS’ arbitration fees and administrative costs in excess of the amount of administrative fees (e.g., filing fees) that you would otherwise be required to pay if the dispute were decided in a court of law. Nothing in this letter agreement shall prevent any party from obtaining injunctive or other provisional relief in court to prevent irreparable harm pending the conclusion of any arbitration proceeding.

10.2Severability.  Whenever possible, each provision of this letter agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this letter agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but such invalid, illegal or unenforceable provision will be reformed, construed and enforced in such jurisdiction so as to render it valid, legal, and enforceable consistent with the intent of the parties insofar as possible.

10.3Notices.  Any notices provided hereunder must be in writing and shall be deemed effective upon the earlier of personal delivery (including personal delivery by fax) or the next day after sending by overnight courier, to the Company at its primary office location and to you at your address as listed on the Company payroll.

 

Page 10

 

10.4Waiver.  If either party should waive any breach of any provisions of this letter agreement, you or the Company shall not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this letter agreement.

10.5Entire Agreement.  This letter agreement, together with its exhibits, constitutes the entire and exclusive agreement between you and the Company, and it supersedes any prior agreement, promise, representation, or statement, written or otherwise, between you and the Company with regard to this subject matter. It is entered into without reliance on any promise, representation, statement or agreement other than those expressly contained or incorporated herein, and it cannot be modified or amended except in a writing signed by you and a duly authorized officer of the Company. 

10.6Counterparts.  This letter agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same agreement.  Copies of original signature pages sent by facsimile and/or PDF shall have the same effect as signature pages containing original signatures.

10.7Headings.  The headings of the articles and sections hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to affect the meaning thereof.

10.8Successors and Assigns.  This letter agreement is intended to bind and inure to the benefit of and be enforceable by you, the Company and your and its respective successors, assigns, heirs, executors and administrators, except that you may not assign any of your duties hereunder and you may not assign any of your rights hereunder without the written consent of the Company.

10.9Governing Law.  All questions concerning the construction, validity and interpretation of this letter agreement will be governed by the law of the State of California as applied to contracts made and to be performed entirely within California.

10.10Attorneys’ Fees.  If either party hereto brings any action to enforce your or its rights hereunder, the prevailing party in such action shall be entitled to be paid by the other party such prevailing party’s reasonable attorneys’ fees and costs incurred in such action.

Enclosed is your Employee Agreement on Confidential Information and Inventions, which you should read carefully.

To indicate your acceptance of the Company’s offer, please sign this letter agreement in the space provided below and return it to me along with the signed Exhibit A. This offer shall expire on June 25, 2019 if not accepted prior to such date.  If you have any questions regarding this letter agreement, feel free to contact me

 

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Sincerely,

 

	
CymaBay Therapeutics, Inc.

	
 

	
 

	
By:
	
/s/ Sujal Shah

	
 
	
    Sujal Shah

	
 
	
    President and Chief Executive Officer

 

 

Accepted and agreed:

 

 

	
 
	
/s/ Janet Dorling

	
 
	
Janet Dorling

 

Employment Commencement Date:  August 5, 2019

 

 

Exhibit A – Employee Agreement on Confidential Information and Inventions

 

Exhibit B – Release Agreement

 

 

 

 

 

 

 

 

 

Exhibit A

EMPLOYEE AGREEMENT ON CONFIDENTIAL

INFORMATION AND INVENTIONS 

 

THIS AGREEMENT is between CymaBay Therapeutics, Inc. a Delaware Corporation (“the Company”), and Janet Dorling, (the “Employee”).

 

PURPOSE OF AGREEMENT

 

I want to be employed by the Company, and the Company wants to employ me, provided that, in so doing, it can protect its trade secrets and inventions, ideas, information, business, and good will.

 

In consideration of this purpose, and the mutual promises in this Agreement, I agree with the Company as follows:

 

1.Term

 

(A)My employment with the Company is an at-will relationship that may be terminated by either the Company or me with or without cause for any reason whatsoever at any time upon notice to the other party.

 

(b)If my employment is terminated for any reason, I will be entitled only to the compensation earned by me as of the date of termination.

 

2.Confidential Information.  I will hold in confidence and use only for the benefit of the Company during the term of my employment and for five years after the termination of my employment all Confidential Information of the Company, its Affiliates,  and all Confidential Information of companies or persons other than the Company given to the Company under an agreement prohibiting its disclosure.  “Confidential Information” refers to valuable technical or business information that is not known by the public.  By way of example, Confidential Information may include information relating to: inventions or products, including unannounced products; research and development activities; requirements and specifications of specific customers and potential customers; nonpublic financial information; and quotations or proposals given to customers.

 

These restrictions on disclosure do not apply if the information is or becomes publicly known through no wrongful act on my part or the information is explicitly approved for release under such circumstances by an officer of the Company.

 

3.Disclosure and Assignment of Inventions.  I hereby assign to the Company my entire right, title and interest in all inventions.  “Inventions” refer to (a) all technical or business innovations, whether or not patentable or copyrightable, made by me during the term of my employment; and (b) all technical or business innovations, whether or not patentable, based upon the Company's Confidential Information and made by me after leaving the Company's employ.  I will keep adequate written records of all inventions made by me, such as notebooks, sketches, 

 

 

program listings and the like, which are the property of the Company.  Notwithstanding the foregoing, I am not required to assign to the Company, although I must disclose, any inventions: (a) for which no equipment, supplies, facilities or Confidential Information of the Company were used and which was developed entirely on my own time; (b) which at the time of conception or reduction to practice did not relate directly to the business of the Company or the Company's actual or demonstrably anticipated research or development and (c) which did not result from any work I performed for the Company.  The disclosure of such inventions must be made so that the parties can make a determination whether such inventions do in fact qualify for exclusion from assignment to the Company.  The Company will keep confidential any such information I disclose.  I will take all steps necessary to assist the Company in securing any patents, copyrights or other protection for inventions which I am required to assign to the Company as provided above.  If I am unable or unwilling, whether during my employment or after termination, to sign any papers needed to apply for or pursue any patent or copyright registrations for inventions, I agree that the Company is my attorney-in-fact for that purpose and can sign such papers as my agent and take any other actions necessary to pursue these registrations.

 

4.List of Inventions I Own.  I have attached as Exhibit A a list of inventions I own, which is a complete list of all technical or business innovations I own either alone or jointly with others on the date of this Agreement.  I agree that I will not incorporate any of these prior inventions into products being developed for the Company without the prior knowledge and written consent of the Company.  Should the Company wish to use any of my inventions in its business, the Company will negotiate with me for a purchase of or license to use such invention on mutually agreeable terms.  If no such list is attached, or if no such inventions are listed thereon, I represent that I do not own any inventions at the time of signing this Agreement.

 

5.Tangible Materials.  All tangible materials that incorporate Confidential Information are the Company's property, and I will give all of these materials and any other documents and materials which are the property of the Company, including but not limited to all notes of any research or other work which I have performed for the Company and all biological materials created, used or held by me in the course of my work for the Company, back to the Company at the termination of my employment or earlier upon the Company's request.

 

6.Solicitation of Employees.  I understand that information about the Company's employees, such as their skills, performance ratings, and salary histories, constitutes Confidential Information owned by the Company.  I agree that, for a period of twelve (12) months after termination of my employment for any reason, I will not, either directly or indirectly, solicit, induce, recruit or encourage any of the Company's employees to leave their employment, or take away such employees, or attempt to do any of these things, whether on my own behalf or on behalf of any other person, since to do so would necessarily involve using Confidential Information.

 

8.Termination.  In the event of termination of my employment for any reason, I agree that, as requested by the Company, I will sign and deliver a “Termination Certification” in the form attached to this Agreement as Exhibit B.  I also agree that the Company may give notice to my new employer of my duties under this Agreement.

 

 

 

9. Duty of Loyalty. During my employment with the Company, I will not engage in any business activity (either for my own profit or for anyone else) that competes with the Company's business.

 

10.Duties to Third Parties.  I represent that, to the best of my knowledge, compliance with the terms of this Agreement will not violate any duty that I may have to anyone other than the Company (such as a former employer) to keep such person's proprietary information in confidence or to refrain from using that person's patents or copyrights.  If at any time during my employment with the Company, I am asked by the Company to perform work which I believe may cause me to violate a duty I have to someone other than the Company, I will immediately inform an officer of the Company so that an assessment of the situation may be made.  I also agree that I will not, during my employment with the Company, bring onto the Company's premises, use or disclose to the Company any proprietary information or trade secrets of any former employer or any other person without that person's consent.

 

11.Miscellaneous.  This is the only agreement between the Company and myself about confidential information and the ownership of inventions, and may not be modified, amended or terminated, in whole or in part, except in a writing signed by me and by an officer of the Company.  Any later change in my title, compensation or duties will not affect this Agreement.  This Agreement will survive termination of my employment for any reason, and will continue for the benefit of and will be binding upon the successors, assigns, heirs and legal representatives of the Company and myself.  Any waiver by the Company of a breach of any of the obligations of this Agreement by me will not operate or be construed as a waiver of any other or subsequent breach by me.  In the event any provision of this Agreement is held to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force and effect without being impaired or invalidated in any way.  The prevailing party in any legal action brought by one party against the other and arising out of this Agreement shall be entitled, in addition to any other rights and remedies it may have, to reimburse for its expenses, including court costs and reasonable attorney's fees.  This Agreement will be governed by the laws of the State of California governing contracts between residents to be performed in the State of California.

 

 

 

 

	
 
	
     CymaBay Therapeutics, Inc.
	
 
	
 
	
     Employee

	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ Sujal Shah
	
 
	
By:
	
/s/ Janet Dorling

	
 
	
     Sujal Shah
	
 
	
 
	
     Signature

	
 
	
     President and Chief Executive Officer
	
 
	
 
	
     Janet Dorling

 

 

	
 
	
 
	
 18 June 19
	
 
	
 
	
 
	
 June 19, 2019

	
 
	
 
	
Date
	
 
	
 
	
 
	
Date

 

 

 

EXHIBIT A

 

List of Inventions I Own (see para. 4.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT B

 

Termination Certificate

 

This is to certify that I do not have in my possession, nor have I failed to return, any devices, records, data, notes, reports, proposals, lists, equipment, computer programs or listings, other documents or property or any reproductions of any of these materials belonging to CymaBay Therapeutics, Inc., a Delaware corporation, its subsidiaries, successors or assigns (collectively, the “Company”).

 

I further certify that I have complied with all the terms of the Company's Employee Confidential Information and Inventions Agreement signed by me, including the reporting of any inventions and original works of authorship (as defined in that agreement) conceived or made buy me (solely or jointly with others) covered by that agreement.

 

I further agree that, in compliance with the Employee Confidential Information and Inventions Agreement, I will preserve as confidential all trade secrets, confidential knowledge, data or other proprietary information relating to inventions or products, including but not limited to unannounced products, research and development activities, requirements and specifications of specific customers and potential customers, nonpublic financial information, and quotations or proposals given to customers, including any information disclosed to the Company in confidence by any third party.

 

I further agree that for twelve (12) months from this date, I will not solicit, induce, recruit or encourage any of the Company's employees to leave their employment.

 

	
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Exhibit B

Release Agreement

(To be signed on or after the Separation Date)

I understand that my employment with CymaBay Therapeutics, Inc. (the “Company”) terminated effective _____________________, ____ (the “Separation Date”). The Company has agreed that if I choose to sign this Release Agreement (“Release”), the Company will provide certain severance benefits (minus the required withholdings and deductions) pursuant to the terms of the employment agreement dated ________________ (as amended, the “Letter Agreement”). I understand that I am not entitled to such severance benefits unless I sign this Release, and it becomes fully effective.

I understand that this Release, together with the Letter Agreement, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with regard to the subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated therein.

I hereby confirm my obligations under my Employee Agreement on Confidential Information and Inventions with the Company.

I hereby represent that I have been paid all compensation owed and for all hours worked, have received all the leave and leave benefits and protections for which I am eligible, pursuant to the Family and Medical Leave Act or otherwise, and have not suffered any on-the-job injury for which I have not already filed a claim.

In exchange for the consideration provided to me by this Release that I am not otherwise entitled to receive, I hereby generally and completely release Company and its current and former directors, officers, employees, stockholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Release. This general release includes, but is not limited to: (a) all claims arising out of or in any way related to my employment with the Company or the termination of that employment; (b) all claims related to my compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company; (c) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (d) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (e) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), and the California Fair Employment and Housing Act (as amended). 

 

 

Nothing in this Release shall prevent me from filing, cooperating with, or participating in any proceeding before the Equal Employment Opportunity Commission, the Department of Labor, or the California Department of Fair Employment and Housing, except that I hereby acknowledge and agree that I shall not recover any monetary benefits in connection with any such proceeding.

I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the ADEA (“ADEA Waiver”). I also acknowledge that the consideration given for the ADEA Waiver is in addition to anything of value to which I was already entitled. I further acknowledge that I have been advised by this writing, as required by the ADEA, that:  (a) my ADEA Waiver does not apply to any rights or claims that arise after the date I sign this Release; (b) I should consult with an attorney prior to signing this Release; (c) I have twenty-one (21) days to consider this Release (although I may choose to voluntarily sign it sooner); (d) I have seven (7) days following the date I sign this Release to revoke the ADEA Waiver; and (e) the ADEA Waiver will not be effective until the date upon which the revocation period has expired unexercised, which will be the eighth day after I sign this Release.

I acknowledge that I have read and understand Section 1542 of the California Civil Code which reads 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.”  I hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release of any claims hereunder.

I acknowledge that to become effective, I must sign and return this Release to the Company so that it is received not later than twenty-one (21) days following the date it is provided to me.

I accept and agree to the terms and conditions stated above: 

 

 

	
 
	
 
	
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Date
	
 
	
Janet Dorling

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