Document:

EX-10.16

 Exhibit 10.16 

 
 

 
 October 28, 2020 

Laurence Reid 
  

	Re:	 Offer of Employment  

Dear Laurence: 
 Decibel Therapeutics, Inc. (the
“Company”) is pleased to confirm its offer to employ you as Chief Executive Officer. 
 1. Date of Hire. Your effective date of hire as an
employee (the “Start Date”) shall be Monday, November 2, 2020 unless another date is agreed upon by you and the Company. 
 2.
Compensation. Your regular base salary for this position will be at the rate of $460,000 annually, payable in accordance with the Company’s normal pay schedule. You will receive a sign-on bonus of
$215,000, and you will be eligible to participate in the Company’s annual bonus plan. Your Target Bonus will be 45% of your annual salary. Your actual bonus payable may be more or less than your Target Bonus and will be based upon achievement
of both corporate and individual goals. You are not eligible for a 2020 bonus. All payments are subject to legally required tax withholdings. Your compensation will be revisited when the Company becomes a public company. 

3. Equity in Post-Financing Decibel. Subject to the approval by the Board of Directors of the Company (the “Board”), in connection with the
commencement of your employment, you will receive the right to purchase 5.25% of the Fully Diluted shares of the Company’s common stock (the “Stock Options”). The Stock Options will be granted following the commencement of your
employment in conjunction with the Company’s current round of financing. The strike price of the Stock Options will be equal to the fair market value of the Company’s common stock on the date of the grant, as determined by the Board of
Directors in connection with the Company’s current round of financing. The Stock Options will be subject to the terms and conditions of the Company’s then-current incentive stock plan and form of Stock Option agreement (the “Equity
Documents”). As of your Date of Hire, your Stock Options will be 25% vested, and the remaining Stock Options will vest on a schedule of one-thirty-sixth (1/36) per month over a period of three years. 

4. Post-termination Compensation and Benefits. 

(a) Earned Compensation. Regardless of the reason for the termination of your employment, the Company shall pay to you in
a single lump sum, within 30 days following the date your employment ends (the “Date of Termination”) (or such earlier date as required by law), the base salary earned by you as of the Date of Termination but not yet paid. In addition, the
Company shall pay to you in cash within 20 business days following the Date of Termination, reimbursement for any unpaid, valid business expenses that are approvable in accordance with Company policy and that have been submitted by the Date of
Termination (and shall pay any valid business expenses timely submitted after such date in accordance with Company policy). The Company shall notify you regarding eligibility for COBRA and any other applicable benefits, as provided by law. 

(b) Severance Pay. In the case of a termination without cause (i.e., a termination of your employment by the Company
(including a Constructive Termination) for any reason other than (i) Cause, (ii) illness or injury, or (iii) death), and subject to your entering into a separation and release of claims agreement in a form satisfactory to the Company, you
shall receive the payments and benefits set forth in 

  
 

 

 
Sections (b) and (c). The Company shall pay to you severance equal to the sum of twelve (12) months of Base Salary and 100% of your Target Bonus. Notwithstanding the foregoing,
in the event of termination without cause (including Constructive Termination) pursuant to a Change of Control, your severance will equal the sum of eighteen (18) months of Base Salary and 100% of your
pro-rated Target Bonus. The Severance Pay shall be paid in installments in accordance with its regular payroll practices, beginning with the Payment Date (as defined below). For this purpose, “Base
Salary” means your highest base salary rate on or before your Date of Termination. 
 (c) COBRA Premiums. Should
you timely elect and be eligible to continue receiving group health insurance pursuant to the “COBRA” law, the Company will, until the earliest of (x) the date that is twelve (12) months following the Separation Date,
(y) the date on which you obtain alternative coverage or (z) the date on which your COBRA eligibility ends (as applicable, the “COBRA Contribution Period”), continue to pay the Company’s share of the premiums for such
coverage to the same extent it pays for similarly-situated, active employees. The Company’s payment of those premiums may take the form of reimbursement of premium costs to you after you have paid them, or payment to you of funds equal to the
amount of the premiums, so that you can then make payments directly to the COBRA insurance carrier. In any case, you agree that any premium costs shall be paid by you, not the Company, to the COBRA insurance carrier. That is, any premium costs
during the COBRA Contribution Period, and all premium costs thereafter, shall be paid by you on a monthly basis for as long as, and to the extent that, you remain eligible for COBRA continuation. You agree that, should you obtain alternative medical
and/or dental insurance coverage prior to the date that is twelve (12) months following the Separation Date, you will so inform the Company in writing within five (5) business days of obtaining such coverage. 

For the purpose of this Section 4, the following definitions apply: 

(i) “Cause” means (i) material breach by you of any other agreement with the Company or any of its affiliates;
(ii) other conduct by you that is materially harmful to the business, interests or reputation of the Company or any of its affiliates, (iii) your conviction of, or pleading guilty or no contest to, any crime involving fraud, embezzlement
or other material dishonesty by you with respect to the Company or any of its affiliates; (iv) your conviction of, or pleading guilty or no contest to, any crime involving moral turpitude; (v) a breach of any confidentiality agreement with
the Company; or (vi) a breach of any non-competition/non-solicitation agreement with the Company. With respect to a breach of (i) or (ii), you shall be given
30 days, after written notice of such breach, to cure a breach to the reasonable satisfaction of the Company. 
 (ii)
“Constructive Termination” means any action on the part of the Company not consented to by you in writing that has the following effect or effects: (i) a material reduction in reporting relationship, authority, duties or
responsibilities in accordance with applicable law, provided however, that a sale or transfer of less than all or substantially all of the business of the Company or any of its subsidiaries or other reduction of less than all or substantially all of
its business or that of its subsidiaries, or the fact that the Company has become a subsidiary of another company or that the securities of the Company are no longer publicly traded, in and of itself shall not constitute a material diminution in
your authority, duties or responsibilities has occurred; or (ii) any material reduction in your base salary. Notwithstanding the foregoing, if the Company has become a subsidiary of another company and your employment with the Company continues
for a period of 12 months following such time as the Company becomes a subsidiary without your consent in writing, termination of your employment by you within 30 days of such first anniversary shall be deemed a Constructive Termination for purposes
of this Section 4. 
 5. Insurance Benefits. You will be eligible to participate in the Company’s Medical and Dental insurance programs as
well as the Life, AD&D, Short- and Long-Term Disability plans, and 401(k) plan subject to the terms and conditions of those plans. Presently, the Company pays for 85% of the premium cost of the HMO plan and 75% of the deductible for both medical
plans (HMO and PPO), and 100% of the cost of Life and AD&D insurance as well as Short- and Long-Term Disability plans. 

  
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 6. At-Will Employment. It is understood and agreed that that
you are an “at-will” employee. You are not being offered employment for a definite period of time, and either you or the Company may terminate the employment relationship at any time and for any
reason, with or without cause or prior notice and without additional compensation to you except for as provided in Section 4 above. In making this offer, the Company understands, and in accepting it you represent that, you are not under any
obligation to any former employer or any person or entity which would prevent, limit, or impair in any way the performance by you of your duties as an employee of the Company, except as disclosed by you to the Company in Exhibit B to the
Employee Confidentiality, Noncompetition and Assignment Agreement. 
 7. Employment Eligibility. The Immigration Reform and Control Act requires
employers to verify the employment eligibility and identity of new employees. You will be required to complete a Form I-9 which will be provided to you before the Start Date. Please bring the appropriate
documents listed on that form with you when you report for work. We will not be able to employ you if you fail to comply with this requirement. 
 This
offer letter, the Employee Confidentiality, Noncompetition and Assignment Agreement, Change in Control Agreement, and the Equity Documents referenced above contain all of the terms of your offer of employment with the Company, and supersede any
prior offers, representations, or understandings (whether written, oral, or implied) between you and the Company. 
 Please indicate your acceptance of this
offer by signing this letter and the accompanying Change in Control Agreement, and Employee Confidentiality, Noncompetition and Assignment Agreement no later than November 2, 2020. 

We look forward to your joining the Company and are pleased that you will be working with us. 

Very truly yours, 
 Abbie Celniker 

Chair, Compensation Committee 
 Decibel Therapeutics, Inc. 

Accepted and Agreed: 
 /s/ Laurence
Reid                 
 Laurence Reid 

11/2/2020                        
     
 Date 

  
 3EX-10.17

 Exhibit 10.17 

 
 

 
 November 2, 2020 

Laurence Reid 
  

	Re:	 Decibel Therapeutics, Inc. Change in Control Agreement 

Dear Laurence: 
 The Company desires to provide you with
accelerated vesting of equity after a change in control (as defined herein) in certain circumstances. Accordingly, the Company agrees to provide a change in control benefit to you on the terms and conditions set forth in this Change in Control
Agreement (the “Agreement”) between Decibel Therapeutics, Inc. (the “Company,” which term shall include any successor by merger, consolidation, sale of substantially all of the Company’s assets or
otherwise) and (“you”), to be effective on the same day as your employment commences (the “Effective Date”). Terms that are not defined herein where used appear on Exhibit A hereto. This benefit of
stock is in lieu of any acceleration benefit that would otherwise be payable to you under any employment agreement between you and the Company, any severance pay plan maintained by the Company for the benefit of Company employees, or by statute.
This Agreement does not represent an employment contract for any definite term or period, which means that either you or the Company can terminate your employment at any time, for any reason or no reason, and with or without notice, except as
expressly set forth in any employment agreement between you and the Company. 
 Equity Acceleration. If, during the 15 month period commencing three
months prior to the closing of a Change in Control, (i) your employment ends as a result of Termination without Cause or your resignation for Good Reason, or (ii) the acquirer fails to assume the equity obligation (a “Qualifying
Termination”) and subject to the release requirement in Section 2 and to your continuing compliance with any restrictive covenant agreements between you and the Company, to the extent not already vested and exercisable, the vesting
of your Stock-Based Award shall become accelerated by 100%, so that your Stock-Based Award is fully vested, pending satisfying the release requirements, upon the occurrence of the Qualifying Termination, subject to compliance, if necessary, with
Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”). “Stock-Based Award” means any option, stock appreciation right, restricted stock,
or restricted stock unit granted by the Company to you pursuant to the Company’s 2015 Stock Incentive Plan of Decibel Therapeutics, Inc. or any successor plan or agreement, or any other Company equity compensation plan or agreement in which you
participated. 
 Required Release. The Company’s obligation to provide equity acceleration under this Agreement is subject (a) to your
signing a release of claims in favor of the Company, confirmation of continued compliance with restrictive covenants, and post-employment cooperation on a form with customary terms to be supplied by the Company at or promptly following the Date of
Termination, which release becomes enforceable within 60 days (or such shorter period as the Company specifies) following the Date of Termination (the “Release”) and (b) to your meeting in full your obligations under any
restrictive covenant agreements in effect between you and the Company. The date for acceleration is the date of the first payroll whose cutoff date follows the date the Release becomes enforceable, provided that if the 60 day period for providing an
enforceable release extends into a calendar year subsequent to the year containing the Date of Termination, the acceleration will be no earlier than the first business day of such subsequent year. 

  
 

 

 Amendment; Survival. This Agreement may be amended or modified only by a written instrument signed by
you and by an expressly authorized representative of the Company. The Company shall require any successor-in interest whether directly or indirectly by purchase, merger, consolidation, reorganization or
otherwise to all or substantially all of the business assets of the Company, expressly to assume and agree to perform this Agreement in the same manner and to the same extent as the Company would be required to perform if no such succession had
taken place. 
 Withholding; Section 409A. All benefits hereunder shall be subject to reduction for applicable tax withholdings.
If and to the extent any portion of any compensation or other benefit provided to you in connection with your employment termination is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A
and you are a specified employee as defined in Section 409A(a)(2)(B)(i), as determined by the Company in accordance with its procedures, by which determination you hereby agree that you are bound, such portion of the compensation or other
benefit shall not be paid or provided before the earlier of (i) the expiration of the six month period measured from the date of your “separation from service” (as determined under Section 409A) or (ii) the
tenth day following the date of your death following such separation from service (or such later date as is required for administrative practicability and permitted under Section 409A) (the “New Acceleration Date”). The
acceleration of equity that otherwise would have been provided to you during the period between the date of separation from service and the New Acceleration Date shall be provided to you in the first payroll period beginning after such New
Acceleration Date. This Agreement is intended to comply with the provisions of Section 409A and this Agreement shall, to the extent practicable, be construed in accordance therewith. Terms defined in this Agreement will have the meanings given
such terms under Section 409A if and to the extent required to comply with Section 409A. In any event, the Company makes no representations or warranty and will have no liability to you or any other person if any provisions of acceleration
of equity under this Agreement are determined to constitute deferred compensation subject to Code Section 409A but not to satisfy the conditions of that section. 

No Mitigation. In no event shall you be obligated to seek other employment or take any other action by way of mitigation of the acceleration of equity
provided to you under any of the provisions of the Agreement, and in no event shall your equity hereunder be reduced by any compensation earned by you as a result of employment by another employer. 

Amendment to Conform to Law. The Company may amend this Agreement to comply with or avail itself of any changes in common law or statutory law or
regulations related to the terms of this Agreement. 
 Notices. Any and all notices, requests, demands and other communications provided for by this
Agreement shall be in writing and shall be effective when delivered in person or deposited in the United States mail, postage prepaid, registered or certified, and addressed to you at your last known address on the books of the Company or, in
the case of the Company, at its principal place of business, attention of the Chief Human Resources Officer, or to such other address as either party may specify by notice to the other actually received. 

Entire Agreement. This Agreement together with the “Laurence Reid Offer Letter”, the Employee Confidentiality, Noncompetition and Assignment
Agreement, and the Equity Documents executed in parallel with this Agreement constitute the entire agreement between the parties and supersede all prior communications, agreements and understandings, written or oral, with respect to the terms and
conditions of your compensation as a result of a Change in Control, including, as of the Effective Date, any such terms in a prior offer letter or employment agreement between the Company and you. 

  
 2 

 Severability. Each provision of this Agreement shall be considered severable such that if any one
provision or clause conflicts with existing or future applicable law, or may not be given full effect because of such law, this shall not affect any other provision of the Agreement which, consistent with such law, shall remain in full force and
effect. All surviving clauses shall be construed so as to effectuate the purpose and intent of the parties. 
 Headings. The headings and captions in
this Agreement are for convenience only and in no way define or describe the scope or content of any provision of this Agreement. 
 Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument. 

Governing Law. This Agreement shall be governed by the laws of the Commonwealth of Massachusetts without regard to its conflicts of laws principles.

  

									
	LAURENCE REID	 	 	 	DECIBEL THERAPEUTICS, INC.
					
	By:	 	/s/ Laurence Reid	 		 	By:	 	/s/ Abbie Celniker
					
	Name:	 	Laurence Reid	 		 	Name:	 	Abbie Celniker
					
	Title:	 	CEO	 		 	Title:	 	Chair, Compensation Committee
					
	Date:	 	11/2/2020	 		 	Date:	 	11/2/2020

  
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 Exhibit A 

Definitions 
 Definitions. The
following terms as used in this Agreement shall have the following meanings: 
 “Affiliate” means any business entity in which the
Company holds, directly or indirectly, an equity, profits, or voting interest of 30% or more, and includes any subsidiary. 

“Cause” means, for purposes of this Agreement (i) material breach by you of any other agreement with the Company or any of its
Affiliates; (ii) other conduct by you that is materially harmful to the business, interests or reputation of the Company or any of its Affiliates; (iii) fraud, embezzlement or other material dishonesty by you with respect to the Company or
any of its Affiliates; (iv) your conviction of, or pleading guilty or no contest to, any crime involving moral turpitude or any; (v) a breach of any confidentiality agreement with the Company; or (vi) a breach of any non-competition/non-solicitation agreement with the Company. With respect to a breach of (i) or (ii), you shall be given 30 days, after written notice of such
breach, to cure a breach to the reasonable satisfaction of the Company. 
 “Change in Control” or “Change in Control of
the Company” shall mean the occurrence hereafter of any of the following, provided, in each case, that such event also constitutes a “change in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5) if necessary to avoid the imposition of additional taxes under Section 409A (as defined below): 

a change in the composition of the Board over a period of thirty-six consecutive months or less such that a majority
of the members of the Board ceases to consist of individuals who are Continuing Members; for such purpose, a “Continuing Member” shall mean an individual who is a member of the Board on the date of this Agreement and any
successor of a Continuing Member who is elected to the Board or nominated for election by action of a majority of Continuing Members then serving on the Board; 

any merger or consolidation that results in the voting securities of the Company outstanding immediately prior thereto representing (either by remaining
outstanding or by being converted into voting securities of the surviving or acquiring entity) less than 50% of the combined voting power of the voting securities of the Company or such surviving or acquiring entity outstanding immediately after
such merger or consolidation; 
 any sale of all or substantially all of the assets of the Company to any Person; 

the complete liquidation or dissolution of the Company; or 
 the
acquisition of “beneficial ownership” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of securities of the Company representing 50% or more of the combined voting
power of the Company’s then outstanding securities (other than through a merger or consolidation or an acquisition of securities directly from the Company) by any Person, other than the Company, any trustee or other fiduciary holding securities
under an employee benefit plan of the Company or any corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportion as their ownership of stock of the Company. 

“Good Reason” means any action on the part of the Company not consented to by you in writing that has the following effect or effects:
(i) any action by the Company that results in a material diminution in your reporting relationship, authority, duties or responsibilities; provided, however, that a sale or transfer of less than all or substantially all of the business
of the Company or any of its subsidiaries or other reduction of less than all or substantially all of its business or that of its subsidiaries, or the fact that the Company has 

  
 4 

 
become a subsidiary of another company or that the securities of the Company are no longer publicly traded, in and of itself shall not constitute a material diminution in your authority, duties
or responsibilities has occurred; (ii) any material reduction in your base salary; or (iii) the Company requires you to be based at any office or location that is more than 50 miles distant from your base office or work location
immediately prior to relocation, except if such new location is closer to your residence at the time such requirement is imposed. Notwithstanding the occurrence of any such event or circumstance, such occurrence shall not be deemed to constitute
Good Reason unless (x) you give the Company the notice of termination no more than 90 days after the initial existence of such event or circumstance (or series of either), (y) such event or circumstance has not been fully corrected within
30 days of the Company’s receipt of such notice and (z) the Date of Termination occurs within 30 days following the end of the correction period if the Good Reason has not been corrected. In addition, if the Company has become a subsidiary
of another company and your employment with the Company continues for a period of 12 months following such time as the Company becomes a subsidiary without your consent in writing, termination of your employment by you within 30 days of such first
anniversary shall be deemed for Good Reason. 
 “Termination without Cause” means a termination of your employment by the Company
for any reason other than (i) Cause, (ii) illness or injury, or (iii) death that occurs during the 15 month period commencing three months prior to closing of a Change in Control and subject to the release requirement in Section 2 and
to your continuing compliance with any restrictive covenant agreements between you and the Company. 
 Sincerely, 

/s/ Abbie Celniker
                                 

Title 
 Please sign below for your acceptance of the terms of
this Agreement. 
 I accept the terms of this Agreement. 

/s/ Laurence
Reid        11/2/2020             

Employee                    Date 

  
 5

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