Document:

Offer Letter, dated April 26, 2005, between Pharsight and Mark Hovde

 Exhibit 10.26 
  
 April 15, 2005 
  
 VIA EMAIL AND FEDERAL EXPRESS 
  
 Mark Hovde 
  
 Dear Mark: 
  
 On behalf of Pharsight Corporation
(“Pharsight” or the “Company”), I am pleased to offer you the position of Vice President, Marketing, reporting directly to me, with a start date of April 18, 2005 or as otherwise mutually agreed. 
  
 We are confident that you will make an outstanding addition to our team. There are many
professional and technical challenges and the company is still small enough and growing rapidly enough to provide ample opportunity for professional development and an increasing role in the leadership of the firm. Pharsight also offers you the
opportunity to participate in the company’s growth, on both a financial and intellectual basis. 
  
 Base Salary and Bonus Potential 
  
 Your
base salary will be $240,000 annually, and will be paid semi-monthly. In FY2006 (which began April 1, 2005) and for subsequent years, you will be eligible for an annual performance bonus, pursuant to the terms and conditions of the Company’s
Management Incentive Bonus Program, targeted at thirty-five (35%) percent of your base salary, with total compensation targeted at $324,000. This bonus is tied to company corporate performance goals as well as specific goals to be determined based
upon your individual responsibilities, and will be pro-rated from your date of hire for FY2006 to reflect the date on which you joined the Company as Vice President, Marketing. The Company’s Compensation Committee will determine in its sole
discretion whether you have earned an annual bonus, and the amount of any earned annual bonus, provided that you are employed by Pharsight and in good standing at the time of annual payment. 
  
 The Company may modify your compensation from time to time as it deems necessary. 

 
 Employee Benefits 
  
 You will be eligible for Pharsight’s employee benefits programs, including health, dental, life and disability insurance and 401(k)
plan. 
  
 Stock Options 
  
 In addition, I will recommend to the Board that you be granted an option to purchase two
hundred fifty thousand (250,000) shares of Pharsight common stock with an exercise price equal to the fair market value of such shares in accordance with the terms of the Company’s 2000 Equity Incentive Plan. Such options will vest over a four
(4) year period as follows: 25% will vest on the first anniversary date of grant and the remainder will vest in equal monthly installments thereafter until fully vested (“Vesting 

  

 Offer Letter for Mark Hovde 
 April 15, 2005 
 Page 2 
  

 
Schedule”). However, upon a Change of Control (as defined in the Company’s 2000 Equity Incentive Plan), the Vesting Schedule will accelerate by one
(1) year (“Accelerated Vesting”). Accelerated Vesting will immediately vest upon a Change of Control, the number of options equal to the amount, which would have vested one year from the occurrence of such event. Accelerated Vesting
described herein will supplement, but not supersede section 12(c) of the Company’s 2000 Equity Incentive Plan as amended and restated. 
  
 Confidential Information and Inventions Assignment Agreement; Company Policies and Procedures 
  
 As a condition of your employment with Pharsight, you will be required to sign the Company’s Confidential Information and Inventions
Assignment Agreement, two originals of which are enclosed. Please sign both originals and return one to me with your acceptance of this offer. 
  
 In order to comply with Federal labor law requirements (IRCA), you will be required to provide the Company documentary evidence of your identity and eligibility for
employment in the United States. Such documentation must be provided to us within three (3) business days of your date of hire, or our employment relationship with you may be terminated. 
  
 In addition, you will continue to be required to abide by the Company’s policies and procedures, as may be in effect from time to time
and as reflected in the Company’s Employee Handbook. 
  
 At-Will
Employment Relationship 
  
 Your employment continues to be terminable
at-will, and either you or the Company may terminate your employment relationship at any time, with or without Cause (defined below) or advance notice. 
  
 Severance Benefits 
  
 In the event that your employment is involuntarily terminated by the Company without Cause, as your sole severance benefits, the Company will continue to pay your base salary and health care benefits in effect on the
termination date for six (6) months (the “Severance Payments”). As a condition of your receipt of the Severance Payments, you must first enter into a separation agreement with the Company that includes your general release of all known and
unknown claims, in a form provided by the Company. The Severance Payments will be paid on the Company’s normal payroll schedule and will be subject to standard deductions and withholdings. 
  
 For the purposes of this letter, “Cause” for your termination shall mean: (a) your
conviction of any felony or of any crime involving dishonesty; (b) your participation in any fraud or act of dishonesty against the Company; (c) failure to perform your assigned duties or responsibilities as an employee (other than a failure
resulting from a “disability” as that term is defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”) after written notice thereof from the Company setting forth your failure to perform
such duties or responsibilities; (d) your intentional damage to, or willful misappropriation of, any property of the Company; (e) your material breach of any written agreement with the Company (including this Agreement or your Confidential
Information and Inventions Assignment Agreement); or (f) conduct, that in the good faith and reasonable determination of the Board demonstrates gross unfitness to serve. 
  
 In addition, if, within six (6) months of a Change in Control (defined below), you resign from your employment with the Company and such
resignation qualifies as a Resignation for Good Reason (defined below), you shall be entitled to receive the Severance Benefits, provided that you must first enter into a 

  

 Offer Letter for Mark Hovde 
 April 15, 2005 
 Page 3 
  

 
separation agreement with the Company that includes your general release of all known and unknown claims, in a form provided by the Company. 
  
 For the purposes of this letter, the occurrence of either of the following events shall
constitute a “Change in Control”: (a) the sale or lease of all or substantially all of the assets of the Company; or (b) an acquisition of the Company by another corporation or entity by consolidation, merger or other reorganization in
each case in which the holders of the Company’s outstanding voting stock immediately prior to such transaction own, immediately after such transaction, securities representing less than fifty percent (50%) of the voting power of the corporation
or other entity purchasing such assets or surviving such transaction. 
  
 For
purposes of this letter, a “Resignation for Good Reason” shall mean a resignation by you due to any of the following events which occur after and as a direct result of a Change in Control: (1) a material reduction in compensation, unless
such a reduction is applied, by resolution of the Board of Directors, to all members of the Company’s officers; (2) a material adverse change in your title due to a demotion; (3) a material adverse reduction in your role and responsibilities;
or (4) a requirement for you to relocate as a part of your position. 
  
 You will
not be eligible for any severance benefits in the event of a termination with Cause or any resignation that does not qualify as a Resignation for Good Reason. 
  

I am providing two originals of this letter. Please sign and return one to indicate your acceptance. This offer is valid through April 22, 2005. We are excited about
the prospect of having you on the Pharsight team. 
  

	
	 Sincerely,

	 PHARSIGHT CORPORATION

	
	 /s/ Shawn O’Connor

	 Shawn O’Connor

	 President and Chief Executive Officer

  

 Offer Letter for Mark Hovde 
 April 15, 2005 
 Page 4 
  

 I accept employment with Pharsight Corporation subject to the terms and conditions hereof. I understand that the
terms set forth in this letter supersede all oral discussions I may have had with anyone in the Company. 
  

	
	 ACCEPTED:

	
	/s/ Mark Hovde
	Mark Hovde
	
	April 26, 2005
	 DateLoan Modification Agreement, dated February 10,2005

 Exhibit 10.30 
  
 LOAN MODIFICATION AGREEMENT 
  

This Loan Modification Agreement is entered into as of February 10, 2005, by and between Pharsight Corporation (the “Borrower”) and Silicon Valley Bank
(“Bank”). 
  
 1. DESCRIPTION OF EXISTING OBLIGATIONS: Among other
Obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to, among other documents, an Amended and Restated Loan and Security Agreement, dated May 24, 2004, as amended or modified from time to time, (the “Loan
Agreement”). The Loan Agreement provides for, among other things, a Committed Revolving Line in the original principal amount of Three Million Dollars ($3,000,000) and Term Loan in the original principal amount of One Million Eight Hundred
Twenty Two Thousand Nine Hundred Dollars ($1,822,900). Defined terms used but not otherwise defined herein shall have the same meanings as set forth in the Loan Agreement. 
  
 Hereinafter, all indebtedness owing by Borrower to Bank shall be referred to as the “Obligations.” 
  
 2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the
Collateral as described in the Loan Agreement. 
  
 Hereinafter, the
above-described security documents and guaranties, together with all other documents securing repayment of the Obligations shall be referred to as the “Security Documents”. Hereinafter, the Security Documents, together with all other
documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”. 
  
 3. DESCRIPTION OF CHANGE IN TERMS. 
  

	 	A.	Modification(s) to Loan Agreement. 

  

	 	1.	Section 2.1.3 entitled “Term Loan 2” is hereby incorporated to read as follows: 

  

	 	(a)	Bank will make a Term Loan 2 available to Borrower. 

  

	 	(b)	Borrower will pay 36 equal installments of principal of $8,333.33 plus interest (the “Term Loan 2 Payment”). Each Term Loan 2 Payment is payable on the 1st of each month
during the term of the loan. Borrower’s final Term Loan 2 Payment, due on the Term Loan 2 Maturity Date, includes all outstanding Term Loan 2 principal and accrued interest. 

  

	 	2.	Sub letter (a) (ii) under Section 2.4 entitled “Interest Rate, Payments” is hereby amended in part to provide that effective as of the date hereof, Term Loan and Term Loan
2 accrues interest at a per annum rate of 1.25 percentage points above the Prime Rate. 

  

	 	3.	Section 4.2 entitled “Required Cash Collateral” is hereby amended in part to provide that upon the occurrence of an Event of Default, Borrower shall immediately deliver to
Bank, for deposit with Bank, cash in the amount of at least 105% of the then aggregate outstanding balances of the Term Loan and Term Loan 2. 

  

	 	4.	The following defined terms under Section 13.1 entitled “Definitions” are hereby amended and/or incorporated to read as follows: 

  
 “Credit Extension” is each Advance, Term Loan, Term Loan 2, or
any other extension of credit by Bank for Borrower’s benefit. 
  
 “Term Loan 2” a loan of up to $300,000. 
  

 “Term Loan 2 Maturity Date” is February 1, 2008. 
  
 4. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever
necessary to reflect the changes described above. 
  
 5. NO DEFENSES OF
BORROWER. Borrower (and each guarantor and pledgor signing below) agrees that, as of the date hereof, it has no defenses against paying any of the Obligations. 
  
 6. PAYMENT OF LOAN FEE. Borrower shall pay Bank a fee in the amount of One Thousand Five Hundred Dollars ($1,500) (“Loan
Fee”) plus all out-of-pocket expenses. 
  
 7. CONTINUING VALIDITY.
Borrower (and each guarantor and pledgor signing below) understands and agrees that in modifying the existing Indebtedness, Bank is relying upon Borrower's representations, warranties, and agreements, as set forth in the Existing Loan Documents.
Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this
Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower
to retain as liable parties all makers and endorsers of Existing Loan Documents, unless the party is expressly released by Bank in writing. Unless expressly released herein, no maker, endorser, or guarantor will be released by virtue of this Loan
Modification Agreement. The terms of this paragraph apply not only to this Loan Modification Agreement, but also to all subsequent loan modification agreements. 
  

8. CONDITIONS. The effectiveness of this Loan Modification Agreement is conditioned upon payment of the Loan Fee. 
  
 This Loan Modification Agreement is executed as of the date first written
above. 
  

									
	BORROWER:	 	 	 	BANK:
			
	PHARSIGHT CORPORATION	 	 	 	SILICON VALLEY BANK
					
	By:	 	 /s/ Cynthia Stephens
	 	 	 	By:	 	 /s/ Ron Kundich

	 Name:
	 	 Cynthia Stephens
	 	 	 	 Name:
	 	 Ron Kundich

	 Title:
	 	 Senior Vice President & Chief Financial Officer
	 	 	 	 Title:
	 	 Vice President

  

 

 
  
 SILICON VALLEY BANK 

 
 PRO FORMA INVOICE FOR LOAN CHARGES 
  

						
	 BORROWER:
	 	PHARSIGHT CORPORATION	  	 	 
			
	 LOAN OFFICER:
	 	Ron Kundich	  	 	 
			
	 DATE:
	 	February 10, 2005	  	 	 
			
	 	 	Loan Fee	  	$	1,500.00
	 	 	Documentation Fee	  	$	500.00
	 	 	TOTAL FEE DUE	  	$	2,000.00
	 	 	 	  	
	

  
 Please indicate the method of payment:

  

	 	 ̈	A check for the total amount is attached. 

  

	 	 ̈	Debit DDA # __________________ for the total amount. 

  

	 	 ̈	Loan proceeds 

  

			
		
	 /s/ Cynthia Stephens
	 	 February 14, 2005

	 Borrower
	 	 (Date)

		
	 /s/ Ron Kundich
	 	 February 14, 2005

	 Silicon Valley Bank
	 	 (Date)

	 Account Officer’s Signature

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]